Privatized Returns and Socialized Risks: CEO Incentives, Securitization Accounting and the Financial Crisis

The paper investigates the role of CEO’s equity and risk incentives in boosting securitization in the financial industry and in motivating executives to reduce the perceived risk while betting on it. Using a sample of US financial institutions over the period 2003-2009 we document that CEOs with high equity incentives have systematically engaged in securitization transactions to a larger extent than CEOs with low incentives. We also show that CEOs with high equity and risk-related incentives have engaged in the securitization of risky loans and have used securitization for transferring risks to outside investors. Finally, we show that executives incentivized on risk have provided outside investors with low quality disclosure about losses recorded on securitized loans thus contributing to increase the opacity of securitization transactions undertaken. Overall, we interpret our results as evidence that CEOs have foreseen in securitizations under US GAAP an opportunity for hiding risks while bearing them and generating profits and cash flows because of the risks. Our results are robust to several model specifications as well as to endogeneity concerns

Cortical activity evoked by inoculation needle prick in infants up to one-year old

Inoculation is one of the first and most common experiences of procedural pain in infancy. However, little is known about how needle puncture pain is processed by the central nervous system in children. In this study, we describe for the first time the event-related activity in the infant brain during routine inoculation using electroencephalography. Fifteen healthy term-born infants aged 1 to 2 months (n = 12) or 12 months (n = 5) were studied in an outpatient clinic. Pain behavior was scored using the Modified Behavioral Pain Scale. A distinct inoculation event-related vertex potential, consisting of 2 late negative-positive complexes, was observable in single trials after needle contact with the skin. The amplitude of both negative-positive components was significantly greater in the 12-month group. Both inoculation event-related potential amplitude and behavioral pain scores increased with age but the 2 measures were not correlated with each other. These components are the first recordings of brain activity in response to real-life needle pain in infants up to a year old. They provide new evidence of postnatal nociceptive processing and, combined with more traditional behavioral pain scores, offer a potentially more sensitive measure for testing the efficacy of analgesic protocols in this age group

mTOR-related cell-clearing systems in epileptic seizures, an update

Recent evidence suggests that autophagy impairment is implicated in the epileptogenic mechanisms downstream of mTOR hyperactivation. This holds true for a variety of genetic and acquired epileptic syndromes besides malformations of cortical development which are classically known as mTORopathies. Autophagy suppression is sufficient to induce epilepsy in experimental models, while rescuing autophagy prevents epileptogenesis, improves behavioral alterations, and provides neuroprotection in seizure-induced neuronal damage. The implication of autophagy in epileptogenesis and maturation phenomena related to seizure activity is supported by evidence indicating that autophagy is involved in the molecular mechanisms which are implicated in epilepsy. In general, mTOR-dependent autophagy regulates the proliferation and migration of inter-/neuronal cortical progenitors, synapse development, vesicular release, synaptic plasticity, and importantly, synaptic clustering of GABAA receptors and subsequent excitatory/inhibitory balance in the brain. Similar to autophagy, the ubiquitin–proteasome system is regulated downstream of mTOR, and it is implicated in epileptogenesis. Thus, mTOR-dependent cell-clearing systems are now taking center stage in the field of epilepsy. In the present review, we discuss such evidence in a variety of seizure-related disorders and models. This is expected to provide a deeper insight into the molecular mechanisms underlying seizure activit

