Penalties and Optimality in Financial Contracts: Taking Stock

A popular view of limited liability in financial contracting is that it is the result of societal preferences against excessive penalties. The view of most financial economists is instead that limited liability emerged as an optimal institution when, in the absence of a clear limit on economic agents liability, the development of some economic activities might have been thwarted. Viewing the institution from the perspective of optimal legal system design allows us to better understand the current debate on it. We present a broad history of penalties in financial contracts to highlight the interactions between technology, legal environments, purpose of the financial relationship, and contractual provisions. We show that harsh monetary and non-pecuniary penalties are not mere relics from a bygone era and, at the same time, that limited liability is far from a recent institution. We then discuss trade-offs associated with legal mandates of either unlimited or limited liability, both for the contracting parties and for the rest of Society. We identify two broad patterns. First, the toughness of liability rules and bankruptcy laws decreases as exogenous sources of uncertainty become relatively more important, and increases with the opportunity for moral hazard (related to diligence, risk taking, or deception). Second, bankruptcy laws become more lenient as the scope for labor specialization and the returns to human capital or entrepreneurship increase.Limited Liability, Bankruptcy, Debt Bondage, Debtors' Prison, History

Sub-nanometer free electrons with topological charge

The holographic mask technique is used to create freely moving electrons with quantized angular momentum. With electron optical elements they can be focused to vortices with diameters below the nanometer range. The understanding of these vortex beams is important for many applications. Here we present a theory of focused free electron vortices. The agreement with experimental data is excellent. As an immediate application, fundamental experimental parameters like spherical aberration and partial coherence are determined.Comment: 4 pages, 5 figure

The pharmacokinetics of nebulized nanocrystal budesonide suspension in healthy volunteers.

Nanocrystal budesonide (nanobudesonide) is a suspension for nebulization in patients with steroid-responsive pulmonary diseases such as asthma. The pharmacokinetics and safety of the product were compared to those of Pulmicort Respules. Sixteen healthy volunteers were administered nanobudesonide 0.5 and 1.0 mg, Pulmicort Respules 0.5 mg, and placebo in a four-way, randomized crossover design. All nebulized formulations were well tolerated, with no evidence of bronchospasm. Nebulization times were significantly shorter for nanobudesonide compared to Pulmicort Respules. Because of a low oral bioavailability, plasma concentration of budesonide is a good marker of lung-delivered dose. The pharmacokinetics of nanobudesonide 0.5 and 1.0 mg were approximately dose proportional with respect to Cmax, AUC(0-t), and AUC(0-infinity). Nanobudesonide 0.5 mg and Pulmicort Respules 0.5 mg exhibited similar AUCs, suggesting a similar extent of pulmonary absorption. A higher Cmax was noted with nanobudesonide 0.5 mg, and the tmax was significantly different, suggesting a more rapid rate of drug delivery of nanobudesonide 0.5 mg than Pulmicort Respules. In conclusion, nebulized nanobudesonide 0.5 mg was safe in healthy volunteers, with a similar extent of absorption as Pulmicort Respules

One dimensional chain of quantum molecule motors as a mathematical physics model for muscle fibre

A quantum chain model of many molecule motors is proposed as a mathematical physics theory on the microscopic modeling of classical force-velocity relation and tension transients of muscle fibre. We proposed quantum many-particle Hamiltonian to predict the force-velocity relation for the slow release of muscle fibre which has no empirical relation yet, it is much more complicate than hyperbolic relation. Using the same Hamiltonian, we predicted the mathematical force-velocity relation when the muscle is stimulated by alternative electric current. The discrepancy between input electric frequency and the muscle oscillation frequency has a physical understanding by Doppler effect in this quantum chain model. Further more, we apply quantum physics phenomena to explore the tension time course of cardiac muscle and insect flight muscle. Most of the experimental tension transients curves found their correspondence in the theoretical output of quantum two-level and three-level model. Mathematically modeling electric stimulus as photons exciting a quantum three-level particle reproduced most tension transient curves of water bug Lethocerus Maximus.Comment: 16 pages, 12 figures, Arguments are adde

