Transactions accounts and loan monitoring

The authors provide evidence that transactions accounts help financial intermediaries monitor borrowers by offering lenders a continuous stream of data on borrowers’ account balances. This information is most readily available to commercial banks, but other intermediaries, such as finance companies, also have access to such information at a cost. Using a unique set of data that includes monthly and annual information on small-business borrowers at an anonymous Canadian bank, the authors find a significant relationship between loans becoming troubled and the number of prior borrowings in excess of collateral. Since the bank monitors the value of collateral (defined as accounts receivable plus inventory) at high frequency through the transactions account of the borrower, this unique access to useful information gives banks an advantage over other lenders. The authors also find that banks more intensively monitor loans that have a higher number of violations of the collateral limit. ; This paper substantially revises and supersedes the paper "Checking accounts and bank monitoring".Bank loans ; Small business

Checking accounts and bank monitoring

Do checking accounts help banks monitor borrowers? If they do, the rationale both for allowing regulated providers of liquidity to also make risky loans to commercial borrowers and for the government's providing deposit insurance becomes clearer. Using a unique set of data that includes monthly and annual information on small-business borrowers at an anonymous Canadian bank, the authors provide evidence that a bank has exclusive access to a continuous stream of borrower data, namely, the firm's checking account balances at the bank, that helps it to monitor the borrower. ; To the authors' knowledge, this paper is the first direct empirical test of the usefulness of checking account information in monitoring commercial borrowers. The authors directly examine the mechanism through which a bank is able to gain an information advantage over other types of lenders and find evidence that checking account information is indeed relatively transparent for monitoring borrowers' collateral and that such monitoring is useful in detecting problems with loans. As such, the authors' data provide "smoking gun" evidence that banks are special.Checking accounts

Transactions accounts and loan monitoring.

We provide evidence that transactions accounts help financial intermediaries monitor borrowers by offering lenders a continuous stream of data on borrowers’ account balances. This information is most readily available to commercial banks, but other intermediaries, such as finance companies, also have access to such information at a cost. Using a unique set of data that includes monthly and annual information on small-business borrowers at an anonymous Canadian bank, we provide empirical evidence that transactions account information helps the bank to monitor commercial borrowers’ operating loans and we show the direct mechanism through which an intermediary can use this information in monitoring and controlling moral hazard problems associated with a rising probability of bankruptcy.Loans

Anisotropic symmetrization and Sobolev inequalities on Finsler manifolds with nonnegative Ricci curvature

By using a sharp isoperimetric inequality and an anisotropic symmetrization argument, we establish Morrey-Sobolev and Hardy-Sobolev inequalities on $n$-dimensional Finsler manifolds having nonnegative $n$-Ricci curvature; in some cases we also discuss the sharpness of these functional inequalities. As applications, by using variational arguments, we guarantee the existence/multiplicity of solutions for certain eigenvalue problems and elliptic PDEs involving the Finsler-Laplace operator. Our results are also new in the Riemannian setting.Comment: 17 page

Analysis and modelling of muscles motion during whole body vibration

The aim of the study is to characterize the local muscles motion in individuals undergoing whole body mechanical stimulation. In this study we aim also to evaluate how subject positioning modifies vibration dumping, altering local mechanical stimulus. Vibrations were delivered to subjects by the use of a vibrating platform, while stimulation frequency was increased linearly from 15 to 60Hz. Two different subject postures were here analysed. Platform and muscles motion were monitored using tiny MEMS accelerometers; a contra lateral analysis was also presented. Muscle motion analysis revealed typical displacement trajectories: motion components were found not to be purely sinusoidal neither in phase to each other. Results also revealed a mechanical resonant-like behaviour at some muscles, similar to a second-order system response. Resonance frequencies and dumping factors depended on subject and his positioning. Proper mechanical stimulation can maximize muscle spindle solicitation, which may produce a more effective muscle activation

The Laser Astrometric Test of Relativity Mission

This paper discusses new fundamental physics experiment to test relativistic gravity at the accuracy better than the effects of the 2nd order in the gravitational field strength. The Laser Astrometric Test Of Relativity (LATOR) mission uses laser interferometry between two micro-spacecraft whose lines of sight pass close by the Sun to accurately measure deflection of light in the solar gravity. The key element of the experimental design is a redundant geometry optical truss provided by a long-baseline (100 m) multi-channel stellar optical interferometer placed on the International Space Station. The geometric redundancy enables LATOR to measure the departure from Euclidean geometry caused by the solar gravity field to a very high accuracy. LATOR will not only improve the value of the parameterized post-Newtonian (PPN) parameter gamma to unprecedented levels of accuracy of 1 part in 1e8, it will also reach ability to measure effects of the next post-Newtonian order (1/c^4) of light deflection resulting from gravity's intrinsic non-linearity. The solar quadrupole moment parameter, J2, will be measured with high precision, as well as a variety of other relativistic. LATOR will lead to very robust advances in the tests of fundamental physics: this mission could discover a violation or extension of general relativity, or reveal the presence of an additional long range interaction in the physical law. There are no analogs to the LATOR experiment; it is unique and is a natural culmination of solar system gravity experiments.Comment: 8 pages, 2 figures, invited talk given at the Second International Conference on Particle and Fundamental Physics in Space (SpacePart'03), 10-12 December 2003, Washington, D