Loss aversion with a state-dependent reference point

This study investigates loss aversion when the reference point is a state-dependent random variable. This case describes, for example, a money manager being evaluated relative to a risky benchmark index rather than a fixed target return level. Using a state-dependent structure, prospects are more (less) attractive if they depend positively (negatively) on the reference point. In addition, the structure avoids an inherent aversion to risky prospects and yields no losses when the prospect and the reference point are the same. Related to this, the optimal reference-dependent solution equals the optimal consumption solution (no loss aversion) when the reference point is selected completely endogenously. Given that loss aversion is widespread, we conclude that the reference point generally includes an important exogenously fixed component. For example, the typical investment benchmark index is externally fixed by the investment principal for the duration of the investment mandate. We develop a choice model where adjustment costs cause stickiness relative to an initial exogenous reference point.Reference-dependent preferences, stochastic reference point, loss aversion, disappointment theory, regret theory.

Pricing and Hedging Guaranteed Returns on Mix Funds

Abstract\ud In this paper we propose a valuation and hedging strategy for a guaranteed minimal rate of return on a mix fund, which participates in both bonds and stocks. For the case where a fixed amount of money is invested, we show that a European put option on the mix fund replicates the cash flows of this guarantee at all times and using the arbitrage-free pricing methodology, the market value of the guarantee can be obtained explicitly. Using historical data, we show that modeling the correlation between equity and bond returns is of fundamental importance when the stochastic nature of the term structure of interest rates is taken into account. For this model we define a hedging strategy which shows how the dependency of the option on the changing yield of the bond fund can be hedged away using mix fund contracts. We also show how Monte Carlo methods can be used to analyze the case where the guarantee is given on periodically invested fixed amounts of money instead of one single payment

The AMC Linear Disability Score in patients with newly diagnosed Parkinson disease

Objective: The aim of this study was to examine the clinimetric properties of the AMC Linear Disability Score (ALDS), a new generic disability measure based on Item Response Theory, in patients with newly diagnosed Parkinson disease (PD).\ud \ud Methods: A sample of 132 patients with PD was evaluated using the Hoehn and Yahr (H&Y), the Unified PD Rating Scale motor examination, the Schwab and England scale (S&E), the Short Form–36, the PD Quality of Life Questionnaire, and the ALDS.\ud \ud Results: The internal consistency reliability of the ALDS was good ([alpha] = 0.95) with 55 items extending the sufficient item-total correlation criterion (r > 0.20). The ALDS was correlated with other disability measures (r = 0.50 to 0.63) and decreasingly associated with measures reflecting impairments (r = 0.36 to 0.37) and mental health (r = 0.23 to -0.01). With regard to know-group validity, the ALDS indicated that patients with more severe PD (H&Y stage 3) were more disabled than patients with mild (H&Y stage 1) or moderate PD (H&Y stage 2) (p < 0.0001). The ALDS discriminated between more or less severe extrapyramidal symptoms (p = 0.001) and patients with postural instability showed lower ALDS scores compared to patients without postural instability (p = < 0.0001). Compared to the S&E (score 100% = 19%), the ALDS showed less of a ceiling effect (5%).\ud \ud Conclusion: The AMC Linear Disability Score is a flexible, feasible, and clinimetrically promising instrument to assess the level of disability in patients with newly diagnosed Parkinson disease

Energy-momentum conservation in pre-metric electrodynamics with magnetic charges

A necessary and sufficient condition for energy-momentum conservation is proved within a topological, pre-metric approach to classical electrodynamics including magnetic as well as electric charges. The extended Lorentz force, consisting of mutual actions by F=(E, B) on the electric current and G=(H, D) on the magnetic current, can be derived from an energy-momentum "potential" if and only if the constitutive relation G=G(F) satisfies a certain vanishing condition. The electric-magnetic reciprocity introduced by Hehl and Obukhov is seen to define a complex structure on the tensor product of 2-form pairs (F,G) which is independent of but consistent with the Hodge star operator defined by any Lorentzian metric. Contrary to a recent claim in the literature, it does not define a complex structure on the space of 2-forms itself.Comment: 8 pages, 1 fugur

Loss Aversion with a State-Dependent Reference Point

This study investigates reference-dependent choice with a stochastic, state-dependent reference point. The optimal reference-dependent solution equals the optimal consumption solution (no loss aversion) if the reference point is selected fully endogenously. Given that loss aversion is widespread, we conclude that the reference point generally includes an important exogenously fixed component. We develop a choice model in which adjustment costs can cause stickiness relative to an initial, exogenous reference point. Using historical U.S. investment benchmark data, we show that this model is consistent with diversification across bonds and stocks for a wide range of evaluation horizons, despite the historically high-risk premium of stocks compared to bonds

Convergence of spectra of graph-like thin manifolds

We consider a family of compact manifolds which shrinks with respect to an appropriate parameter to a graph. The main result is that the spectrum of the Laplace-Beltrami operator converges to the spectrum of the (differential) Laplacian on the graph with Kirchhoff boundary conditions at the vertices. On the other hand, if the the shrinking at the vertex parts of the manifold is sufficiently slower comparing to that of the edge parts, the limiting spectrum corresponds to decoupled edges with Dirichlet boundary conditions at the endpoints. At the borderline between the two regimes we have a third possibility when the limiting spectrum can be described by a nontrivial coupling at the vertices.Comment: 38 pages, 6 figures (small changes, Sec 9 extended

Setting Parameters for Biological Models With ANIMO

ANIMO (Analysis of Networks with Interactive MOdeling) is a software for modeling biological networks, such as e.g. signaling, metabolic or gene networks. An ANIMO model is essentially the sum of a network topology and a number of interaction parameters. The topology describes the interactions between biological entities in form of a graph, while the parameters determine the speed of occurrence of such interactions. When a mismatch is observed between the behavior of an ANIMO model and experimental data, we want to update the model so that it explains the new data. In general, the topology of a model can be expanded with new (known or hypothetical) nodes, and enables it to match experimental data. However, the unrestrained addition of new parts to a model causes two problems: models can become too complex too fast, to the point of being intractable, and too many parts marked as "hypothetical" or "not known" make a model unrealistic. Even if changing the topology is normally the easier task, these problems push us to try a better parameter fit as a first step, and resort to modifying the model topology only as a last resource. In this paper we show the support added in ANIMO to ease the task of expanding the knowledge on biological networks, concentrating in particular on the parameter settings

Indenture Between Albertus C. Van Raalte and Christian Johanna, His wife, and the Consistory of the First Reformed Dutch Church of Holland

An indenture between Albertus C. Van Raalte and Christian Johanna, his wife, and the consistory of the First Reformed Dutch Church of Holland. The Van Raaltes receive one dollar for the lots one, two, fifteen and sixteen in block 41 from the congregation for the site on which they plan to build a church. The indenture was witnessed by Anna F Post and H[enry] De. Post. As Justice of the Peace, Post also handled the transaction. The consistory members who signed were elders: H. Broek, J. A. Verhorst, Jeltje Broersma, Gerrit Jan Hekhuis, J. Labots, J. A. Wilterdink, and W. V. Appeldoorn. The deacons were: A. De Weerd, G. W. Wilterdink, A. Plugger, and P. VandenBerg.https://digitalcommons.hope.edu/vrp_1850s/1219/thumbnail.jp