Accounting for the Hidden Economy: Barriers to Legality and Legal Failures

This paper examines how much of the difference in the size of the informal sector and in per capita income across countries can be accounted by regulation costs (barriers to legality) and contractual imperfections in financial markets (legal failures). It constructs and solves numerically a general equilibrium model with credit constrained heterogeneous agents, occupational choices over formal and informal businesses, contractual imperfections and a government sector which imposes taxes and regulations on formal firms. The premium from formalization is better access to outside finance. differences in regulation costs and the degree of enforcement in financial contracts endogenously generate differences in the size of the informal sector and in total factor productivity (TFP). The numerical exercises suggest that: (i) regulation costs and not financial market imperfections account for the difference in the size of the informal sector between United States and Mediterranean Europe; (ii) this is not the case for countries with very weak enforcement systems, such as Peru, as both contractual imperfections and regulation costs account for the observed difference in the size of the informal sector. Regarding output per capita, regulation costs and the strength of enforcement explain roughly 60% of the difference in observed international incomes.

Corruption, Credit Market Imperfections, and Economic Development

This paper studies the role of credit market imperfections and corruption on the process of economic development. We address the question of how much of the differences in output per capita across countries can be attributed to differences in credit market policies and corruption. In order to accomplish that, we construct and solve numerically a general equilibrium model with heterogeneous agents, contractual imperfections and occupational choices. The quantitative exercises suggest that a country in which debt contracts are not enforced and corruption corresponds to 10% of output will be roughly 1/3 to 1/2 as rich as the United States. Though this is an important effect, it is a small fraction of the huge differences in income per capita across countries.

Intermediation costs, investor protection and economic development

This paper studies the effect of financial repression and contract enforcement on entrepreneurship and economic development. We construct and solve a general equilibrium model with heterogeneous agents, occupational choice and two financial frictions: intermediation costs and financial contract enforcement. Occupational choice and firm size are determined endogenously, and depend on agent type (wealth and ability) and credit market frictions. The model shows that differences across countries in intermediation costs and enforcement generate differences in occupational choice, firm size, credit, output and inequality. Counterfactual experiments are performed for Latin American, European, transition and high growth Asian countries. We use empirical estimates of each country's financial frictions, and United States values for all other parameters. The results allow us to isolate the quantitative effect of these financial frictions in explaining the performance gap between each country and the United States. The results depend critically on whether a general equilibrium factor price effect is operative.

Computing General Equilibrium Models with Occupational Choice and Financial Frictions

This paper establishes the existence of a stationary equilibrium and a procedure to compute solutions to a class of dynamic general equilibrium models with two important features. First, occupational choice is determined endogenously as a function of heterogeneous agent type, which is defined by an agent’s managerial ability and capital bequest. Heterogeneous ability is exogenous and independent across generations. In contrast, bequests link generations and the distribution of bequests evolves endogenously. Second, there is a financial market for capital loans with a deadweight intermediation cost and a repayment incentive constraint. The incentive constraint induces a non convexity. The paper proves that the competitive equilibrium can be characterized by the bequest distribution and factor prices, and uses the monotone mixing condition to ensure that the stationary bequest distribution that arises from the agent’s optimal behavior across generations exists and is unique. The paper next constructs a direct, non-parametric approach to compute the stationary solution. The method reduces the domain of the policy function, thus reducing the computational complexity of the problem.

Finite element modelling and analysis of crack shape evolution in mode-I fatigue Middle Cracked Tension specimens

A numerical procedure was employed to study the shape evolution of fatigue cracks in Middle Cracked Tension specimens. This iterative procedure consists of a 3D finite element analysis to obtain the displacement field in the cracked body, calculation of stress intensity factors along crack front and definition of local crack advances considering the Paris law. Numerical predictions were compared with experimental crack shapes with a good agreement. The evolution of crack shape was analysed for different propagation conditions considering robust dependent parameters. Two main propagation stages were identified: an initial transient stage highly dependent on initial crack shape and a stable stage where the crack follows preferred paths. Mathematical models were proposed for transient and stable stages consisting of exponential and polynomial functions, respectively. The transition between both stages was defined considering two criteria: the rate of shape variation and the distance to stable shape. Finally, the crack shape change was linked with the distribution of stress intensity factor along crack front.http://www.sciencedirect.com/science/article/B6V2R-4RGFD3P-1/1/e08212c92d2476b00aceb521ee4e521

