M-body Pure State Entanglement

The simple entanglement of N-body N-particle pure states is extended to the more general M-body or M-body N-particle states where $N\neq M$. Some new features of the M-body N-particle pure states are discussed. An application of the measure to quantify quantum correlations in a Bose-Einstien condensate model is demonstrated.Comment: 9 pages, 2 figure

The perils of credit booms

We present a dynamic general equilibrium model of production economies with adverse selection in the financial market to study the interaction between funding liquidity and market liquidity and its impact on business cycles. Entrepreneurs can take on short-term collateralized debt and trade long-term assets to finance investment. Funding liquidity can erode market liquidity. High funding liquidity discourages firms from selling their good long-term assets since these good assets have to subsidize lemons when there is information asymmetry. This can cause a liquidity dry-up in the market for long-term assets and even a market breakdown, resulting in a financial crisis. Multiple equilibria can coexist. Credit booms combined with changes in beliefs can cause equilibrium regime shifts, leading to an economic crisis or expansion.Published versio