Small business credit scoring and credit availability

U.S. commercial banks are increasingly using credit scoring models to underwrite small business credits. This paper discusses this technology, evaluates the research findings on the effects of this technology on small business credit availability, and links these findings to a number of research and public policy issues.

Tests of ex ante versus ex post theories of collateral using private and public information

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems between borrowers and lenders. However, the extant empirical literature has been unable to isolate each of these effects. This paper attempts to do so using a credit registry that is unique in that it allows the researcher to have access to some private information about borrower risk that is unobserved by the lender. The data also include public information about borrower risk, loan contract terms, and ex post performance for both secured and unsecured loans. The results suggest that the ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with short borrower-lender relationships that are relatively unknown to the lender.

Small business credit scoring and credit availability

U.S. commercial banks are increasingly using credit scoring models to underwrite small business credits. This paper discusses this technology, evaluates the research findings on the effects of this technology on small business credit availability, and links these findings to a number of research and public policy issues

A uniform metallicity in the outskirts of massive, nearby galaxy clusters

Suzaku measurements of a homogeneous metal distribution of $Z\sim0.3$ Solar in the outskirts of the nearby Perseus cluster suggest that chemical elements were deposited and mixed into the intergalactic medium before clusters formed, likely over 10 billion years ago. A key prediction of this early enrichment scenario is that the intracluster medium in all massive clusters should be uniformly enriched to a similar level. Here, we confirm this prediction by determining the iron abundances in the outskirts ($r>0.25r_{200}$) of a sample of ten other nearby galaxy clusters observed with Suzaku for which robust measurements based on the Fe-K lines can be made. Across our sample the iron abundances are consistent with a constant value, $Z_{\rm Fe}=0.316\pm0.012$ Solar ($\chi^2=28.85$ for 25 degrees of freedom). This is remarkably similar to the measurements for the Perseus cluster of $Z_{\rm Fe}=0.314\pm0.012$ Solar, using the Solar abundance scale of Asplund et al. (2009).Comment: accepted for publication in MNRA

Witnessing the Growth of the Nearest Galaxy Cluster: Thermodynamics of the Virgo Cluster Outskirts

We present results from Suzaku Key Project observations of the Virgo Cluster, the nearest galaxy cluster to us, mapping its X-ray properties along four long `arms' extending beyond the virial radius. The entropy profiles along all four azimuths increase with radius, then level out beyond $0.5r_{200}$, while the average pressure at large radii exceeds Planck Sunyaev-Zel'dovich measurements. These results can be explained by enhanced gas density fluctuations (clumping) in the cluster's outskirts. Using a standard Navarro, Frenk and White (1997) model, we estimate a virial mass, radius, and concentration parameter of $M_{200}=1.05\pm0.02\times10^{14}$ M$_\odot$, $r_{200}=974.1\pm5.7$ kpc, and $c = 8.8 \pm0.2$, respectively. The inferred cumulative baryon fraction exceeds the cosmic mean at $r\sim r_{200}$ along the major axis, suggesting enhanced gas clumping possibly sourced by a candidate large-scale structure filament along the north-south direction. The Suzaku data reveal a large-scale sloshing pattern, with two new cold fronts detected at radii of 233 kpc and 280 kpc along the western and southern arms, respectively. Two high-temperature regions are also identified 1 Mpc towards the south and 605 kpc towards the west of M87, likely representing shocks associated with the ongoing cluster growth. Although systematic uncertainties in measuring the metallicity for low temperature plasma remain, the data at large radii appear consistent with a uniform metal distribution on scales of $\sim 90\times180$ kpc and larger, providing additional support for the early chemical enrichment scenario driven by galactic winds at redshifts of 2-3.Comment: submitted to MNRA

Inefficiency and productivity growth in banking: a comparison of stochastic econometric and thick frontier methods

A comparison of alternative methods for estimating inefficiency and productivity growth in banking, showing that inefficiencies are sufficiently large to dominate scale economies and that measured technological progress has been small, or even negative, as a result of institutional events that occurred during 1977-88.Banks and banking - Costs ; Production (Economic theory)

Analysis and application of digital spectral warping in analog and mixed-signal testing

Spectral warping is a digital signal processing transform which shifts the frequencies contained within a signal along the frequency axis. The Fourier transform coefficients of a warped signal correspond to frequency-domain 'samples' of the original signal which are unevenly spaced along the frequency axis. This property allows the technique to be efficiently used for DSP-based analog and mixed-signal testing. The analysis and application of spectral warping for test signal generation, response analysis, filter design, frequency response evaluation, etc. are discussed in this paper along with examples of the software and hardware implementation

Extension of the Morris-Shore transformation to multilevel ladders

We describe situations in which chains of N degenerate quantum energy levels, coupled by time-dependent external fields, can be replaced by independent sets of chains of length N, N-1,...,2 and sets of uncoupled single states. The transformation is a generalization of the two-level Morris-Shore transformation [J.R. Morris and B.W. Shore, Phys. Rev. A 27, 906 (1983)]. We illustrate the procedure with examples of three-level chains

Charge ordering induces a smectic phase in oblate ionic liquid crystals

We report a computer simulation study of an electroneutral mixture of oppositely charged oblate ellipsoids of revolution with aspect ratio A = 1/3. In contrast to hard or soft repulsive ellipsoids, which are purely nematic, this system exhibits a smectic-A phase in which charges of equal sign are counterintuitively packed in layers perpendicular to the nematic director