Idiosyncratic Consumption Risk and the Cross-Section of Asset Returns

This paper investigates the importance of idiosyncratic consumption risk for the cross-sectional variation in average returns on stocks and bonds. If idiosyncratic consumption risk is not priced, the only pricing factor in a multiperiod economy is the rate of aggregate consumption growth. We offer evidence that the cross-sectional variance of consumption growth is also a priced factor. This demonstrates that consumers are not fully insured against idiosyncratic consumption risk, and that asset returns reflect their attempts to reduce their exposure to this risk. We find that over the sample period the resulting two-factor consumption-based asset pricing model significantly outperforms the CAPM. The model's empirical performance also compares favorably with that of the Fama-French three-factor model. Moreover, in the presence of the market factor and the size and book-to-market factors, the two consumption based factors retain explanatory power. Together with the results of Lettau and Ludvigson (2000), these findings indicate that consumption-based asset pricing is relevant for explaining the cross-section of asset returns. Cet article analyse l'importance du risque idiosyncratique de la consommation individuelle pour la variance transversale des rendements moyens des actifs et des obligations. Lorsque l'on n'attribue pas de prix au risque idiosyncratique de la consommation individuelle, le seul facteur d'évaluation dans une économie à plusieurs horizons est le taux de croissance de la consommation agrégée. Nous montrons que la variance transversale de la croissance de la consommation est également un facteur dont le prix est déterminé. Ceci démontre que les consommateurs ne sont pas complètement assurés contre le risque idiosyncratique de la consommation et que les rendements des actifs reflètent leurs efforts à réduire leur exposition à ce risque. Pour la période considérée, nous trouvons que le modèle d'évaluation d'actifs à deux facteurs basés sur la consommation donne de meilleurs résultats que le CAPM. De plus, la performance empirique du modèle se compare favorablement avec celle du modèle à trois facteurs de Fama-French. Par ailleurs, en présence du facteur de marché et des facteurs taille et ratio valeur comptable/cours, les deux facteurs basés sur la consommation conservent leur pouvoir explicatif. Combiné aux résultats de Lettau et Ludvigson (2000), ces résultats indiquent que l'évaluation d'actifs à partir de la consommation sert à expliquer l'intégralité des rendements d'actifs.cross-sectional asset pricing; consumption-based model; idiosyncratic consumption risk; incomplete markets; measurement error, évaluation d'actifs transversale, modèle basé sur la consommation, risque de consommation idiosyncratique, marchés incomplets, erreur de mesure

Surface Fluorescence Studies of Tissue Mitochondrial Redox State in Isolated Perfused Rat Lungs

We designed a fiber-optic-based optoelectronic fluorometer to measure emitted fluorescence from the auto-fluorescent electron carriers NADH and FAD of the mitochondrial electron transport chain (ETC). The ratio of NADH to FAD is called the redox ratio (RR = NADH/FAD) and is an indicator of the oxidoreductive state of tissue. We evaluated the fluorometer by measuring the fluorescence intensities of NADH and FAD at the surface of isolated, perfused rat lungs. Alterations of lung mitochondrial metabolic state were achieved by the addition of rotenone (complex I inhibitor), potassium cyanide (KCN, complex IV inhibitor) and/or pentachlorophenol (PCP, uncoupler) into the perfusate recirculating through the lung. Rotenone- or KCN-containing perfusate increased RR by 21 and 30%, respectively. In contrast, PCP-containing perfusate decreased RR by 27%. These changes are consistent with the established effects of rotenone, KCN, and PCP on the redox status of the ETC. Addition of blood to perfusate quenched NADH and FAD signal, but had no effect on RR. This study demonstrates the capacity of fluorometry to detect a change in mitochondrial redox state in isolated perfused lungs, and suggests the potential of fluorometry for use in in vivo experiments to extract a sensitive measure of lung tissue health in real-time

In situ propellant production: Alternatives for Mars exploration

Current planning for the Space Exploration Initiative (SEI) recognizes the need for extraterrestrial resources to sustain long-term human presence and to attain some degree of self-sufficiency. As a practical matter, reducing the need to carry large supplies of propellant from Earth will make space exploration more economical. For nearly every round trip planned with conventional propulsion, the actual payload is only a small fraction - perhaps 10-15 percent - of the mass launched from Earth. The objective of this study was to analyze the potential application for SEI missions of propellants made exclusively from lunar or martian resources. Using such propellants could minimize or eliminate the cost of carrying propellant for surface excursion vehicles and return transfers through two high-energy maneuvers: Earth launch and trans-Mars injection. Certain chemical mono- and bipropellants are candidates for this approach; they could be recovered entirely from in situ resources on the Moon and Mars, without requiring a continuing Earth-based resupply of propellant constituents (e.g., fuel to mix with a locally obtained oxidizer) and, perhaps, with minimal need to resupply consumables (e.g., reagents or catalyst for process reactions). A complete assessment of the performance potential of these propellants must include the requirements for installation, operations, maintenance, and resupply of the chemical processing facility

The Copernicus project

The Copernicus spacecraft, to be launched on May 4, 2009, is designed for scientific exploration of the planet Pluto. The main objectives of this exploration is to accurately determine the mass, density, and composition of the two bodies in the Pluto-Charon system. A further goal of the exploration is to obtain precise images of the system. The spacecraft will be designed for three axis stability control. It will use the latest technological advances to optimize the performance, reliability, and cost of the spacecraft. Due to the long duration of the mission, nominally 12.6 years, the spacecraft will be powered by a long lasting radioactive power source. Although this type of power may have some environmental drawbacks, currently it is the only available source that is suitable for this mission. The planned trajectory provides flybys of Jupiter and Saturn. These flybys provide an opportunity for scientific study of these planets in addition to Pluto. The information obtained on these flybys will supplement the data obtained by the Voyager and Galileo missions. The topics covered include: (1) scientific instrumentation; (2) mission management, planning, and costing; (3) power and propulsion system; (4) structural subsystem; (5) command, control, and communication; and (6) attitude and articulation control

To Be or Not To Be a Molecular Ion: The Role of the Solvent in Photoionization of Arginine.

