Order Submission: The Choice between Limit and Market Orders

Most financial markets allow investors to submit both limit and market orders, but it is not always clear what affects the choice of order type. The authors empirically investigate how the time between order submissions, changes in the state of the order book, and price uncertainty influence the rate of submission of limit and market orders. The authors measure the expected time (duration) between the submissions of orders of each type using an asymmetric autoregressive conditional duration model. They find that the execution of market orders, as well as changes in the level of price uncertainty and market depth, impact the submissions of both best limit orders and market orders. After correcting for these factors, the authors also find differences in behaviour around market openings, closings, and unexpected events that may be related to changes in information flows at these times. In general, traders use more market (limit) orders at times when execution risk for limit orders is highest or the risk of unexpected price movements is highest.Exchange rate; Financial institution; Market structure and pricing

Above-Average Rise in Immigrant Poverty: Poverty Often Concomitant with Other Types of Deprivation

The years 1998 to 2003 were marked by a deterioration in the economic situation of the German population with an immigrant background as the share of immigrants living below the poverty line increased at an above average rate. The older and younger age groups in this segment of the population are particularly prone to poverty. The Socio-Economic Panel (SOEP) survey, which is carried out by the DIW Berlin in collaboration with the Infratest Social Research Institute, shows that 28% of children and young people aged under 20 with an immigrant background were living in precarious circumstances in 2003. The share of native Germans of the same age living in such circumstances was substantially lower, albeit still disturbingly high at 20%. Citizens of Turkish origin, in particular, are frequently found living below the poverty line. Immigrants from Western countries, by contrast, live comparatively rarely in poverty. Naturalised Germans are better off on average than foreign nationals, although this is not true for ethnic Germans. The fact that poverty is not a transitory phenomenon but an enduring condition for many immigrants is particularly alarming. Only improved education and training will solve this problem in the long term. The recruitment of foreign labour, the admission of refugees and the return of ethnic German settlers from former Eastern Bloc countries have culminated in large waves of immigration to Germany over the last 50 years. On official figures, over seven million foreign nationals and over four million ethnic Germans are living in Germany today. Germany still has a net migration surplus, although it has diminished significantly in recent years.

Order Aggressiveness and Quantity: How Are They Determined in a Limit Order Market?

Dealers trading in a limit order market must choose both the order aggressiveness and the quantity for their orders. We empirically investigate how dealers jointly make these decisions in the foreign exchange market using a unique simultaneous equations model. The model uses an ordered probit model to account for the discrete nature of order aggressiveness and a censored regression model to capture the clustering of orders placed at the smallest available quantity, $1 million. We find evidence of a clear trade-off between order aggressiveness and quantity: more aggressive orders tend to be smaller in size. The increased competition (demand) suggested by increased depth on the same (opposite) side of the market leads to less (more) aggressive orders in smaller (larger) size. This holds for the depths at both the best and off-best prices, even though off-best depths are not observable to dealers.Exchange rates; Financial markets

A Structural Error-Correction Model of Best Prices and Depths in the Foreign Exchange Limit Order Market

Traders using the electronic limit order book in the foreign exchange market can watch the posted price and depth of the best quotes change over the day. The authors use a structural errorcorrection model to examine the dynamics of the relationship between the best bid price, the best ask price, and their associated depths. They incorporate measures of the market depth behind the best quotes as regressors. They report four main findings. First, best prices and their associated depths are contemporaneously related to each other. More specifically, an increase in the ask (bid) price is associated with a drop (rise) in the ask (bid) depth. This suggests that sell traders avoid the adverse-selection risk of selling in a rising market. Second, when the spread-the error-correction term-widens, the bid price rises and the ask price drops, returning the spread to its long-term equilibrium value. Further, the best depth on both sides of the market drops, due to increased market uncertainty. Third, the lagged best depth impacts the price discovery on both sides of the market, with the effect being strongest on the same side of the market. Fourth, changes in the depth behind the best quotes impact both the best prices and quantities, even though those changes are unobservable to market participants.Exchange rates; Financial markets

Unified line profiles for hydrogen perturbed by collisions with protons: satellites and asymmetries

We present new calculations of unified line profiles for hydrogen perturbed by collisions with protons. We report on new calculations of the potential energies and dipole moments which allow the evaluation of profiles for the lines of the Lyman series up to Lyman$\delta$ and the Balmer series up to Balmer10. Unified calculations only existed for the lines Lyman$\alpha$ to Lyman$\gamma$ and Balmer$\alpha$ including the H$_2^+$ quasi-molecule. These data are available as online material accompanying this paper and should be included in atmosphere models, in place of the Stark effect of protons, since the quasi-molecular contributions cause not only satellites, but large asymmetries that are unaccounted for in models that assume Stark broadening of electrons and protons are equal.Comment: 13 pages, 25 figures. Accepted for publication in MNRA

