Compensating Financial Experts

We propose a labor market model in which financial firms compete for a scarce supply of workers who can be employed as either bankers or traders. While hiring bankers helps create a surplus that can be split between a firm and its trading counterparties, hiring traders helps the firm appropriate a greater share of that surplus away from its counterparties. Firms bid defensively for workers bound to become traders, who then earn more than bankers. As counterparties employ more traders, the benefit of employing bankers decreases. The model sheds light on the historical evolution of compensation in finance

Prediction Markets: Alternative Mechanisms for Complex Environments with Few Traders

Double auction prediction markets have proven successful in large-scale applications such as elections and sporting events. Consequently, several large corporations have adopted these markets for smaller-scale internal applications where information may be complex and the number of traders is small. Using laboratory experiments, we test the performance of the double auction in complex environments with few traders and compare it to three alternative mechanisms. When information is complex we find that an iterated poll (or Delphi method) outperforms the double auction mechanism. We present five behavioral observations that may explain why the poll performs better in these settings

Financial Expertise as an Arms Race

We show that firms intermediating trade have incentives to overinvest in financial expertise. In our model, expertise improves firms’ ability to estimate value when trading a security. Expertise creates asymmetric information, which, under normal circumstances, works to the advantage of the expert as it deters opportunistic bargaining by counterparties. This advantage is neutralized in equilibrium, however, by offsetting investments by competitors. Moreover, when volatility rises the adverse selection created by expertise triggers breakdowns in liquidity, destroying gains to trade and thus the benefits that firms hope to gain through high levels of expertise

Industry Level Baseline Risk of COVID-19 Infection

We collect data from various sources to show the impact of COVID-19 and the related mitigation measures on the Top 20 Texas MSAs. The mission of this project is to gather information about large areas of economic activity in Texas, starting with Austin then expanding to the rest of the top 20 MSAs, in order to make policy recommendations about re-opening the economy with the effect of COVID-19 in mind. For more information please visit the website here, containing the Salem Center’s research, working papers, and other materials.We present an industry classification–level model of economic activities in terms of (1) risk of the novel coronavirus spread and (2) economic contribution for the Austin, Texas, metropolitan area. Our measure combines various categories of activities that seem to lead to viral spread. We think these measures will provide useful information about how to ease current lockdowns and how to more efficiently put in place future lockdowns if they are needed.Salem Cente

Investigation of the Vortex Thickener as a Possible Means of Liquid-liquid Separation

Mechanical Engineerin

Promoted-Combustion Chamber with Induction Heating Coil

An improved promoted-combustion system has been developed for studying the effects of elevated temperatures on the flammability of metals in pure oxygen. In prior promoted-combustion chambers, initial temperatures of metal specimens in experiments have been limited to the temperatures of gas supplies, usually near room temperature. Although limited elevated temperature promoted-combustion chambers have been developed using water-cooled induction coils for preheating specimens, these designs have been limited to low-pressure operation due to the hollow induction coil. In contrast, the improved promoted-combustion chamber can sustain a pressure up to 10 kpsi (69 MPa) and, through utilization of a solid induction coil, is capable of preheating a metal specimen up to its melting point [potentially in excess of 2,000 F (approximately equal to 1,100 C)]. Hence, the improved promoted combustion chamber makes a greater range of physical conditions and material properties accessible for experimentation. The chamber consists of a vertical cylindrical housing with an inner diameter of 8 in. (20.32 cm) and an inner height of 20.4 in. (51.81 cm). A threaded, sealing cover at one end of the housing can be unscrewed to gain access for installing a specimen. Inlet and outlet ports for gases are provided. Six openings arranged in a helical pattern in the chamber wall contain sealed sapphire windows for viewing an experiment in progress. The base of the chamber contains pressure-sealed electrical connectors for supplying power to the induction coil. The connectors feature a unique design that prevents induction heating of the housing and the pressure sealing surfaces; this is important because if such spurious induction heating were allowed to occur, chamber pressure could be lost. The induction coil is 10 in. (25.4 cm) long and is fitted with a specimen holder at its upper end. At its lower end, the induction coil is mounted on a ceramic base, which affords thermal insulation to prevent heating of the base of the chamber during use. A sapphire cylinder protects the coil against slag generated during an experiment. The induction coil is energized by a 6-kW water-cooled power supply operating at a frequency of 400 kHz. The induction coil is part of a parallel-tuned circuit, the tuning of which is used to adjust the coupling of power to the specimen. The chamber is mounted on a test stand along with pumps, valves, and plumbing for transferring pressurized gas into and out of the chamber. In addition to multiple video cameras aimed through the windows encircling the chamber, the chamber is instrumented with gauges for monitoring the progress of an experiment. One of the gauges is a dual-frequency infrared temperature transducer aimed at the specimen through one window. Chamber operation is achieved via a console that contains a computer running apparatus-specific software, a video recorder, and real-time video monitors. For safety, a blast wall separates the console from the test stand

