Bank intermediation and persistent liquidity effects in the presence of a frictionless bond market

An “expansionary” monetary policy that increases the growth rate of bank reserves is generally believed by policy makers to induce a “liquidity effect”, or a persistent decline in short-term nominal interest rates, that stimulates real activity. Christiano, et al. (1991,1995,1997) have incorporated this feature of the economy into equilibrium business cycle models by introducing a commercial bank that acquires deposits from households and channels those funds to firms, which use them to fund their working capital expenses. Bank deposits are the only interest-bearing financial asset available to households, and bank loans are the only source of working capital finance available to firms. To obtain a liquidity effect in response to an unanticipated reserves injection, those models rely on an information friction whereby households precommit to a liquid asset position prior to the monetary shock. In practice, the capital markets are a major source of working capital finance, and U.S. data indicate that bank financing as a share of total short-term working capital finance is countercyclical. This paper extends this literature by introducing a bond market that allows for nonintermediated loans directly from households to firms, and examines the information friction that could induce liquidity effects and countercyclicality in the degree of bank intermediation of working capital finance. The results indicate: (i) “sticky prices” are neither necessary nor sufficient to induce a liquidity effect; (ii) deposit precommitment by households along with a presetting of the deposit rate by banks does induce persistent liquidity effects, but results in excess volatility of consumption and investment; (iii) minimizing the deposit precommitment, while maintaining the preset deposit rate induces a weaker liquidity effect that is more in line with the data, without the excess volatility in consumption and investment; and (iv) the share of bank intermediation in working capital finance is countercyclical in all cases, including the absence of an information friction.Bonds ; Liquidity (Economics) ; Banks and banking

Rotation of a spheroid in a simple shear at small Reynolds number

We derive an effective equation of motion for the orientational dynamics of a neutrally buoyant spheroid suspended in a simple shear flow, valid for arbitrary particle aspect ratios and to linear order in the shear Reynolds number. We show how inertial effects lift the degeneracy of the Jeffery orbits and determine the stabilities of the log-rolling and tumbling orbits at infinitesimal shear Reynolds numbers. For prolate spheroids we find stable tumbling in the shear plane, log-rolling is unstable. For oblate particles, by contrast, log-rolling is stable and tumbling is unstable provided that the aspect ratio is larger than a critical value. When the aspect ratio is smaller than this value tumbling turns stable, and an unstable limit cycle is born.Comment: 25 pages, 5 figure

Reservoirs and radiocarbon: ¹⁴C dating problems in Myvatnssveit, Northern Iceland

This paper examines 2 potential sources of the radiocarbon offset between human and terrestrial mammal (horse) bones recovered from Norse (~AD 870–1000) pagan graves in Mývatnssveit, north Iceland. These are the marine and freshwater 14C reservoir effects that may be incorporated into human bones from dietary sources. The size of the marine 14C reservoir effect (MRE) during the Norse period was investigated by measurement of multiple paired samples (terrestrial mammal and marine mollusk shell) at 2 archaeological sites in Mývatnssveit and 1 site on the north Icelandic coast. These produced 3 new ΔR values for the north coast of Iceland, indicating a ΔR of 106 ± 10 14C yr at AD 868–985, and of 144 ± 28 14C yr at AD 1280–1400. These values are statistically comparable and give an overall weighted mean ΔR of 111 ± 10 14C yr. The freshwater reservoir effect was similarly quantified using freshwater fish bones from a site in Mývatnssveit. These show an offset of between 1285 and 1830 14C yr, where the fish are depleted in 14C relative to the terrestrial mammals. This is attributed to the input of geothermally derived CO2 into the groundwater and subsequently into Lake Mývatn. We conclude the following: i) some of the Norse inhabitants of Mývatnssveit incorporated non-terrestrial resources into their diet that may be identified from the stable isotope composition of their bone collagen; ii) the MRE off the north Icelandic coast during the Norse period fits a spatial gradient of wider North Atlantic MRE values with increasing values to the northwest; and iii) it is important to consider the effect that geothermal activity could have on the 14C activity of samples influenced by groundwater at Icelandic archaeological sites

Effect of ACTH and CRH on Plasma Levels of Cortisol and Prostaglandin F(2α )Metabolite in Cycling Gilts and Castrated Boars

