Shadow Banking and Systemic Risk in Europe and China

We compare the European and Chinese shadow banking systems. While the European shadow banking system is better developed than the Chinese shadow banking system, herd behavior and other factors in European markets create systemic risk, which contributed in part to the financial crisis. Dispersion of risk across the "under-developed" shadow banking system in China has led to some cases of localized, concentrated risk, but not to systemic risk. We discuss proposed European shadow banking regulation and its implications for systemic risk, and discuss what lessons China might glean from such policies. We also discuss what lessons China's diverse and systemically uncoordinated shadow banking sector might provide for Europe

Satellite-based precipitation estimation using watershed segmentation and growing hierarchical self-organizing map

This paper outlines the development of a multi-satellite precipitation estimation methodology that draws on techniques from machine learning and morphology to produce high-resolution, short-duration rainfall estimates in an automated fashion. First, cloud systems are identified from geostationary infrared imagery using morphology based watershed segmentation algorithm. Second, a novel pattern recognition technique, growing hierarchical self-organizing map (GHSOM), is used to classify clouds into a number of clusters with hierarchical architecture. Finally, each cloud cluster is associated with co-registered passive microwave rainfall observations through a cumulative histogram matching approach. The network was initially trained using remotely sensed geostationary infrared satellite imagery and hourly ground-radar data in lieu of a dense constellation of polar-orbiting spacecraft such as the proposed global precipitation measurement (GPM) mission. Ground-radar and gauge rainfall measurements were used to evaluate this technique for both warm (June 2004) and cold seasons (December 2004-February 2005) at various temporal (daily and monthly) and spatial (0.04 and 0.25) scales. Significant improvements of estimation accuracy are found classifying the clouds into hierarchical sub-layers rather than a single layer. Furthermore, 2-year (2003-2004) satellite rainfall estimates generated by the current algorithm were compared with gauge-corrected Stage IV radar rainfall at various time scales over continental United States. This study demonstrates the usefulness of the watershed segmentation and the GHSOM in satellite-based rainfall estimations

Investigating the impact of remotely sensed precipitation and hydrologic model uncertainties on the ensemble streamflow forecasting

In the past few years sequential data assimilation (SDA) methods have emerged as the best possible method at hand to properly treat all sources of error in hydrological modeling. However, very few studies have actually implemented SDA methods using realistic input error models for precipitation. In this study we use particle filtering as a SDA method to propagate input errors through a conceptual hydrologic model and quantify the state, parameter and streamflow uncertainties. Recent progress in satellite-based precipitation observation techniques offers an attractive option for considering spatiotemporal variation of precipitation. Therefore, we use the PERSIANN-CCS precipitation product to propagate input errors through our hydrologic model. Some uncertainty scenarios are set up to incorporate and investigate the impact of the individual uncertainty sources from precipitation, parameters and also combined error sources on the hydrologic response. Also probabilistic measure are used to quantify the quality of ensemble prediction. Copyright 2006 by the American Geophysical Union

Uncertainty quantification of satellite precipitation estimation and Monte Carlo assessment of the error propagation into hydrologic response

The aim of this paper is to foster the development of an end-to-end uncertainty analysis framework that can quantify satellite-based precipitation estimation error characteristics and to assess the influence of the error propagation into hydrological simulation. First, the error associated with the satellite-based precipitation estimates is assumed as a nonlinear function of rainfall space-time integration scale, rain intensity, and sampling frequency. Parameters of this function are determined by using high-resolution satellite-based precipitation estimates and gauge-corrected radar rainfall data over the southwestern United States. Parameter sensitivity analysis at 16 selected 5° × 5° latitude-longitude grids shows about 12-16% of variance of each parameter with respect to its mean value. Afterward, the influence of precipitation estimation error on the uncertainty of hydrological response is further examined with Monte Carlo simulation. By this approach, 100 ensemble members of precipitation data are generated, as forcing input to a conceptual rainfall-runoff hydrologic model, and the resulting uncertainty in the streamflow prediction is quantified. Case studies are demonstrated over the Leaf River basin in Mississippi. Compared with conventional procedure, i.e., precipitation estimation error as fixed ratio of rain rates, the proposed framework provides more realistic quantification of precipitation estimation error and offers improved uncertainty assessment of the error propagation into hydrologic simulation. Further study shows that the radar rainfall-generated streamflow sequences are consistently contained by the uncertainty bound of satellite rainfall generated streamflow at the 95% confidence interval. Copyright 2006 by the American Geophysical Union

