Asymptotically optimal discretization of hedging strategies with jumps

In this work, we consider the hedging error due to discrete trading in models with jumps. Extending an approach developed by Fukasawa [In Stochastic Analysis with Financial Applications (2011) 331-346 Birkh\"{a}user/Springer Basel AG] for continuous processes, we propose a framework enabling us to (asymptotically) optimize the discretization times. More precisely, a discretization rule is said to be optimal if for a given cost function, no strategy has (asymptotically, for large cost) a lower mean square discretization error for a smaller cost. We focus on discretization rules based on hitting times and give explicit expressions for the optimal rules within this class.Comment: Published in at http://dx.doi.org/10.1214/13-AAP940 the Annals of Applied Probability (http://www.imstat.org/aap/) by the Institute of Mathematical Statistics (http://www.imstat.org

Community Health Centers in an Era of Health System Reform and Economic Downturn: Prospects and Challenges

Reviews 2008 legislation reauthorizing community health centers and the factors affecting their role as providers for the uninsured, publicly insured, and underinsured. Outlines health centers' patient mix, quality of care, revenues, and challenges

Optimal discretization of hedging strategies with directional views

We consider the hedging error of a derivative due to discrete trading in the presence of a drift in the dynamics of the underlying asset. We suppose that the trader wishes to find rebalancing times for the hedging portfolio which enable him to keep the discretization error small while taking advantage of market trends. Assuming that the portfolio is readjusted at high frequency, we introduce an asymptotic framework in order to derive optimal discretization strategies. More precisely, we formulate the optimization problem in terms of an asymptotic expectation-error criterion. In this setting, the optimal rebalancing times are given by the hitting times of two barriers whose values can be obtained by solving a linear-quadratic optimal control problem. In specific contexts such as in the Black-Scholes model, explicit expressions for the optimal rebalancing times can be derived

Real Time Airborne Monitoring for Disaster and Traffic Applications

Remote sensing applications like disaster or mass event monitoring need the acquired data and extracted information within a very short time span. Airborne sensors can acquire the data quickly and on-board processing combined with data downlink is the fastest possibility to achieve this requirement. For this purpose, a new low-cost airborne frame camera system has been developed at the German Aerospace Center (DLR) named 3K-camera. The pixel size and swath width range between 15 cm to 50 cm and 2.5 km to 8 km respectively. Within two minutes an area of approximately 10 km x 8 km can be monitored. Image data are processed onboard on five computers using data from a real time GPS/IMU system including direct georeferencing. Due to high frequency image acquisition (3 images/second) the monitoring of moving objects like vehicles and people is performed allowing wide area detailed traffic monitoring

Community Health Centers and the Economy: Assessing Centers\u27 Role in Immediate Job Creation Efforts

Federal investment in community health centers not only creates health care access but, based on previous studies, generates an estimated 8:1 return for medically underserved communities while creating thousands of jobs. Since our earlier 2008 economic impact study, Congress has made two major program investments: $2 billion under the American Reinvestment and Recovery Act (ARRA) of 2009; and$11 billion under the Affordable Care Act (ACA). This analysis measures the economic and jobs-creation benefits of this cumulative investment in health centers, as well as the impact of legislation enacted in April, 2011, which reduced the first year of new ACA investment by $600 million

The Health Care Access and Cost Consequences of Reducing Health Center Funding

For over four decades, community health centers have served a critical role in providing affordable access to quality care to some of the nation\u27s most vulnerable populations. Health centers have historically enjoyed broad bipartisan support, based on the evidence documenting their high quality care, crucial role in both urban and rural communities, and ability to bend the cost curve. On February 20, 2011, the U.S. House of Representatives voted to reduce discretionary health center funding by $1.3 billion in FY 2011 alone. Although the spending bill was rejected by the U.S. Senate on March 10, 2011, final spending measures for health centers are yet to be determined. If other proposals to reduce health center funding are enacted into law, they would effectively undo health centers\u27 ability to grow, as envisioned under the American Recovery and Reinvestment Act (ARRA) and the Affordable Care Act (ACA). This brief discusses the consequences on access and cost savings of reducing federal funding. Building on our prior analyses of the impact of both ARRA and ACA on improving the ability of health centers to reach medically underserved communities, we conclude that the proposed$1.3 billion reduction in health center funding for FY 2011 would significantly reduce health center capacity, eliminating access for between 10 to 12 million patients. Amid concerns of continuing threats to health center funding, we also find health centers are likely to reconsider some expansion efforts and may be unable to meet the increasing demand for care, particularly as coverage is expanded. Federal investments in health centers under ARRA and ACA were intended to strengthen and expand primary care capacity. The proposed reduction in health center funding would undermine efforts to expand access to quality care for vulnerable populations, reduce health disparities, improve birth outcomes, protect local economies, and save federal and state health care costs. Moreover, we estimate that a $1.3 billion reduction in FY 2011 health center funding would translate into a loss of approximately$15 billion in cost savings; put another way, for every one dollar in health center funding reductions, $11.50 in potential savings is lost as a result of reduced health center capacity to efficiently manage care and reduce avoidable costs

Access Transformed: Building a Primary Care Workforce for the 21st Century

Though access to primary care protects health and cuts costs, this report shows there aren\u27t enough primary care doctors and nurses at health centers to meet the need, with some areas having almost none – a situation that cannot be solved just by expanding health insurance coverage. The report indicates the availability of a primary care workforce depends on where you live, and primary care clinicians are not locating in areas that need them most, especially low-income communities. The study includes state-level projections of growing patient needs expected to stretch the health care system in years ahead. It was conducted by the National Association of Community Health Centers (NACHC), the Robert Graham Center and George Washington University Department of Health Policy

Health Centers Reauthorization: An Overview of Achievements and Challenges

Since the establishment of the first health center in 1965, health centers have evolved into an essential component of the health care safety net. Today, over 1,000 federally funded and look-alike health centers serve 14.3 million people, three-quarters of whom are uninsured or covered by Medicaid. As the nation\u27s largest primary care system, health centers care for one in five low-income uninsured persons and one in nine Medicaid beneficiaries