Fast bargaining in bankruptcy

I combine two previously separate strands of the bargaining literature to present a bargaining model with both one-sided private information and a majority vote for proposals to go into effect. I use this model to show that the US bankruptcy code produces shorter delays and higher welfare than the UK law. I consider the bargaining that occurs in bankruptcy between an informed firm and a set of uninformed creditors over a set of claims against the firm. The agents have an infinite horizon to bargain and cannot commit to a schedule of future offers. If individual creditors can be treated differently and a majority vote is required for the acceptance of new claims, adding creditors increases the probability of reaching agreement by the end of any given period. The US regime has these features. I give numerical examples which show the efficiency gains from increasing the number of creditors are significant. The UK voting rule allows one creditor a veto of all plans. Replacing the majority voting rule with the UK voting rule and allowing only the creditor with the veto to suggest plans, I show that the UK regime has longer delays and is less efficient than the US regime as long as the US regime has multiple creditors.

Context-related acoustic variation in male fallow deer (Dama dama) groans

While social and behavioural contexts are known to affect the acoustic structure of vocal signals in several mammal species, few studies have investigated context-related acoustic variation during inter-sexual advertisement and/or intra-sexual competition. Here we recorded male fallow deer groans during the breeding season and investigated how key acoustic parameters (fundamental frequency and formant frequencies) vary as a function of the social context in which they are produced. We found that in the presence of females, male fallow deer produced groans with higher mean fundamental frequency when vocal males were also present than they did when no vocal males were in close vicinity. We attribute this to the increased arousal state typically associated with this context. In addition, groan minimum formant frequency spacing was slightly, but significantly lower (indicating marginally more extended vocal tracts) when males were alone than when potential mates and/or competitors were nearby. This indicates that, contrary to our predictions, male fallow deer do not exaggerate the acoustic impression of their body size by further lowering their formant frequencies in the presence of potential mating partners and competitors. Furthermore, since the magnitude of the variation in groan minimum formant frequency spacing remains small compared to documented inter-individual differences, our findings are consistent with the hypothesis that formants are reliable static cues to body size during intra- and inter-sexual advertisement that do not concurrently encode dynamic motivation-related informatio

Consequences of Weyl Consistency Conditions

The running of quantum field theories can be studied in detail with the use of a local renormalization group equation. The usual beta-function effects are easy to include, but by introducing spacetime-dependence of the various parameters of the theory one can efficiently incorporate renormalization effects of composite operators as well. An illustration of the power of these methods was presented by Osborn in the early 90s, who used consistency conditions following from the Abelian nature of the Weyl group to rederive Zamolodchikov's c-theorem in d=2 spacetime dimensions, and also to obtain a perturbative a-theorem in d=4. In this work we present an extension of Osborn's work to d=6 and to general even d. We compute the full set of Weyl consistency conditions, and we discover among them a candidate for an a-theorem in d=6, similar to the d=2,4 cases studied by Osborn. Additionally, we show that in any even spacetime dimension one finds a consistency condition that may serve as a generalization of the c-theorem, and that the associated candidate c-function involves the coefficient of the Euler term in the trace anomaly. Such a generalization hinges on proving the positivity of a certain "metric" in the space of couplings.Comment: 19 pages, Mathematica file with consistency conditions included in submission. v2: Fixed typo

Productivity in economies with financial frictions: facts and a theory

We document and account for two facts regarding the relation between international interest rates and total factor productivity (TFP) in a sample of developing countries. First, there is a negative correlation between both variables at quarterly frequency. Second, the share of agricultural labor and interest rates are positively correlated, whereas the share of agricultural labor and TFP are negatively correlated. Manufacturing labor shows opposite correlations. These relationships are particularly strong in the aftermath of financial crises. We then construct a model in which the presence of costly intermediation can produce such relationships. We show that, after increases in interest rates, a requirement to intermediate factors of production in high productivity sectors, like manufacturing, causes resources to leave these sectors. Resources end up in low productivity sectors, like agriculture, where intermediation is cheaper. This lowers aggregate productivity. We show that the channel we identify is quantitatively important in the case of Korea after the 1997 financial crisis. Keywords; small open economy, financial intermediation, total factor productivity

Analysis of a Precambrian resonance-stabilized day length

During the Precambrian era, Earth's decelerating rotation would have passed a 21-hour period that would have been resonant with the semidiurnal atmospheric thermal tide. Near this point, the atmospheric torque would have been maximized, being comparable in magnitude but opposite in direction to the lunar torque, halting Earth's rotational deceleration, maintaining a constant day length, as detailed by Zahnle and Walker (1987). We develop a computational model to determine necessary conditions for formation and breakage of this resonant effect. Our simulations show the resonance to be resilient to atmospheric thermal noise but suggest a sudden atmospheric temperature increase like the deglaciation period following a possible "snowball Earth" near the end of the Precambrian would break this resonance; the Marinoan and Sturtian glaciations seem the most likely candidates for this event. Our model provides a simulated day length over time that resembles existing paleorotational data, though further data is needed to verify this hypothesis.Comment: 7 pages, 5 figures. Accepted for publication in Geophysical Research Letters on 10 May 201