Parent–offspring conflict and its outcome under uni-and biparental care

Conflicts over parental investment are predicted to be common among family members, especially between parents and their offspring. Parent–offspring conflict has been studied in many brood-caring organisms, but whether its outcome is closer to the parental or offspring optimum is usually unknown, as is whether the presence of a second parent, a caring male partner, can affect the outcome. Here, we manipulated the initial brood size of single and paired female burying beetles to examine how many offspring are necessary to maintain parental care in the current brood. We found that mothers continued to invest in small broods even if their reproductive output would have been higher if they had discontinued their care and produced a second brood instead. Consequently, our data suggests that the offspring have the upper hand in the conflict. However, our results further show that paired females laid a second egg clutch more often and produced more offspring than single females, suggesting that the presence of a male partner shifts the conflict outcome towards the parental optimum. This latter result not only is a novel aspect of parent–offspring theory, but also represents an additional factor that might explain the evolution of biparental care

Rapid Dynamics of Polyomavirus Type BK in Renal Transplant Recipients

BackgroundPolyomavirus type BK-associated nephropathy (PVAN) is an emerging cause of early renal transplant failure. No specific antiviral treatment has been established. Current interventions rely on improving immune functions by reducing immunosuppression. In patients with PVAN, a high BK virus (BKV) load is detectable in plasma. However, the relationship between BKV replication and disease is not well understood MethodsIn a retrospective analysis of BKV plasma load in renal transplant recipients undergoing allograft nephrectomy (n=3) or changes in immunosuppressive regimen (n=12), we calculated viral clearance rates and generation times and estimated the loss of BKV-infected renal cells ResultsAfter nephrectomy, BKV clearance was fast (viral half-life [t 1/2], 1-2 h) or moderately fast (t 1/2, 20-38 h), depending on the sampling density, but it was independent of continued immunosuppressive regimens. After changing immunosuppressive regimens, BKV was cleared with a t 1/2 of 6 h-17 days. Using the basic reproductive ratio, the efficacies of intervention ranged from 7% to 83% (mean, 28%; median, 22%) ConclusionThe results emphasize that high-level BKV replication is a major pathogenetic factor that may have implications for genome rearrangements, immune evasion, and antiviral resistanc

Variations in solar wind fractionation as seen by ACE/SWICS over a solar cycle and the implications for Genesis Mission results

We use ACE/SWICS elemental composition data to compare the variations in solar wind fractionation as measured by SWICS during the last solar maximum (1999-2001), the solar minimum (2006-2009) and the period in which the Genesis spacecraft was collecting solar wind (late 2001 - early 2004). We differentiate our analysis in terms of solar wind regimes (i.e. originating from interstream or coronal hole flows, or coronal mass ejecta). Abundances are normalized to the low-FIP ion magnesium to uncover correlations that are not apparent when normalizing to high-FIP ions. We find that relative to magnesium, the other low-FIP elements are measurably fractionated, but the degree of fractionation does not vary significantly over the solar cycle. For the high-FIP ions, variation in fractionation over the solar cycle is significant: greatest for Ne/Mg and C/Mg, less so for O/Mg, and the least for He/Mg. When abundance ratios are examined as a function of solar wind speed, we find a strong correlation, with the remarkable observation that the degree of fractionation follows a mass-dependent trend. We discuss the implications for correcting the Genesis sample return results to photospheric abundances.Comment: Accepted for publication in Ap

Cryogenic silicon detectors with implanted contacts for the detection of visible photons using the Neganov-Luke Effect

There is a common need in astroparticle experiments such as direct dark matter detection, 0{\nu}\b{eta}\b{eta} (double beta decay without emission of neutrinos) and Coherent Neutrino Nucleus Scattering experiments for light detectors with a very low energy threshold. By employing the Neganov-Luke Effect, the thermal signal of particle interactions in a semiconductor absorber operated at cryogenic temperatures, can be amplified by drifting the photogenerated electrons and holes in an electric field. This technology is not used in current experiments, in particular because of a reduction of the signal amplitude with time which is due to trapping of the charges within the absorber. We present here the first results of a novel type of Neganov-Luke Effect detector with an electric field configuration designed to improve the charge collection within the semiconductor.Comment: 6 pages, 5 figures, submitted to Journal of Low Temperature Physic