Moral hazard under commercial and universal banking

Many claims have been made about the potential benefits, and the potential costs, of adopting a system of universal banking in the United States. We evaluate these claims using a model where there is a moral hazard problem between banks and “borrowers,” a moral hazard problem between banks and a deposit insurer, and a costly state verification problem. Under conditions we describe, allowing banks to take equity positions in firms strengthens their ability to extract surplus, and exacerbates problems of moral hazard. The incentives of universal banks to take equity positions will often be strongest when these problems are most severe.Universal banks

Deposit insurance: a reconsideration

This paper undertakes a simple general equilibrium analysis of the consequences of deposit insurance programs, the way in which they are priced and the way in which they fund revenue shortfalls. We show that the central issue is how the government will make up any FDIC losses. Under one scheme for making up the losses, we show that FDIC policy is irrelevant: it does not matter what premium is charged, nor does it matter how big FDIC losses are. Under another scheme, all that matters is the magnitude of the losses. And there is no presumption that small losses are “good.” We also show that multiple equilibria can be observed and Pareto ranked. Some economies may be “trapped” in equilibria with inefficient financial systems. Our analysis provides counterexamples to the following propositions. (1) Actuarially fair pricing of deposit insurance is always desirable. (2) Implicit FDIC subsidization of banks through deposit insurance is always undesirable. (3) “Large” FDIC losses are necessarily symptomatic of a poorly designed deposit insurance system.Deposit insurance

The Solar Neighborhood XV: Discovery of New High Proper Motion Stars with mu >= 0.4"/yr between Declinations -47 degrees and 00 degrees

We report the discovery of 152 new high proper motion systems (mu >= 0.4"/yr) in the southern sky (Declination = -47 degrees to 00 degrees) brighter than UKST plate R_{59F} =16.5 via our SuperCOSMOS-RECONS (SCR) search. This paper complements Paper XII in The Solar Neighborhood series, which covered the region from Declination = -90 degrees to -47 degrees and discussed all 147 new systems from the southernmost phase of the search. Among the total of 299 systems from both papers, there are 148 (71 in Paper XII, 77 in this paper) new systems moving faster than 0.5"/yr that are additions to the classic ``LHS'' (Luyten Half Second) sample. These constitute an 8% increase in the sample of all stellar systems with mu >= 0.5"/yr in the southern sky. As in Paper XII, distance estimates are provided for the systems reported here based upon a combination of photographic plate magnitudes and 2MASS photometry, assuming all stars are on the main sequence. Two SCR systems from the portion of the sky included in this paper are anticipated to be within 10 pc, and an additional 23 are within 25 pc. In total, the results presented in Paper XII and here for this SCR sweep of the entire southern sky include five new systems within 10 pc and 38 more between 10 and 25 pc. The largest number of nearby systems have been found in the slowest proper motion bin, 0.6"/yr > mu >= 0.4"/yr, indicating that there may be a large population of low proper motion systems very near the Sun.Comment: 36 pages, 5 figures, accepted for publication in Astronomical Journa

The Solar Neighborhood. XXXIX. Parallax Results from the CTIOPI and NOFS Programs: 50 New Members of the 25 Parsec White Dwarf Sample

We present 114 trigonometric parallaxes for 107 nearby white dwarf (WD) systems from both the Cerro Tololo Inter-American Observatory Parallax Investigation (CTIOPI) and the U. S. Naval Observatory Flagstaff Station (NOFS) parallax programs. Of these, 76 parallaxes for 69 systems were measured by the CTIOPI program and 38 parallaxes for as many systems were measured by the NOFS program. A total of 50 systems are confirmed to be within the 25 pc horizon of interest. Coupled with a spectroscopic confirmation of a common proper motion companion to a Hipparcos star within 25 pc as well as confirmation parallax determinations for two WD systems included in the recently released Tycho Gaia Astrometric Solution (TGAS) catalog, we add 53 new systems to the 25 pc WD sample $-$ a 42% increase. Our sample presented here includes four strong candidate halo systems, a new metal-rich DAZ WD, a confirmation of a recently discovered nearby short-period (P = 2.85 hr) double degenerate, a WD with a new astrometric pertubation (long period, unconstrained with our data), and a new triple system where the WD companion main-sequence star has an astrometric perturbation (P $\sim$ 1.6 yr).Comment: 32 pages, 12 figures. Figure 4 in the manuscript is a representative set of plots - plots for all WDs presented here are available (allfits_photo.pdf, allfits_photo_DQ.pdf, and allfits_photo_DZ.pdf). Accepted for publication in The Astronomical Journa

