17,092 research outputs found
The demand for homeowners insurance with bundled catastrophe coverages : Wharton project on managing catastrophic risks
In this paper, we estimate the demand for homeowner insurance in Florida. Since we are interested in a number of factors influencing demand, we approach the problem from two directions. We first estimate two hedonic equations representing the premium per contract and the price mark-up. We analyze how the contracts are bundled and how contract provisions, insurer characteristics and insured risk characteristics and demographics influence the premium per contract and the price mark-up. Second, we estimate the demand for homeowners insurance using two-stage least squares regression. We employ ISO's indicated loss costs as our proxy for real insurance services demanded. We assume that the demand for coverage is essentially a joint demand and thus we can estimate the demand for catastrophe coverage separately from the demand for noncatastrophe coverage. We determine that price elasticities are less elastic for catastrophic coverage than for non-catastrophic coverage. Further estimated income elasticities suggest that homeowners insurance is an inferior good. Finally, we conclude based on the results of a selection model that our sample of ISO reporting companies well represents the demand for insurance in the Florida market as a whole
The Demand for Homeowners Insurance with Bundled Catastrophe Coverage
This paper analyzes the demand for homeowners insurance in markets subject to catastrophe losses and where consumers have choices in configuring their coverage for catastrophe and non-catastrophe perils. We estimate the demand for homeowner insurance in Florida and New York using two-stage least squares regression with advisory indicated loss costs as our proxy for the quantity of real insurance services demanded. We decompose the demand for insurance into the demand for coverage of catastrophe perils (i.e., hurricanes or windstorms) and the demand for non-catastrophe coverage and estimate these demand functions separately. Our results are relatively consistent in New York and Florida, including evidence that catastrophe demand is more price elastic than non-catastrophe demand. We also find evidence that consumers value options that expand coverage, buy more insurance when it is subsidized through regulatory price constraints, and consider state guaranty fund provisions when purchasing insurance.
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India: Domestic Issues, Strategic Dynamics, and U.S. Relations
[Excerpt] President Barack Obama’s Administration has sought to build upon the deepened U.S. engagement with India begun by President Bill Clinton in 2000 and expanded upon during much of the past decade under President G.W. Bush. This “U.S.-India 3.0” diplomacy was most recently on display in July 2011, when the second U.S.-India Strategic Dialogue session saw a large delegation of senior U.S. officials visit New Delhi to discuss a broad range of global and bilateral issues. Many analysts view the U.S.-India relationship as being among the world’s most important in coming decades and see potentially large benefits to be accrued through engagement on many convergent interests. Bilateral initiatives are underway in all areas, although independent analysts in both countries worry that the partnership has lost momentum in recent years. Outstanding areas of bilateral friction include obstacles to bilateral trade and investment, including in the high-technology sector; outsourcing; the status of conflict in Afghanistan; climate change; and stalled efforts to initiate civil nuclear cooperation.
India is the world’s most populous democracy and remains firmly committed to representative government and rule of law. Its left-leaning Congress Party-led ruling national coalition has been in power for more than seven years under the leadership of Prime Minister Manmohan Singh, an Oxford-trained economist. New Delhi’s engagement with regional and other states is extensive and reflects its rising geopolitical status. The national economy has been growing rapidly—India’s is projected to be the world’s third-largest economy in the foreseeable future—yet poor infrastructure, booming energy demand, and restrictive trade and investment practices are seen to hamper full economic potential. Despite the growth of a large urban middle-class, India’s remains a largely rural and agriculture-based society, and is home to some 500-600 million people living in poverty. This report will be updated periodically
Supersymmetric solutions to Euclidean Romans supergravity
We study Euclidean Romans supergravity in six dimensions with a non-trivial
Abelian R-symmetry gauge field. We show that supersymmetric solutions are in
one-to-one correspondence with solutions to a set of differential constraints
on an SU(2) structure. As an application of our results we (i) show that this
structure reduces at a conformal boundary to the five-dimensional rigid
supersymmetric geometry previously studied by the authors, (ii) find a general
expression for the holographic dual of the VEV of a BPS Wilson loop, matching
an exact field theory computation, (iii) construct holographic duals to
squashed Sasaki-Einstein backgrounds, again matching to a field theory
computation, and (iv) find new analytic solutions.Comment: 31 pages; v2: published version (with reference added
Supersymmetric gauge theories on squashed five-spheres and their gravity duals
We construct the gravity duals of large N supersymmetric gauge theories
defined on squashed five-spheres with SU(3) x U(1) symmetry. These five-sphere
backgrounds are continuously connected to the round sphere, and we find a
one-parameter family of 3/4 BPS deformations and a two-parameter family of
(generically) 1/4 BPS deformations. The gravity duals are constructed in
Euclidean Romans F(4) gauged supergravity in six dimensions, and uplift to
massive type IIA supergravity. We holographically renormalize the Romans
theory, and use our general result to compute the renormalized on-shell actions
for the solutions. The results agree perfectly with the large N limit of the
dual gauge theory partition function, which we compute using large N matrix
model techniques. In addition we compute BPS Wilson loops in these backgrounds,
