The Threat of Exclusion and Relational Contracting

Relational contracts have been shown to mitigate moral hazard in labor and credit markets. A central assumption in most theoretical and experimental studies is that, upon misbehaving, agents can be excluded from their current source of income and have to resort to less attractive outside options. This threat of exclusion is unrealistic in many environments, and especially in credit and investment contexts. We examine experimentally the emergence and time structure of relational contracts when the threat of exclusion is weakened. We focus on bilateral credit relationships in which strategic default is possible. We compare a weak exclusion treatment in which defaulting borrowers can reinvest borrowed funds, to a strong exclusion treatment in which defaulting borrowers must liquidate borrowed funds. We find that under weak exclusion more relationships break down in early periods and credit relationships are more likely to “start small”

Spheromak Experiment Using Separate Guns For Formation And Sustainment

An experiment is described that incorporates the use of separate magnetized plasma guns for formation and sustainment of a spheromak. It is shown that energy coupling efficiency approaches unity if the gun and spheromak are of comparable size. A large gun should be able to operate at lower current and therefore lower voltage. In addition, it is expected that a gun matched to the size of the spheromak will cause less perturbation to the equilibrium. It is proposed to use a smaller gun for spheromak formation and a large, efficient gun for sustainment. The theoretical basis for the experiment is developed, and the details of the experiment are described. A prediction of the equilibrium magnetic flux surfaces using the EFIT code is presented

The Lefschetz-Hopf theorem and axioms for the Lefschetz number

The reduced Lefschetz number, that is, the Lefschetz number minus 1, is proved to be the unique integer-valued function L on selfmaps of compact polyhedra which is constant on homotopy classes such that (1) L(fg) = L(gf), for f:X -->Y and g:Y -->X; (2) if (f_1, f_2, f_3) is a map of a cofiber sequence into itself, then L(f_2) = L(f_1) + L(f_3); (3) L(f) = - (degree(p_1 f e_1) + ... + degree(p_k f e_k)), where f is a map of a wedge of k circles, e_r is the inclusion of a circle into the rth summand and p_r is the projection onto the rth summand. If f:X -->X is a selfmap of a polyhedron and I(f) is the fixed point index of f on all of X, then we show that I minus 1 satisfies the above axioms. This gives a new proof of the Normalization Theorem: If f:X -->X is a selfmap of a polyhedron, then I(f) equals the Lefschetz number of f. This result is equivalent to the Lefschetz-Hopf Theorem: If f: X -->X is a selfmap of a finite simplicial complex with a finite number of fixed points, each lying in a maximal simplex, then the Lefschetz number of f is the sum of the indices of all the fixed points of f.Comment: 9 page

Which Households Use Banks? Evidence from the Transition Economies

This paper uses survey data for 29,000 households from 29 transition economies to explore how the use of banking services is related to household characteristics, bank ownership structure and the development of the financial infrastructure. At the household level we find that the holding of a bank account or bank card increases with income, wealth and education in most countries and also find evidence for an urban-rural gap, as well as for a role of religion and social integration. Our results show that foreign bank ownership is associated with more bank accounts among high-wealth, high-income, and educated households. State ownership, on the other hand, does not induce financial inclusion of rural and poorer households. We find that higher deposit insurance coverage, better payment systems and creditor protection encourage the holding of bank accounts in particular by highincome and high-wealth households. All in all, our findings shed doubt on the ability of policy levers to broaden the financial system to disadvantaged groups.Access to finance, Bank-ownership, Deposit insurance, Payment system, Creditor protection.

Credit Reporting, Relationship Banking, and Loan Repayment

This paper examines the impact of credit reporting on the repayment behavior of borrowers. We implement an experimental credit market in which loan repayment is not third-party enforceable. We then compare market outcome with a public credit registry to that without a credit registry. This experiment is conducted for two market environments: first, a market in which repeat interaction between borrowers and lenders is not feasible and, second, a market in which borrowers and lenders can choose to trade repeatedly with each other. In the market without repeat interaction the credit market collapses without a credit registry, as lenders rightly fear that borrowers will default. The introduction of a registry in this environment significantly raises repayment rates and the credit volume extended by lenders. When repeat transactions are possible a credit registry is not necessary to sustain high market performance as relationship banking enforces repayment even when lenders cannot share information. In this environment credit reporting has little impact on market efficiency, it does however affect trading structure and distribution. The presence of a credit registry leads to fewer banking relationships and reduces the ability of lenders to extract rents from such relationships.Credit Market, Information Sharing, Relationship Banking

Lines of Flight: Everyday Resistance along England’s Backbone

The visual and the cultural impact of ‘social industry’ has made a permanent impression on the landscape and on individual minds, whether for ill or for good, particularly in the Peak and Pennines region of northern England. In the current research we examine this impact and consider how both its visible and less apparent effects took hold and how they set in motion an ongoing process of productive/consumptive estrangement from life’s primordial forces, which continue to be alien and obscure, or else appear arcane and overly nostalgic to present-day life. Drawing on the methodology of a short film (incorporating narrative and verse) and using rock climbing as an illustration, we will invoke several, radically dynamic ‘lines of flight’ to open up and articulate an aesthetic appreciation of concrete experience in the fight against coding and to engender a call for action and passion so that we might come to a renewed belief in free activity, which can prompt us, in turn, to think about how we live and work and how we might change things.

Labour Turnover and Firm Performance

We explore the impact of labour turnover on firm performance by analysing the predictions of an extension of the efficiency wage model of Salop (1979) developed by Garino and Martin (2007), which separates incumbent and newly hired workers in the production function. Within this theoretical framework, an exogenous increase in the turnover rate can increase profits if firms do not choose wages unilaterally. We test the theoretical predictions of the model using UK cross-section establishment-level data, the 2004 Workplace and Employee Relations Survey. In accordance with our theoretical priors, the empirical results support the standard inverse relationship between the quit rate and firm performance where firms unilaterally choose the wage and generally support a positive relationship between firm performance and the quit rate where trade unions influence wage setting

Implementation of computer assisted assessment: lessons from the literature

This paper draws attention to literature surrounding the subject of computer-assisted assessment (CAA). A brief overview of traditional methods of assessment is presented, highlighting areas of concern in existing techniques. CAA is then defined, and instances of its introduction in various educational spheres are identified, with the main focus of the paper concerning the implementation of CAA. Through referenced articles, evidence is offered to inform practitioners, and direct further research into CAA from a technological and pedagogical perspective. This includes issues relating to interoperability of questions, security, test construction and testing higher cognitive skills. The paper concludes by suggesting that an institutional strategy for CAA coupled with staff development in test construction for a CAA environment can increase the chances of successful implementation

Give Her A Violet

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