Stochastic Loewner evolution in multiply connected domains

We construct radial stochastic Loewner evolution in multiply connected domains, choosing the unit disk with concentric circular slits as a family of standard domains. The natural driving function or input is a diffusion on the associated Teichm\"uller space. The diffusion stops when it reaches the boundary of the Teichm\"uller space. We show that for this driving function the family of random growing compacts has a phase transition for $\kappa=4$ and $\kappa=8$, and that it satisfies locality for $\kappa=6$.Comment: Corrected version, references adde

The Correlator Toolbox, Metrics and Moduli

We discuss the possible set of operators from various boundary conformal field theories to build meaningful correlators that lead via a Loewner type procedure to generalisations of SLE($\kappa,\rho$). We also highlight the necessity of moduli for a consistent kinematic description of these more general stochastic processes. As an illustration we give a geometric derivation of $\text{SLE}(\kappa,\rho)$ in terms of conformally invariant random growing compact subsets of polygons. The parameters $\rho_j$ are related to the exterior angles of the polygons. We also show that $\text{SLE}(\kappa,\rho)$ can be generated by a Brownian motion in a gravitational background, where the metric and the Brownian motion are coupled. The metric is obtained as the pull-back of the Euclidean metric of a fluctuating polygon.Comment: 3 figure

Who Should Pay for Certification?

Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer or the seller? Our answer - the seller - follows from a nontrivial analysis revealing a clear intuition. Buyer-induced certification acts as an inspection device, seller-induced certification as a signalling device. Seller-induced certification maximizes the certifier’s profit and social welfare. This suggests the general principle that certification is, and should be induced by the better informed party. The results are reflected in a case study from the automotive industry, but apply also to other markets - in particular the financial market.asymmetric information, certification, information acquisition, inspection, lemons, middlemen, signaling

Fiscal Policy, Business Cycles and Labor-Market Fluctuations

In this paper we study the effects and transmission of fiscal policy in a dynamic general equilibrium sticky-price model with non-Ricardian agents, distortionary taxation and a Walrasian labor market. We derive a simple analytical framework for fiscal policy similar to the workhorse 'new synthesis' model widely used in the monetary policy literature. We then explore theoretical conditions under which government spending (whether financed by lump-sum or income taxes) can increase private consumption as observed in the data. We conclude that making the model fare better in this respect necessarily makes it fare worse in what concerns real wage fluctuations. Additionally, we show that the model can generate non-Keynesian effects of fiscal policy when participation to asset markets is limited enough and the monetary policy rule is passive.Fiscal Policy; Dynamic General Equilibrium; Distortionary Taxation; Sticky Prices; Non-Ricardian Agents; Government Debt; Non-Keynesian Effects.

Categorical Cognition: A Psychological Model of Categories and Identification in Decision Making

This paper introduces a psychological notion of categorization into economics and derives its implications for economic decision making. We show, using a tractable model of social cognition, that a decision maker in (efficiently) assigning past experiences to categories, will sort experiences of interaction with larger (majority) groups more finely than experiences with smaller (minority) groups. We then apply the model to understand simple forms of discrimination and social identity. It is shown that discrimination in hiring can result from such cognitive processes even when there is no malevolent taste to do so and workers' qualifications are fully observable. The model also provides a framework that is equipped to investigate the social psychologicalcategorization, discrimination, bounded rationality,

FERTILIZER DEMAND FUNCTIONS FOR SPECIFIC NUTRIENTS APPLIED TO THREE MAJOR U.S. CROPS

Several past studies used time series data to estimate price elasticities of demand for fertilizer or nutrient use on all crops in the United States or by region. In this study, demand functions for nitrogen, phosphorous and potassium applied per acre of corn, wheat and soybeans in the United States were estimated, using a combination of autoregressive least squares and seemingly unrelated regression techniques. The results suggest that the demands for nitrogen, phosphorous and potassium applied to corn are price elastic, while similar responses for wheat and soybeans are price inelastic. Nitrogen and phosphorous applied per acre of corn were found to be positively related to government sponsored acreage diversion. The estimated elasticities could provide policymakers with insight for developing fertilizer and crop policies.Crop Production/Industries,

A simple opto-fluidic switch detecting liquid filling in polymer-based microfluidic systems

A novel detection scheme for detection of liquid levels and bubbles in microfluidic systems, using the principle of total internal reflection (TIR) is presented. A laser beam impinges on the side walls of a channel which are inclined at 45deg. In an unfilled channel of such a "V-groove", TIR deflects the beam by 90deg into a simple light detector. Upon the presence of liquid, the refractive index in the channel changes, thus eliminating deflection by TIR. The detection principle is robust, requiring no calibration, and tolerating alignment errors of the laser larger than the width and depth of the microfluidic channels. The machining of the V-groves can seamlessly be integrated into common polymer microfabrication schemes such as injection molding