Home bias persistence in foreign direct investments

The purpose of this paper is to analyse the issues related to home bias and foreign direct investments (FDIs). We study the role of physical, cultural, and institutional distances from home on FDI decisions taken by corporations to assess whether the globalization of the past two decades has reduced their influence. Using the ‘home bias’ framework from the finance literature and the gravity model from the economics literature, we utilize a large sample of both developed and emerging markets, using FDI flows of 6263 unique bilateral country pairs over a 30-year period. We find strong empirical evidence of persistent home bias in FDI outflows, and we show that not only physical distance but also cultural and institutional similarities between host and source countries remain a decisive factor in foreign corporate investment decisions. We also show that such home bias is persistent over time and is observed around the world

Herding in foreign direct investment

This paper, to our knowledge, is the first to examine herding in foreign direct investment (FDI). We investigate it from two perspectives, first the number of countries investing in the host country and then the dollar volumes of those investments. Our results provide strong evidence of herding in FDI. We also show herding in the divestures of these investors. We show that herding in FDI is related to host country characteristics and governance parameters

Joint PDF modelling of turbulent flow and dispersion in an urban street canyon

The joint probability density function (PDF) of turbulent velocity and concentration of a passive scalar in an urban street canyon is computed using a newly developed particle-in-cell Monte Carlo method. Compared to moment closures, the PDF methodology provides the full one-point one-time PDF of the underlying fields containing all higher moments and correlations. The small-scale mixing of the scalar released from a concentrated source at the street level is modelled by the interaction by exchange with the conditional mean (IECM) model, with a micro-mixing time scale designed for geometrically complex settings. The boundary layer along no-slip walls (building sides and tops) is fully resolved using an elliptic relaxation technique, which captures the high anisotropy and inhomogeneity of the Reynolds stress tensor in these regions. A less computationally intensive technique based on wall functions to represent boundary layers and its effect on the solution are also explored. The calculated statistics are compared to experimental data and large-eddy simulation. The present work can be considered as the first example of computation of the full joint PDF of velocity and a transported passive scalar in an urban setting. The methodology proves successful in providing high level statistical information on the turbulence and pollutant concentration fields in complex urban scenarios.Comment: Accepted in Boundary-Layer Meteorology, Feb. 19, 200

The effect of viscoelasticity in an airway closure model

Abstrac

A behavioral analysis of investor diversification

This paper studies the link between individual investors’ portfolio diversification levels and various personal traits that proxy informational advantages and overconfidence. The analysis is based on objective data from the largest Turkish brokerage house tracking 59,951 individual investors’ accounts with a total of 3,248,654 million transactions over the period 2008–2010. Wealthier, highly educated, older investors working in the finance sector and those trading relatively often show higher diversification levels possibly because they are better equipped to obtain and process information. Finance professionals, married investors, and those placing high-volume orders through investment centers show poorer diversification possibly as a reflection of overconfidence. Our analysis reveals important nonlinear effects, implying that the marginal impact of overconfidence on diversification is not uniform across investors but varies according to the investor's information gathering and processing abilities

Liquid plug formation in an airway closure model

The closure of a human lung airway is modeled as an instability of a two-phase flow in a pipe coated internally with a Newtonian liquid. For a thick enough coating, the Plateau-Rayleigh instability creates a liquid plug which blocks the airway, halting distal gas exchange. Owing to a bifrontal plug growth, this airway closure flow induces high stress levels on the wall, which is the location of airway epithelial cells. A parametric numerical study is carried out simulating relevant conditions for human lungs, in either ordinary or pathological situations. Our simulations can represent the physical process from pre- to postcoalescence phases. Previous studies have been limited to precoalescence only. The topological change during coalescence induces a high level of stress and stress gradients on the epithelial cells, which are large enough to damage them, causing sublethal or lethal responses. We find that postcoalescence wall stresses can be in the range of 300% to 600% greater than precoalescence values and so introduce an important source of mechanical perturbation to the cells

Effects of elastoviscoplastic properties of mucus on airway closure in healthy and pathological conditions

Airway mucus is a complex material with both viscoelastic and viscoplastic properties that vary with healthy and pathological conditions of the lung. In this study, the effects of these conditions on airway closure are examined in a model problem, where an elastoviscoplastic (EVP) single liquid layer lines the inner wall of a rigid pipe and surrounds the air core. The EVP liquid layer is modelled using the Saramito-HB model. The parameters for the model are obtained for the mucus in healthy, asthma, chronic obstructive pulmonary disease (COPD), and cystic fibrosis (CF) conditions by fitting the rheological model to the experimental data. Then the liquid plug formation is studied by varying the Laplace number and undisturbed liquid film thickness. Airway closure is a surface-tension-driven phenomenon that occurs when the ratio of the pulmonary liquid layer thickness to the airway radius exceeds a certain threshold. In previous studies, it has been found that airway epithelial cells can be lethally or sublethally damaged due to the high peak of the wall stresses and stress gradients during the liquid plug formation. Here we demonstrate that these stresses are also related to the EVP features of the liquid layer. Yielded zones of the liquid layer are investigated for the different mucus conditions, and it is found that the liquid layer is in a chiefly unyielded state before the closure, which indicates that this phase is dominated by the elastic behavior and solvent viscosity. This is further confirmed by showing that the elastic coefficient is one of the most critical parameters determining whether the closure occurs. This parameter also largely affects the closure time. The wall stresses are also investigated for the pathological and healthy cases. Their peaks for COPD and CF are found to be the highest due to the viscoelastic extra stress contribution. Contrary to the Newtonian case, the wall stresses for COPD and CF do not smoothly relax after closure, as they rather remain effectively almost as high as the Newtonian peak. Moreover, the local normal wall stress gradients are smaller for the COPD and CF liquid layer due to their higher stiffness causing a smaller curvature at the capillary wave. The local tangential wall stress gradients are also shown to be smaller for these cases because of the slower accumulation of the liquid at the bulge

Grambank reveals the importance of genealogical constraints on linguistic diversity and highlights the impact of language loss

While global patterns of human genetic diversity are increasingly well characterized, the diversity of human languages remains less systematically described. Here we outline the Grambank database. With over 400,000 data points and 2,400 languages, Grambank is the largest comparative grammatical database available. The comprehensiveness of Grambank allows us to quantify the relative effects of genealogical inheritance and geographic proximity on the structural diversity of the world's languages, evaluate constraints on linguistic diversity, and identify the world's most unusual languages. An analysis of the consequences of language loss reveals that the reduction in diversity will be strikingly uneven across the major linguistic regions of the world. Without sustained efforts to document and revitalize endangered languages, our linguistic window into human history, cognition and culture will be seriously fragmented.Genealogy versus geography Constraints on grammar Unusual languages Language loss Conclusio