Small business credit scoring and credit availability

U.S. commercial banks are increasingly using credit scoring models to underwrite small business credits. This paper discusses this technology, evaluates the research findings on the effects of this technology on small business credit availability, and links these findings to a number of research and public policy issues.

Tests of ex ante versus ex post theories of collateral using private and public information

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems between borrowers and lenders. However, the extant empirical literature has been unable to isolate each of these effects. This paper attempts to do so using a credit registry that is unique in that it allows the researcher to have access to some private information about borrower risk that is unobserved by the lender. The data also include public information about borrower risk, loan contract terms, and ex post performance for both secured and unsecured loans. The results suggest that the ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with short borrower-lender relationships that are relatively unknown to the lender.

Multi-Color Cavity Ringdown Based Detection Method and Apparatus

A multi-color cavity ringdown based spectrometer system is housed in a light tight enclosure to detect the presence of trace quantities of gas phase molecules emanating from a subject, explosives, drugs, or hazardous materials. A method is also disclosed for simultaneous real time detection of gas phase molecules emanating from explosives, drugs, hazardous materials, a subject\u27s breath skin or bodily fluid

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.

Dispelling Disparities for African American Male Students: A Review of Three Successful Charter School Models

This research study provides a comprehensive review of the ways in which schools of choice can advance academic outcomes for students through charters, college preparation programs, and single gender models. It reports three school models that have demonstrated success, followed by a discussion regarding undergirding program themes. Key recommendations for administrators and policy makers include reform strategies for discipline-related infractions, a reevaluation of the role of culture and its significance in the classroom, and the continual collaboration amongst school, home, and community

Magnetic back-to-back locator

A back-to-back locator instrument includes a first portion with an array of two or more magnetic sensors, and an indicator arrangement. A second portion of the instrument includes an array of correspondingly located magnets. Each of the first and second portions includes a marking arrangement, which either allows marking of the underlying surface, or viewing of a mark on the surface for properly locating the instrument portion thereon. When the two portions are congruent or registered, the indicator arrangement gives a maximum indication of corresponding locations. In a particular use, corresponding locations on the inside and outside of a tank are identified. The indicator arrangement may include a separate indicator for each magnetic sensor. A flux concentrator may be associated with each magnetic sensor

Time-Resolved Ultraviolet Observations of the Globular Cluster X-ray Source in NGC 6624: The Shortest Known Period Binary System

Using the Faint Object Spectrograph (FOS) aboard the Hubble Space Telescope, we have obtained the first time-resolved spectra of the King et al. ultraviolet-bright counterpart to the 11-minute binary X-ray source in the core of the globular cluster NGC 6624. This object cannot be readily observed in the visible, even from HST, due to a much brighter star superposed <0.1'' distant. Our FOS data show a highly statistically significant UV flux modulation with a period of 11.46+-0.04 min, very similar to the 685 sec period of the known X-ray modulation, definitively confirming the association between the King et al. UV counterpart and the intense X-ray source. The UV amplitude is very large compared with the observed X-ray oscillations: X-ray variations are generally reported as 2-3% peak-to-peak, whereas our data show an amplitude of about 16% in the 126-251 nm range. A model for the system by Arons & King predicts periodic UV fluctuations in this shortest-known period binary system, due to the cyclically changing aspect of the X-ray heated face of the secondary star (perhaps a very low mass helium degenerate). However, prior to our observations, this predicted modulation has not been detected. Employing the Arons & King formalism, which invokes a number of different physical assumptions, we infer a system orbital inclination 35deg<i<50 deg. Amongst the three best-studied UV/optical counterparts to the intense globular cluster X-ray sources, two are now thought to consist of exotic double-degenerate ultrashort period binary systems.Comment: 10 pages including 2 figures in Latex (AASTeX 4.0). Accepted for publication in vol. 482 (1997 June 10 issue) of The Astrophysical Journal (Letters