Debt maturity, risk, and asymmetric information

We test the implications of Flannery’s (1986) and Diamond’s (1991) models concerning the effects of risk and asymmetric information in determining debt maturity, and we examine the overall importance of informational asymmetries in debt maturity choices. We employ data from more than 6,000 commercial loans from 53 large U.S. banks. Our results for low-risk firms are consistent with the predictions of both theoretical models, but our findings for high-risk firms conflict with the predictions of Diamond’s model and with much of the empirical literature. Our findings also suggest a strong quantitative role for asymmetric information in explaining debt maturity.

Why do borrowers pledge collateral? new empirical evidence on the role of asymmetric information

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit rationing, and other inefficiencies that arise when borrowers hold ex ante private information. There is no clear empirical evidence regarding the central implication of this literature—that a reduction in asymmetric information reduces the incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are consistent with this central implication of the private-information models and support the empirical importance of this theory.

An observational investigation of the faecal microbiota and metabonome of gastrostomy fed children, on blended and formula diets

Gastrostomy fed children traditionally have a Formulae diet (FD), which fulfills nutritional requirements; however, many families are adopting Blended diets (BD), which are what the whole family would eat. We undertook an observational investigation of the colonic microbiota and metabonome in a small group of gastrostomy fed children, who were either on an FD or BD, and compared, where possible to their siblings (17 FD, 28 BD, 19 HS). There was no increase in complications in tube blockage or infection rates, but a significant improvement in the prevalence of bowel problems, a reduction in medication and an increase in quality of life. Metataxonomic analysis showed that the FD group was significantly different to the Sibling group, and that families did not cluster together. Whole sample metabonomics showed no differences between groups; however, univariate analysis of biologically important metabolites did differ. Changing to a BD resulted in no increase in complications or risks, but improved the overall quality of life for the children and families

Operation of rain gauge and ground-water monitoring networks for the Imperial Valley Water Authority, year six: September 1997 - August 1998

The Illinois State Water Survey (ISWS), under contract to the Imperial Valley Water Authority (IVWA), has operated a network of rain gauges in Mason and Tazewell Counties since August 1992. The ISWS also established a network of ground-water observation wells in the Mason-Tazewell area. The networks are located in the most heavily irrigated region of the state. Ground water in various aquifers are the major source of the irrigation and domestic water supplies in the region. Recent extreme weather events (e.g., the drought of 1988 and the great flood of 1993) resulted in large fluctuations of the ground-water levels in the Imperial Valley area. The purpose of the rain gauge network and the ground-water observation well network is to collect a long-term series of data to determine the rate of ground-water drawdown in dry periods and during the growing season, and the rate at which the aquifers recharge. Precipitation is recorded for each storm that traverses the Imperial Valley, and ground-water levels at the 13 observation wells are measured the first of each month. The database from these networks consists of 6 years of precipitation data and 4 years of ground-water observations. At the beginning of the ground-water observations in 1995, the water levels were at the highest in the four years of observation. These high ground-water levels were the result of the very wet 1992-1995 period when annual precipitation was above the 30-year normals at both Havana and Mason City. From September 1995-August 1997 precipitation in the region was below the 30-year normal. The 1997-1998 observation year had rainfall above the 30-year normal. Ground-water levels in the observation wells mirrored these rainfall patterns, showing a general downward trend during the dry years and a recovery in the wet 1997-1998 year. Seasonal increases in the ground-water levels were observed at most wells during the late spring and early summer, followed by decreases in August-November ground water levels. Analysis indicates that the ground-water levels are affected by both the precipitation in the Imperial Valley area and the Illinois River stages. The observation wells closest to the Illinois River show an increase in water levels whenever the river stage is high. Generally, the water levels in the wells correlate best with precipitation and Illinois River stages one to two months before the water levels are measured, i.e., the June ground-water levels are most highly correlated with the Illinois River stage or precipitation that occurs in either April or May. The analyses conducted indicate the need for continued operation of both networks due to inconsistencies associated with ground-water levels, precipitation, and the Illinois River stage. For instance, the Mason-Tazwell observation well number 2 (MTOW-2) is located near the center of Mason County well away from the Illinois River, but it has an equal correlation with the Illinois River stage and the precipitation in the area. Additional analysis needs to be undertaken to explain this unusual finding

Near-Earth asteroid sample return missions

The rate of discovery of new NEAs and the success of D-S 1 and NEAR-Shoemaker, suggest that sample return from NEAs is now technically feasible. Here we present a summary of a recent workshop on the topic

CBR Anisotropy from Primordial Gravitational Waves in Two-Component Inflationary Cosmology

We examine stochastic temperature fluctuations of the cosmic background radiation (CBR) arising via the Sachs-Wolfe effect from gravitational wave perturbations produced in the early universe. We consider spatially flat, perturbed FRW models that begin with an inflationary phase, followed by a mixed phase containing both radiation and dust. The scale factor during the mixed phase takes the form $a(\eta)=c_1\eta^2+c_2\eta+c_3$, where $c_i$ are constants. During the mixed phase the universe smoothly transforms from being radiation to dust dominated. We find analytic expressions for the graviton mode function during the mixed phase in terms of spheroidal wave functions. This mode function is used to find an analytic expression for the multipole moments $\langle a_l^2\rangle$ of the two-point angular correlation function $C(\gamma)$ for the CBR anisotropy. The analytic expression for the multipole moments is written in terms of two integrals, which are evaluated numerically. The results are compared to multipoles calculated for models that are {\it completely} dust dominated at last-scattering. We find that the multipoles $\langle a_l^2\rangle$ of the CBR temperature perturbations for $l>10$ are significantly larger for a universe that contains both radiation and dust at last-scattering. We compare our results with recent, similar numerical work and find good agreement. The spheroidal wave functions may have applications to other problems of cosmological interest.Comment: 28 pgs + 6 postscript figures, RevTe