Micro Takes Over Macro

An analytical innovation enhances microeconomics, enabling it to answer all questions of macroeconomics. It combines the production and consumption decisions of the individual in one model. For each individual, it identifies the customers of what he sells, and the suppliers of what he buys. It specifies the exchange relations between the suppliers and the customers. These relations deal with value (quantities and prices), payment (subsistence, barter, money, and bond) and intermediation (entrepreneurship, transaction costs, institutions), all of them integrated. It is easier done than said with the input- output table. There is no further need for a separate macroeconomics.Microeconomics, macroeconomics, innovation, output, employment, money.

New Trade Theory Takes Over Monetary Theory

Prevailing trade theory is a neglected stepchild of economics. Micro rejects the sole reason for trade’s occurrence. It declares zero profit in equilibrium. Monetary theory and macroeconomics dismiss concerns of trade financing. They assert that money has nothing to do with traded output, but everything to do with storing value. But now a new trade theory takes over monetary theory, by reducing money into a mere tool of trade, as just a means of payment. It takes over theory of exchange, abolishing any distinction between micro and macro. Finally, all of economics becomes a study of exchange, what Whately wished in 1832. This magical empowerment of trade theory occurs as we add indirect trade formally. We put it in the familiar input-output table. We consider demand and supply at four levels: for each good, for each transaction, for each household/nation, and for each economy. At each level, something different happens in equilibrium. We employ intermediaries to settle prices through arbitrage, and payments through seigniorage (by creating and issuing money). Suddenly economics studies economy rather than human behavior. The market economy is an institution of exchange, which is a matrix of real output. All economics now belongs to trade.Social Choice, Trade, Entrepreneurship, Intermediation, Payment Circuit, Money, Price, Unemployment, Business Cycle, Debt.

Dam Rain and Cumulative Gain

We consider a financial contract that delivers a single cash flow given by the terminal value of a cumulative gains process. The problem of modelling and pricing such an asset and associated derivatives is important, for example, in the determination of optimal insurance claims reserve policies, and in the pricing of reinsurance contracts. In the insurance setting, the aggregate claims play the role of the cumulative gains, and the terminal cash flow represents the totality of the claims payable for the given accounting period. A similar example arises when we consider the accumulation of losses in a credit portfolio, and value a contract that pays an amount equal to the totality of the losses over a given time interval. An explicit expression for the value process is obtained. The price of an Arrow-Debreu security on the cumulative gains process is determined, and is used to obtain a closed-form expression for the price of a European-style option on the value of the asset. The results obtained make use of various remarkable properties of the gamma bridge process, and are applicable to a wide variety of financial products based on cumulative gains processes such as aggregate claims, credit portfolio losses, defined-benefit pension schemes, emissions, and rainfall.Comment: 25 Pages, 1 Figur

H∞ control for networked systems with random communication delays

Copyright [2006] IEEE. This material is posted here with permission of the IEEE. Such permission of the IEEE does not in any way imply IEEE endorsement of any of Brunel University's products or services. Internal or personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution must be obtained from the IEEE by writing to [email protected]. By choosing to view this document, you agree to all provisions of the copyright laws protecting it.This note is concerned with a new controller design problem for networked systems with random communication delays. Two kinds of random delays are simultaneously considered: i) from the controller to the plant, and ii) from the sensor to the controller, via a limited bandwidth communication channel. The random delays are modeled as a linear function of the stochastic variable satisfying Bernoulli random binary distribution. The observer-based controller is designed to exponentially stabilize the networked system in the sense of mean square, and also achieve the prescribed H∞ disturbance attenuation level. The addressed controller design problem is transformed to an auxiliary convex optimization problem, which can be solved by a linear matrix inequality (LMI) approach. An illustrative example is provided to show the applicability of the proposed method

