The Exchange Rate Exposure of U.S. and Japanese Banking Institutions

In this paper, we examine the foreign exchange exposure of a sample of U. S. and Japanese banking firms. Using daily data, we construct estimates of the exchange rate sensitivity of the equity returns of the U.S. bank holding companies and compare them to those of the Japanese banks. We find that the stock returns of a significant fraction of the U. S. companies move with the exchange rate, while few of the Japanese returns that we observe do so. We next examine more closely the sensitivity of the U.S. firms by linking the U.S. estimates cross-sectionally to accounting-based measures of currency risk. We suggest that the sensitivity estimates can provide a benchmark for assessing the adequacy of existing accounting measures of currency risk. Benchmarked in this way, the reported measures that we examine appear to provide a significant, though only partial, picture of the exchange rate exposure of U. S. banking institutions. The cross-sectional evidence is also consistent with the use of foreign exchange contracts for the purpose of hedging.Foreign Exchange Risk, Banking, Market Risk

The Plaintiffs Keep Getting Richer, the Manufacturers Just Stay Poor: Design Defect Litigation in Georgia Post-Banks

How much proof of a reasonable alternative design is necessary to survive a claim for defective design and when should proof of a reasonable alternative design be denied as irrelevant to claims pertaining to products that exhibit open and obvious dangers? Design defect litigation is particularly important because it involves claims that take entire product lines out of the market and cost manufacturers exorbitant losses and expose them to steep damages. In these cases, plaintiffs often suffer life- changing injuries or death. In this Note, I provide a history of design defect litigation in the United States. In particular,I focus on the legal developments leading up to the implementation of the Restatement (Third) of Torts. Then, I address critical reactions to the requirement of the reasonable alternative design in the Restatement (Third). Finally, I focus on the development of strict liability in Georgia by examining key cases therein. I address the myriad of requirements that Georgia courts hold as necessary for plaintiffs to prove a reasonably alternative design. I further argue that the Banks-factor test has swung too far in favor of plaintiffs and produced uncertainty in the application of proof of a reasonable alternative design. I conclude that the Banks-factor test is merely repackaged negligence and suggest that the new rule of law should be interpreted to require a lessened showing of alternative design known as the feasible alternative design. This test can be likened to a quasi- strict liability test for defective design in products liability cases

The effects of multiple aerospace environmental stressors on human performance

An extended Fitt's law paradigm reaction time (RT) task was used to evaluate the effects of acceleration on human performance in the Dynamic Environment Simulator (DES) at Armstrong Laboratory, Wright-Patterson AFB, Ohio. This effort was combined with an evaluation of the standard CSU-13 P anti-gravity suit versus three configurations of a 'retrograde inflation anti-G suit'. Results indicated that RT and error rates increased 17 percent and 14 percent respectively from baseline to the end of the simulated aerial combat maneuver and that the most common error was pressing too few buttons

Causality re-established

Causality never gained the status of a "law" or "principle" in physics. Some recent literature even popularized the false idea that causality is a notion that should be banned from theory. Such misconception relies on an alleged universality of reversibility of laws of physics, based either on determinism of classical theory, or on the multiverse interpretation of quantum theory, in both cases motivated by mere interpretational requirements for realism of the theory. Here, I will show that a properly defined unambiguous notion of causality is a theorem of quantum theory, which is also a falsifiable proposition of the theory. Such causality notion appeared in the literature within the framework of operational probabilistic theories. It is a genuinely theoretical notion, corresponding to establish a definite partial order among events, in the same way as we do by using the future causal cone on Minkowski space. The causality notion is logically completely independent of the misidentified concept of "determinism", and, being a consequence of quantum theory, is ubiquitous in physics. In addition, as classical theory can be regarded as a restriction of quantum theory, causality holds also in the classical case, although the determinism of the theory trivializes it. I then conclude arguing that causality naturally establishes an arrow of time. This implies that the scenario of the "Block Universe" and the connected "Past Hypothesis" are incompatible with causality, and thus with quantum theory: they both are doomed to remain mere interpretations and, as such, not falsifiable, similar to the hypothesis of "super-determinism". This article is part of a discussion meeting issue "Foundations of quantum mechanics and their impact on contemporary society".Comment: Presented at the Royal Society of London, on 11/12/ 2017, at the conference "Foundations of quantum mechanics and their impact on contemporary society". To appear on Philosophical Transactions of the Royal Society

Bayes and health care research.

