Money-back guarantees in individual pension accounts : evidence from the German pension reform

The German Retirement Saving Act instituted a new funded system of supplementary pensions coupled with a general reduction in the level of state pay-as-you-go old-age pensions. In order to qualify for tax relief, the providers of supplementary savings products must offer a guarantee of the nominal value at retirement of contributions paid into these saving accounts. This paper explores how this "money-back" guarantee works and evaluates alternative designs for guarantee structures, including a life cycle model (dynamic asset allocation), a plan with a pre-specified blend of equity and bond investments (static asset allocation), and some type of portfolio insurance. We use a simulation methodology to compare hedging effectiveness and hedging costs associated with the provision of the money-back guarantee. In addition, the guarantee has important implications for regulators who must find an appropriate solvency system for such saving schemes. This version June 17, 2002 . Klassifikation: G11, G23, G2

\theta^PMNS_13 = \theta_C / \sqrt2 from GUTs

The recent observations of the leptonic mixing angle \theta^PMNS_13 are consistent with \theta^PMNS_13 = \theta_C / \sqrt2 (with \theta_C being the Cabibbo angle \theta^CKM_12). We discuss how this relation can emerge in Grand Unified Theories (GUTs) via charged lepton corrections. The key ingredient is that in GUTs the down-type quark Yukawa matrix and the charged lepton Yukawa matrix are generated from the same set of GUT operators, which implies that the resulting entries are linked and differ only by group theoretical Clebsch factors. This allows a link \theta^e_12 = \theta_C to be established, which can induce \theta^PMNS_13 = \theta_C / \sqrt2 provided that the 1-3 mixing in the neutrino mass matrix is much smaller than \theta_C. We find simple conditions under which \theta^PMNS_13 = \theta_C / \sqrt2 can arise via this link in SU(5) GUTs and Pati-Salam models. We also discuss possible corrections to this relation. Using lepton mixing sum rules different neutrino mixing patterns can be distinguished by their predictions for the Dirac CP phase \delta^PMNS.Comment: v3: 18 pages, section on corrections to exact relation adde

Two approaches to self-love: Hutcheson and Butler

This paper contrasts Frankfurt’s characterisation of self-love as disinterested with the predominant 18th-century view on self-love as interested. Ttwo senses of the term ‘interest’ are distinguished to discuss two fundamentally different readings of the claim that self-love promotes the agent’s interest. This allows characterising two approaches to self-love, which are found in Hutcheson’s and in Bbutler’s writings. Hutcheson sees self-love as a source of hedonistic motives, which can be calm or passionate. Bbutler sees it as a general affection of rational beings in the sense of a kind of love of one’s real nature

Causal Boxes: Quantum Information-Processing Systems Closed under Composition

Complex information-processing systems, for example quantum circuits, cryptographic protocols, or multi-player games, are naturally described as networks composed of more basic information-processing systems. A modular analysis of such systems requires a mathematical model of systems that is closed under composition, i.e., a network of these objects is again an object of the same type. We propose such a model and call the corresponding systems causal boxes. Causal boxes capture superpositions of causal structures, e.g., messages sent by a causal box A can be in a superposition of different orders or in a superposition of being sent to box B and box C. Furthermore, causal boxes can model systems whose behavior depends on time. By instantiating the Abstract Cryptography framework with causal boxes, we obtain the first composable security framework that can handle arbitrary quantum protocols and relativistic protocols.Comment: 44+24 pages, 16 figures. v3: minor edits based on referee comments, matches published version up to layout. v2: definition of causality weakened, new reference