Stiffness and strength of metal bridge deck forms

Light gauge metal sheeting is often utilized in the building and bridge industries for concrete formwork. Although the in-plane stiffness and strength of the metal forms are commonly relied upon for stability bracing in buildings, the forms are generally not considered for bracing in steel bridge construction. The primary difference between the forming systems in the two industries is the method of connection between the forms and girders. In bridge construction, an eccentric support angle is incorporated into the connection details to achieve a uniform slab thickness along the girder length. While the eccentric connection is a benefit for slab construction, the flexible connection limits the amount of bracing provided by the forms. This paper presents results from the first phase of a research study investigating the bracing behavior of metal bridge deck forms. Shear diaphragm tests were conducted to determine the shear stiffness and strength of bridge deck forms, and modified connection details were developed that substantially improve the bracing behavior of the forms. The measured stiffness and strength of diaphragms with the modified connection often met or exceeded the values of diaphragms with conventional noneccentric connections. The experimental results for the diaphragms with the modified connection details dramatically improve the potential for bracing of steel bridge girders by metal deck forms

Harnessing the Power of Stories for Rural Sustainability: Reflections on Community-Based Research on the Great Northern Peninsula of Newfoundland

Stories have the power to shape understanding of community sustainability. Yet in places on the periphery of capitalist systems, such as rural and resource-based regions, this power can be used to impose top–down narratives on to local residents. Academic research often reinforces these processes by telling damage-centric narratives that portray communities as depleted and broken, which perpetuates power imbalances between academia and community members, while disempowering local voices. This article explores the potential of storytelling as a means for local actors to challenge top–down notions of rural sustainability, drawing on a community-based research initiative on the Great Northern Peninsula (GNP) of Newfoundland. Five of the authors are community change-makers and one is an academic researcher. We challenge deficiencies-based narratives told about rural Newfoundland and Labrador, in which the GNP is often characterised by a narrow set of socio-economic indicators that overlook the region’s many tangible and intangible assets. Grounded in a participatory asset mapping and storytelling process, a ‘deep story’ of regional sustainability based on community members’ voices contrasts narratives of decline with stories of hope, and shares community renewal initiatives told by the dynamic individuals leading them. This article contributes to regional development efforts on the GNP, scholarship on sustainability in rural and remote communities, and efforts to realise alternative forms of university-community engagement that centre community members’ voices and support self-determination

Tubular space truss structure for SKITTER 2 robot

The Skitter 2 is a three legged transport vehicle designed to demonstrate the principle of a tripod walker in a multitude of environments. The tubular truss model of Skitter 2 is a proof of principal design. The model will replicate the operational capabilities of Skitter 2 including its ability to self-right itself. The project's focus was on the use of light weight tubular members in the final structural design. A strong design for the body was required as it will undergo the most intense loading. Triangular geometry was used extensively in the body, providing the required structural integrity and eliminating the need for cumbersome shear panels. Both the basic femur and tibia designs also relied on the strong geometry of the triangle. An intense literature search aided in the development of the most suitable weld techniques, joints, linkages, and materials required for a durable design. The hinge design features the use of spherical rod end bearings. In order to obtain a greater range of mobility in the tibia, a four-bar linkage was designed which attaches both to the femur and the tibia. All component designs, specifically the body, femur, and the tibia were optimized using the software package IDEAS 3.8A Supertab. The package provided essential deformation and stress analysis information on each component's design. The final structure incurred only a 0.0544 inch deflection in a maximum (worst case) loading situation. The highest stress experienced by any AL6061-T6 tubular member was 1920 psi. The structural integrity of the final design facilitated the use of Aluminum 6061-T6 tubing. The tubular truss structure of Skitter 2 is an effective and highly durable design. All facets of the design are structurally sound and cost effective