Robust H∞ control with missing measurements and time delays

Copyright [2007] IEEE. This material is posted here with permission of the IEEE. Such permission of the IEEE does not in any way imply IEEE endorsement of any of Brunel University's products or services. Internal or personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution must be obtained from the IEEE by writing to [email protected]. By choosing to view this document, you agree to all provisions of the copyright laws protecting it.In this technical note, the robust control problem is investigated for a class of stochastic uncertain discrete time-delay systems with missing measurements. The parameter uncertainties enter into the state matrices, and the missing measurements are described by a binary switching sequence satisfying a conditional probability distribution. The purpose of the problem is to design a full-order dynamic feedback controller such that, for all possible missing observations and admissible parameter uncertainties, the closed-loop system is asymptotically mean-square stable and satisfies the prescribed performance constraint. Delay-dependent conditions are derived under which the desired solution exists, and the controller parameters are designed by solving a linear matrix inequality (LMI). A numerical example is provided to illustrate the usefulness of the proposed design method

Blue Nile Incision on the Ethiopian Plateau: Pulsed Plateau Growth, Pliocene Uplift, and Hominin Evolution

The 1.6-km-deep Gorge of the Nile, a rival of the Grand Canyon, resulted from the deep incision of the Blue Nile drainage into the uplifted Ethiopian Plateau. Understanding the incision history of the plateau is crucial to unraveling the Cenozoic tectonoclimatic evolution of the region, particularly because the region has long been used as a natural laboratory to understand the geodynamics of continental rifting and the evolution of hominins. We undertake a quantitative geomorphologic approach integrating field, geographic information system (GIS), and digital elevation model (DEM) data to analyze incision (volume, long-term rates, and spatiotemporal variability) and river longitudinal profiles of the Blue Nile drainage. Previously published isotopic ages of the Cenozoic volcanic rocks are used to constrain long-term incision rates through geologic time. Our data argue that (1) the Blue Nile drainage has removed at least 93,200 km3 of rocks from the northwestern Ethiopian Plateau since ca. 29 Ma (early Oligocene) through a three-phase (ca. 29-10 Ma, ca. 10-6 Ma, and ca. 6 Ma to present) incision, where long-term incision rates increased rapidly and episodically in the late Miocene (ca. 10 Ma and ca. 6 Ma); (2) being out-of-phase with the past climatic events and in-phase with the main volcanic episodes of the region, this episodic increase of incision rate is suggestive of episodic growth of the plateau; (3) of the ~2-km rock uplift of the plateau since ca. 30 Ma, 0.3 km was due to isostatic uplift related to erosional unloading, and the rest was due to other tectonic activities; (4) the extremely rapid long-term incision rate increase, thus a rapid uplift of the plateau, ca. 6 Ma might be related to lithospheric foundering, caused by ponded plume material beneath the Ethiopian Plateau and aided by huge tectonic stresses related to the Messinian salinity crisis of the Mediterranean Sea. These events could have caused the plateau to rise \u3e1 km within a few m.y. in the early Pliocene. This uplift history of the Ethiopian Plateau can shed critical light on the geodynamics of the Afar mantle plume and the evolution of the East African hominins via climate change

Experiment of Industrial Waste Absorption Using Activated Carbon From Coal of Tanjung Tabalong, South Kalimantan

DOI: 10.17014/ijog.v6i4.130Activated carbon made from Tanjung Tabalong coal was investigated its absorption capability to organic and inorganic elements in industrial waste. Coal was carbonized at low temperature of 600C to produce semicoke, and then was activated at temperature of 700C with activation time of 120 minutes with water steam flow. The absorption capability of activated carbon to chemical oxygen demand (COD) was performed using 2.5 and 9.0 g activated carbon for 250 ml and 300 ml COD waste respectively. The agitation time of each experiment were 30, 60, and 90 minutes. Atomic absorption spectrophotometer (AAS) was used to analyze the COD waste. The result shows that 2.5 g activated carbon could absorb COD waste ranging from 6.9-67.5 %, while the utilization of 9 g could absorb COD waste ranging from 88.9 - 100 %. The more activated carbon and the longer time of agitation used in this experiment, the more the absorption of COD waste