Tradable Permits with Incomplete Monitoring: Evidence from Santiago’s Particulate Permits Program

I explore the advantages of tradable emission permits over uniform emission standards when the regulator has incomplete information on firms’ emissions and costs of production and abatement (e.g., air pollution in large cities). Because the regulator only observes each firm’s abatement technology but neither its emissions nor its output, there are cases in which standards can lead to lower emissions and, hence, welfare dominate permits. I then empirically examine these issues using evidence from a particulate permits market in Santiago, Chile.asymmetric information, imperfect monitoring, pollution markets, permits

Subjective Quality Assessment of the Impact of Buffer Size in Fine-Grain Parallel Video Encoding

Fine-Grain parallelism is essential for real-time video encoding performance. This usually implies setting a fixed buffer size for each encoded block. The choice of this parameter is critical for both performance and hardware cost. In this paper we analyze the impact of buffer size on image subjective quality, and its relation with other encoding parameters. We explore the consequences on visual quality, when minimizing buffer size to the point of causing the discard of quantized coefficients for highest frequencies. Finally, we propose some guidelines for the choice of buffer size, that has proven to be heavily dependent, in addition to other parameters, on the type of sequence being encoded. These guidelines are useful for the design of efficient realtime encoders, both hardware and software

Volatility and dividend risk in perpetual American options

American options are financial instruments that can be exercised at any time before expiration. In this paper we study the problem of pricing this kind of derivatives within a framework in which some of the properties --volatility and dividend policy-- of the underlaying stock can change at a random instant of time, but in such a way that we can forecast their final values. Under this assumption we can model actual market conditions because some of the most relevant facts that may potentially affect a firm will entail sharp predictable effects. We will analyse the consequences of this potential risk on perpetual American derivatives, a topic connected with a wide class of recurrent problems in physics: holders of American options must look for the fair price and the optimal exercise strategy at once, a typical question of free absorbing boundaries. We present explicit solutions to the most common contract specifications and derive analytical expressions concerning the mean and higher moments of the exercise time.Comment: 21 pages, 5 figures, iopart, submitted for publication; deep revision, two new appendice

Violation de CP et oscillation des mésons K neutres

Rapport Janus, responsable de stage : V. Morena

Calorons on the lattice - a new perspective

We discuss the manifestation of instanton and monopole solutions on a periodic lattice at finite temperature and their relation to the infinite volume analytic caloron solutions with asymptotic non-trivial Polyakov loops. As a tool we use improved cooling and twisted boundary conditions. Typically we find 2Q lumps for topological charge Q. These lumps are BPS monopoles.Comment: Latex. 16 pages, 9 figure

Natural PQ symmetry in the 3-3-1 model with a minimal scalar sector

In the framework of a 3-3-1 model with a minimal scalar sector we make a detailed study concerning the implementation of the PQ symmetry in order to solve the strong CP problem. For the original version of the model, with only two scalar triplets, we show that the entire Lagrangian is invariant under a PQ-like symmetry but no axion is produced since an U(1) subgroup remains unbroken. Although in this case the strong CP problem can still be solved, the solution is largely disfavored since three quark states are left massless to all orders in perturbation theory. The addition of a third scalar triplet removes the massless quark states but the resulting axion is visible. In order to become realistic the model must be extended to account for massive quarks and invisible axion. We show that the addition of a scalar singlet together with a Z_N discrete gauge symmetry can successfully accomplish these tasks and protect the axion field against quantum gravitational effects. To make sure that the protecting discrete gauge symmetry is anomaly free we use a discrete version of the Green-Schwarz mechanism.Comment: 18 pages, 1 figure, 3 table