Risk aversion under preference uncertainty

We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA) utility functions. We illustrate the consequences of this result for asset allocation: poor agents that are uncertain about their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. Keywords: Risk Aversion , Preference Uncertainty , Risk-taking , Asset Allocation JEL Classification: D81, D84, G11 This Version: November 25, 201

What comes after the quota went? Effects of and responses to the ATC expiry

Abstract The global environment after the expiry of the quota system in textiles and clothing (T&C) trade poses formidable challenges to human development in Pakistan. Increased quality and price competition in the post-ATC scenario provides an opportunity for some segments of the T&C sector – but a threat to the most labour-intensive ones. As quality and quantity of employment were largely ignored factors in the preparations for the Agreement on Textiles and Clothing’s (ATC’s) abolition in Pakistan, potential job and wage losses are feared, in garment manufacturing in particular. Unskilled and female workers are most vulnerable

The Effect of the Theo van Gogh Murder on House Prices in Amsterdam

This paper estimates the impact of the murder of film maker Theo van Gogh on November 2, 2004, on listed house prices in Amsterdam with a unique dataset. We use an hedonic-market approach to show that general attitudes towards Muslim minorities were negatively affected by the murder. Specifically, we test for an effect on listed house prices in neighborhoods where more than 25% of the people belong to an ethnic minority from a Muslim country (type I). Relative to the other neighborhoods, house prices in type I neighborhoods decreased by on average 3%, with a widening gap over time. The results are robust to several adjustments including changes in the control group. There is no significant difference in the time it takes for houses to be sold in type I versus other neighborhoods. Finally, people belonging to the Muslim minority were more likely to buy and less likely to sell a house in a type I neighborhood after the murder than befor

Interference-filter-stabilized external-cavity diode lasers

We have developed external-cavity diode lasers, where the wavelength selection is assured by a low loss interference filter instead of the common diffraction grating. The filter allows a linear cavity design reducing the sensitivity of the wavelength and the external cavity feedback against misalignment. By separating the feedback and wavelength selection functions, both can be optimized independently leading to an increased tunability of the laser. The design is employed for the generation of laser light at 698, 780 and 852 nm. Its characteristics make it a well suited candidate for space-born lasers.Comment: 12 pages, 5 figure

Perceptions of Catastrophic Climate Risks

Many climate change-related risks, such as more frequent and severe natural disasters, can be characterised as low-probability/high-consequence (LP/ HC) events. Perceptions of LP/HC risks are often associated with biases which hamper taking action to limit these risks, such as underestimation of risk, myopia, and the adoption of simplifed decision heuristics. This chapter discusses these biases and outlines key elements of policies to overcome them in order to enhance climate action

Parameter dependence of acoustic mode quantities in an idealized model for shallow-water nonlinear internal wave ducts

Author Posting. © Acoustical Society of America, 2019. This article is posted here by permission of Acoustical Society of America for personal use, not for redistribution. The definitive version was published in Journal of the Acoustical Society of America 146(3), (2019): 1934-1945, doi:10.1121/1.5125261.Nonlinear internal waves in shallow water have significant acoustic impacts and cause three-dimensional ducting effects, for example, energy trapping in a duct between curved wavefronts that propagates over long distances. A normal mode approach applied to a three-dimensional idealized parametric model [Lin, McMahon, Lynch, and Siegmann, J. Acoust. Soc. Am. 133(1), 37–49 (2013)] determines the dependence of such effects on parameters of the features. Specifically, an extension of mode number conservation leads to convenient analytical formulas for along-duct (angular) acoustic wavenumbers. The radial modes are classified into five types depending on geometric characteristics, resulting in five distinct formulas to obtain wavenumber approximations. Examples of their dependence on wavefront curvature and duct width, along with benchmark comparisons, demonstrate approximation accuracy over a broad range of physical values, even including situations where transitions in mode types occur with parameter changes. Horizontal-mode transmission loss contours found from approximate and numerically exact wavenumbers agree well in structure and location of intensity features. Cross-sectional plots show only small differences between pattern phases and amplitudes of the two calculations. The efficiency and accuracy of acoustic wavenumber and field approximations, in combination with the mode-type classifications, suggest their application to determining parameter sensitivity and also to other feature models.This work was supported by the Office of Naval Research under grants to Rensselaer Polytechnic Institute (Grant Nos. N00014-14-1-0372 and N00014-17-1-2370) and to Woods Hole Oceanographic Institution (Grant Nos. N00014-11-1-0701 and N00014-17-1-2692). Additional funding was provided by Naval Undersea Warfare Center Division Newport through the SMART Scholarship for the first author's doctoral degree program. The authors also thank Dr. Timothy F. Duda of WHOI and Dr. David Wells of University of North Carolina at Chapel Hill for their assistance with this paper.2020-03-3

Compensation of Strong Thermal Lensing in High Optical Power Cavities

In an experiment to simulate the conditions in high optical power advanced gravitational wave detectors such as Advanced LIGO, we show that strong thermal lenses form in accordance with predictions and that they can be compensated using an intra-cavity compensation plate heated on its cylindrical surface. We show that high finesse ~1400 can be achieved in cavities with internal compensation plates, and that the cavity mode structure can be maintained by thermal compensation. It is also shown that the measurements allow a direct measurement of substrate optical absorption in the test mass and the compensation plate.Comment: 8 page

Long Wavelength Anomalous Diffusion Mode in the 2D XY Dipole Magnet

In 2D XY ferromagnet the dipole force induces a strong interaction between spin-waves in the long-wavelength limit. The major effect of this interaction is the transformation of a propagating spin-wave into a diffusion mode. We study the anomalous dynamics of such diffusion modes. We find that the Janssen-De Dominics functional, which governs this dynamics, approaches the non-Gaussian fixed-point. A spin-wave propagates by an anomalous anisotropic diffusion with the dispersion relation: $i\omega{\sim}k_{y}^{\Delta_y}$ and $i\omega{\sim}k_{x}^{\Delta_x}$, where ${\Delta_y}=47/27$ and ${\Delta_x}=47/36$. The low-frequency response to the external magnetic field is found.Comment: 34 pages, RevTeX, 2 .ps figures, the third figure is available upon reques