Penalties and Optimality in Financial Contracts: Taking Stock

A popular view of limited liability in financial contracting is that it is the result of societal preferences against excessive penalties. The view of most financial economists is instead that limited liability emerged as an optimal institution when, in the absence of a clear limit on economic agents liability, the development of some economic activities might have been thwarted. Viewing the institution from the perspective of optimal legal system design allows us to better understand the current debate on it. We present a broad history of penalties in financial contracts to highlight the interactions between technology, legal environments, purpose of the financial relationship, and contractual provisions. We show that harsh monetary and non-pecuniary penalties are not mere relics from a bygone era and, at the same time, that limited liability is far from a recent institution. We then discuss trade-offs associated with legal mandates of either unlimited or limited liability, both for the contracting parties and for the rest of Society. We identify two broad patterns. First, the toughness of liability rules and bankruptcy laws decreases as exogenous sources of uncertainty become relatively more important, and increases with the opportunity for moral hazard (related to diligence, risk taking, or deception). Second, bankruptcy laws become more lenient as the scope for labor specialization and the returns to human capital or entrepreneurship increase.Limited Liability, Bankruptcy, Debt Bondage, Debtors' Prison, History

Eco-Efficient Synthesis of LiFePO4 with Different Morphologies for Li-Ion Batteries

LiFePO4 is presently the most studied electrode material for battery applications. It can be prepared via solution, although it requires well-controlled pH conditions to master the iron valence state in the newly created material. Here we report its synthesis via the use of "latent bases" capable of releasing a nitrogen base upon heating. This way of controlling the reaction pH enables, in the absence of excess Li, the preparation of Fe+3-free LiFePO4 powders having various morphologies and showing good electrochemical performance. This approach is shown to offer great opportunities for the low-temperature synthesis of various electrode materials

Development path and capital structure of belgian biotechnology firms

This study investigates the relationship between the evolution of real options values and associated financing policies for Belgian companies in the sector of bio-industries. Each firm's situation regarding the relevant types of real options is stylistically represented through a scenario tree. The consumption of a time-to-build or a growth option is respectively considered as a success or a failure in company development. Empirically, several variables enable us to locate each company along the tree at any time. The study of transitions leads us to discover that failures tend to trigger higher leverage, unlike in the trade-off theory. Yet, the increases in debt maturity, in lease and in convertible financing confirm our predictions. Overall, we emphasize evidence of undercapitalization and of proper, yet insufficient, use of hybrid financing by biotech companies.

Control of the Grushin equation: non-rectangular control region and minimal time

International audienceThis paper is devoted to the study of the internal null-controllability of the Grushin equation. We determine the minimal time of controllability for a large class of non-rectangular control region. We establish the positive result thanks to the fictitious control method and the negative one by interpreting the associated observability inequality as an $L^2$ estimate on complex polynomials

A la recherche d'un dispositif pour faciliter le partage d'informations scientifiques : une esquisse.

National audienceL'individu en situation est doté d'un système de pertinence composé de ses acquis (éducation, apprentissages, culture ...) et d'une vision du monde (Schütz, 2008). Cela signifie que deux individus même assez proches, parce qu'ils n'ont pas exactement le même parcours de vie, possèdent nécessairement un système de pertinence, une vision du monde, différents. Exprimé autrement : chaque individu perçoit la situation à travers un filtre personnel, il n'y a pas une mais plusieurs réalités. C'est à partir de ces éléments, système de pertinence et vision du monde, et via un processus d'appariement, nécessairement incomplet si l'on considère la rationalité limitée de l'acteur en situation qui va considérer en priorité dans l'instant ce qui est essentiel pour lui (Herbert Simon), que l'individu va prendre une décision (Gary Klein). Ce mécanisme, qu'il est aussi possible de dénommer intuition ou réflexe si le laps de temps est ramassé, est un mécanisme central du processus de prise de décision

Review—Innovative Polymeric Materials for Better RechargeableBatteries: Strategies from CIC Energigune

