Managing post-disaster reconstruction finance -- international experience in public financial management

In recent years, natural and man-made disasters have confronted the international community with its most demanding reconstruction challenges since the aftermath of World War II. Managing the inflow of resources and spending those resources well have proven to be two of the main difficulties in such reconstruction projects, particularly after large-scale disasters. A central dilemma of the public financial management of reconstruction is the need for very high levels of accountability to demonstrate fiduciary credibility, while at the same time ensuring the rapid implementation of recovery programs. This paper identifies options and lessons for managing post-disaster reconstruction finance in three key areas: (i) the establishment of special institutions to manage the reconstruction process; (ii) the selection of public financial management systems with respect to the application of country systems, special fiduciary arrangements, or donor/NGO execution; and (iii) monitoring and evaluation systems. The authors synthesize the phasing of assistance and approaches in eight recent post-natural disaster reconstruction efforts (Aceh-Indonesia, Yogyakarta-Indonesia, Sri Lanka, Maldives, Pakistan, Colombia, Grenada, and Honduras) to help guide the priorities and options for future instances of public financial management for disaster reconstruction. The paper also compares the challenges posed by post-conflict versus post-natural disaster public financial management.Natural Disasters,Disaster Management,Post Conflict Reconstruction,Social Accountability,Post Conflict Reintegration

DSFM fitting of Implied Volatility Surfaces

The implied volatility became one of the key issues in modern quantitative finance, since the plain vanilla option prices contain vital information for pricing and hedging of exotic and illiquid options. European plain vanilla options are nowadays widely traded, which results in a great amount of high-dimensional data especially on an intra day level. The data reveal a degenerated string structure. Dynamic Semiparametric Factor Models (DSFM) are tailored to handle complex, degenerated data and yield low dimensional representation of the implied volatility surface (IVS). We discuss estimation issues of the model and apply it to DAX option prices.dynamic semiparametric factor model, implied volatility, vanilla options, DAX option prices

A Dynamic Semiparametric Factor Model for Implied Volatility String Dynamics

A primary goal in modelling the implied volatility surface (IVS) for pricing and hedging aims at reducing complexity. For this purpose one fits the IVS each day and applies a principal component analysis using a functional norm. This approach, however, neglects the degenerated string structure of the implied volatility data and may result in a modelling bias. We propose a dynamic semiparametric factor model (DSFM), which approximates the IVS in a finite dimensional function space. The key feature is that we only fit in the local neighborhood of the design points. Our approach is a combination of methods from functional principal component analysis and backfitting techniques for additive models. The model is found to have an approximate 10% better performance than a sticky moneyness model. Finally, based on the DSFM, we devise a generalized vega-hedging strategy for exotic options that are priced in the local volatility framework. The generalized vega-hedging extends the usual approaches employed in the local volatility framework.Smile, local volatility, generalized additive model, backfitting, functional principal component analysis

Grundlagen der Rechnerarchitektur

Das Lehrbuch (E-Book) soll als Basis von Vorlesungen an Universitäten und Fachhochschulen zu Grundlagen von Rechnerarchitekturen dienen. Besonderheit der hier vorliegenden Darstellungen ist, dass zur Erläuterung der Funktion an vielen Stellen Systeme paralleler Automaten zur weitgehend formalen Beschreibung verwendet werden. Weiterhin wird außer den Abschnitten zum Prozessor und Speicher großer Wert auf die Behandlung von Ein-Ausgabe-Prinzipien gelegt. Insgesamt soll für Studierende der Ingenieurwissenschaften die Grundlage zu aufbauenden Veranstaltungen (z.B. zu Microcontrollern) gelegt werden. Das dient zu einer eventuellen späteren Berufsorientierung bei der Anwendung von geräteintegrierten (Eingebetteten) Rechnern in vielen Domänen (z.B. Fahrzeugtechnik, Medizintechnik, Mobilkommunikation, usw.), als Auftraggeber oder Partner der Entwickler aus der Disziplin Technische Informatik/ Ingenieurinformatik bzw. als selbständiger Entwickler. Dazu wurden eigene Erfahrungen bei der Entwicklung von Eingebetteten Rechnern in Kooperation mit Ingenieurteams herangezogen. Der Inhalt ist zugeschnitten auf eine Veranstaltung mit zwei Unterrichtsstunden pro Woche im Semester. Mit ausgewählten Teilen (Grundwissen) kann auch eine Vorlesung mit der Hälfte der Termine durchgeführt werden. Der vorliegende Inhalt setzt eine vorherige Veranstaltung zu den Grundlagen digitaler Systeme voraus (vor allem: Boolesche Algebra, kombinatorische und sequentielle Logik/endliche Automaten und deren Beschreibung mit Automatengraphen, logische Grundfunktionen und -elemente und digitale Zahlendarstellungen (alles z.B. in [1] oder [2] bzw. einer entsprechenden Vorlesung [3] in den notwendigen Umfängen). Der Inhalt des Buchs wurde gezielt beschränkt auf den dazu gehörigen Vorlesungsinhalt und basiert auf einer langjährigen Erfahrung in Lehrveranstaltungen zum Thema für Ingenieure, Ingenieurinformatiker und Informatiker. Deshalb ist auch ein Teil der enthaltenen Bilder auf Grundlage der dort verwendeten Lehrmaterialien [4] entstanden, wobei diese aber für das vorliegende Buch weitgehend überarbeitet wurden. Wir danken allen, die an diesem Material mitgearbeitet haben. Das gewählte Layout (Querformat, große Schrift) soll es ermöglichen, den Inhalt auf einem Notebook als Vollbild so darzustellen, dass eine Arbeit damit auch in der Lehrveranstaltung möglich ist. Falls ein Ausdruck gewünscht ist, sollte er mit 2 Seiten je A4-Blatt erfolgen

