Efficiency Effects of Quality of Service and Environmental Factors: Experience from Norwegian Electricity Distribution

Since the 1990s, efficiency and benchmarking analysis has increasingly been used in network utilities research and regulation. A recurrent concern is the effect of environmental factors that are beyond the influence of firms (observable heterogeneity) and factors that are not identifiable (unobserved heterogeneity) on measured cost and quality performance of firms. This paper analyses the effect of geographic and weather factors and unobserved heterogeneity on a set of 128 Norwegian electricity distribution utilities for the 2001-2004 period. We utilize data on almost 100 geographic and weather variables to identify real economic inefficiency while controlling for observable and unobserved heterogeneity. We use the factor analysis technique to reduce the number of environmental factors into few composite variables and to avoid the problem of multi-collinearity. We then estimate the established stochastic frontier models of Battese and Coelli (1992; 1995) and the recent true fixed effects models of Greene (2004; 2005) without and with environmental variables. In the former models some composite environmental variables have a significant effect on the performance of utilities. These effects vanish in the true fixed effects models. However, the latter models capture the entire unobserved heterogeneity and therefore show significantly higher average efficiency scores

Mathematical Modeling of the Diffusion of Water in Wood During Drying

The drying of lumber was modeled by the diffusion of water in wood, according to Fick's second law. In the model the following assumptions were made: (1) Moisture content is the driving force; (2) the diffusion coefficient is a constant value above the fiber saturation point and one-fourth that value below the fiber saturation point; (3) equilibrium exists between the moisture content at the wood surface and the film of air adjacent to the surface; (4) moisture movement from the film to the bulk air stream occurs by film mass transfer. Five independent variables—half thickness of the board, species factor (density-diffusivity), temperature, relative humidity, and air velocity—were found to influence the drying process. This study reveals that variable interactions are important considerations when one wishes to predict drying times.Using red oak and constant values for lumber thickness and kiln air velocity, three cases were modeled to illustrate the potential for improved operation. The first case follows temperature and humidity schedules typical of current kiln operations, forming a basis for comparison. In the second case, a solar-powered kiln produces harmonic variations in temperature and relative humidity. The most favorable drying conditions occur in the late afternoon, the least favorable before dawn. Slower drying with nightly relaxation of the moisture profile may produce a board with few defects. In the final study, temperature and maximum permissible drying rate are specified, with relative humidity chosen according to the model. This case produced the most rapid drying, yet has milder moisture gradients than the base case. The results of these studies show the possibility of producing a high-quality product at low cost in a solar-powered dryer, or optimizing drying schedules to reduce drying time and increase product quality

The origin of ultra diffuse galaxies: stellar feedback and quenching

We test if the cosmological zoom-in simulations of isolated galaxies from the FIRE project reproduce the properties of ultra diffuse galaxies. We show that stellar feedback-generated outflows that dynamically heat galactic stars, together with a passively aging stellar population after imposed quenching (from e.g. infall into a galaxy cluster), naturally reproduce the observed population of red UDGs, without the need for high spin halos or dynamical influence from their host cluster. We reproduce the range of surface brightness, radius and absolute magnitude of the observed z=0 red UDGs by quenching simulated galaxies at a range of different times. They represent a mostly uniform population of dark matter-dominated galaxies with M_star ~1e8 Msun, low metallicity and a broad range of ages. The most massive simulated UDGs require earliest quenching and are therefore the oldest. Our simulations provide a good match to the central enclosed masses and the velocity dispersions of the observed UDGs (20-50 km/s). The enclosed masses of the simulated UDGs remain largely fixed across a broad range of quenching times because the central regions of their dark matter halos complete their growth early. A typical UDG forms in a dwarf halo mass range of Mh~4e10-1e11 Msun. The most massive red UDG in our sample requires quenching at z~3 when its halo reached Mh ~ 1e11 Msun. If it, instead, continues growing in the field, by z=0 its halo mass reaches > 5e11 Msun, comparable to the halo of an L* galaxy. If our simulated dwarfs are not quenched, they evolve into bluer low-surface brightness galaxies with mass-to-light ratios similar to observed field dwarfs. While our simulation sample covers a limited range of formation histories and halo masses, we predict that UDG is a common, and perhaps even dominant, galaxy type around Ms~1e8 Msun, both in the field and in clusters.Comment: 20 pages, 13 figures; match the MNRAS accepted versio

Why business angels reject investment opportunities: Is it personal?

A major focus of research on business angels has examined their decision-making processes and investment criteria. As business angels reject most of the opportunities that they receive, this article explores the reasons informing such decisions. In view of angel heterogeneity, investment opportunities might be expected to be rejected for differing reasons. Two sources of data are used to examine this issue. Face-to-face interviews with 30 business angels in Scotland and Northern Ireland provided information on typical ‘deal killers’. This was complemented by an Internet survey of United Kingdom that attracted responses from 238 UK business angels. The findings confirm that the main reason for rejection relates to the entrepreneur/management team. However, angel characteristics do not explain the number of reasons given for opportunity rejection nor do they predict the reasons for rejecting investment opportunities. This could be related to the increasing trend for business angels to join organised groups which, in turn, leads to the development of a shared repertoire of investment approaches. We suggest the concept of ‘communities-of-practice’ as an explanation for this finding

The Clustering of Massive Halos

The clustering properties of dark matter halos are a firm prediction of modern theories of structure formation. We use two large volume, high-resolution N-body simulations to study how the correlation function of massive dark matter halos depends upon their mass and formation history. We find that halos with the lowest concentrations are presently more clustered than those of higher concentration, the size of the effect increasing with halo mass; this agrees with trends found in studies of lower mass halos. The clustering dependence on other characterizations of the full mass accretion history appears weaker than the effect with concentration. Using the integrated correlation function, marked correlation functions, and a power-law fit to the correlation function, we find evidence that halos which have recently undergone a major merger or a large mass gain have slightly enhanced clustering relative to a randomly chosen population with the same mass distribution.Comment: 10 pages, 8 figures; text improved, references and one figure added; accepted for publication in Ap