Ambiguity, Efficieny and Bank Bailouts

The paper examines the effects of ambiguity in regulation on the equilibrium allocation. Under ambiguous bailout policy, agents’ suffer from a lack of information with regards to the insolvency resolution method, which would be chosen by the regulator if a financial institution fails. In this case, beliefs of bankers regarding whether an insolvent bank is liquidated, may differ from those of depositors. The beliefs may be asymmetric even if bankers and depositors possess absolutely symmetric information about the policy of the regulator. It is shown that such asymmetry in beliefs can generate an allocative inefficiency of the bank based economy.bank bailouts; constructive ambiguity; decision-making, uncertainty

Bank Insolvencies, Regulatory Forbearance and Ambiguity

Banking regulators often practice forbearance and ambiguity in insolvency resolutions. The paper examines the effects of regulatory forbearance and ambiguity in a context of allocational efficiency. Bailouts, liquidations and their stochastic policy mix lead to suboptimal allocations if banks do not internalize insolvency costs. The policy of forbearance may make banks internalizing such costs and improves the efficiency of intermediation.Banks, insolvency resolution, forbearance, constructive ambiguity

Macroeconomic Evolution after a Production Shock: the Role for Financial Intermediation

Financial intermediaries may increase economic efficiency through intertemporal risk smoothing. However without an adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed economy and compares abilities of market-based and bank-based financial systems in processing the shock. Unregulated banking system may collapse in absence of a proper regulation. The paper studies several types of regulatory interventions, which may improve the performance of the banking system.Financial intermediation, overlapping generations, general equilibrium, intertemporal smoothing

Analytical Representation of the Longitudinal Hadronic Shower Development

The analytical representation of the longitudinal hadronic shower development from the face of a calorimeter is presented and compared with experimental data. The suggested formula is particularly useful at designing, testing and calibration of huge calorimeter complex like in ATLAS at LHC.Comment: 5 pages, 1 figur

Non-Compensation of the Barrel Tile Hadron Module-0 Calorimeter

The detailed experimental information about the electron and pion responses, the electron energy resolution and the e/h ratio as a function of incident energy E, impact point Z and incidence angle $\Theta$ of the Module-0 of the iron-scintillator barrel hadron calorimeter with the longitudinal tile configuration is presented. The results are based on the electron and pion beams data for E = 10, 20, 60, 80, 100 and 180 GeV at $\eta$ = -0.25 and -0.55, which have been obtained during the test beam period in 1996. The results are compared with the existing experimental data of TILECAL 1m prototype modules, various iron-scintillator calorimeters and with some Monte Carlo calculations.Comment: 33 pages, 20 figure

On Poisson–Tweedie mixtures

Poisson-Tweedie mixtures are the Poisson mixtures for which the mixing measure is generated by those members of the family of Tweedie distributions whose support is non-negative. This class of non-negative integer-valued distributions is comprised of Neyman type A, back-shifted negative binomial, compound Poisson-negative binomial, discrete stable and exponentially tilted discrete stable laws. For a specific value of the “power” parameter associated with the corresponding Tweedie distributions, such mixtures comprise an additive exponential dispersion model. We derive closed-form expressions for the related variance functions in terms of the exponential tilting invariants and particular special functions. We compare specific Poisson-Tweedie models with the corresponding Hinde-Demétrio exponential dispersion models which possess a comparable unit variance function. We construct numerous local approximations for specific subclasses of Poisson-Tweedie mixtures and identify Lévy measure for all the members of this three-parameter family