1,780 research outputs found
Security analyst networks, performance and career outcomes
Authors' draft. Final version to be published in The Journal of Finance. Available online at http://onlinelibrary.wiley.com/Using a sample of 42,376 board directors and 10,508 security analysts we construct a social
network, mapping the connections between analysts and directors, between directors, and
between analysts. We use social capital theory and techniques developed in social network
analysis to measure the analyst’s level of connectedness and investigate whether these
connections provide any information advantage to the analyst. We find that better-connected
(better-networked) analysts make more accurate, timely, and bold forecasts. Moreover, analysts
with better network positions are less likely to lose their job, suggesting that these analysts are
more valuable to their brokerage houses. We do not find evidence that analyst innate forecasting
ability predicts an analyst’s future network position. In contrast, past forecast optimism has a
positive association with building a better network of connections
Systemic Risk in a Unifying Framework for Cascading Processes on Networks
We introduce a general framework for models of cascade and contagion
processes on networks, to identify their commonalities and differences. In
particular, models of social and financial cascades, as well as the fiber
bundle model, the voter model, and models of epidemic spreading are recovered
as special cases. To unify their description, we define the net fragility of a
node, which is the difference between its fragility and the threshold that
determines its failure. Nodes fail if their net fragility grows above zero and
their failure increases the fragility of neighbouring nodes, thus possibly
triggering a cascade. In this framework, we identify three classes depending on
the way the fragility of a node is increased by the failure of a neighbour. At
the microscopic level, we illustrate with specific examples how the failure
spreading pattern varies with the node triggering the cascade, depending on its
position in the network and its degree. At the macroscopic level, systemic risk
is measured as the final fraction of failed nodes, , and for each of
the three classes we derive a recursive equation to compute its value. The
phase diagram of as a function of the initial conditions, thus allows
for a prediction of the systemic risk as well as a comparison of the three
different model classes. We could identify which model class lead to a
first-order phase transition in systemic risk, i.e. situations where small
changes in the initial conditions may lead to a global failure. Eventually, we
generalize our framework to encompass stochastic contagion models. This
indicates the potential for further generalizations.Comment: 43 pages, 16 multipart figure
Recommended from our members
The impact of shadow banking on the implementation of Chinese monetary policy
This paper empirically analyses the relationship between the shadow banking system and implementation of monetary policy in China using the VECM methodology. We show that an increase in the size of shadow banking sector increases the independence of bank lending from the policies of the People Bank of China. We also find that Shadow Banking works in an asymmetric fashion in that it amplifies increases in the money supply but weakens the effects of restrictive interest rate-based monetary policy decisions
IHE cross-enterprise document sharing for imaging: interoperability testing software
<p>Abstract</p> <p>Background</p> <p>With the deployments of Electronic Health Records (EHR), interoperability testing in healthcare is becoming crucial. EHR enables access to prior diagnostic information in order to assist in health decisions. It is a virtual system that results from the cooperation of several heterogeneous distributed systems. Interoperability between peers is therefore essential. Achieving interoperability requires various types of testing. Implementations need to be tested using software that simulates communication partners, and that provides test data and test plans.</p> <p>Results</p> <p>In this paper we describe a software that is used to test systems that are involved in sharing medical images within the EHR. Our software is used as part of the Integrating the Healthcare Enterprise (IHE) testing process to test the Cross Enterprise Document Sharing for imaging (XDS-I) integration profile. We describe its architecture and functionalities; we also expose the challenges encountered and discuss the elected design solutions.</p> <p>Conclusions</p> <p>EHR is being deployed in several countries. The EHR infrastructure will be continuously evolving to embrace advances in the information technology domain. Our software is built on a web framework to allow for an easy evolution with web technology. The testing software is publicly available; it can be used by system implementers to test their implementations. It can also be used by site integrators to verify and test the interoperability of systems, or by developers to understand specifications ambiguities, or to resolve implementations difficulties.</p
Priority for the Worse Off and the Social Cost of Carbon
The social cost of carbon (SCC) is a monetary measure of the harms from carbon emission. Specifically, it is the reduction in current consumption that produces a loss in social welfare equivalent to that caused by the emission of a ton of CO2. The standard approach is to calculate the SCC using a discounted-utilitarian social welfare function (SWF)—one that simply adds up the well-being numbers (utilities) of individuals, as discounted by a weighting factor that decreases with time. The discounted-utilitarian SWF has been criticized both for ignoring the distribution of well-being, and for including an arbitrary preference for earlier generations. Here, we use a prioritarian SWF, with no time-discount factor, to calculate the SCC in the integrated assessment model RICE. Prioritarianism is a well-developed concept in ethics and theoretical welfare economics, but has been, thus far, little used in climate scholarship. The core idea is to give greater weight to well-being changes affecting worse off individuals. We find substantial differences between the discounted-utilitarian and non-discounted prioritarian SCC
Liquidity, term spreads and monetary policy
We propose a model with segmented markets that delivers endogenous variations in term spreads driven by banks’ portfolio decisions while facing maturity risk. Future profitability influences the term premium banks require to carry this risk. When expected profitability is relatively high (low) spreads are low (high). Spread fluctuations feed back into the macroeconomy through investment decisions. Econometric evidence corroborates this link between
expected financial profitability and yield spreads. Finally, we analyse unconventional monetary policy by allowing banks to sell assets to the central bank. These interventions exploit a new channel of policy transmission through banks’ portfolio choice affecting the yield curve
- …