Institutional Debt Holder Governance

Using data on the universe of US-based mutual funds, we find that two out of five fund families hold corporate bonds of firms in which they also own an equity stake. We show that the greater the fraction of debt a fund family holds in a given firm, the greater its propensity to vote in line with the interests of firm debt holders at shareholder meetings. Voting has direct policy consequences as firms that receive more votes in favor of creditors make corporate decisions more in line with the interests of debt holders

Constraints on scalar diffusion anomaly in three-dimensional flows having bounded velocity gradients

This study is concerned with the decay behaviour of a passive scalar $\theta$ in three-dimensional flows having bounded velocity gradients. Given an initially smooth scalar distribution, the decay rate $d/dt$ of the scalar variance $$ is found to be bounded in terms of controlled physical parameters. Furthermore, in the zero diffusivity limit, $\kappa\to0$, this rate vanishes as $\kappa^{\alpha_0}$ if there exists an $\alpha_0\in(0,1]$ independent of $\kappa$ such that $<\infty$ for $\alpha\le\alpha_0$. This condition is satisfied if in the limit $\kappa\to0$, the variance spectrum $\Theta(k)$ remains steeper than $k^{-1}$ for large wave numbers $k$. When no such positive $\alpha_0$ exists, the scalar field may be said to become virtually singular. A plausible scenario consistent with Batchelor's theory is that $\Theta(k)$ becomes increasingly shallower for smaller $\kappa$, approaching the Batchelor scaling $k^{-1}$ in the limit $\kappa\to0$. For this classical case, the decay rate also vanishes, albeit more slowly -- like $(\ln P_r)^{-1}$, where $P_r$ is the Prandtl or Schmidt number. Hence, diffusion anomaly is ruled out for a broad range of scalar distribution, including power-law spectra no shallower than $k^{-1}$. The implication is that in order to have a $\kappa$-independent and non-vanishing decay rate, the variance at small scales must necessarily be greater than that allowed by the Batchelor spectrum. These results are discussed in the light of existing literature on the asymptotic exponential decay $\sim e^{-\gamma t}$, where $\gamma>0$ is independent of $\kappa$.Comment: 6-7 journal pages, no figures. accepted for publication by Phys. Fluid

Stability of plane Poiseuille-Couette flows of a piezo-viscous fluid

We examine stability of fully developed isothermal unidirectional plane Poiseuille--Couette flows of an incompressible fluid whose viscosity depends linearly on the pressure as previously considered in Hron01 and Suslov08. Stability results for a piezo-viscous fluid are compared with those for a Newtonian fluid with constant viscosity. We show that piezo-viscous effects generally lead to stabilisation of a primary flow when the applied pressure gradient is increased. We also show that the flow becomes less stable as the pressure and therefore the fluid viscosity decrease downstream. These features drastically distinguish flows of a piezo-viscous fluid from those of its constant-viscosity counterpart. At the same time the increase in the boundary velocity results in a flow stabilisation which is similar to that observed in Newtonian fluids with constant viscosity

Linear degree growth in lattice equations

We conjecture recurrence relations satisfied by the degrees of some linearizable lattice equations. This helps to prove linear growth of these equations. We then use these recurrences to search for lattice equations that have linear growth and hence are linearizable

Lunar nuclear power feasibility study

Based on review of literature and on limited examination of nuclear power systems now proposed for space applications, a nuclear fission reactor powered system should be seriously considered as the first large (order of 50 kWe or greater) power system to be placed on a lunar base. With relatively minor modifications, the major one being addition of a cooled side shield, the proposed 100 kWe product of the SP-100 Program could be adapted for use on a lunar base

Modelling value-added tax in the presence of multiproduction and differentiated exemptions

We develop a framework for economy-wide modelling of value-added tax systems. Our framework models a number of complexities of VAT systems as they are implemented by tax agencies. In particular, we model multiple rates, multiple exemptions, multiple degrees of refundability across commodity users, and multi-product enterprises. A detailed VAT framework is important for correct modelling of VAT within a general equilibrium model. Such a framework is also of value in correctly representing the distribution of indirect tax payments within the database of a general equilibrium model, a prerequisite of accurate welfare analysis. We use the model to analyse the effects of simplifying Vietnam’s complex VAT system. We simplify the system by moving from three tax rates to one budget-neutral rate, while also removing many discretionary exemptions.value added tax; dynamic CGE model; Vietnam; indirect tax reform