Application of photoionization mass spectroscopy, a technique capable of assessing protonation states in complex molecules in the gas phase, is challenging for arginine due to its fragility. We report photoionization efficiencies in the valence region of aqueous aerosol particles produced from arginine solutions under various pH and vaporization conditions. By using ab initio calculations, we investigate the stability of different conformers. Our results show that neutral arginine fragments upon ionization in the gas phase but solvation stabilizes the molecular ion, resulting in different photoionization dynamics. We also report the valence-band photoelectron spectra of the aerosol solutions obtained at different pH values

Modeling and analysis of uncertain time-critical tasking problems

Naval Research Logistics, 53 , No. 6, (Sept. 2006), 588-599.This paper describes modeling and operational analysis of a generic asymmetric services-system situation in which (a) Red agents, potentially threatening, but in another but important interpretation, are isolated friendlies, such as downed pilots, that require assistance and "arrive" according to some partially known and potentially changing pattern in time and space: and (b) Reds have effectively limited unknown deadlines or times of availability for Blue service, i.e., detection, classification, and attack in a military setting or emergency assistance in others. We discuss various service options by Blue service agents and devise several approximations allowing one to compute efficiently those proportions of tasks of different classes that are successfully serviced, or more generally, if different rewards are associated with different classes of tasks, the percentage of the possible reward gained. We suggest heuristic policies of a Blue server to select the next task to perform and to decide how much time to allocate to that service. We discuss this for a number of specific examples

Using Nanoparticle X-ray Spectroscopy to Probe the Formation of Reactive Chemical Gradients in Diffusion-Limited Aerosols.

For aerosol particles that exist in highly viscous, diffusion-limited states, steep chemical gradients are expected to form during photochemical aging in the atmosphere. Under these conditions, species at the aerosol surface are more rapidly transformed than molecules residing in the particle interior. To examine the formation and evolution of chemical gradients at aerosol interfaces, the heterogeneous reaction of hydroxyl radicals (OH) on ∼200 nm particles of pure squalane (a branched, liquid hydrocarbon) and octacosane (a linear, solid hydrocarbon) and binary mixtures of the two are used to understand how diffusion limitations and phase separation impact the particle reactivity. Aerosol mass spectrometry is used to measure the effective heterogeneous OH uptake coefficient (γeff) and oxidation kinetics in the bulk, which are compared with the elemental composition of the surface obtained using X-ray photoemission. When diffusion rates are fast relative to the reaction frequency, as is the case for squalane and low-viscosity squalane-octacosane mixtures, the reaction is efficient (γeff ∼ 0.3) and only limited by the arrival of OH to the interface. However, for cases, where the diffusion rates are slower than reaction rates, as in pure octacosane and higher-viscosity squalane-octacosane mixtures, the heterogeneous reaction occurs in a mixing-limited regime and is ∼10× slower (γeff ∼ 0.03). This is in contrast to carbon and oxygen K edge X-ray absorption measurements that show that the octacosane interface is oxidized much more rapidly than that of pure squalane particles. The O/C ratio of the surface (estimated to be the top 6-8 nm of the interface) is measured to change with rate constants of (3.0 ± 0.9) × 10-13 and (8.6 ± 1.2) × 10-13 cm3 molecule-1 s-1 for squalane and octacosane particles, respectively. The differences in surface oxidation rates are analyzed using a previously published reaction-diffusion model, which suggests that a 1-2 nm highly oxidized crust forms on octacosane particles, whereas in pure squalane, the reaction products are homogeneously mixed within the aerosol. This work illustrates how diffusion limitations can form particles with highly oxidized surfaces even at relatively low oxidant exposures, which is in turn expected to influence their microphysics in the atmosphere

Dysregulated methylation at imprinted genes in prostate tumor tissue detected by methylation microarray.

BACKGROUND: Imprinting is an important epigenetic regulator of gene expression that is often disrupted in cancer. While loss of imprinting (LOI) has been reported for two genes in prostate cancer (IGF2 and TFPI2), disease-related changes in methylation across all imprinted gene regions has not been investigated. METHODS: Using an Illumina Infinium Methylation Assay, we analyzed methylation of 396 CpG sites in the promoter regions of 56 genes in a pooled sample of 12 pairs of prostate tumor and adjacent normal tissue. Selected LOI identified from the array was validated using the Sequenom EpiTYPER assay for individual samples and further confirmed by expression data from publicly available datasets. RESULTS: Methylation significantly increased in 52 sites and significantly decreased in 17 sites across 28 unique genes (P \u3c 0.05), and the strongest evidence for loss of imprinting was demonstrated in tumor suppressor genes DLK1, PLAGL1, SLC22A18, TP73, and WT1. Differential expression of these five genes in prostate tumor versus normal tissue using array data from a publicly available database were consistent with the observed LOI patterns, and WT1 hypermethylation was confirmed using quantitative DNA methylation analysis. CONCLUSIONS: Together, these findings suggest a more widespread dysregulation of genetic imprinting in prostate cancer than previously reported and warrant further investigation