Temptation and Self-Control: Some Evidence from the Consumer Expenditure Survey

Temptation, Self-Control, Gul-Pesendorfer Preferences, Asset Pricing

Vertical production and trade interdependence and welfare

The authors study international transmissions and welfare implications of monetary shocks in a two-country world with multiple stages of production and multiple border-crossings of intermediate goods. This empirically relevant feature is important, as it has opposite implications for two external spillover effects of a unilateral monetary expansion. If all production and trade are assumed to occur in a single stage, the conflict-of-interest terms-of-trade effect tends to dominate the common-interest efficiency-improvement effect for reasonable parameter values, so that the international welfare effects would depend in general on the underlying assumptions about the currencies of price setting. The stretch of production and trade across multiple stages of processing magnifies the efficiency-improvement effect and dampens the terms-of-trade effect. Thus, a monetary expansion can be mutually beneficial regardless of its source or the pricing assumptions.Production (Economic theory) ; Trade ; Monopolistic competition ; Welfare

Learning, adaptive expectations, and technology shocks

This study explores the macroeconomic implications of adaptive expectations in a standard real business cycle model. When rational expectations are replaced by adaptive expectations, we show that the self-confirming equilibrium is the same as the steady-state rational expectations equilibrium for all admissible parameters but that dynamics around the steady state are substantially different between the two equilibria. The differences are driven mainly by the dampened wealth effect and the strengthened intertemporal substitution effect, not by the escapes emphasized by Williams (2003). As a result, adaptive expectations can be an important source of frictions that amplify and propagate technology shocks and seem promising for generating plausible labor market dynamics.Equilibrium (Economics)

Learning, adaptive expectations, and technology shocks

This study explores the macroeconomic implications of adaptive expectations in a standard real business cycle model. When rational expectations are replaced by adaptive expectations, we show that the self-confirming equilibrium is the same as the steady state rational expectations equilibrium for all admissible parameters, but that dynamics around the steady state are substantially different between the two equilibria. The differences are driven mainly by the dampened wealth effect and the strengthened intertemporal substitution effect, not by the escapes emphasized by Williams (2003). As a result, adaptive expectations can be an important source of frictions that amplify and propagate technology shocks and seem promising for generating plausible labor market dynamics.Macroeconomics

Input-Output Structure and the General Equilibrium Dynamics of Inflation and Output

Recent empirical studies reveal that monetary shocks cause persistent fluctuations in inflation and aggregate output. In the literature, few mechanisms have been identified to generate such persistence. In this paper, we propose a new mechanism that does so. Our model features an input-output structure and staggered price contracts. Working through the input-output relations and the timing of firms\u27 pricing decisions, the model generates smaller fluctuations in marginal cost facing firms at later stages than at earlier stages and hence persistent responses of both the inflation rate and aggregate output following a monetary stock. The persistence is larger, the greater the number of production stages. With a sufficient number of stages, the real persistence is arbitrarily large

Spin-phonon interaction and band effects in the high-T_C superconductor HgBa_2CuO_4

Band calculations show that a stripe-like anti-ferromagnetic spin wave is enforced by a 'half-breathing' phonon distortion within the CuO plane of HgBa_2CuO_4. This spin-phonon coupling is increased further by shear distortion and by increased distance between Cu and apical oxygens. The effects from spin-phonon coupling are consistent with many observations in high-T_C materials. Spin-phonon coupling can be important for the mechanism of spin fluctuations and superconductivity, although the effects are quantitatively weak when using the local density potential.Comment: 4 pages, 1 figur

Projected SO(5) Hamiltonian for Cuprates and Its Applications

The projected SO(5) (pSO(5)) Hamiltonian incorporates the quantum spin and superconducting fluctuations of underdoped cuprates in terms of four bosons moving on a coarse grained lattice. A simple mean field approximation can explain some key feautures of the experimental phase diagram: (i) The Mott transition between antiferromagnet and superconductor, (ii) The increase of T_c and superfluid stiffness with hole concentration x and (iii) The increase of antiferromagnetic resonance energy as sqrt{x-x_c} in the superconducting phase. We apply this theory to explain the ``two gaps'' problem found in underdoped cuprate Superconductor-Normal- Superconductor junctions. In particular we explain the sharp subgap Andreev peaks of the differential resistance, as signatures of the antiferromagnetic resonance (the magnon mass gap). A critical test of this theory is proposed. The tunneling charge, as measured by shot noise, should change by increments of Delta Q= 2e at the Andreev peaks, rather than by Delta Q=e as in conventional superconductors.Comment: 3 EPS figure

QCD Form Factors and Hadron Helicity Non-Conservation

Recent data for the ratio $R(Q)= QF_{2}(Q^{2})/F_{1}(Q^{2})$ shocked the community by disobeying expectations held for 50 years. We examine the status of perturbative QCD predictions for helicity-flip form factors. Contrary to common belief, we find there is no rule of hadron helicity conservation for form factors. Instead the analysis yields an inequality that the leading power of helicity-flip processes may equal or exceed the power of helicity conserving processes. Numerical calculations support the rule, and extend the result to the regime of laboratory momentum transfer $Q^{2}$. Quark orbital angular momentum, an important feature of the helicity flip processes, may play a role in all form factors at large $Q^{2}$, depending on the quark wave functions.Comment: 25 pages, 5 figure

A study of charged kappa in J/ψ→K±Ksπ∓π0J/\psi \to K^{\pm} K_s \pi^{\mp} \pi^0

Based on $58 \times 10^6$ $J/\psi$ events collected by BESII, the decay $J/\psi \to K^{\pm} K_s \pi^{\mp} \pi^0$ is studied. In the invariant mass spectrum recoiling against the charged $K^*(892)^{\pm}$, the charged $\kappa$ particle is found as a low mass enhancement. If a Breit-Wigner function of constant width is used to parameterize the kappa, its pole locates at $(849 \pm 77 ^{+18}_{-14}) -i (256 \pm 40 ^{+46}_{-22})$ MeV/$c^2$. Also in this channel, the decay $J/\psi \to K^*(892)^+ K^*(892)^-$ is observed for the first time. Its branching ratio is $(1.00 \pm 0.19 ^{+0.11}_{-0.32}) \times 10^{-3}$.Comment: 14 pages, 4 figure

A new ghost cell/level set method for moving boundary problems:application to tumor growth

In this paper, we present a ghost cell/level set method for the evolution of interfaces whose normal velocity depend upon the solutions of linear and nonlinear quasi-steady reaction-diffusion equations with curvature-dependent boundary conditions. Our technique includes a ghost cell method that accurately discretizes normal derivative jump boundary conditions without smearing jumps in the tangential derivative; a new iterative method for solving linear and nonlinear quasi-steady reaction-diffusion equations; an adaptive discretization to compute the curvature and normal vectors; and a new discrete approximation to the Heaviside function. We present numerical examples that demonstrate better than 1.5-order convergence for problems where traditional ghost cell methods either fail to converge or attain at best sub-linear accuracy. We apply our techniques to a model of tumor growth in complex, heterogeneous tissues that consists of a nonlinear nutrient equation and a pressure equation with geometry-dependent jump boundary conditions. We simulate the growth of glioblastoma (an aggressive brain tumor) into a large, 1 cm square of brain tissue that includes heterogeneous nutrient delivery and varied biomechanical characteristics (white matter, gray matter, cerebrospinal fluid, and bone), and we observe growth morphologies that are highly dependent upon the variations of the tissue characteristics—an effect observed in real tumor growth