Is “Unconsummated Marriage” still an appropriate term? A snapshot of reality

The most shared definition of Unconsummated Marriage (UM) refers to “the failure to perform successful sexual intercourse at the beginning of the marriage. UM usually occurs in the first few nights of marriage and so it is frequently referred to as “honeymoon impotence” or “wedding night impotence”. In the Middle-Eastern (MES) and Western (WS) societies, sexuality follows different patterns in terms of meaning and rules. Moreover the evolution of societies all around the world created new contexts and kinds of relationship. This could hamper a correct taxonomy of such sexual dysfunction where a social variable seems crucial. Aim: To analyze and review data on UM all around the world, to understand if in different societies it refers to the same situation. Method: A review of published literature on UM from 1970 to date, was conducted. Results: Substantial difference emerged from MES to WS. In MES, sexuality is allowable only in marriage, while in WS sexuality and relationship are not strongly linked. This could suggest that the term “marriage” is unable to cover the phenomenon in such different countries. Moreover, the average time before the consultation, causal attribution and prevalence are very different in Western and Middle Eastern countries. Conclusion: We found that the term “first attempts dysfunction” could be better used to describe male, female or both difficulties related to ignorance about sexuality or state/performance anxiety. On the other hand over the individual category of sexual dysfunctions, we suggest a new term as “Unconsummated relationship”, where individual difficulties toward sexuality are involved creating a couple’s dysfunction. Keywords: Unconsummated marriage; Honeymoon impotence; White marriage; Vaginismus; Infertilit

Poverty and inequality mapping based on a unit-level log-normal mixture model

Estimating poverty and inequality parameters for small sub-populations with adequate precision is often beyond the reach of ordinary survey-weighted methods because of small sample sizes. In small area estimation, survey data and auxiliary information are combined, in most cases using a model. In this paper, motivated by the analysis of EU-SILC data for Italy, we target the estimation of a selection of poverty and inequality indicators, that is mean, headcount ratio and quintile share ratio, adopting a Bayesian approach. We consider unit-level models specified on the log transformation of a skewed variable (equivalized income). We show how a finite mixture of log-normals provides a substantial improvement in the quality of fit with respect to a single log-normal model. Unfortunately, working with these distributions leads, for some estimands, to the non-existence of posterior moments whenever priors for the variance components are not carefully chosen, as our theoretical results show. To allow the use of moments in posterior summaries, we recommend generalized inverse Gaussian distributions as priors for variance components, guiding the choice of hyperparameters

Microstructural, texture, plastic anisotropy and superplasticity development of ZK60 alloy during equal channel angular extrusion processing

In this study, equal channel angular pressing (ECAP) was exploited to refine the grain size of a ZK60 magnesium alloy in multi-processing steps, namely at temperatures of 250˚C, 200˚C and 150˚C, producing an ultrafine-grained (UFG) structure. The microstructural development and texture evolution during ECAP were systemically investigated by electron backscattered diffraction (EBSD) analysis. The microstructure of the ECAP processed alloy was remarkably refined to an average grain size of 600 nm. During ECAP process the original fiber texture of the as-extruded alloy was gradually weakened and eventually replaced by a stronger texture component coinciding with ECAP shear plane. The ECAP processed material showed a proper balance of tensile as well as compression strength and tensile ductility at room temperature. Yield strength of 273 and 253 MPa in tension and compression, respectively, ultimate tensile strength of 298 MPa and fracture elongation of about 30% were obtained in the UFG alloy. A transition from ductile–brittle to ductile fracture consisting of very fine and equiaxed dimples was also found in the ECAP processed material. Compared to the as-received alloy, a combination of grain refinement and texture development in the UFG alloy gave rise to a notable reduction in mechanical asymmetric behavior at room temperature. The superplastic behavior of the as-extruded and ECAP processed alloy was also investigated at 200˚C with strain rate of 1.0×10-3 s-1. The concurrent effect of grain boundary sliding and favorable basal texture in the UFG alloy led to an achievement of elongation value of about 300% while, under similar testing conditions, the elongation of about 140% was obtained in the as-extruded alloy

