Theōsis: A Comparative Study of T. F. Torrance and Rāmānuja

This essay is an imaginative conversation as I engage two religious thinkers—the prolific Reformed theologian Thomas F. Torrance (1913-2007) and the great Vedāntin Rāmānuja (traditionally, 1017–1137). I will compare Torrance’s theology1 of theōsis2 (participation in the life of God) and theōria (contemplation as a way of participation in the life of God) with those of Rāmānuja. Though the words themselves were likely unknown to Rāmānuja, through his works one can see a notion of theōsis

Input and Output Inventories in the UK

What is the role of inventories in UK manufacturing? We present and estimate a model of inventories that considers separately finished goods and input (i.e. the sum of raw materials and work-in-process) inventories. We estimate structural parameters which allows us to make inferences on the role of inventories in cyclical frequencies. Our results suggest that both types of inventories are used for production level (from demand shocks) and production cost (from cost shocks) smoothing. We identify a small but significant negative relationship between inventories and the real interest rate thus providing support for one of the textbook channels of the monetary policy transmission mechanism. Variance decompositions indicate that technology shocks are the dominant driving factor behind cyclical changes in inventories. These shocks account for over 35% of the forecast error variance at these frequencies.Inventories; Linear-quadratic model; Interest rates

Financing Constraints and Firm Inventory Investment: A Reexamination

This paper shows that small firms inventory investment is substantially more sensitive (relative to large firms) to cash flow than previously recognized. Consequently, the strength of financing constraints on inventory investment may have been understated.Inventories, Dynamic Panel Models

Input and Output Inventories in the UK

What is the role of inventories in UK manufacturing? We present and estimate a model of inventories that considers separately finished goods and input (i.e. the sum of raw materials and work-in-process) inventories. We estimate structural parameters which allows us to make inferences on the role of inventories in cyclical frequencies. Our results suggest that both types of inventories are used for production level (from demand shocks) and production cost (from cost shocks) smoothing. We identify a small but significant negative relationship between inventories and the real interest rate thus providing support for one of the textbook channels of the monetary policy transmission mechanism. Variance decompositions indicate that technology shocks are the dominant driving factor behind cyclical changes in inventories. These shocks account for over 35% of the forecast error variance at these frequencies.Inventories; Linear-quadratic model; Interest rates.

News and Financial Intermediation in Aggregate Fluctuations

We develop a two-sector DSGE model with financial intermediation to investigate the role of news as a driving force of the business cycle. We find that news about future capital quality is a significant source of aggregate fluctuations, accounting for around 37% in output variation in cyclical frequencies. Financial intermediation is essential for the importance and propagation of capital quality shocks. In addition, news shocks in capital quality generate aggregate and sectoral comovement as in the data and is consistent with procyclical movements in the value of capital. From a historical perspective, news shocks to capital quality are to a large extent responsible for the recession following the 1990s investment boom and the latest recession following the financial crisis, but played a much smaller role during the recession at the beginning of the 1990s. This is in line with the belief that revisions of overoptimistic expectations contributed to the last two recessions while movements in fundamentals played a much bigger role for the recession at the beginning of the 1990s

On the action of the complete Brans-Dicke theory

Recently the most general completion of Brans-Dicke theory was appeared with energy exchanged between the scalar field and ordinary matter, given that the equation of motion for the scalar field keeps the simple wave form of Brans-Dicke. This class of theories contain undetermined functions, but there exist only three theories which are unambiguously determined from consistency. Here, for the first such theory, it is found the action of the vacuum theory which arises as the limit of the full matter theory. A symmetry transformation of this vacuum action in the Jordan frame is found which consists of a conformal transformation of the metric together with a redefinition of the scalar field. Since the general family of vacuum theories is parametrized by an arbitrary function of the scalar field, the action of this family is also found. As for the full matter theory it is only found the action of the system when the matter Lagrangian vanishes on-shell, as for example for pressureless dust. Due to the interaction, this matter Lagrangian is non-minimally coupled either in the Jordan or the Einstein frame.Comment: To appear in EPJC; minor change

The Cyclical Dynamics of Investment: The Role of Financing and Irreversibility Constraints

This paper develops a rich decision theoretic dynamic ¯rm model that analyzes productivity and interest rate shocks. The model is used to analyze the cyclical dynamics of fixed and inventory investment and in particular asks whether constraints to the flow of funds can generate the frequently overlooked fact that investment in input inventories leads investment in fixed capital in business cycle frequencies. To account for this regularity the model proposes a combination of irreversibility and financing constraints. The usefulness of this explanation in relation to competing hypotheses, relies on the fact that it is also consistent with a list of facts from the inventory research. In addition it is shown that under persistent shocks, financing constraints are sufficient but not necessary to explain procyclicality. This implies that fixed investment cash flow regressions may not be informative for the presence of capital market imperfections because positive correlations can arise even under perfect capital markets. Last, analysis of interest rate shocks implies that the effects on inventory spending are quite small in relation to effects arising from productivity shocks.Financing Constraints, Inventories, Investment, Perturbation methods, Time-to-build