Investing in Indonesia’s Education: Allocation, Equity, and Efficiency of Public Expenditures

What is the current level and main characteristics of public education spending in Indonesia? Is education spending insufficient? Is education spending efficient and equitable? This study reports the first account of Indonesia’s aggregated (national and sub-national) spending on education, as well as the economic and sub-functional (by programs) composition of education expenditures. It presents estimations of the expected (average) level of education spending for a country with similar economic and social characteristics. It sheds light on efficiency and equity of education spending by presenting social rates of return by level of education, an assessment of the adequacy of current teacher earnings relative to other paid workers, the distribution of teachers across urban, rural, and remote regions, and the determinants of education enrollment. It concludes that the current challenges in Indonesia are not anymore defined by the need to increase spending on the supply side, but rather to improve the quality of education services, and to improve the efficiency of education expenditures by re-allocating teachers to undersupplied regions and re-adjusting the spending mix within and between education programs of future additional spending in the sector. The study finds that poverty and student-aged labor are also significant constraints to education enrollment, stressing the importance of policies aimed to address demand-side factors affecting education access in Indonesia.education Indonesia; expenditures education Indonesia; Indonesia's education; quality education; efficiency of education expenditures; equity of education expenditures; rates of return; teacher wages indonesia; education 20% rule Indonesia

Investing in Indonesia's education : allocation, equity, and efficiency of public expenditures

What are the current trends and main characteristics of public education spending in Indonesia? Is education spending insufficient? Are expenditures in education efficient and equitable? This study reports the first account of Indonesia's aggregated (national and sub-national) spending on education, as well as the economic composition of education spending and its breakdown by programs. It presents estimations of the expected (average) level of education spending for a country with its economic and social characteristics. This analysis sheds light on the efficiency and equity of education spending by presenting social rates of return by level of education, by assessing the adequacy of current teacher earnings relative to other paid workers and the distribution of teachers across urban, rural, and remote regions, and by identifying the main determinants of education enrollment. It concludes that the current challenges in Indonesia are no longer defined by the need of additional spending, but rather the need to improve the quality of education services, and to improve the efficiency of education expenditures by re-allocating teachers to undersupplied regions and re-adjusting the spending mix within and between education programs for future additional spending in the sector. The study finds that poverty and student-aged labor are also significant constraints to education enrollment, stressing the importance of policies aimed at addressing demand-side factors.Education For All,Primary Education,Tertiary Education,Teaching and Learning,

Black hole or black gold ? the impact of oil and gas prices on Indonesia's public finances

Indonesia's oil revenues and fuel subsidies dominate the nation's economic policy agenda. This paper estimates the impact of higher international oil prices on the Indonesian government's fiscal position in 2008 and beyond. It analyzes the interactions between government revenues and expenditures, as well as international oil prices, energy subsidies, and inter-governmental transfers. Looking at the impact of oil prices over US$100 per barrel, the paper presents five main findings. First, despite record high oil prices, the government's oil and gas revenues have been decreasing relative to non-oil and gas revenues since 2001. Second, fuel subsides will reach record levels in 2008 while electricity subsidies have been increasing even faster. Third, the paper finds that most of the fuel subsidy that directly benefits households goes to the richest 20 percent. Fourth, even at levels above US$100 per barrel, the government receives more revenues from oil and gas than it spends on energy subsidies. However, due to significant revenue-sharing with sub-national governments, high oil prices are net-negative for the central government, while they create fiscal windfalls for many regions. Finally, the oil sector's positive impact on Indonesia's public finances declines as oil prices rise, because subsidies and other expenditures outgrow oil and gas revenues.Energy Production and Transportation,Oil Refining&Gas Industry,Markets and Market Access,Debt Markets,Energy and Environment