both in supergravity and in the large N matrix model, again finding precise
agreement. Finally, we conjecture a general formula for the partition function
on any five-sphere background, which for fixed gauge theory depends only on a
certain supersymmetric Killing vector.Comment: 63 pages, no figures; v2: minor corrections and reference adde
Supersymmetric gauge theories on five-manifolds
We construct rigid supersymmetric gauge theories on Riemannian
five-manifolds. We follow a holographic approach, realizing the manifold as the
conformal boundary of a six-dimensional bulk supergravity solution. This leads
to a systematic classification of five-dimensional supersymmetric backgrounds
with gravity duals. We show that the background metric is furnished with a
conformal Killing vector, which generates a transversely holomorphic foliation
with a transverse Hermitian structure. Moreover, we prove that any such metric
defines a supersymmetric background. Finally, we construct supersymmetric
Lagrangians for gauge theories coupled to arbitrary matter on such backgrounds.Comment: 35 pages: v2: minor corrections and references added. Published
versio
Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is Not Expensive
We examine the pervasive view that “equity is expensive,” which leads to claims that high capital requirements are costly and would affect credit markets adversely. We find that arguments made to support this view are either fallacious, irrelevant, or very weak. For example, the return on equity contains a risk premium that must go down if banks have more equity. It is thus incorrect to assume that the required return on equity remains fixed as capital requirements increase. It is also incorrect to translate higher taxes paid by banks to a social cost. Policies that subsidize debt and indirectly penalize equity through taxes and implicit guarantees are distortive. Any desirable public subsidies to banks’ activities should be given directly and not in ways that encourage leverage. Finally, suggestions that high leverage serves a necessary disciplining role are based on inadequate theory lacking empirical support. We conclude that bank equity is not socially expensive, and that high leverage is not necessary for banks to perform all their socially valuable functions, including lending, taking deposits and issuing money-like securities. To the contrary, better capitalized banks suffer fewer distortions in lending decisions and would perform better. The fact that banks choose high leverage does not imply that this is socially optimal, and, viewed from an ex ante perspective, high leverage may not even be privately optimal for banks. Setting equity requirements significantly higher than the levels currently proposed would entail large social benefits and minimal, if any, social costs. Approaches based on equity dominate alternatives, including contingent capital. To achieve better capitalization quickly and efficiently and prevent disruption to lending, regulators must actively control equity payouts and issuance. If remaining challenges are addressed, capital regulation can be a powerful tool for enhancing the role of banks in the economy.capital regulation, financial institutions, capital structure, too big to fail, systemic risk, bank equity, contingent capital, Basel.
Comment on "A centroid molecular dynamics study of liquid para hydrogen and ortho deuterium" [J. Chem. Phys. 121, 6412 (2004)]
We show that the two phase points considered in the recent simulations of liquid para hydrogen by Hone and Voth lie in the liquid-vapor coexistence region of a purely classical molecular dynamics simulation. By contrast, their phase point for ortho deuterium was in the one-phase liquid region for both classical and quantum simulations. These observations are used to account for their report that quantum mechanical effects enhance the diffusion in liquid para hydrogen and decrease it in ortho deuterium
Strong light-matter coupling in ultrathin double dielectric mirror GaN microcavities
Strong light-matter coupling is demonstrated at low temperature in an ultrathin GaN microcavity fabricated using two silica/zirconia Bragg mirrors, in addition to a three-period epitaxial (Al,Ga)N mirror serving as an etch stop and assuring good quality of the overgrown GaN. The λ/2 cavity is grown by molecular beam epitaxy on a Si substrate. Analysis of angle-resolved data reveal key features of the strong coupling regime in both reflectivity and transmission spectra at 5 K: anticrossing with a normal mode splitting of 43±2 meV and 56±2 meV for reflectivity and transmission, respectively, and narrowing of the lower polariton linewidth near resonance
Lens or Binary? Chandra Observations of the Wide Separation Broad Absorption Line Quasar Pair UM425
We have obtained a 110 ksec Chandra ACIS-S exposure of UM425, a pair of QSOs
at z=1.47 separated by 6.5 arcsec, which show remarkably similar emission and
broad absorption line (BAL) profiles in the optical/UV. Our 5000 count X-ray
spectrum of UM425A (the brighter component) is well-fit with a power law
(photon spectral index Gamma=2.0) partially covered by a hydrogen column of
3.8x10^22 cm^-2. The underlying power-law slope for this object and for other
recent samples of BALQSOs is typical of radio-quiet quasars, lending credence
to the hypothesis that BALs exist in every quasar. Assuming the same Gamma for
the much fainter image of UM425B, we detect an obscuring column 5 times larger.
We search for evidence of an appropriately large lensing mass in our Chandra
image and find weak diffuse emission near the quasar pair, with an X-ray flux
typical of a group of galaxies at redshift z ~ 0.6. From our analysis of
archival HST WFPC2 and NICMOS images, we find no evidence for a luminous
lensing galaxy, but note a 3-sigma excess of galaxies in the UM425 field with
plausible magnitudes for a z=0.6 galaxy group. However, the associated X-ray
emission does not imply sufficient mass to produce the observed image
splitting. The lens scenario thus requires a dark (high M/L ratio) lens, or a
fortuitous configuration of masses along the line of sight. UM425 may instead
be a close binary pair of BALQSOs, which would boost arguments that
interactions and mergers increase nuclear activity and outflows.Comment: 13 pages, 9 figures, Accepted for publication in the Astrophysical
Journa
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