Auxiliary field approach to dilute Bose gases with tunable interactions

We rewrite the Lagrangian for a dilute Bose gas in terms of auxiliary fields related to the normal and anomalous condensate densities. We derive the loop expansion of the effective action in the composite-field propagators. The lowest-order auxiliary field (LOAF) theory is a conserving mean-field approximation consistent with the Goldstone theorem without some of the difficulties plaguing approximations such as the Hartree and Popov approximations. LOAF predicts a second-order phase transition. We give a set of Feynman rules for improving results to any order in the loop expansion in terms of composite-field propagators. We compare results of the LOAF approximation with those derived using the Popov approximation. LOAF allows us to explore the critical regime for all values of the coupling constant and we determine various parameters in the unitarity limit.Comment: 16 pages, 7 figure

The Solar Neighborhood XII: Discovery of New High Proper Motion Stars with 1.0"/yr > mu >= 0.4"/yr between Declinations -90 degrees and -47 degrees

We report the discovery of 141 new high proper motion systems (1.0"/yr > mu >= 0.4"/yr) in the southern sky (Declination = -90 degrees to -47 degrees) brighter than UKST plate R_{59F} = 16.5 via our SuperCOSMOS-RECONS (SCR) search. When combined with the nine systems having mu >= 1.0"/yr and/or late spectral type from the initial phases of this effort (Hambly et al. 2004, Henry et al. 2004), we find that 73 of the 150 total systems are moving faster than 0.5"/yr, and are therefore new members of the classic "LHS" (Luyten Half Second) sample. These constitute a 21% increase in the sample of stars with mu >= 0.5"/yr in the declination region searched, thereby comprising an important addition to this long-neglected region of the sky. Distance estimates are provided for the entire sample, based upon a combination of photographic plate magnitudes and 2MASS photometry, using the relations presented in Hambly et al. (2004) for the presumed main sequence stars. Three systems are anticipated to be within 10 pc, and an additional 15 are within 25 pc. Eight of these 18 nearby systems have proper motions falling between 0.4"/yr and 0.6"/yr, hinting at a large population of nearby stars with fast, but not extremely high, proper motions that have not been thoroughly investigated.Comment: 45 pages, 6 figures, accepted for publication in Astronomical Journal (January 2005

Induction of temperate cyanophage AS-1 by heavy metal – copper

BACKGROUND: It has been reported that some marine cyanophage are temperate and can be induced from a lysogenic phase to a lytic phase by different agents such as heavy metals. However, to date no significant reports have focused on the temperate nature of freshwater cyanophage/cyanobacteria. Previous experiments with cyanophage AS-1 and cyanobacteria Anacystis nidulans have provided some evidence that AS-1 may have a lysogenic life cycle in addition to the characterized lytic cycle. RESULTS: In this study, the possible temperate A. nidulans was treated with different concentrations of heavy metal-copper. CuSO(4 )with concentrations of 3.1 × 10(-3 )M, 3.1 × 10(-4 )M, 3.1 × 10(-5 )M and 3.1 × 10(-6 )M were used to detect the induction of AS-1 from A. nidulans. The population of the host, unicellular cyanobacteria Anacystis nidulans, was monitored by direct count and turbidity while the amount of virus produced was derived from plaque forming units (PFU) by a direct plating method. The ratio of AS-1 release from A. nidulans was also determined. From these results it appears that AS-1 lysogenic phage can be induced by copper at concentrations from 3.1 × 10(-6 )M to 3.1 × 10(-4 )M. Maximal phage induction occurred at 6 hours after addition of copper, with an optimal concentration of 3.1 × 10(-6 )M. CONCLUSION: Cu(2+ )is a significant inducer for lysogenic cyanobacterial cells and consequently would be a potential control agent in the cyanobacteria population in fresh water ecosystems

Single-Band Model for Diluted Magnetic Semiconductors: Dynamical and Transport Properties and Relevance of Clustered States

Dynamical and transport properties of a simple single-band spin-fermion lattice model for (III,Mn)V diluted magnetic semiconductors (DMS) is here discussed using Monte Carlo simulations. This effort is a continuation of previous work (G. Alvarez, Phys. Rev. Lett. 89, 277202 (2002)) where the static properties of the model were studied. The present results support the view that the relevant regime of J/t (standard notation) is that of intermediate coupling, where carriers are only partially trapped near Mn spins, and locally ordered regions (clusters) are present above the Curie temperature T_C. This conclusion is based on the calculation of the resistivity vs. temperature, that shows a soft metal to insulator transition near T_C, as well on the analysis of the density-of-states and optical conductivity. In addition, in the clustered regime a large magnetoresistance is observed in simulations. Formal analogies between DMS and manganites are also discussed.Comment: Revtex4, 20 figures. References updated, minor changes to figures and tex