The present study was designed to evaluate the effects of synthetic ACTH (1–24, tetracosactid) and porcine CRH on the plasma levels of cortisol and PGF(2α )metabolite in cycling gilts (n = 3) and castrated boars (n = 3). The experiments were designed as crossover studies for each gender separately. Each animal received, during three consecutive days; 1) ACTH (Synacthen(® )Depot) at a dose of 10 μg/kg body weight in 5 ml physiological saline, 2) porcine CRH at a dose 0.6 μg/kg body weight in 5 ml physiological saline or 3) physiological saline (5 ml). The test substances were administered via an indwelling jugular cannula in randomized order according to a Latin square. The administration of ACTH to cycling gilts resulted in concomitant elevations of cortisol and PGF(2α )metabolite with peak levels reached at 70.0 ± 10.0 and 33.3 ± 6.7 min, respectively. Similarly, the administration of ACTH to castrated boars resulted in concomitant elevation of cortisol and PGF(2α )metabolite with peak levels reached at 60.0 ± 0.0 and 20.0 ± 0.0 min, respectively. Cortisol peaked at 20 min after administration of CRH in both cycling gilts and castrated boars with maximum levels of 149.3 ± 16.5 nmol/1 and 138.3 ± 10.1 nmol/1, respectively. It can be concluded that administration of synthetic ACTH (tetracosactid) to pigs caused a concomitant elevation of cortisol and PGF(2α )metabolite levels in both cycling gilts as well as castrated boars. The administration of CRH to pigs resulted in an elevation of cortisol levels in both cycling gilts and castrated boars. Conversely, PGF(2α )metabolite levels were not influenced by the administration of CRH either in cycling gilts or in castrated boars

Meissner effect in honeycomb arrays of multi-walled carbon nanotubes

We report Meissner effect for type-II superconductors with a maximum Tc of 19 K, which is the highest value among those in new-carbon related superconductors, found in the honeycomb arrays of multi-walled CNTs (MWNTs). Drastic reduction of ferromagnetic catalyst and efficient growth of MWNTs by deoxidization of catalyst make the finding possible. The weak magnetic anisotropy, superconductive coherence length (- 7 nm), and disappearance of the Meissner effect after dissolving array structure indicate that the graphite structure of an MWNT and those intertube coupling in the honeycomb array are dominant factors for the mechanism.Comment: 6 page

The role of inertia for the rotation of a nearly spherical particle in a general linear flow

We analyse the angular dynamics of a neutrally buoyant nearly spherical particle immersed in a steady general linear flow. The hydrodynamic torque acting on the particle is obtained by means of a reciprocal theorem, regular perturbation theory exploiting the small eccentricity of the nearly spherical particle, and assuming that inertial effects are small, but finite.Comment: 7 pages, 1 figur

Impact of Postovulatory Food Deprivation on the Ova Transport, Hormonal Profiles and Metabolic Changes in Sows

The effect of food deprivation on ova transport, hormonal profiles and metabolic changes was studied in 20 crossbred multiparous sows during their second oestrus after weaning. To determine the time of ovulation, transrectal ultrasonographic examination was performed. The sows were divided into 2 groups, one control group (C-group), which was fed according to Swedish standards, and one experimental group (E-group). The E-group sows were deprived of food from the first morning meal after ovulation until slaughter. Blood samples were collected every second hour from about 12 h before expected ovulation in the second oestrus after weaning until slaughter and were analysed for progesterone, prostaglandin F2α-metabolite, insulin, glucose, free fatty acids and triglycerides. All sows were slaughtered approximately 48 h after ovulation and the genital tract was recovered. The isthmic part of the oviduct was divided into 3 equally long segments and flushed separately with phosphate buffered saline (PBS). Uterine horns were also flushed with PBS. A significantly greater number of ova were found in the first and second part of the isthmus in the E-group (p = 0.05) while in the C-group most of the ova were found in the third part of the isthmus or the uterus (p = 0.01). The level of prostaglandin F2α-metabolite was significantly higher in the E-group compared with the C-group. The concentration of progesterone increased in both groups after ovulation but there were no significant differences between the groups. The other blood parameters showed that the food-deprived sows were in a catabolic state. The 48 h period of fasting results, directly or indirectly in an delayed ova transport, which may be due to a delayed relaxation in the smooth circular muscle layer of the isthmus

Temporal and spatial variations in freshwater 14C reservoir effects: Lake Myvatn, Northern Iceland

Lake Mývatn is an interior highland lake in northern Iceland that forms a unique ecosystem of international scientific importance and is surrounded by a landscape rich in archaeological and palaeoenvironmental sites. A significant Freshwater 14C Reservoir Effect (FRE) has been identified in carbon from the lake at some Norse (c.870-1000 AD) archaeological sites in the wider region (Mývatnssveit). Previous AMS measurements indicated this FRE was ~1500-1900 14C years. Here we present the results of a study using stable isotope and 14C measurements to quantify the Mývatn FRE for both the Norse and modern periods. This work has identified a temporally variable FRE that is greatly in excess of previous assessments. New, paired samples of contemporaneous bone from terrestrial herbivores and omnivores (including humans) from Norse sites demonstrate at least some omnivore diets incorporated sufficient freshwater resources to result in a herbivore-omnivore age offset of up to 400 14C yrs. Modern samples of benthic detritus, aquatic plants, zooplankton, invertebrates and freshwater fish indicate an FRE in excess of 5000 14C yrs in some species. Likely geothermal mechanisms for this large FRE are discussed, along with implications for both chronological reconstruction and integrated investigation of stable and radioactive isotop