Political Risk and Capital Flight

Capital flight often amounts to a substantial proportion of GDP when developing countries face crises. This paper presents a portfolio choice model that relates capital flight to rate of return differentials, risk aversion, and three types of risk: financial risk, political risk, and policy risk. Estimating the equilibrium capital flight equation for a panel of 47 developing countries over 16 years, we show that all three types of risk have a statistically significant impact on capital flight. Quantitatively, political risk is the most important factor causing capital flight. We also identify several political factors that reduce capital flight by signaling market-oriented reforms are imminent.capital flight; political risk; policy risk; portfolio choice

Convergent-divergent nozzle flows

Uniform two-zone perfect gas expansions in convergent-divergent nozzle

Measuring Housing Affordability: Looking Beyond the Median

We draw a distinction between the concepts of purchase affordability (whether a household is able to borrow enough funds to purchase a house) and repayment affordability (the burden imposed on a household of repaying the mortgage). We operationalize this distinction in the context of a new methodology for constructing affordability measures that draws on the value-at-risk concept and takes account of the whole distribution of household income and house prices rather than just the median. Empirically we find that the distinction between purchase and repayment affordability can be pronounced. In the Sydney prime mortgage market over the period 1996 to 2006, repayment affordability deteriorated very significantly while purchase affordability remained quite stable. This difference can be attributed to the loosening of credit constraints in the mortgage market which it seems has carried through primarily into higher house prices. We also consider how median house-price-to-income ratio measures of affordability can be extended to take account of the whole distribution of income and house prices. We propose a new quantile based measure which indicates that the housing affordability problem may be systematically worse than suggested by standard median measures.Housing affordability; Affordability at risk; Affordable limit; Mortgage market; Price-to-income ratio

Controller reduction for effective interdisciplinary design of active structures

Control problems of large aerospace structures are intrinsically interdisciplinary and require strategies which address the complete interaction between flexible structures, electromechanical actuators and sensors, and feedback control algorithms. Current research and future directions which will require an interdisciplinary team effort in dynamics, control and optimization of such structures are being surveyed. It is generally agreed that the dynamics of space structures require large scale discrete modeling, resulting in thousands of discrete unknowns. Proven control strategies, on the other hand, employ a low order controller that is based on a reduced order model of structures. Integration of such low order controllers and large scale dynamics models often leads to serious deterioration of the closed loop stability margin and even instability. To alleviate this stability deterioration while low order controllers remain effective, the following approach was investigated: (1) retain low order controllers based on reduced order models of structures as the basic control strategy; (2) introduce a compensator that will directly account for the deterioration of stability margin due to controller-structure integration; and (3) assess overall performance of the integrated control structure system by developing measures of suboptimality in the combination of (1) and (2). The benefits include: simplicity in the design of basic controllers, thus facilitating the optimization of structure control interactions; increased understanding of the roles of the compensator so as to modify the structure as well as the basic controller, if necessary, for improved performance; and adaptability to localize controllers by viewing the compensator as a systems integration filter

Calculations of Magnetic Exchange Interactions in Mott--Hubbard Systems

An efficient method to compute magnetic exchange interactions in systems with strong correlations is introduced. It is based on a magnetic force theorem which evaluates linear response due to rotations of magnetic moments and uses a novel spectral density functional framework combining our exact diagonalization based dynamical mean field and local density functional theories. Applications to spin waves and magnetic transition temperatures of 3d metal mono--oxides as well as high--T_{c} superconductors are in good agreement with experiment

Axisymmetric reacting gas nonequilibrium performance program

Computer program calculates the inviscid one-dimensional equilibrium, frozen, and nonequilibrium nozzle expansion of propellant exhaust mixtures containing these six elements - carbon, hydrogen, oxygen, nitrogen, fluorine, and chlorine plus either aluminum, beryllium, boron or lithium. This program will perform calculations for contoured and conical nozzles

The Importance of Proper Renormalization Scale-Setting for Testing QCD at Colliders

A primary problem for perturbative QCD analyses is how to set the renormalization scale of the QCD running coupling in order to achieve maximally precise fixed-order predictions for physical observables. The Principle of Maximum Conformality (PMC) eliminates the ambiguities associated with the conventional renormalization scale-setting procedure, giving predictions which are independent of the choice of renormalization scheme. The scales of the QCD couplings and the effective number of quark flavors are set order by order in the pQCD series. The PMC has a solid theoretical foundation, satisfying the standard renormalization group invariance and all of the the self-consistency conditions derived from the renormalization group......In this brief report, we summarize the results of our recent PMC applications for a number of collider processes, emphasizing their generality and applicability....... These results demonstrate that the application of the PMC systematically eliminates a major theoretical uncertainty for pQCD predictions, thus increasing the sensitivity of the colliders to possible new physics beyond the Standard Model.Comment: 10 pages, 4 figures. The title has been changed. This review, submitted to Frontiers of Physics, is based on a contribution by S.J.B. at the Conference {\it Workshop on Physics at a Future High Intensity Collider @ 2-7 GeV in China} Hefei, China January 14-16, 201

Nuclear quantum shape-phase transitions in odd-mass systems

Microscopic signatures of nuclear ground-state shape phase transitions in odd-mass Eu isotopes are explored starting from excitation spectra and collective wave functions obtained by diagonalization of a core-quasiparticle coupling Hamiltonian based on energy density functionals. As functions of the physical control parameter -- the number of nucleons -- theoretical low-energy spectra, two-neutron separation energies, charge isotope shifts, spectroscopic quadrupole moments, and $E2$ reduced transition matrix elements accurately reproduce available data, and exhibit more pronounced discontinuities at neutron number $N=90$, compared to the adjacent even-even Sm and Gd isotopes. The enhancement of the first-order quantum phase transition in odd-mass systems can be attributed to a shape polarization effect of the unpaired proton which, at the critical neutron number, starts predominantly coupling to Gd core nuclei that are characterized by larger quadrupole deformation and weaker proton pairing correlations compared to the corresponding Sm isotopes.Comment: 6 pages, 4 figure

A hybrid M-algorithm/sequential decoder for convolutional and trellis codes

The Viterbi Algorithm (VA) is optimum in the sense of being maximum likelihood for decoding codes with a trellis structure. However, since the VA is in fact an exhaustive search of the code trellis, the complexity of the VA grows exponentially with the constraint length upsilon. This limits its application to codes with small values of upsilon and relatively modest coding gains. The M-Algorithm (MA) is a limited search scheme which carries forward M paths in the trellis, all of the same length. All successors of the M paths are extended at the next trellis depth, and all but the best M of these are dropped. Since a limited search convolutional decoder will flounder indefinitely if one of the paths in storage is not the correct one, the data are usually transmitted in blocks. It has been shown that the performance of the MA approaches the VA at high signal to noise ratios (SNR's) with an M which is far less than the 2 sup upsilon states in the full trellis. Thus the MA can be used with larger values of upsilon, making larger coding gains possible at high SNR's. However, it still requires a relatively large fixed computational effort to achieve good performance