Mechanisms promoting higher growth rate in arctic than in temperate shorebirds

We compared prefledging growth, energy expenditure, and time budgets in the arctic-breeding red knot (Calidris canutus) to those in temperate shorebirds, to investigate how arctic chicks achieve a high growth rate despite energetic difficulties associated with precocial development in a cold climate. Growth rate of knot chicks was very high compared to other, mainly temperate, shorebirds of their size, but strongly correlated with weather-induced and seasonal variation in availability of invertebrate prey. Red knot chicks sought less parental brooding and foraged more at the same mass and temperature than chicks of three temperate shorebird species studied in The Netherlands. Fast growth and high muscular activity in the cold tundra environment led to high energy expenditure, as measured using doubly labelled water: total metabolised energy over the 18-day prefledging period was 89% above an allometric prediction, and among the highest values reported for birds. A comparative simulation model based on our observations and data for temperate shorebird chicks showed that several factors combine to enable red knots to meet these high energy requirements: (1) the greater cold-hardiness of red knot chicks increases time available for foraging; (2) their fast growth further shortens the period in which chicks depend on brooding; and (3) the 24-h daylight increases potential foraging time, though knots apparently did not make full use of this. These mechanisms buffer the loss of foraging time due to increased need for brooding at arctic temperatures, but not enough to satisfy the high energy requirements without invoking (4) a higher foraging intake rate as an explanation. Since surface-active arthropods were not more abundant in our arctic study site than in a temperate grassland, this may be due to easier detection or capture of prey in the tundra. The model also suggested that the cold-hardiness of red knot chicks is critical in allowing them sufficient feeding time during the first week of life. Chicks hatched just after the peak of prey abundance in mid-July, but their food requirements were maximal at older ages, when arthropods were already declining. Snow cover early in the season prevented a better temporal match between chick energy requirements and food availability, and this may enforce selection for rapid growth.

Decoding Sequence Classification Models for Acquiring New Biological Insights

Classifying biological sequences is one of the most important tasks in computational biology. In the last decade, support vector machines (SVMs) in combination with sequence kernels have emerged as a de-facto standard. These methods are theoretically well-founded, reliable, and provide high-accuracy solutions at low computational cost. However, obtaining a highly accurate classifier is rarely the end of the story in many practical situations. Instead, one often aims to acquire biological knowledge about the principles underlying a given classification task. SVMs with traditional sequence kernels do not offer a straightforward way of accessing this knowledge.

In this contribution, we propose a new approach to analyzing biological sequences on the basis of support vector machines with sequence kernels. We first extract explicit pattern weights from a given SVM. When classifying a sequence, we then compute a prediction profile by distributing the weight of each pattern to the sequence positions that match the pattern. The final profile not only allows assessing the importance of a position, but also determining for which class it is indicative. Since it is unfeasible to analyze profiles of all sequences in a given data set, we advocate using affinity propagation (AP) clustering to narrow down the analysis to a small set of typical sequences.

The proposed approach is applicable to a wide range of biological sequences and a wide selection of sequence kernels. To illustrate our framework, we present the prediction of oligomerization tendencies of coiled coil proteins as a case study.
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Authentic Happiness Theory Supported by Impact of Religion on Life Satisfaction: A Longitudinal Analysis with Data for Germany

Using data from the German Socio-Economic Panel Survey (SOEP), this paper assesses the relationship between life satisfaction and religious practice. The main new result here is longitudinal. It is shown that individuals who become more religious over time record long term gains in life satisfaction, while those who become less religious record long term losses. This result holds net of the effects of personality traits, and also in fixed effects panel models. The paper has significant implications for the dominant, paradigm theory in SWB research, namely set-point theory. This theory holds that the long term SWB of adult individuals is stable, because SWB depends on personality traits and other stable genetic factors. It is already clear from the German panel data that about 20% of the population have recorded large long term changes in SWB. New evidence in this paper and elsewhere about the effects of consciously chosen life goals, including religious ones, on SWB is hard to reconcile with set-point theory. It is more in line with authentic happiness theory.SWB, life satisfaction, set-point theory, authentic happiness theory, longitudinal analysis, SOEP

Carotenoid triplet state formation in Rhodobacter sphaeroides R-26 reaction centers exchanged with modified bacteriochlorophyll pigments and reconstituted with spheroidene

Triplet state electron paramagnetic resonance (EPR) experiments have been carried out at X-band on Rb. sphaeroides R-26 reaction centers that have been reconstituted with the carotenoid, spheroidene, and exchanged with 132-OH-Zn-bacteriochlorophyll a and [3-vinyl]-132-OH-bacteriochlorophyll a at the monomeric, lsquoaccessoryrsquo bacteriochlorophyll sites BA,B or with pheophytin a at the bacteriopheophytin sites HA,B. The primary donor and carotenoid triplet state EPR signals in the temperature range 95–150 K are compared and contrasted with those from native Rb. sphaeroides wild type and Rb. sphaeroides R-26 reaction centers reconstituted with spheroidene. The temperature dependencies of the EPR signals are strikingly different for the various samples. The data prove that triplet energy transfer from the primary donor to the carotenoid is mediated by the monomeric, BChlB molecule. Furthermore, the data show that triplet energy transfer from the primary donor to the carotenoid is an activated process, the efficiency of which correlates with the estimated triplet state energies of the modified pigments