Perverse incentives at the banks? Evidence from a natural experiment

Incentive provision is a central question in modern economic theory. During the run up to the financial crisis, many banks attempted to encourage loan underwriting by giving out incentive packages to loan officers. Using a unique data set on small business loan officer compensation from a major commercial bank, we test the model’s predictions that incentive compensation increases loan origination, but may induce the loan officers to book more risky loans. We find that the incentive package amounts to a 47% increase in loan approval rate, and a 24% increase in default rate. Overall, we find that the bank loses money by switching to incentive pay. We further test the effects of incentive pay on other loan characteristics using a multivariate difference-in-difference analysis.Incentive awards

Nonclassical Imaging for a quantum search of trapped ions

We discuss a simple search problem which can be pursued with different methods, either on a classical or on a quantum basis. The system is represented by a chain of trapped ions. The ion to be searched is a member of that chain, consists, however, of an isotopic species different to the others. It is shown that the classical imaging may lead as fast to the final result as the quantum imaging. However, for the discussed case the quantum method gives more flexibility and higher precision when the number of ions considered in the chain is increasing. In addition, interferences are observable even when the distances between the ions is smaller than half a wavelength of the incident light.Comment: 5 pages, 5 figure

Stress tests on cylinders and aluminum panels

An optimization study of composite stiffened cylinders is discussed. The mathematical model for the buckling has been coupled successfully with the optimization program AESOP. The buckling analysis is based on the use of the smeared theory for the buckling of stiffened orthotropic cylindrical shells. The loading, radius, and length of the cylinder are assumed to be known parameters. An optimum solution gives the value of cross-sectional dimensions and laminate orientations. The different types of buckling modes are identified. Mathematical models are developed to show the relationships of the parameters

Secure Communication over 1-2-1 Networks

This paper starts by assuming a 1-2-1 network, the abstracted noiseless model of mmWave networks that was shown to closely approximate the Gaussian capacity in [1], and studies secure communication. First, the secure capacity is derived for 1-2-1 networks where a source is connected to a destination through a network of unit capacity links. Then, lower and upper bounds on the secure capacity are derived for the case when source and destination have more than one beam, which allow them to transmit and receive in multiple directions at a time. Finally, secure capacity results are presented for diamond 1-2-1 networks when edges have different capacities.Comment: Submitted for ISIT 201

Intensity-intensity correlations as a probe of interferences - under conditions of none in the intensity

The different behaviour of first order interferences and second order correlations are investigated for the case of two coherently excited atoms. For intensity measurements this problem is equivalent to Young's double slit experiment and was investigated in an experiment by Eichmann et al. [Phys. Rev. Lett. 70, 2359 (1993)] and later analyzed in detail by Itano et al. [Phys. Rev. A 57, 4176 (1998)]. Our results show that in cases where the intensity interferences disappear the intensity-intensity correlations can display an interference pattern with a visibility of up to 100%. The contrast depends on the polarization selected for the detection and is independent of the strength of the driving field. The nonclassical nature of the calculated intensity-intensity correlations is also discussed.Comment: 14 pages, 2 figure