Predicting the critical density of topological defects in O(N) scalar field theories

O(N) symmetric $\lambda \phi^4$ field theories describe many critical phenomena in the laboratory and in the early Universe. Given N and $D\leq 3$, the dimension of space, these models exhibit topological defect classical solutions that in some cases fully determine their critical behavior. For N=2, D=3 it has been observed that the defect density is seemingly a universal quantity at T_c. We prove this conjecture and show how to predict its value based on the universal critical exponents of the field theory. Analogously, for general N and D we predict the universal critical densities of domain walls and monopoles, for which no detailed thermodynamic study exists. This procedure can also be inverted, producing an algorithm for generating typical defect networks at criticality, in contrast to the canonical procedure, which applies only in the unphysical limit of infinite temperature.Comment: 4 pages, 3 figures, uses RevTex, typos in Eq.(11) and (14) correcte

Comparative Analysis of Fatigue Life Predictions in Lateral Notched Round Bars under Multiaxial Loading

The main objective of this study is to predict the multiaxial fatigue life for lateral notched round bars made of DIN 34CrNiMo6 high strength steel. In-phase bending-torsion tests for different stress amplitudes and different ratios of the normal stress to the shear stress were performed. Single torsion and single bending tests were also conducted for different stress amplitudes. In addition, the beach marking technique was used to mark crack fronts on fracture surfaces for the different loading paths studied. Experimental fatigue life was compared with predictions obtained by the Coffin-Manson model. The stress-strain state at the notch root was evaluated using the Theory of Critical Distances (TCD) and the Equivalent Strain Energy Density (ESED). Finally, a comparative analysis of the fatigue life predictions obtained by the two above-mentioned approaches was carried out. The former gave good results for higher lives but was too conservative for lower lives. The latter led to good correlations in the range studied here

Vibrating Cavities - A numerical approach

We present a general formalism allowing for efficient numerical calculation of the production of massless scalar particles from vacuum in a one-dimensional dynamical cavity, i.e. the dynamical Casimir effect. By introducing a particular parametrization for the time evolution of the field modes inside the cavity we derive a coupled system of first-order linear differential equations. The solutions to this system determine the number of created particles and can be found by means of numerical methods for arbitrary motions of the walls of the cavity. To demonstrate the method which accounts for the intermode coupling we investigate the creation of massless scalar particles in a one-dimensional vibrating cavity by means of three particular cavity motions. We compare the numerical results with analytical predictions as well as a different numerical approach.Comment: 28 pages, 19 figures, accepted for publication in J. Opt. B: Quantum Semiclass. Op

In vitro cancer models: a closer look at limitations on translation

In vitro cancer models are envisioned as high-throughput screening platforms for potential new therapeutic discovery and/or validation. They also serve as tools to achieve personalized treatment strategies or real-time monitoring of disease propagation, providing effective treatments to patients. To battle the fatality of metastatic cancers, the development and commercialization of predictive and robust preclinical in vitro cancer models are of urgent need. In the past decades, the translation of cancer research from 2D to 3D platforms and the development of diverse in vitro cancer models have been well elaborated in an enormous number of reviews. However, the meagre clinical success rate of cancer therapeutics urges the critical introspection of currently available preclinical platforms, including patents, to hasten the development of precision medicine and commercialization of in vitro cancer models. Hence, the present article critically reflects the difficulty of translating cancer therapeutics from discovery to adoption and commercialization in the light of in vitro cancer models as predictive tools. The state of the art of in vitro cancer models is discussed first, followed by identifying the limitations of bench-to-bedside transition. This review tries to establish compatibility between the current findings and obstacles and indicates future directions to accelerate the market penetration, considering the niche market.This work is supported by FROnTHERA (NORTE-01-0145-FEDER-000023) and the European Union Framework Programme for Research and Innovation Horizon 2020 under grant agreement No. 668983 —FoReCaST. N. Antunes thanks the funds provided by FCT under the doctoral program in Tissue Engineering, Regenerative Medicine and Stem Cells (PD/BD/143050/2018). SCK also records the support of FCT through the BREAST-IT project (PTDC/BTM-ORG/28168/2017)