Toward an Algebraic Theory of Systems

We propose the concept of a system algebra with a parallel composition operation and an interface connection operation, and formalize composition-order invariance, which postulates that the order of composing and connecting systems is irrelevant, a generalized form of associativity. Composition-order invariance explicitly captures a common property that is implicit in any context where one can draw a figure (hiding the drawing order) of several connected systems, which appears in many scientific contexts. This abstract algebra captures settings where one is interested in the behavior of a composed system in an environment and wants to abstract away anything internal not relevant for the behavior. This may include physical systems, electronic circuits, or interacting distributed systems. One specific such setting, of special interest in computer science, are functional system algebras, which capture, in the most general sense, any type of system that takes inputs and produces outputs depending on the inputs, and where the output of a system can be the input to another system. The behavior of such a system is uniquely determined by the function mapping inputs to outputs. We consider several instantiations of this very general concept. In particular, we show that Kahn networks form a functional system algebra and prove their composition-order invariance. Moreover, we define a functional system algebra of causal systems, characterized by the property that inputs can only influence future outputs, where an abstract partial order relation captures the notion of "later". This system algebra is also shown to be composition-order invariant and appropriate instantiations thereof allow to model and analyze systems that depend on time

Linking information reconciliation and privacy amplification

Information reconciliation allows two parties knowing correlated random variables, such as a noisy version of the partner's random bit string, to agree on a shared string. Privacy amplification allows two parties sharing a partially secret string about which an opponent has some partial information, to distill a shorter but almost completely secret key by communicating only over an insecure channel, as long as an upper bound on the opponent's knowledge about the string is known. The relation between these two techniques has not been well understood. In particular, it is important to understand the effect of side-information, obtained by the opponent through an initial reconciliation step, on the size of the secret key that can be distilled safely by subsequent privacy amplification. The purpose of this paper is to provide the missing link between these techniques by presenting bounds on the reduction of the Rényi entropy of a random variable induced by side-information. We show that, except with negligible probability, each bit of side-information reduces the size of the key that can be safely distilled by at most two bits. Moreover, in the important special case of side-information and raw key data generated by many independent repetitions of a random experiment, each bit of side-information reduces the size of the secret key by only about one bit. The results have applications in unconditionally secure key agreement protocols and in quantum cryptograph

List objects and recursive algorithms in elementary topoi

The paper generalizes results of [B] by formulating their background in categories with a sufficiently rich internal logic, e. g. elementary topoi, using the well known initial algebra approach. Thus the right setting for program transformations in the sense of [B] is given by embedding them into the generalisation of primitive recursion over the naturals in the sense of [F] to lists. Particularly there is a simple concept of tail recursion, hence an outline on a systematic transformation of naive recursive programs into tail recursive i. e. more efficient iterative forms

Contexts of religious tolerance: New perspectives from early modern Britain and beyond

This article is an introduction to a special issue on ‘Contexts of Religious Tolerance: New Perspectives from Early Modern Britain and Beyond’, which contains essays on the contributions to the debates on tolerance by non-canonical philosophers and theologians, mainly from seventeenth- and eighteenth-century Scotland and England. Among the studied authors are the Aberdeen Doctors, Samuel Rutherford, James Dundas, John Finch, George Keith, John Simson, Archibald Campbell, Francis Hutcheson, George Turnbull and John Witherspoon. The introduction draws attention to several methodological points connected to the decision to look at the debates on tolerance through the prism of rarely studied authors. It then presents the essays, which offer novel perspectives by analysing and contextualising political, religious and moral treatments of tolerance. These are tied especially to debates on the articles of faith and on their status, on confessions of faith and their role in the quest for orthodoxy, on liberty of conscience, and on the relation between church and state

Editorial: Journalism, Activism, and Social Media: Exploring the Shifts in Journalistic Roles, Performance, and Interconnectedness

The emergence of the Hybrid Media System (Chadwick, 2017) has changed the actor constellations between political journalism, active members of the audience, and sources. How journalism responds to activism, pressure from politics, and emerging forms of connective action around news events is an important theme in journalism research. This thematic issue brings together seven articles that look at these developments from different angles in a rapidly changing communication ecosystem. The focus is on journalistic authority and legitimacy, journalism and interpretive communities, and changes concerning journalistic roles and practices