Deferred Annuities and Strategic Asset Allocation

We derive the optimal portfolio choice and consumption pattern over the lifecycle for households facing labor income, capital market, and mortality risk. In addition to stocks and bonds, households also have access to deferred annuities. Deferred annuities offer a hedge against mortality risk and provide similar benefits as Social Security. We show that a considerable fraction of wealth should be annuitized to skim the return enhancing mortality credit. The remaining liquid wealth (stocks and bonds) is used to hedge labor income risk during work life and to earn the equity premium. We find a marginal difference between a strategy involving deferred annuities and one where the investor can purchase immediate life annuities.

A I-V analysis of irradiated Gallium Arsenide solar cells

A computer program was used to analyze the illuminated I-V characteristics of four sets of gallium arsenide (GaAs) solar cells irradiated with 1-MeV electrons and 10-MeV protons. It was concluded that junction regions (J sub r) dominate nearly all GaAs cells tested, except for irradiated Mitsubishi cells, which appear to have a different doping profile. Irradiation maintains or increases the dominance by J sub r. Proton irradiation increases J sub r more than does electron irradiation. The U.S. cells were optimized for beginning of life (BOL) and the Japanese for end of life (EOL). I-V analysis indicates ways of improving both the BOL and EOL performance of GaAs solar cells

Synthetic aperture radar/LANDSAT MSS image registration

Algorithms and procedures necessary to merge aircraft synthetic aperture radar (SAR) and LANDSAT multispectral scanner (MSS) imagery were determined. The design of a SAR/LANDSAT data merging system was developed. Aircraft SAR images were registered to the corresponding LANDSAT MSS scenes and were the subject of experimental investigations. Results indicate that the registration of SAR imagery with LANDSAT MSS imagery is feasible from a technical viewpoint, and useful from an information-content viewpoint

Gallium Arsenide solar cell radiation damage experiment

Gallium arsenide (GaAs) solar cells for space applications from three different manufactures were irradiated with 10 MeV protons or 1 MeV electrons. The electrical performance of the cells was measured at several fluence levels and compared. Silicon cells were included for reference and comparison. All the GaAs cell types performed similarly throughout the testing and showed a 36 to 56 percent power areal density advantage over the silicon cells. Thinner (8-mil versus 12-mil) GaAs cells provide a significant weight reduction. The use of germanium (Ge) substrates to improve mechanical integrity can be implemented with little impact on end of life performance in a radiation environment

On the Key-Uncertainty of Quantum Ciphers and the Computational Security of One-way Quantum Transmission

We consider the scenario where Alice wants to send a secret (classical) $n$-bit message to Bob using a classical key, and where only one-way transmission from Alice to Bob is possible. In this case, quantum communication cannot help to obtain perfect secrecy with key length smaller then $n$. We study the question of whether there might still be fundamental differences between the case where quantum as opposed to classical communication is used. In this direction, we show that there exist ciphers with perfect security producing quantum ciphertext where, even if an adversary knows the plaintext and applies an optimal measurement on the ciphertext, his Shannon uncertainty about the key used is almost maximal. This is in contrast to the classical case where the adversary always learns $n$ bits of information on the key in a known plaintext attack. We also show that there is a limit to how different the classical and quantum cases can be: the most probable key, given matching plain- and ciphertexts, has the same probability in both the quantum and the classical cases. We suggest an application of our results in the case where only a short secret key is available and the message is much longer.Comment: 19 pages, 2 figures. This is a revised version of an earlier version that appeared in the proc. of Eucrocrypt'04:LNCS3027, 200

Asset Allocation and Location over the Life Cycle with Survival-Contingent Payouts

This paper shows how lifelong survival-contingent payouts can enhance investor wellbeing in the context of a portfolio choice model which integrates uninsurable labor income and asymmetric mortality expectations. Our model generates optimal asset location patterns indicating how much to hold in liquid versus illiquid survival-contingent payouts over the lifetime, and also asset allocation paths, showing how to invest in stocks versus bonds. We conrm that the investor will gradually move money out of her liquid saving into survivalcontingent assets to retirement and beyond, thereby enhancing her welfare by as much as 50 percent. The results are also robust to the introduction of uninsurable consumption shocks in housing expenses, income flows during the worklife and retirement, sudden changes in health status, and medical expenses.

Money in Motion: Dynamic Portfolio Choice in Retirement

Retirees confront the difficult problem of how to manage their money in retirement so as to not outlive their funds while continuing to invest in capital markets. We posit a dynamic utility maximizer who makes both asset location and allocation decisions when managing her retirement financial wealth and annuities, and we prove that she can benefit from both the equity premium and longevity insurance in her retirement portfolio. Even without bequests, she will not fully annuitize; rather, her optimal stock allocation amounts initially to more than half of her financial wealth and declines with age. Welfare gains from this strategy can amount to 40 percent of financial wealth (depending on risk parameters and other resources). In practice, it turns out that many retirees will do almost as well by purchasing a variable annuity invested 60/40 in stocks/bonds.

Observations of celestial X-ray sources above 20 keV with the high-energy scintillation spectrometer on board OSO 8

High-energy X-ray spectra of the Crab Nebula, Cyg- XR-1, and Cen A were determined from observations with the scintillation spectrometer on board the OSO-8 satellite, launched in June, 1975. Each of these sources was observed over two periods of 8 days or more, enabling a search for day-to-day and year to year variations in the spectral and temporal characteristics of the X-ray emission. No variation in the light curve of the Crab pulsar was found from observations which span a 15-day period in March 1976, with demonstrable phase stability. Transitions associated with the binary phase of Cyg XR-1 and a large change in the emission from Con A are reported