Has the Euro Affected the Choice of Invoicing Currency?

We present a new approach to study empirically the effect of the introduction of the euro on currency invoicing. Our approach uses a compositional multinomial logit model, in which currency choice depends on the characteristics of both the currency and the country. We use unique quarterly panel data of Norwegian imports from OECD countries for the 1996-2006 period. One of the key findings is that the eurozone countries in trade with Norway have substantially increased their share of home currency invoicing after the introduction of the euro. In addition, the euro as a vehicle currency has overtaken the role of the US dollar in Norwegian imports. The econometric analysis shows a significant effect of euro introduction above and beyond the determinants of currency invoicing (i.e., inflation rate, inflation volatility, foreign exchange market size, and product composition). However, the rise in producer currency invoicing by eurozone countries is primarily caused by a drop in inflation volatility.euro, invoicing currency, exchange rate risk, inflation, inflation risk, vehicle currencies, compositional multinomial logit

Isoliquiritigenin, a Strong nod Gene- and Glyceollin Resistance- Inducing Flavonoid from Soybean Root Exudate

Isoflavonoid signal molecules from soybean (Glycine max (L.) Merr.) seed and root exudate induce the transcription of nodulation (nod) genes in Bradyrhizobium japonicum. In this study, a new compound with symbiotic activity was isolated from soybean root exudate. The isolated 2',4',4-trihydroxychalcone (isoliquiritigenin) is characterized by its strong inducing activity for the nod genes of B. japonicum. These genes are already induced at concentrations 1 order of magnitude below those required of the previously described isoflavonoid inducers genistein and daidzein. Isoliquiritigenin is also a potent inducer of glyceollin resistance in B. japonicum, which renders this bacterium insensitive to potentially bactericidal concentrations of glyceollin, the phytoalexin of G. max. No chemotactic effect of isoliquiritigenin was observed. The highly efficient induction of nod genes and glyceollin resistance by isoliquiritigenin suggests the ecological significance of this compound, although it is not a major flavonoid constituent of the soybean root exudate in quantitative terms

Has the Euro affected the choice of invoicing currency?

We present a new approach to study empirically the effect of the introduction of the euro on the pattern of currency invoicing. Our approach uses a compositional multinomial logit model, in which currency choice is explained by both currency-specific and country-specific determinants. We use unique quarterly panel data on the invoicing of Norwegian imports from OECD countries for the 1996-2006 period. We find that eurozone countries have substantially increased their share of home currency invoicing after the introduction of the euro, whereas the home currency share of non-eurozone countries fell slightly. In addition, the euro as a vehicle currency has overtaken the role of the US dollar in Norwegian imports. The substantial rise in producer currency invoicing by eurozone countries is primarily caused by a drop in inflation volatility and can only to a small extent be explained by an unobserved euro effect. JEL Classification: F33, F41, F42, E31, C25.Euro, invoicing currency, exchange rate risk, inflation volatility, vehicle currencies, compositional multinomial logit.

Learning a model is paramount for sample efficiency in reinforcement learning control of PDEs

The goal of this paper is to make a strong point for the usage of dynamical models when using reinforcement learning (RL) for feedback control of dynamical systems governed by partial differential equations (PDEs). To breach the gap between the immense promises we see in RL and the applicability in complex engineering systems, the main challenges are the massive requirements in terms of the training data, as well as the lack of performance guarantees. We present a solution for the first issue using a data-driven surrogate model in the form of a convolutional LSTM with actuation. We demonstrate that learning an actuated model in parallel to training the RL agent significantly reduces the total amount of required data sampled from the real system. Furthermore, we show that iteratively updating the model is of major importance to avoid biases in the RL training. Detailed ablation studies reveal the most important ingredients of the modeling process. We use the chaotic Kuramoto-Sivashinsky equation do demonstarte our findings

Statistical Inference for MCARMA Processes

Multivariate continuous-time ARMA(p,q) (MCARMA(p,q)) processes are the continuous-time analog of the well-known vector ARMA(p,q) processes. This thesis contributes to the field of statistical inference of MCARMA processes in two ways. In the first part, we study information criteria, which provide a method to select a suitably MCARMA process as a model for given data. The second part of the thesis is concerned with robust estimation of the parameters of MCARMA processes