Efficient Remedies for Breach of Warranty

This article attempts to suggest valuable refinements and extensions of the economic theory of warranty by explicitly considering the choice of remedies for breach of warranty in conjunction with the choice of warranty protection itself. In particular, it offers explanations for the prevalence of replacement terms rather than refund terms in warranties. Economists studying the general issue of breach of contract have noted that the choice of remedy has important implications for risk sharing, renegotiation, transaction-specific investment, and the incentive to breach.5 This article derives much of its insight from the recognition that work on the economics of contract breach has much to say that is relevant to the economics of warranties

Inversion of acoustical data from the SW06 experiment, using a statistical method for signal characterization

his paper presents an application of an acoustic signal characterization scheme for ocean acoustic tomography and geoacoustic inversions proposed by Taroudakis et al., using real data. The work is the first attempt to validate the proposed scheme with data taken from sea experiments. The data have been collected during the SW06 experiment held in the New Jersey Continental Shelf and the inversion results (sea-bed geoacoustic parameters and source range) are compared with those reported by Bonnel and Chapman. The comparison and the signal reconstruction using estimated values of the model parameters is satisfactory being an indication that the new signal characterization method can be used in practical applications of acoustical oceanography

The Rockefeller Brothers Fund's Western Balkans Program: Midterm Impact Assessment

The Rockefeller Brothers Fund (RBF) commissioned an impact assessment of its Western Balkans program from 2010 to 2015. As the team who carried out this assessment, our overall conclusion from the assessment is that the RBF program in the Western Balkans is having meaningful positive impact, and it is relevant to the developments in Serbia, Montenegro, Kosovo, and the rest of the region. We believe the program is well designed and is achieving a lot with a relatively small amount of money

Evolutionary biology and genetic techniques for insect control

The requirement to develop new techniques for insect control that minimize negative environmental impacts has never been more pressing. Here we discuss population suppression and population replacement technologies. These include sterile insect technique, genetic elimination methods such as the release of insects carrying a dominant lethal (RIDL), and gene driving mechanisms offered by intracellular bacteria and homing endonucleases. We also review the potential of newer or underutilized methods such as reproductive interference, CRISPR technology, RNA interference (RNAi), and genetic underdominance. We focus on understanding principles and potential effectiveness from the perspective of evolutionary biology. This offers useful insights into mechanisms through which potential problems may be minimized, in much the same way that an understanding of how resistance evolves is key to slowing the spread of antibiotic and insecticide resistance. We conclude that there is much to gain from applying principles from the study of resistance in these other scenarios – specifically, the adoption of combinatorial approaches to minimize the spread of resistance evolution. We conclude by discussing the focused use of GM for insect pest control in the context of modern conservation planning under land-sparing scenarios

Income Related Loans for Drought Relief

There is arguably a consensus that the current approach to drought relief is in need of reform and possibly replacement with an improved government financial assistance mechanism. Grants to farmers, in the form of interest rate subsidies, have several difficulties, which in summary are as follows: i. There are typically too few financial resources to be drawn from government to address adequately and equitably the needs of farms in a dire drought situation. ii. The rationing arising from (i) means that access to assistance requires complex eligibility criteria, resulting in application and administrative processes that are complex and thus expensive for both farmers and government. iii. Grants for drought relief are financed by contributions from all taxpayers, and it is very likely to be the case that this is regressive. Average taxpayers will be less wealthy and have fewer other economic advantages than the majority of farmers assisted through drought relief. This paper outlines the potential advantages and challenges associated with the implementation of income related loan arrangements for drought relief as a possible alternative to the existing interest rate subsidy scheme. The conceptual basis of income related loans is explained, and reference is made to the application of policies of this type in other areas of government financial intervention. The paper addresses the administrative challenges associated with such a policy reform, with reference to the idiosyncrasies of agricultural financing. An illustrative example is offered of what an income related loan applied to drought assistance might mean for the time stream of both revenue for the Commonwealth budget and repayment obligations for farms differing by economic size.income related loans, drought policy, agricultural subsidies

Linear Approximations and Tests of Conditional Pricing Models

We construct a simple reduced-form example of a conditional pricing model with modest intrinsic nonlinearity. The theoretical magnitude of the pricing errors (alphas) induced by the application of standard linear conditioning are derived as a direct consequence of an omitted variables bias. When the model is calibrated to either characteristics sorted or industry portfolios, we find that the alphas generated by approximation-induced specification error are economically large. A Monte Carlo analysis shows that finite-sample alphas are even larger. It also shows that the power to detect omitted nonlinear factors through tests based on estimated risk premiums can sometimes be quite low, even when the effect of misspecification on alphas is large.

Hyperspace of convex compacta of nonmetrizable compact convex subspaces of locally convex spaces

Our main result states that the hyperspace of convex compact subsets of a compact convex subset $X$ in a locally convex space is an absolute retract if and only if $X$ is an absolute retract of weight $\le\omega_1$. It is also proved that the hyperspace of convex compact subsets of the Tychonov cube $I^{\omega_1}$ is homeomorphic to $I^{\omega_1}$. An analogous result is also proved for the cone over $I^{\omega_1}$. Our proofs are based on analysis of maps of hyperspaces of compact convex subsets, in particular, selection theorems for such maps are proved