Papel etiológico de los virus en la enfermedad periodontal

El objetivo de esta revisión es presentar la evidencia disponible que relaciona la infección por virus con el desarrollo de periodontitis. Esta relación se ha visto con los virus de la familia herpes, sobretodo el citomegalovirus humano (CMV) y el virus Epstein-Barr (VEB), así como con el virus de la inmunodeficiencia humana (HIV). Las infecciones por herpesvirus generalmente sucede en dos fases, durante la primoinfección la clínica suele ser leve o asintomática y a esta le sigue una fase asintomática en la que el virus se encuentra en estado de latencia. Dicho estado se verá interrumpido esporádicamente por periodos de activación en los que se produce una replicación viral y posiblemente se dé una manifestación de la enfermedad que explicaría, en parte, el progreso en episodios de la enfermedad periodontal. De hecho, algunas de las causas que llevan a la reactivación del virus también se consideran factores de riesgo de la enfermedad periodontal y podrían relacionar a ambas patologías. The purpose of this review is to evaluate the evidence supporting the hypothesis that viral infection plays a role in the development of periodontitis. This relationship has been found mainly with the herpesvirus family, especially with human cytomegalovirus (CMV) and with Epstein-Barr virus (EBV), but also with human immunodeficiency virus (HIV). The herpesvirus infection generally involves a mild or asymptomatic primary phase followed by an asymptomatic latent phase interrupted sporadically by periods of activation, where viral replication and possibly clinical disease become manifest and which will in part, explain the episodic progressive nature of human periodontitis. In fact, herpesvirus reactivation is triggered by a number of immunosuppressing factors, some of which have also been shown to be risk indicators of periodontal disease and which could relate both patologies

Mechanical characteristics of graphene nanoplatelets-modified asphalt mixes. A comparison with polymer-and not-modified asphalt mixes

In recent years, nanotechnology has sparked an interest in nanomodification of bituminous materials to increase the viscosity of asphalt binders and improves the rutting and fatigue resistance of asphalt mixtures. This paper presents the experimental results of laboratory tests on bituminous mixtures laid on a 1052 m-long test section built in Rome, Italy. Four asphalt mixtures for wearing and binder layer were considered: two polymer modified asphalt concretes (the former modified with the additive Superplast and the latter modified with styrene-butadiene-styrene), a "hard" graphene nanoplatelets (GNPs) modified asphalt concrete and a not-modified mixture. The indirect tensile strength, water sensitivity, stiffness modulus, and fatigue resistance of the mixtures were tested and compared. A statistical analysis based on the results has shown that the mixtures with GNPs have higher mechanical performances than the others: GNP could significantly improve the tested mechanical performances; further studies will be carried out to investigate its effect on rutting and skid resistance

Employment, innovation, and interfirm networks

This paper studies the employment impact of business network agreements, an innovative policy instrument introduced in Italy in 2010 to stimulate interfirm cooperation, with the aim of increasing innovative capacity and market competitiveness. We estimate the impact of these networks on employment for a panel of Italian firms using a system generalized method of moments and considering the literature on the employment impact of innovation. We find that networks, which can be interpreted as a form of open innovation, have a positive impact on employment; moreover, this impact appears positively influenced by sectoral and regional heterogeneity of firms and the region\u2019s innovation capacities. Overall, the results suggest that participation in networks where firms share industrial, commercial, and technical knowledge improves firm performance, creating synergies that help firms, especially small and medium-sized enterprises, to manage the growing complexity of knowledge and the fierce competition arising from increasingly globalized markets

Effects of microstructure and casting defects on the fatigue behavior of the high-pressure die-cast AlSi9Cu3(Fe) alloy

Abstract High-pressure die-cast (HPDC) components are being increasingly used due to good flexibility and high productivity. These aspects make HPDC suitable to produce several mass components, especially for the automotive sector. Due to the rapid filling of the die and high cooling rate, the process generally leads to the formation of a wide variety of defects, such as porosity and oxide films. Such defects might act as starting points for fatigue cracks and thus deteriorating the fatigue behavior of the casting. To this respect, the fatigue behavior of die cast aluminum alloys is an important aspect to consider when assessing the performance of complex castings for automotive applications. In the light of these aspects, the goal of this work is to describe how the microstructure affects the fatigue crack initiation and propagation. Die cast AlSi9Cu3(Fe) specimens were produced by means of a specifically designed die and the microstructure was preliminary characterized. Uniaxial fatigue tests were performed at load control with a stress ratio of R = 0.1 and at a single level of stress amplitude. After the fatigue tests, the samples were investigated to assess the propagation of the fatigue cracks; the starting points of cracks were specifically identified and the obtained data suggested how defects strongly influence the damage mechanism of the material