Irreversible Investment and the Cross-Section of Stock Returns in General Equilibrium

A general equilibrium production economy with heterogeneous firms and irreversible investment generates the value premium. Investment irreversibility prevents unprofitable value firms from optimally scaling down their capital stock. In contrast, profitable and fast growing - growth - firms can optimally use investment to provide consumption insurance. Value firms are riskier and have higher expected returns than growth firms, especially in bad times when consumption volatility is high. The value premium is larger for small stocks as small value firms are more severely affected by irreversibility. Firms’ investment and capital predict the cross-section of stock returns much like book-to-market and market equity both in the model and data. The model can replicate the failure of the unconditional CAPM. Multifactor models, including the Fama and French (1993) factor model, and to a lesser extent, conditional versions of the CAPM, outperform the unconditional CAPM

Measuring Marginal q

Using asset prices I estimate the marginal value of capital in a dynamic stochastic economy under general assumptions about technology and preferences. The state-space measure of marginal q relies on the joint measurability of the value function, i.e. firm market value, and its underlying firm state variables. Unlike existing methodologies, the state-space marginal q requires only general restrictions on the stochastic discount factor and the firm investment technology, and it uses simple linear estimation methods. Consistently with a large class of neoclassical investment models, I construct the state-space marginal q using the firm capital stock and profitability shocks. I show that this new measure of real investment opportunities is substantially different from the conventional Tobin\u27s Q, it yields more plausible and robust estimates of capital adjustment costs, it increases the correlation with investment and the sensitivity of investment to fundamentals

The Distribution of Firm Size and Aggregate Investment

We investigate empirically how the distributional dynamics of firm investment rates and firm size affect aggregate US investment during the period 1962-2006. We find that the cross-sectional covariation between firms’ investment rates and their relative size accounts on average for about half of aggregate investment rate. The negative sign of this covariance implies that a mean-preserving increase in the cross-sectional dispersion of investment rates and/or relative size reduces aggregate investment rate. We investigate the implications of firm-level conditional convergence in corporate investment rates on the dynamics of aggregate investment. We identify the cross-sectional variance of firm relative size as being particularly relevant to explain aggregate investment dynamics. With aggregate NIPA investment data, the cross-sectional variance of firm size fits the investment equation better than the traditional measure of Tobin’s Q and it drives out cash flow

Public Information and Inefficient Investment

In a general equilibrium economy with uninsurable aggregate liquidity shocks, we show that public information may trigger allocative inefficiency and liquidity crises. Entrepreneurs do not internalize the negative impact of their investment decisions on the equilibrium risk of liquidity shortage. A more informative public signal decreases the risk of a liquidity shock, but increases the risk of capital rationing conditional on a liquidity shock. In equilibrium, information quality has a non-monotonic effect on expected returns on investment and social welfare. An increase in the quality of public information has redistributive effects on welfare as entrepreneurs gain and financiers lose. Investment restrictions and targeted disclosure of information achieve constrained efficiency as competitive market equilibrium

Government Spending, Political Cycles, and the Cross Section of Stock Returns

Using a novel measure of industry exposure to government spending, we show predictable variation in cash flows and stock returns over political cycles. During Democratic presidencies, firms with high government exposure experience higher cash flows and stock returns, while the opposite pattern holds true during Republican presidencies. Business cycles, firm characteristics, and standard risk factors do not account for the pattern in returns across presidencies. An investment strategy that exploits the presidential cycle predictability generates abnormal returns as large as 6.9% per annum. Our results suggest market underreaction to predictable variation in the effect of government spending policies

MODIS Cloud Microphysics Product (MOD_PR06OD) Data Collection 6 Updates

The MODIS Cloud Optical and Microphysical Product (MOD_PR060D) for Data Collection 6 has entered full scale production. Aqua reprocessing is almost completed and Terra reprocessing will begin shortly. Unlike previous collections, the CHIMAERA code base allows for simultaneous processing for multiple sensors and the operational CHIMAERA 6.0.76 stream is also available for VIIRS and SEVIRI sensors and for our E-MAS airborne platform

Multi-taxa neo-taphonomic analysis of bone remains from barn owl pellets and cross-validation of observations: a case study from Dominica (Lesser Antilles)

