Financial Crisis, Financial Systems, and the Performance of the Economy

Research Study Two: Financial Crisis, Financial Systems and the Performance of the Economy. A Study Prepared for Task Force D of the Commission on Money and Credit

Behavior and Weight Loss of Feeder Calves in a Railcar Modified for Feeding and Watering in Transit

The behavior of 164kg Angus and Hereford calves was studied in a double deck 26m x 2.6m jumbo railcar equipped with feed and water. A 4,180 liter water tank positioned in the center of each deck divided the car into four compartments. Fifty head were loaded into the lower and upper forward compartment (252kg/m2floor space], each containing 675kg of hay in racks. The two rear compartments served as quarters for equipment and researchers. Two video cameras were mounted in the upper forward compartment containing calves. Behavior of the calves was monitored, with portions video taped during rail transport from Memphis, Tennessee to Amarillo, Texas (57 hr) in June, 1979. The calves commenced eating and drinking immediately after being loaded in the railcar. Up to 75% of the cattle could lie down while the car was not in motion (14.4 hr of trip]. Calves stood at high speeds (80km/h] on unimproved track but continued to eat, drink and move about. Self and mutual grooming commonly occurred while traveling up to 40km/hr. Railcar temperature and relative humidity ranged from 17.8 to 41.1°C and 54 to 99%, respectively, and was identical to outside. Weight loss for 50 similar calves shipped by truck was 10.6% while rail calves lost 4.5% during truck transport to the railcar (11.3 hr) and 2.1% during rail transport for a total of 6.6%. Average daily gain (ADG) from initial weight to 7 days postshipment was .45kg for rail and -.02kg for truck, but ADG became similar at 30 days indicating full recovery. One truck calf was dead on arrival and 8% of the truck and 5% of the rail calves were treated for shipping fever. Excluding feedcosts, rail transport at 252kg/m 2 floor space costs 30% less per calf than transport in fully loaded trucks

Behavior and Weight Loss of Feeder Calves in a Railcar Modified for Feeding and Watering in Transit

The behavior of Angus and Hereford calves was studied in a double deck 26m x 2.6m jumbo railcar equipped with feed and water. A 4,180-liter water tank positioned in the center of each deck divided the car into four compartments. Fifty heads were loaded into the lower and upper forward compartments (252kg/m2 floor space], each containing 675kg of hay in racks. The two rear compartments served as quarters for equipment and researchers. Two video cameras were mounted in the upper forward compartment containing calves. The behavior of the calves was monitored, with portions video-taped during rail transport from Memphis, Tennessee, to Amarillo, Texas (57 hours) in June 1979. The calves commenced eating and drinking immediately after being loaded in the railcar. Up to 75% of the calves could lie down while the car was not in motion (14.4 hours of the trip]. Calves stood at high speeds (80km/h] on an unimproved track but continued to eat, drink and move about. Self and mutual grooming commonly occur while traveling up to 40km/hr. Railcar temperature and relative humidity ranged from 17.8 to 41.1oC and 54 to 99%, respectively, and were identical to the outside. Weight loss for 50 similar calves shipped by truck was 10.6%, while rail calves lost 4.5% during truck transport to the railcar (11.3 hours] and 2.1% during rail transport for a total of 6.6%. Average daily gain (ADG) from initial weight to 7 days post shipment was .45kg for rail and -.02 kilograms for truck, but ADG became similar at 30 days indicating full recovery. One truck calf was dead on arrival, and 8% of the truck and 5% of the rail calves were treated for shipping fever. Excluding feed costs, rail transport at 252kglm 2-floor space costs 30% less per calf than transport in fully loaded trucks

Stock Options and Chief Executive Officer Compensation

Although stock options are commonly observed in chief executive o±cer (CEO) compensation contracts, there is theoretical controversy about whether stock options are part of the optimal contract. Using a sample of Fortune 500 companies, we solve an agency model calibrated to the company-specific data and we find that stock options are almost always part of the optimal contract. This result is robust to alternative assumptions about the level of CEO risk-aversion and the disutility associated with their effort. In a supplementary analysis, we solve for the optimal contract when there are no restrictions on the contract space. We find that the optimal contract (which is characterized as a state-contingent payoff to the CEO) typically has option-like features over the most probable range of outcomes