Self-organizing nonlinear output (SONO): A neural network suitable for cloud patch-based rainfall estimation at small scales

Accurate measurement of rainfall distribution at various spatial and temporal scales is crucial for hydrological modeling and water resources management. In the literature of satellite rainfall estimation, many efforts have been made to calibrate a statistical relationship (including threshold, linear, or nonlinear) between cloud infrared (IR) brightness temperatures and surface rain rates (RR). In this study, an automated neural network for cloud patch-based rainfall estimation, entitled self-organizing nonlinear output (SONO) model, is developed to account for the high variability of cloud-rainfall processes at geostationary scales (i.e., 4 km and every 30 min). Instead of calibrating only one IR-RR function for all clouds the SONO classifies varied cloud patches into different clusters and then searches a nonlinear IR-RR mapping function for each cluster. This designed feature enables SONO to generate various rain rates at a given brightness temperature and variable rain/no-rain IR thresholds for different cloud types, which overcomes the one-to-one mapping limitation of a single statistical IR-RR function for the full spectrum of cloud-rainfall conditions. In addition, the computational and modeling strengths of neural network enable SONO to cope with the nonlinearity of cloud-rainfall relationships by fusing multisource data sets. Evaluated at various temporal and spatial scales, SONO shows improvements of estimation accuracy, both in rain intensity and in detection of rain/no-rain pixels. Further examination of the SONO adaptability demonstrates its potentiality as an operational satellite rainfall estimation system that uses the passive microwave rainfall observations from low-orbiting satellites to adjust the IR-based rainfall estimates at the resolution of geostationary satellites. Copyright 2005 by the American Geophysical Union

Space-time translational gauge identities in Abelian Yang-Mills gravity

We derive and calculate the space-time translational gauge identities in quantum Yang-Mills gravity with a general class of gauge conditions involving two arbitrary parameters. These identities of the Abelian group of translation are a generalization of Ward-Takahasi-Fradkin identities and important for general discussions of possible renormalization of Yang-Mills gravity with translational gauge symmetry. The gauge identities in Yang-Mills gravity with a general class of gauge conditions are substantiated by explicit calculations.Comment: 15 pages. To be published in The European Physical Journal - Plus (2012

Similarity laws of lunar and terrestrial volcanic flows

A mathematical model of a one dimensional, steady duct flow of a mixture of a gas and small solid particles (rock) was analyzed and applied to the lunar and the terrestrial volcanic flows under geometrically and dynamically similar conditions. Numerical results for the equilibrium two phase flows of lunar and terrestrial volcanoes under similar conditions are presented. The study indicates that: (1) the lunar crater is much larger than the corresponding terrestrial crater; (2) the exit velocity from the lunar volcanic flow may be higher than the lunar escape velocity but the exit velocity of terrestrial volcanic flow is much less than that of the lunar case; and (3) the thermal effects on the lunar volcanic flow are much larger than those of the terrestrial case

Merging multiple precipitation sources for flash flood forecasting

We investigated the effectiveness of combining gauge observations and satellite-derived precipitation on flood forecasting. Two data merging processes were proposed: the first one assumes that the individual precipitation measurement is non-bias, while the second process assumes that each precipitation source is biased and both weighting factor and bias parameters are to be calculated. Best weighting factors as well as the bias parameters were calculated by minimizing the error of hourly runoff prediction over Wu-Tu watershed in Taiwan. To simulate the hydrologic response from various sources of rainfall sequences, in our experiment, a recurrent neural network (RNN) model was used. The results demonstrate that the merged method used in this study can efficiently combine the information from both rainfall sources to improve the accuracy of flood forecasting during typhoon periods. The contribution of satellite-based rainfall, being represented by the weighting factor, to the merging product, however, is highly related to the effectiveness of ground-based rainfall observation provided gauged. As the number of gauge observations in the basin is increased, the effectiveness of satellite-based observation to the merged rainfall is reduced. This is because the gauge measurements provide sufficient information for flood forecasting; as a result the improvements added on satellite-based rainfall are limited. This study provides a potential advantage for extending satellite-derived precipitation to those watersheds where gauge observations are limited. © 2007 Elsevier B.V. All rights reserved