Paleo- and neo-taphonomic analyses of bone assemblages rarely consider all the occurring taxa in a single study and works concerning birds of prey as accumulators of microvertebrate bone remains mostly focus on small mammals such as rodents and soricomorphs. However, raptors often hunt and consume a large range of taxa, including vertebrates such as small mammals, fishes, amphibians, squamates and birds. Bone remains of all these taxonomic groups are numerous in many paleontological and archaeological records, especially in cave deposits. To better characterize the predators at the origin of fossil and sub-fossil microvertebrate accumulations and the taphonomic history of the deposit, it is thus mandatory to conduct global and multi-taxa taphonomic approaches. The aim of this study is to provide an example of such a global approach through the investigation of a modern bone assemblage from a sample of pellets produced by the Lesser Antillean Barn Owl (Tyto insularis) in the island of Dominica. We propose a new methodology that allows us to compare different taxa (rodents, bats, squamates and birds) and to experiment with a cross-validation process using two observers for each taxonomic group to test the reliability of the taphonomic observations.1. Introduction 2. Materials and Methods 2.1. Owl Pellets Sampling 2.2. Prey Identification 2.3. Taphonomic Analysis 2.3.1. Anatomical Representation 2.3.2. Fragmentation 2.3.3. Surface Modifications 2.3.4. Size/Weight Classes of Preys 2.4. Cross-Validation of Observations 3. Results 3.1. Faunal Spectrum 3.2. Anatomical Representation 3.3. Fragmentation 3.4. Modifications of Bone Surface 4. Discussion 4.1. Diet of Tyto Insularis in Dominica 4.2. Taphonomic Impact of Tyto Insularis on Small Vertebrate Bone Assemblage 4.2.1. Remarks on the Size/Weight Classes of Preys 4.2.2. Anatomical Representation 4.2.3. Fragmentation 4.2.4. Digestion 4.3. Degree of Inter-Observer Differences and Potential Outcomes 4.4. Towards an “Inter-Taxa Calibration” 5. Conclusion

Family carers' experiences and perceived roles in interprofessional collaborative practice in primary care: A constructivist grounded theory study

Abstract Background Chronic conditions can lead to physical, cognitive and social decline; thus, increasing an individual's dependence on family who assist with activities of daily living. Interprofessional collaborative practice (IPCP), involving two or more health professionals working with the patient and their family, is one model of care for the high‐quality management of individuals with chronic conditions in primary care. Nevertheless, family carers have reported a disconnect between themselves and healthcare providers in previous research. This study aimed to explore the experiences and perspectives of family carers for individuals with chronic conditions, regarding their involvement in IPCP. Methods Aspects of constructivist grounded theory methodology were used. Family carers of individuals with chronic conditions were invited to participate in a one‐on‐one, semistructured interview about their experiences with IPCP in the care of their loved one. Interview transcripts were analysed using Charmaz's four‐step iterative process: (1) line‐by‐line coding, (2) focused coding, (3) categorisation of codes and (4) potential theme and subtheme development with memo writing to support each phase of analysis. The research team collaborated on reflexivity exercises, the conceptualisation of categories and the development of themes. Results Constructivist data analysis of interviews (average 40 min) with 10 family carers resulted in two themes. (1) Stepping in for my loved one represents the notion that carers take on external roles on behalf of their loved ones (subthemes: working with interprofessional teams, supporting independence and learning as I go). (2) Taking on the carer role, represents the internal factors that influence the external roles described in theme 1 (subthemes: feeling obligated to be involved and changing relationship dynamics). Conclusion This study outlines the external actions and internal influences on family carer involvement in an interprofessional team. The required knowledge and support to care for their loved ones is currently learned in an ad hoc manner, and carers' resources should be better promoted by health professionals. Additionally, the relationship dynamics between a carer and their loved one change as the carer becomes more involved in IPCP and influences how and the extent health professionals involve family carers. Patient or Public Contribution Carers were the study population involved in this qualitative study. Patient advocates who have chronic conditions, and are informal family carers, were involved in the creation and design of this study, including a review of the research question, participant information sheet and the interview guide

Effect of GA 3 and paclobutrazol on adventitious shoot regeneration of two Pelargonium sp

This study had two aims. The first was to improve the regeneration efficiency of Pelargonium leaf discs by adventitious budding. The second was to test the effect of gibberellic acid (GA 3) and paclobutrazol (PBZ) on callus formation and adventitious shoot regeneration in Pelargonium before using genetic transformation of this species for functional validation of genes involved in the process of GA regulation. GA 3 and paclobutrazol (an inhibitor of GA synthesis pathway) were added (together or separately) in the shoot regeneration media of two Pelargonium species, Pelargonium * hortorum \u27Panache sud\u27 (\u27P.sud\u27) and Pelargonium * domesticum \u27Autumn haze\u27 (\u27 P.dom\u27). In both cases, GA 3 applied alone, completely inhibited the bud regeneration. Moreover, the rate of callus formation decreased drastically when 5 M of GA 3 was applied to \u27 P. dom\u27 explants. Similar result was obtained with \u27P.sud\u27 explants using 20 M GA 3. Paclobutrazol (0.3 M) applied at the same time as GA 3 (10 M) could partially restore regeneration process of \u27 P. dom\u27. For \u27 P. dom\u27, the use of paclobutrazol alone increased callus formation and slightly improved the rate of regeneration. Moreover, initiated buds had a better appearance. For \u27P. sud\u27, which had an abundant callusing, paclobutrazol did not improve regeneration and led to hyperhydric shoots