Some effects of small-scale metallicity variations in cooling flows

In an attempt to reconcile recent spectral data with predictions of the standard cooling flow model, it has been suggested that the metals in the intracluster medium (ICM) might be distributed inhomogeneously on small scales. We investigate the possible consequences of such a situation within the framework of the cooling flow scenario. Using the standard isobaric cooling flow model, we study the ability of such metallicity variations to preferentially suppress low-temperature line emission in cooling flow spectra. We then use simple numerical simulations to investigate the temporal and spatial evolution of the ICM when the metals are distributed in such a fashion. Simulated observations are used to study the constraints real data can place on conditions in the ICM. The difficulty of ruling out abundance variations on small spatial scales with current observational limits is emphasized. We find that a bimodal distribution of metals may give rise to interesting effects in the observed abundance profile, in that apparent abundance gradients with central abundance drops and off-centre peaks, similar to those seen recently in some clusters, are produced. Different elements behave in different fashion as governed by the temperature dependence of their equivalent widths. Our overall conclusion is that, whilst this process alone seems unlikely to be able to account for the sharp reduction in low temperature emission lines seen in current spectral data, a contribution at some level is possible and difficult to rule out. The possibility of small-scale metallicity variations should be considered when analysing high resolution cluster X-ray spectra.Comment: 14 pages, 10 figures. Accepted for publication in MNRA

Manual actuator

An actuator for an exercising machine employable by a crewman aboard a manned spacecraft is presented. The actuator is characterized by a force delivery arm projected from a rotary imput shaft of an exercising machine and having a force input handle extended orthogonally from its distal end. The handle includes a hand-grip configured to be received within the palm of the crewman's hand and a grid pivotally supported for angular displacement between a first position, wherein the grid is disposed in an overlying juxtaposition with the hand-grip, and a second position, angularly displaced from the first position, for affording access to the hand-grip, and a latching mechanism fixed to the sole of a shoe worn by the crewman for latching the shoe to the grid when the grid is in the first position

Profile of a cell test database and a corresponding reliability database

The development of computerized control, and data retrieval for aerospace cell testing affords an excellent opportunity to incorporate three specific concepts to both manage the test area and to track product performance on a real-time basis. The adoption and incorporation of precepts fostered by this total quality management (TQM) initiative are critical to us for retaining control of our business while substantially reducing the separate quality control inspection activity. Test discrepancies are all 'equally bad' in cell acceptance testing because, for example, we presently do not discriminate between 1 or 25 mV for an overvoltage condition. We must take leadership in classifying such discrepancies in order to expedite their clearance and redirect our resources for prevention activities. The development and use of engineering alerts (or guardbanding) which more closely match our product capabilities and are toleranced tighter than the required customer specification are paramount to managing the test unit in order to remain both quality and cost effective

Financing Constraints and Corporate Investment

Most empirical models of investment rely on the assumption that firms are able to respond to prices set in centralized securities markets (through the "cost of capital" or "q"). An alternative approach emphasizes the importance of cash flow as a determinant of investment spending, because of a "financing hierarchy," in which internal finance has important cost advantages over external finance. We build on recent research concerning imperfections in markets for equity and debt. This work suggests that some firms do not have sufficient access to external capital markets to enable them to respond to changes in the cost of capital, asset prices, or tax-based investment incentives. To the extent that firms are constrained in their ability to raise funds externally, investment spending may be sensitive to the availability of internal finance. That is, investment may display "excess sensitivity" to movements in cash flow. In this paper, we work within the q theory of investment, and examine the importance of a financing hierarchy created by capital-market imperfections. Using panel data on individual manufacturing firms, we compare the investment behavior of rapidly growing firms that exhaust all of their internal finance with that of mature firms paying dividends. We find that q values remain very high for significant periods of time for firms paying no dividends, relative to those for mature firms. We also find that investment is more sensitive to cash flow for the group of firms that our model implies is most likely to face external finance constraints. These results are consistent with the augmented model we propose, which takes into account different financing regimes for different groups of firms. Some extensions and implications for public policy are discussed at the end.

