Deferred Annuities and Strategic Asset Allocation

We derive the optimal portfolio choice and consumption pattern over the lifecycle for households facing labor income, capital market, and mortality risk. In addition to stocks and bonds, households also have access to deferred annuities. Deferred annuities offer a hedge against mortality risk and provide similar benefits as Social Security. We show that a considerable fraction of wealth should be annuitized to skim the return enhancing mortality credit. The remaining liquid wealth (stocks and bonds) is used to hedge labor income risk during work life and to earn the equity premium. We find a marginal difference between a strategy involving deferred annuities and one where the investor can purchase immediate life annuities.

Two-fluid tokamak equilibria with reversed magnetic shear and sheared flow

The aim of the present work is to investigate tokamak equilibria with reversed magnetic shear and sheared flow, which may play a role in the formation of internal transport barriers (ITBs), within the framework of two-fluid model. The study is based on exact self-consistent solutions in cylindrical geometry by means of which the impact of the magnetic shear, s, and the "toroidal" (axial) and "poloidal" (azimuthal) ion velocity components on the radial electric field, its shear and the shear of the ExB velocity is examined. For a wide parametric regime of experimental concern it turns out that the contributions of the toroidal and poloidal velocity and pressure gradient terms to the electric field, its shear and ExB velocity shear are of the same order of magnitude. The impact of s on ExB velocity shear through the pressure gradient term is stronger than that through the velocity terms. The results indicate that, alike MHD, the magnetic shear and the sheared toroidal and poloidal velocities act synergetically in producing electric fields and therefore ExB velocity shear profiles compatible with ones observed in discharges with ITBs; owing to the pressure gadient term, however, the impact of s on the electic field, its shear and the shear of ExB velocity is stronger than that in MHD.Comment: 25 pages, 21 figure

Intrinsic motivation in open source software development

This papers sheds light on the puzzling evidence that even though open source software (OSS) is a public good, it is developed for free by highly qualified, young and motivated individuals, and evolves at a rapid pace. We show that once OSS development is understood as the private provision of a public good, these features emerge quite naturally. We adapt a dynamic private-provision-of-public-goods model to reflect key aspects of the OSS phenomenon. In particular, instead of relying on extrinsic motives for programmers (e.g. signaling) the present model is driven by intrinsic motives of OSS programmers, such as user-programmers, play value or homo ludens payoff, and gift culture benefits. Such intrinsic motives feature extensively in the wider OSS literature and contribute new insights to the economic analysis. --open source software,public goods,homo ludens,war of attrition

Euler-Lagrange correspondence of generalized Burgers cellular automaton

Recently, we have proposed a {\em Euler-Lagrange transformation} for cellular automata(CA) by developing new transformation formulas. Applying this method to the Burgers CA(BCA), we have succeeded in obtaining the Lagrange representation of the BCA. In this paper, we apply this method to multi-value generalized Burgers CA(GBCA) which include the Fukui-Ishibashi model and the quick-start model associated with traffic flow. As a result, we have succeeded in clarifying the Euler-Lagrange correspondence of these models. It turns out, moreover that the GBCA can naturally be considered as a simple model of a multi-lane traffic flow.Comment: 11 pages, 6 figures; accepted for publication in Int. J. Mod. Phys.

Integrability of a Generalized Ito System: the Painleve Test

It is shown that a generalized Ito system of four coupled nonlinear evolution equations passes the Painleve test for integrability in five distinct cases, of which two were introduced recently by Tam, Hu and Wang. A conjecture is formulated on integrability of a vector generalization of the Ito system.Comment: LaTeX, 5 page

Cellular automaton rules conserving the number of active sites

This paper shows how to determine all the unidimensional two-state cellular automaton rules of a given number of inputs which conserve the number of active sites. These rules have to satisfy a necessary and sufficient condition. If the active sites are viewed as cells occupied by identical particles, these cellular automaton rules represent evolution operators of systems of identical interacting particles whose total number is conserved. Some of these rules, which allow motion in both directions, mimic ensembles of one-dimensional pseudo-random walkers. Numerical evidence indicates that the corresponding stochastic processes might be non-Gaussian.Comment: 14 pages, 5 figure