Sovereign Debt Restructuring: A Model-Law Approach

The existing contractual framework for sovereign debt restructuring is sorely inadequate. Whether or not their fault, nations sometimes take on debt burdens that become unsustainable. Until resolved, the resulting sovereign debt problem hurts not only those nations (such as Greece) but also their citizens, their creditors, and—by posing serious systemic risks to the international financial system—the wider economic community. The existing contractual framework functions poorly to resolve the problem because it often leaves little alternative between a sovereign debt bailout, which is costly and creates moral hazard, and a default, which raises the specter of systemic financial contagion. Most observers therefore want to strengthen the legal framework for resolving sovereign debt problems. International organizations, including the United Nations, have been contemplating strengthening that framework through treaties. The political economy of treaty-making, however, makes that approach highly unlikely to succeed in the near future. This article argues, in contrast, that a model-law approach should not only strengthen that legal framework but also should be politically and economically feasible. Model laws have long been used in cross-border lawmaking, but they are different than treaties. Unlike a treaty, a model law would not require general acceptance for its implementation. Only one or two jurisdictions, for example, need enact the text of this article’s proposed model law for it to become widely effective. Once that occurs, a debtor-state whose debt contracts are governed by those jurisdictions’ laws, or by its own laws, could restructure that debt without needing to amend any of those contracts. A model-law approach should also be desirable. This article’s model law, for example, would reduce uncertainty and should also achieve significant cost advantages—both to debtor-states and to their creditors—over the sovereign-debt-restructuring status quo. Because it would require only a ministerial supervisory process, the model law would not interfere with the exercise of a sovereign’s political discretion. Moreover, the model law provides incentives to motivate fair bargaining on behalf of debtor-states and their creditors, while restricting rent-seeking holdouts. It also enables the type of interim funding of day-to-day debts that a debtor-state needs during its debt restructuring. Debtor-states should therefore want (and creditors, other than rent-seeking holdouts, should want them) to enact into law this article’s proposed model-law text. Regardless of whether that enactment occurs, however, the article should serve its underlying purpose: to provide a conceptual and legal analysis of how a model law could be structured and how a model-law approach could be used to solve the problem of unsustainable sovereign debt burdens, and to help develop the norms required to facilitate those goals

Judicial Attitudes and Voting Behavior: The 1961 Term of the United States Supreme Court

For small-scale Unmanned Aerial Vehicles (UAV) to operate indoor, in urban canyons or other scenarios where signals from global navigation satellite systems are denied or impaired, alternative estimation and control strategies must be applied. In this paper a system is proposed that estimates the self-motion and wind velocity by fusing information from airspeed sensors, an inertial measurement unit (IMU) and a monocular camera. Such estimates can be used in control systems for managing wind disturbances or chemical plume based tracking strategies. Simulation results indicate that while the inertial dead-reckoning process is subject to drift, the system is capable of separating the self-motion and wind velocity from the airspeed information.QC 20110412</p

Race and Gender Discrimination: A Historical Case for Equal Treatment Under the Fourteenth Amendment

It was we, the people, not we, the white male citizens, nor yet we, the male citizens, but we, the whole people, who formed this Union. And we formed it, not to give the blessings of liberty, but to secure them; not to the half of ourselves and the half of our posterity, but to the whole people--women as well as men. --Susan B. Anthony 1 Under the common law of both England and the United States, a married woman enjoyed a legal status only slightly better than that of a slave. Until the mid-nineteenth century, in no state could a married American woman own property, make a will, inherit, sue or be sued, enter into a contract, or exercise any other of her most basic civil rights. Even single and widowed women, many of whom owned large amounts of property, were deprived of political rights: they could not vote, hold office, or sit on a jury. The gradual dissolution of women\u27s inferior legal status began with the passage of married women\u27s property laws, beginning before the Civil War and continuing throughout the twentieth century. In an even more brutal fashion, the institution of slavery stripped Black Americans of all their human, civil, political, and social rights. 2 In Dred Scott v. Sanford the Supreme Court determined that, even if Blacks were free, they were not citizens of the United States. 3 This Supreme Court ruling was superseded by the passage of the Thirteenth and the Fourteenth ..

PUMA criterion = MODE criterion

We show that the recently proposed (enhanced) PUMA estimator for array processing minimizes the same criterion function as the well-established MODE estimator. (PUMA = principal-singular-vector utilization for modal analysis, MODE = method of direction estimation.

Chickens prefer beautiful humans

We trained chickens to react to an average human female face but not to an average male face (or vice-versa). In a subsequent test, the animals showed preferences for faces consistent with human sexual preferences (obtained from university students). This suggests that human preferences arise from general properties of nervous systems, rather than from face-specific adaptations. We discuss this result in the light of current debate on the meaning of sexual signals, and suggest further tests of existing hypotheses about the origin of sexual preferences

Dynamic Iterative Pursuit

For compressive sensing of dynamic sparse signals, we develop an iterative pursuit algorithm. A dynamic sparse signal process is characterized by varying sparsity patterns over time/space. For such signals, the developed algorithm is able to incorporate sequential predictions, thereby providing better compressive sensing recovery performance, but not at the cost of high complexity. Through experimental evaluations, we observe that the new algorithm exhibits a graceful degradation at deteriorating signal conditions while capable of yielding substantial performance gains as conditions improve.Comment: 6 pages, 7 figures. Accepted for publication in IEEE Transactions on Signal Processin

Alternating Least-Squares for Low-Rank Matrix Reconstruction

For reconstruction of low-rank matrices from undersampled measurements, we develop an iterative algorithm based on least-squares estimation. While the algorithm can be used for any low-rank matrix, it is also capable of exploiting a-priori knowledge of matrix structure. In particular, we consider linearly structured matrices, such as Hankel and Toeplitz, as well as positive semidefinite matrices. The performance of the algorithm, referred to as alternating least-squares (ALS), is evaluated by simulations and compared to the Cram\'er-Rao bounds.Comment: 4 pages, 2 figure