Market Structure and Cyclical Fluctuations in U.S. Manufacturing

The relevance of imperfect competition for models of aggregate economic fluctuations has received increased attention from researchers in both macroeconomics and industrial organization. Measuring properly the size of industry markups of price over marginal cost is important both for assessing the role of market structure and for determining the extent to which excess capacity is a significant feature accompanying imperfect competition in American industry. Using a panel data set on four-digit Census manufacturing industries, this paper expands recent work by Robert Hall on the importance of market structure for understanding cyclical fluctuations. We outline a methodology for estimating industry markups of price over cost and the influence of market structure on cyclical movements in total factor productivity. While we find evidence to support the proposition that price exceeds marginal cost in U.S. manufacturing, our results offer only limited support for the notion that markups are importantly related to differences in industry concentration, though the effect of unionization is important. Concentration effects are important only in industries producing durable goods or differentiated consumer goods. In addition, much of the estimated markup of price over marginal cost is accounted for by fixed costs related to overhead labor, advertising, and central office expenses; we do not find compelling evidence of substantial evidence of excess capacity in most industries.

Business Cycles and Oligopoly Supergames: Some Empirical Evidence on Prices and Margins

There has been a significant interest on a theoretical level in the application of supergames to oligopoly behavior. Implications for pricing behavior in trigger-strategy models in response to aggregate demand are of particular importance for public policy considerations. We contrast the predictions for the movements of industry prices over the business cycle of two such models -- put forth by Edward Green and Robert Porter and by Julio Rotemberg and Garth Saloner -- and test the predictions using a panel data set of U.S. manufacturing industries. Our principal findings are four. First, the levels of price-cost margins of concentrated, homogeneous-goods industries, while higher than those of unconcentrated counterparts, appear to be closer to those predicted by a single-period Cournot-Nash equilibrium than monopoly. Second, there is little evidence to support the idea that price-cost margins of these industries have different cyclical patterns from other industries apart from effects by level of industry concentration. Maximum price declines for concentrated industries give little support for the occurrence of price wars during either recessions or booms. Finally, consistent with the predictions of the Rotemberg-Saloner model, the industries with high price-cost margins have more countercyclical price movements than those exhibited by other industries. That gradual price adjustment is quantitatively important for those industries, suggests, however, that other factors may lie behind the apparent rigidity of prices.

Financing Constraints and Corporate Investment

macroeconomics, Financing Constraints, Corporate Investment

Financing Constraints and Corporate Investment: Response to Kaplan and Zingales

Kaplan and Zingales (1995, hereafter KZ) criticize Fazzari, Hubbard and Petersen (1988, hereafter FHP) and much ensuing research that uses cross-sectional differences in firm behavior to test for financing constraints on investment. This reply identifies flaws in the KZ analysis. The questions KZ raise have been considered extensively and rigorously in the literature (most of which is not addressed in KZ), with results broadly similar to those of FHP. We also challenge both of KZ's main results. First, their finding that most of the FHP firms are not financially constrained relies on an inappropriate operational definition of what it means to be constrained. Their definition ignores the incentives for firms that operate in imperfect capital markets to accumulate stocks of cash or maintain unused debt capacity to offset partially shocks to the flow of internal finance. Second, the KZ regression results (lower sensitivity of investment to cash flow for firms classified as constrained than for those classified as unconstrained) are uninformative. Their classification approach relies on possibly self- serving managerial statements that may present a distorted picture of firm's availability of finance. It also employs misleading criteria to make unrealistically fine distinctions in the degree of financing constraints, and emphasizes financial distress rather than financing constraints. Finally, econometric problems affect the interpretation of the KZ regressions. We conclude that the KZ findings do not contradict the interpretation of the empirical results in FHP and subsequent research.