The need for sustainable energy sources and their efficient utilization has motivated extensive explorations of new electrolytes, electrodes, and alternative battery chemistries departing from current lithium-ion battery ( LIB) technologies. The evolution and development of rechargeable batteries are tightly linked to the research of polymeric materials, such as polymer electrolytes and redox-active polymeric electrodes, separators, and binders, etc. In this contribution, we review the recent progresses on polymer electrolytes and redox-active polymeric electrodes developed in CIC Energigune with particular attention paid to the molecular designing and engineering. On the basis of our knowledge and experience accumulated in rechargeable batteries, further developments and improvements on the properties of these polymeric materials for building better rechargeable batteries are discussed. (c) The Author(s) 2019. Published by ECS.This work was supported by GV-ELKARTEK-2016 from the Basque Government, and MINECO RETOS (Ref: ENE2015-64907-C2-1-R) from Spanish Government. H.Z. thanks the Basque Government for the Berrikertu program (1-AFW-2017-2). This manuscript is dedicated to the 73th birthday of Prof. Dr. Michel Armand, who ushered theoretical concepts leading to practical applications in energy-related electrochemistry

Plant functional trait effects on runoff to design herbaceous hedges for soil erosion control

International audienceVegetation controls concentrated runoff and erosion in the European loess belt by increasing hydraulic roughness and sediment retention. Studies of plant effects on runoff velocity are usually based on a taxonomical characterisation and do not consider the effects of aboveground plant functional traits in attempts to understand soil erosion by water. This trait-based plant study investigates aboveground plant functional trait effects of herbaceous hedges on the hydraulic roughness to understand soil erosion. Eight aboveground morphological traits were measured on fourteen indigenous and perennial plant species (caespitose or comprising dry biomass in winter) from north-west Europe with a high morphological variability. For each trait, density-weighted traits were calculated. The effects of traits and density-weighted traits were examined using a runoff simulator with four discharges. The leaf density and area, as well as density-weighted stem and leaf areas, stem diameter and specific leaf area were positively correlated with the hydraulic roughness. Generalised linear models defined the best combinations of traits and density-weighted traits: (1) leaf density and leaf area, (2) density-weighted leaf area and density-weighted projected stem area, and (3) density-weighted leaf area and density-weighted stem diameter. Moreover, the effects of leaf density, leaf area and density-weighted specific leaf area, varied depending on the discharge. This study is one of the first characterisation of aboveground trait effects on hydraulic roughness and highlights that vegetation with large stem density, diameter and leaf area plays a significant role in minimising soil erosion. The selection of plant species can derive from these plant trait effects to design reconstructed herbaceous hedges to minimise soil erosion

Débits de ventilation créés par un panache forcé dans une enceinte ventilée

La convection mixte produite par une source d’inertie et de flottabilité à l’intérieur d’une région confinée est étudiée expérimentalement dans le cas d’un panache forcé de gaz chauds débouchant verticalement à la base d’une enceinte parallélépipédique, en communication avec l’extérieur par deux ouvertures S et E situées respectivement en parties haute et basse de ce volume. Dans cette situation, quand un état stationnaire est atteint, des études antérieures ont montré qu’il pouvait exister trois régimes d’écoulements (naturel, intermédiaire et bloqué) selon la valeur d’un nombre de Froude densitométrique FrH,[1],[2].FrH dépend de la hauteur de l’enceinte,de la différence de masse volumique moyenne entre l’intérieur et l’extérieur de l’enceinte, de la section effective de S, des masses volumiques respectives de l’air chaud injecté, de l’air chaud sortant et de l’air extérieur. A partir de la connaissance de FrH il est possible de calculer les débits entrants ou sortants. Le but de cette communication est de présenter de nouveaux résultats concernant les champs de vitesse et de température mesurés aux ouvertures afin de pouvoir calculer les débits massiques et calorifiques sortants et entrants pour ces trois régimes d’écoulements. Les vitesses sont mesurées par PIV et les températures par thermocouples dans sept plans x-y afin de prendre en compte l’aspect 3D de la situation. Les résultats montrent que le bilan massique est en bon accord avec le modèle et qu’environ 30% de la puissance calorifique est perdue par conduction dans les différentes parois pour les trois régimes étudiés. [1] Paranthoën P., Gonzalez M., Int.J.Heat Fluid Flow 31,(2010), 172 [2] Ngondiep et al., Congrès Français de Mécanique, Besançon, 201