Bayes’ rule shows how one might rationally change one’s beliefs in the light of evidence. It is the foundation of a statistical method called Bayesianism. In health care research, Bayesianism has its advocates but the dominant statistical method is frequentism. There are at least two important philosophical differences between these methods. First, Bayesianism takes a subjectivist view of probability (i.e. that probability scores are statements of subjective belief, not objective fact) whilst frequentism takes an objectivist view. Second, Bayesianism is explicitly inductive (i.e. it shows how we may induce views about the world based on partial data from it) whereas frequentism is at least compatible with non-inductive views of scientific method, particularly the critical realism of Popper. Popper and others detail significant problems with induction. Frequentism’s apparent ability to avoid these, plus its ability to give a seemingly more scientific and objective take on probability, lies behind its philosophical appeal to health care researchers. However, there are also significant problems with frequentism, particularly its inability to assign probability scores to single events. Popper thus proposed an alternative objectivist view of probability, called propensity theory, which he allies to a theory of corroboration; but this too has significant problems, in particular, it may not successfully avoid induction. If this is so then Bayesianism might be philosophically the strongest of the statistical approaches. The article sets out a number of its philosophical and methodological attractions. Finally, it outlines a way in which critical realism and Bayesianism might work together. </p

Distinct Quantum States Can Be Compatible with a Single State of Reality

Perhaps the quantum state represents information about reality, and not reality directly. Wave function collapse is then possibly no more mysterious than a Bayesian update of a probability distribution given new data. We consider models for quantum systems with measurement outcomes determined by an underlying physical state of the system but where several quantum states are consistent with a single underlying state---i.e., probability distributions for distinct quantum states overlap. Significantly, we demonstrate by example that additional assumptions are always necessary to rule out such a model.Comment: 5 pages, 2 figure

The Science of Phylogenetic Systematics: Explanation, Prediction, and Test

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/73926/1/j.1096-0031.1999.tb00279.x.pd

Absolute dimensions of eclipsing binaries. XXVIII. BK Pegasi and other F-type binaries: Prospects for calibration of convective core overshoot

We present a detailed study of the F-type detached eclipsing binary BK Peg, based on new photometric and spectroscopic observations. The two components, which have evolved to the upper half of the main-sequence band, are quite different with masses and radii of (1.414 +/- 0.007 Msun, 1.988 +/- 0.008 Rsun) and (1.257 +/- 0.005 Msun, 1.474 +/- 0.017 Rsun), respectively. The 5.49 day period orbit of BK Peg is slightly eccentric (e = 0.053). The measured rotational velocities are 16.6 +/- 0.2 (primary) and 13.4 +/- 0.2 (secondary) km/s. For the secondary component this corresponds to (pseudo)synchronous rotation, whereas the primary component seems to rotate at a slightly lower rate. We derive an iron abundance of [Fe/H] =-0.12 +/- 0.07 and similar abundances for Si, Ca, Sc, Ti, Cr and Ni. Yonsei-Yale and Victoria-Regina evolutionary models for the observed metal abundance reproduce BK Peg at ages of 2.75 and 2.50 Gyr, respectively, but tend to predict a lower age for the more massive primary component than for the secondary. We find the same age trend for three other upper main-sequence systems in a sample of well studied eclipsing binaries with components in the 1.15-1.70 Msun range, where convective core overshoot is gradually ramped up in the models. We also find that the Yonsei-Yale models systematically predict higher ages than the Victoria-Regina models. The sample includes BW Aqr, and as a supplement we have determined a [Fe/H] abundance of -0.07 +/- 0.11 for this late F-type binary. We propose to use BK Peg, BW Aqr, and other well-studied 1.15-1.70 Msun eclipsing binaries to fine-tune convective core overshoot, diffusion, and possibly other ingredients of modern theoretical evolutionary models.Comment: Accepted for publication in Astronomy and Astrophysic

A perspective on the landscape problem

I discuss the historical roots of the landscape problem and propose criteria for its successful resolution. This provides a perspective to evaluate the possibility to solve it in several of the speculative cosmological scenarios under study including eternal inflation, cosmological natural selection and cyclic cosmologies.Comment: Invited contribution for a special issue of Foundations of Physics titled: Forty Years Of String Theory: Reflecting On the Foundations. 31 pages, no figure

Third-order superintegrable systems separable in parabolic coordinates

In this paper, we investigate superintegrable systems which separate in parabolic coordinates and admit a third-order integral of motion. We give the corresponding determining equations and show that all such systems are multi-separable and so admit two second-order integrals. The third-order integral is their Lie or Poisson commutator. We discuss how this situation is different from the Cartesian and polar cases where new potentials were discovered which are not multi-separable and which are expressed in terms of Painlev\'e transcendents or elliptic functions