Long Run Macroeconomic Relations in the Global Economy

This paper focuses on testing long run macroeconomic relations for interest rates, equity, prices and exchange rates within a model of the global economy. It considers a number of plausible long run relationships suggested by arbitrage in financial and goods markets, and uses the global vector autoregressive (GVAR) model in Dees, di Mauro, Peseran and Smith (2007) to test for long run restrictions in each country/region conditioning on the rest of the world. Bootstrapping is used to compute both the empirical distribution of the impulse responses and log-likelihood ratio statistic for over-identifying restrictions. The paper also examines the speed with which adjustments to the long tun relations take place via the persistence profiles. We find strong evidence in favour of the uncovered interest parity and to a lesser extent the Fisher equation across a number of countries, but our results for the PPP are much weaker. Also as to be expected, the transmission of shocks and subsequent adjustments in financial markets are much faster than those in goods markets

Spatial and Temporal Diffusion of House Prices in the UK

This paper provides a method for the analysis of the spatial and temporal diffusion of shocks in a dynamic system. We use changes in real house prices within the UK economy at the level of regions to illustrate its use. Adjustment to shocks involves both a region specific and a spatial effect. Shocks to a dominant region - London - are propagated contemporaneously and spatially to other regions. They in turn impact on other regions with a delay. We allow for lagged effects to echo back to the dominant region. London in turn is influenced by international developments through its link to New York and other financial centers. It is shown that New York house prices have a direct effect on London house prices. We analyse the effect of shocks using generalised spatio-temporal impulse responses. These highlight the diffusion of shocks both over time (as with the conventional impulse responses) and over space.House Prices, Cross Sectional Dependence, Spatial Dependence

Exciton-Polariton scattering for defect detection in cold atom Optical Lattices

We study the effect of defects in the Mott insulator phase of ultracold atoms in an optical lattice on the dynamics of resonant excitations. Defects, which can either be empty sites in a Mott insulator state with one atom per site or a singly occupied site for a filling factor two, change the dynamics of Frenkel excitons and cavity polaritons. While the vacancies in first case behave like hard sphere scatters for excitons, singly occupied sites in the latter case can lead to attractive or repulsive scattering potentials. We suggest cavity polaritons as observation tool of such defects, and show how the scattering can be controlled in changing the exciton-photon detuning. In the case of asymmetric optical lattice sites we present how the scattering effective potential can be detuned by the cavity photon polarization direction, with the possibility of a crossover from a repulsive into an attractive potential.Comment: 9 pages, 10 figure

Collective Electronic Excitation Coupling between Planar Optical Lattices using Ewald's Method

Using Ewald's summation method we investigate collective electronic excitations (excitons) of ultracold atoms in parallel planar optical lattices including long range interactions. The exciton dispersion relation can then be suitably rewritten and efficiently calculated for long range resonance dipole-dipole interactions. Such in-plane excitons resonantly couple for two identical optical lattices, with an energy transfer strength decreasing exponentially with the distance between the lattices. This allows a restriction of the transfer to neighboring planes and gives rise to excitons delocalized between the lattices. In general equivalent results will hold for any planar system containing lattice layers of optically active and dipolar materials.Comment: 6 pages, and 7 figure

Hybrid Quantum System of a Nanofiber Mode Coupled to Two Chains of Optically Trapped Atoms

A tapered optical nanofiber simultaneously used to trap and optically interface of cold atoms through evanescent fields constitutes a new and well controllable hybrid quantum system. The atoms are trapped in two parallel 1D optical lattices generated by suitable far blue and red detuned evanescent field modes very close to opposite sides of the nanofiber surface. Collective electronic excitations (excitons) of each of the optical lattices are resonantly coupled to the second lattice forming symmetric and antisymmetric common excitons. In contrast to the inverse cube dependence of the individual atomic dipole-dipole interaction, we analytically find an exponentially decaying coupling strength with distance between the lattices. The resulting symmetric (bright) excitons strongly interact with the resonant nanofiber photons to form fiber polaritons, which can be observed through linear optical spectra. For large enough wave vectors the polariton decay rate to free space is strongly reduced, which should render this system ideal for the realization of long range quantum communication between atomic ensembles.Comment: 9 pages, 9 figure

CEO pay, shareholder returns, and accounting profits

We assess the impact on CEO pay (including salary, cash bonus, and benefits in kind) of changes in both accounting and shareholder returns in 99 British companies in the years 1972-89. After correcting for heterogeneity biases inherent in the standard specifications of the problem, we find a strong positive relationship between CEO pay and within-company changes in shareholder returns, and no statistically significant relationship between CEO pay and within-company changes in accounting returns. Differences between firms in long-term average profitability do appear to have a substantial effect on CEO pay, while differences between firms in shareholder returns add nothing to the within-firm pay dynamics.These findings call into question the rationale for explicitly share-based incentive schemes