The Valuation of Assets under Moral Hazard

The design of managerial incentive contracts is examined in a setting in which economic agents are risk averse, and the actions of manages can affect asset returns which contain both systematic and idiosyncratic risks. It is shown that in the absence of moral hazard, owners of assets will insure managers against idiosyncratic risks, but with moral hazard, contracts will depend on both systematic and idiosyncratic risks. The traditional recommendation of asset pricing models, namely, to focus only on systematic risks, is thus proved to be valid only when there is no moral hazard. The major empirically testable predictions of the model are (1) managerial incentive contracts will generally depend on systematic as well as idiosyncratic risks, (2) idiosyncratic risks will generally be important in investment decisions, (3) the managers of firms with relatively high levels of idiosyncratic risks will have compensations that are less dependent on their firms' excess returns, and (4) the compensations of managers of larger firms will be relatively more dependent on the excess returns of their firms.

Moral Hazard, Agency Costs, and Asset Prices in a Competitive Equilibrium

The behavior of economic agents in the presence of uncertainty about exogenous events and imperfect information about the endogenously influenced actions of other agents with whom they contract has been receiving growing attention. In particular, the economic theory of agency explicitly recognizes that when agents enter into synergistic relationships, each agent will act in a manner consistent with the maximization of its personal welfare, thus giving rise to a phenomenon called moral hazard.

Effect of plasma shaping on performance in the National Spherical Torus Experiment

The National Spherical Torus Experiment (NSTX) has explored the effects of shaping on plasma performance as determined by many diverse topics including the stability of global magnetohydrodynamic (MHD) modes (e.g., ideal external kinks and resistive wall modes), edge localized modes (ELMs), bootstrap current drive, divertor flux expansion, and heat transport. Improved shaping capability has been crucial to achieving Βt ∼40%. Precise plasma shape control has been achieved on NSTX using real-time equilibrium reconstruction. NSTX has simultaneously achieved elongation κ∼2.8 and triangularity δ∼0.8. Ideal MHD theory predicts increased stability at high values of shaping factor S≡ q95 Ip (a Bt), which has been observed at large values of the S∼37 [MA (m·T)] on NSTX. The behavior of ELMs is observed to depend on plasma shape. A description of the ELM regimes attained as shape is varied will be presented. Increased shaping is predicted to increase the bootstrap fraction at fixed Ip. The achievement of strong shaping has enabled operation with 1 s pulses with Ip =1 MA, and for 1.6 s for Ip =700 kA. Analysis of the noninductive current fraction as well as empirical analysis of the achievable plasma pulse length as elongation is varied will be presented. Data are presented showing a reduction in peak divertor heat load due to increasing in flux expansion. © 2006 American Institute of Physics

Progress Towards High Performance, Steady-state Spherical Torus

Research on the Spherical Torus (or Spherical Tokamak) is being pursued to explore the scientific benefits of modifying the field line structure from that in more moderate aspect-ratio devices, such as the conventional tokamak. The Spherical Tours (ST) experiments are being conducted in various U.S. research facilities including the MA-class National Spherical Torus Experiment (NSTX) at Princeton, and three medium-size ST research facilities: Pegasus at University of Wisconsin, HIT-II at University of Washington, and CDX-U at Princeton. In the context of the fusion energy development path being formulated in the U.S., an ST-based Component Test Facility (CTF) and, ultimately a Demo device, are being discussed. For these, it is essential to develop high-performance, steady-state operational scenarios. The relevant scientific issues are energy confinement, MHD stability at high beta (B), noninductive sustainment, ohmic-solenoid-free start-up, and power and particle handling. In the confinement area, the NSTX experiments have shown that the confinement can be up to 50% better than the ITER-98-pby2 H-mode scaling, consistent with the requirements for an ST-based CTF and Demo. In NSTX, CTF-relevant average toroidal beta values bT of up to 35% with the near unity central betaT have been obtained. NSTX will be exploring advanced regimes where bT up to 40% can be sustained through active stabilization of resistive wall modes. To date, the most successful technique for noninductive sustainment in NSTX is the high beta-poloidal regime, where discharges with a high noninductive fraction ({approx}60% bootstrap current + neutral-beam-injected current drive) were sustained over the resistive skin time. Research on radio-frequency-based heating and current drive utilizing HHFW (High Harmonic Fast Wave) and EBW (Electron Bernstein Wave) is also pursued on NSTX, Pegasus, and CDX-U. For noninductive start-up, the Coaxial Helicity Injection (CHI), developed in HIT/HIT-II, has been adopted on NSTX to test the method up to Ip {approx} 500 kA. In parallel, start-up using radio-frequency current drive and only external poloidal field coils are being developed on NSTX. The area of power and particle handling is expected to be challenging because of the higher power density expected in the ST relative to that in conventional aspect-ratio tokamaks. Due to its promise for power and particle handling, liquid lithium is being studied in CDX-U as a potential plasma-facing surface for a fusion reactor

Reducing the environmental impact of surgery on a global scale: systematic review and co-prioritization with healthcare workers in 132 countries

Abstract Background Healthcare cannot achieve net-zero carbon without addressing operating theatres. The aim of this study was to prioritize feasible interventions to reduce the environmental impact of operating theatres. Methods This study adopted a four-phase Delphi consensus co-prioritization methodology. In phase 1, a systematic review of published interventions and global consultation of perioperative healthcare professionals were used to longlist interventions. In phase 2, iterative thematic analysis consolidated comparable interventions into a shortlist. In phase 3, the shortlist was co-prioritized based on patient and clinician views on acceptability, feasibility, and safety. In phase 4, ranked lists of interventions were presented by their relevance to high-income countries and low–middle-income countries. Results In phase 1, 43 interventions were identified, which had low uptake in practice according to 3042 professionals globally. In phase 2, a shortlist of 15 intervention domains was generated. In phase 3, interventions were deemed acceptable for more than 90 per cent of patients except for reducing general anaesthesia (84 per cent) and re-sterilization of ‘single-use’ consumables (86 per cent). In phase 4, the top three shortlisted interventions for high-income countries were: introducing recycling; reducing use of anaesthetic gases; and appropriate clinical waste processing. In phase 4, the top three shortlisted interventions for low–middle-income countries were: introducing reusable surgical devices; reducing use of consumables; and reducing the use of general anaesthesia. Conclusion This is a step toward environmentally sustainable operating environments with actionable interventions applicable to both high– and low–middle–income countries