Implications of the Modigliani-Miller Theorem for the Study of Exchange Rate Regimes

We extend the Modigliani-Miller Theorem to the composition of the public debt and show that in a deterministic model the structure of a government's assets and liabilities is undetermined. Hence, a floating exchange rate regime can implement any attainable competitive equilibrium. Concerning stochastic economies, if the government issues nominal bonds of several maturities, then the same result may hold. Thus, a conceivable link between the choice of an exchange rate regime and economic outcomes may be due to factors often not considered in standard macroeconomic models.Modigliani-Miller Theorem, exchange rate regime, indeterminacy

Collision-Dependent Atom Tunnelling Rate in Bose-Einstein Condensates

We show that the interaction (cross-collision) between atoms trapped in distinct sites of a double-well potential can significantly increase the atom tunneling rate for special trap configurations leading to an effective linear Rabi regime of population oscillation between the trap wells. The inclusion of cross-collisional effects significantly extends the validity of the two-mode model approach allowing it to be alternatively employed to explain the recently observed increase of tunneling rates due to nonlinear interactions.Comment: 4 pages, 2 figures. Replaced with improved versio

Household liquidity and incremental financing decisions:theory and evidence

In this paper we develop a stochastic model for household liquidity. In the model, the optimal liquidity policy takes the form of a liquidity range. Subsequently, we use the model to calibrate the upper bound of the predicted liquidity range. Equipped with knowledge about the relevant control barriers, we run a series of empirical tests on a panel data set of Dutch households covering the period 1992-2007. The results broadly validate our theoretical predictions that households (i) exhaust most of their short-term liquid assets prior to increasing net debt, and (ii) reduce outstanding net debt at the optimally selected upper liquidity barrier. However, a small minority of households appear to act sub-optimally. Poor and vulnerable households rely too frequently on expensive forms of credit (such as overdrafts) hereby incurring substantial amounts of fees and fixed borrowing costs. Elderly households and people on social benefits tend to accumulate too much liquidity. Finally, some households take on expensive short-term credit while having substantial amounts of low-yielding liquid assets

Integer programming based solution approaches for the train dispatching problem

Railroads face the challenge of competing with the trucking industry in a fastpaced environment. In this respect, they are working toward running freight trains on schedule and reducing travel times. The planned train schedules consist of departure and arrival times at main stations on the rail network. A detailed timetable, on the other hand, consists of the departure and arrival times of each train in each track section of its route. The train dispatching problem aims to determine detailed timetables over a rail network in order to minimize deviations from the planned schedule. We provide a new integer programming formulation for this problem based on a spacetime network; we propose heuristic algorithms to solve it and present computational results of these algorithms. Our approach includes some realistic constraints that have not been previously considered as well as all the assumptions and practical issues considered by the earlier works

Optimal Conditions for Atomic Homodyne Detection on Bose-Einstein Condensates

The dynamics of a two-mode Bose-Einstein condensate trapped in a double-well potential results approximately in an effective Rabi oscillation regime of exchange of population between both wells for sufficiently strong overlap between the modes functions. Facing this system as a temporal atomic beam splitter we show that this regime is optimal for a nondestructive atom-number measurement allowing an atomic homodyne detection, thus yielding indirect relative phase information about one of the two-mode condensates.Comment: 9 pages, 5 figure