Centralization Versus Decentralization in Credit Lending

This paper explores different organizational forms in terms of their ability to generate information about investment projects and allocate capital to these projects efficiently. A decentralized approach-with small, single-manager firms- is most likely to be attractive when information about individual projects is “non-verifiable” and cannot be credibly transmitted. Moreover, holding fixed firm size, non-verifiable information also favors flatter organizations with fewer layers of management. In contrast, large hierarchical firms with multiple layers of management are at comparative advantage when information can be costlessly “verified” and passed along within the hierarchy. As a concrete application of the theory, the paper discusses the consequences of consolidation in the banking industry. It has been documented that when large banks acquire small banks, there is a pronounced decline in lending to small businesses. To the extent that small-business lending relies heavily on non-verifiable information, this is exactly what the theory would lead one to expect.

Internal Capital Markets inside Financial Firms : Rent-Seeking Behavior Versus Cost of Capital

In this paper we build a two-tiered agency model of a financial firm that incorporates rent-seeking behavior from division managers, risk aversion from outside investors in a context of incomplete market and imperfect competition. We find no evidence for any socialism inside internal capital markets. Indeed we establish that divisions with better investment opportunities and high risk levels are allocated more capiral relatively to other divisions. Divisions with poor investment opportunities and low risk level are allocated more cash wage budget. We also establish a positive correlation between the size of the division and its risk level. This result suggests that large banks are more risky than small ones. This conclusion is in accordance with the idea claimed by many authors, that the wave of merger and acquisitions in the banking industry increases the systemic risk inside the financial system.Internal capital markets; Capital Budgeting; financial institutions

Site Response of Organic Soils

A primary source of uncertainty in any evaluation of the seismic stability of the Sacramento-San Joaquin Delta levee system is the site response characteristics of the shallow organic soils that commonly underlay the levees. This paper provides an overview of recent research on the site response characteristics of organic soils using centrifuge and numerical modeling. The centrifuge modeling effort included the development of techniques to measure the shear wave velocity profile for a centrifuge model while in-flight. One-dimensional site response analyses using an equivalent linear procedure were performed with the measured shear wave velocity profiles and the modulus reduction and damping relationships determined from prior laboratory studies. Good agreement was obtained between the numerical simulations and the centrifuge model recordings

Oxidation of Low Valent Sulphur Compounds with Lead Tetraacetate: Part III- Determination of Tri- & Tetrathionates & the Redox Potential of Sulphate- Trithionate System

812-81

Phencyclidine (PCP) blocks glutamate-activated postsynaptic currents

AbstractPhencyclidine (PCP) was tested on the metathoracic tibialis muscles of Locusta migratoria. In physiological solution, the peak amplitude of the excitatory postsynaptic currents (EPSCs) evoked by nerve stimulation was linearly related to membrane potential between −50 and −150 mV. The decay time constant of the EPSC (τEPSC) was exponentially dependent on voltage and decreased with hyperpolarization. The membrane potential change required to produce an e-fold change in τEPSC was 315 mV. PCP (5–40 μM) produced a concentration-dependent depression of both EPSC peak amplitude and τEPSC. A slight nonlinearity in the current-voltage relationship could be discerned at high concentrations of PCP. The shortening of the decay time constant of EPSC (τEPSC) occurred without significant change in the voltage sensitivity observed under control conditions. Under all experimental conditions, the decay of the EPSCs remained a single exponential of time. Fluctuation analysis indicated that 5 μM PCP shortens the lifetime of the glutamate-activated channels by 25.7 ± 3%. PCP (10–80 μM) did not induce desensitization of the glutamate receptors. These results suggest that PCP interacts with the open conformation of ion channels activated by the glutamate receptor.PhencyclidineGlutamate receptorLocustNeuromuscular transmissionExcitatory postsynaptic currentChannel blacke

Evidence of Plasmonic Induced Photocatalytic Hydrogen Production on Pd/TiO2 Upon Deposition on Thin Films of Gold

H2-production from renewables using sunlight is probably the holy grail of modern science and technology. Among the many approaches for increasing reaction rates, by increasing light absorption, plasmonic materials are often invoked. Yet, most plasmonic metals on semiconductors are also good for Schottky barrier formation. In this work, we are presenting evidences of de-coupling the plasmonic from Schottky effects on photoreaction. To conduct this we have systematically changed the under-layer gold film thickness and associated particle size. On top of the thin film layer, we have deposited the exact amount of a prototypical Schottky-based photo-catalyst (Pd/TiO2). We found up to 4 times increase in the H2-production rate at a critical Au film thickness (8 nm-thick). Below this thickness, the plasmonic response is not too strong while above it, the PR decays in favor of the Drude absorption mode. The reaction requires the presence of both UV (to excite the semiconductor) and visible light (to excite Au particles) in order to obtain high hydrogen production, 800 µmol/gCatal.min (probably the highest direct hydrogen (not current) production rate reported on a performing catalyst). The enhancement origin is quantitatively traced to its computed electric field strength (EFS). Adding a dielectric (SiO2) in between the Au thin layer and the catalyst exponentially decreased the reaction rate and EFS, with increasing its thickness. This work indicates the possibility of making an active and stable photo-catalyst from fundamental concepts yet further progress on the structural (technological) front is needed to make a practical catalyst

Oxidation of Low Valent Sulphur Compounds with Lead Tetraacetate: Part II- Potentiometric Determination of Pb(IV) Acetate by Reduction with Thiosulphate or Metabisulphite

195-19