International Capital Inflows, Domestic Financial Intermediation and Financial Crises under Imperfect Information

A model of financial crises in emerging markets based on problems of agency in financial intermediation is developed. This model generates dynamic relationships between foreign capital inflows, domestic investment and domestic bank debt in an endogenous growth model. As a consequence of loan renegotiation between limited liability banks and firms, financial crises inevitably occur. Banking and currency crises are concurrent events under an exchange rate peg combined with deposit insurance and implicit government guarantees of foreign currency loans. The model links high pre-crisis growth rates, the accumulation of bank debt and increasing concentration of domestic lending and investment to the anticipation of contingent government insurance of private financial transactions. The dynamics of capital inflows and growth before and after a financial crisis are compared to the experience of the Asian crisis countries. We find evidence consistent with this agency model of domestic bank intermediation of foreign capital inflows under exchange rate pegs.

The Role of Final State Interactions in Quasielastic 56^{56}Fe(e,e′)(e,e') Reactions at large ∣q⃗∣|\vec q|

A relativistic finite nucleus calculation using a Dirac optical potential is used to investigate the importance of final state interactions [FSI] at large momentum transfers in inclusive quasielastic electronuclear reactions. The optical potential is derived from first-order multiple scattering theory and then is used to calculate the FSI in a nonspectral Green's function doorway approach. At intermediate momentum transfers excellent predictions of the quasielastic $^{56}$Fe$(e,e')$ experimental data for the longitudinal response function are obtained. In comparisons with recent measurements at $|{\vec q|}=1.14$~GeV/c the theoretical calculations of $R_L$ give good agreement for the quasielastic peak shape and amplitude, but place the position of the peak at an energy transfer of about $40$~MeV higher than the data.Comment: 13 pages typeset using revtex 3.0 with 6 postscript figures in accompanying uuencoded file; submitted to Phys. Rev.

A structural investigation of third-currency shocks to bilateral exchange rates

An exchange rate between two currencies can be materially affected by shocks emerging from a third country. A US demand shock, for example, can affect the exchange rate between the euro and the yen. Since positive US demand shocks have a greater positive impact on Japanese interest rates than on eurozone rates, the yen appreciates against the euro in response. Using quarterly data on the U.S., the euro area and Japan from 1981 to 2006, this paper shows that the third-currency effects are significant even when exchange rates evolve according to uncovered interest parity. This is because interest rates are typically set in response to output and inflation, which are in turn influenced by other exchange rates. More importantly, third-currency effects are also transmitted to the actual exchange rate through the expected future exchange rate which is, in a multi-country setup, influenced by third-countries' fundamentals and shocks. Third-currency effects have a stronger impact on the currency of a relatively more open economy. The analysis implies that small open economies should avoid strict forms of bilateral exchange rate targeting, since higher trade and financial openness work as a force intrinsically amplifying currency fluctuations

Full-Folding Optical Potentials for Elastic Nucleon-Nucleus Scattering based on Realistic Densities

Optical model potentials for elastic nucleon nucleus scattering are calculated for a number of target nuclides from a full-folding integral of two different realistic target density matrices together with full off-shell nucleon-nucleon t-matrices derived from two different Bonn meson exchange models. Elastic proton and neutron scattering observables calculated from these full-folding optical potentials are compared to those obtained from `optimum factorized' approximations in the energy regime between 65 and 400 MeV projectile energy. The optimum factorized form is found to provide a good approximation to elastic scattering observables obtained from the full-folding optical potentials, although the potentials differ somewhat in the structure of their nonlocality.Comment: 21 pages, LaTeX, 17 postscript figure

Country characteristics and the incidence of capital income taxation on wages: an empirical assessment

This paper examines the incidence of corporate income taxes on wages using data from the US Bureau of Labor Statistics for 13 OECD countries. Within a wage-bargaining framework, our econometric analysis shows that a substantial share of the corporate tax burden is shifted from capital to labour. However, the magnitude of this shift is influenced importantly by country characteristics affecting the process of wage determination, such as the degree of capital mobility, a country's relative influence over the world price of output and trade unions’ strength

An improved error assessment for the GEM-T1 gravitational model

Several tests were designed to determine the correct error variances for the GEM-T1 gravitational solution which was derived exclusively from satellite tracking data. The basic method employs both wholly independent and dependent subset data solutions and produces a full field coefficient by coefficient estimate of the model uncertainties. The GEM-T1 errors were further analyzed using a method based upon eigenvalue-eigenvector analysis which calibrates the entire covariance matrix. Dependent satellite and independent altimetric and surface gravity data sets, as well as independent satellite deep resonance information, confirm essentially the same error assessment

Compassion in healthcare: a concept analysis

Background Compassion and compassionate care are central to radiographers’ professional policy and practice and are congruent with the core values of the National Health Service (NHS) Constitution. The term compassion however is over-used, ambiguous and vague. This work sought to explore and provide contextual understanding to the term, compassion in healthcare. Method Walker and Avant’s Eight-step model was used as the framework for the concept analysis. Data collection utilised a number of resources including online databases: Medline, CINAHL complete, Scopus, PubMed, PsycINFO, Science Direct, Cochrane and DARE; dictionaries, social media, internet sources, books and doctoral theses. 296 resources were included in the review. Results The concept analysis distinguishes the defining characteristics of compassion within a healthcare context, allowing for associated meanings and behaviours to be outlined aiding understanding of compassion. Compassion in healthcare requires five defining attributes to be present: Recognition, Connection, Altruistic desire, Humanistic response and Action. Conclusion The findings identify the complexity of the term and subjective nature in which it is displayed and in turn perceived. The concept analysis forms the basis of further research aiming to develop a healthcare explicit definition of compassion within healthcare, specifically cancer care and radiography practices. Lucidity will enhance understanding; facilitating active engagement and implementation into practice

New Measures of the Trilemma Hypothesis: Implications for Asia

We develop a new set of indexes of exchange rate stability, monetary policy independence, and financial market openness as the metrics for the trilemma hypothesis. In our exploration, we take a different and more nuanced approach than the previous indexes developed by Aizenman, Chinn, and Ito (2008). We show that the new indexes add up to the value two, supporting the trilemma hypothesis. We locate our sample economies' policy mixes in the famous trilemma triangle - a useful and intuitive way to illustrate the state and evolution of policy mixes. We also examine if the persistent deviation of the sum of the three indexes from the value two indicates an unsustainable policy mix and therefore needs to be corrected by economic disruptions such as economic and financial crises. We obtain several findings. First, such a persistent deviation can occur particularly in emerging economies that later experience an inflation (or potentially a general or a currency) crisis, and dissipates in the postcrisis period. Second, there is no evidence for this type of association between deviations from the trilemma constraint and general, banking, or debt crises. Third, Thailand experienced such a deviation from the trilemma constraint in the period leading to the baht crisis of 1997, but not other East and Southeast Asian economies. This last result suggests that the main cause for the Thai baht crisis was an unsustainable policy mix in the precrisis period, while other affected economies experienced crises mainly due to contagion from Thailand

Mapping Children's Discussions of Evidence in Science to Assess Collaboration and Argumentation

The research reported in this paper concerns the development of children's skills of interpreting and evaluating evidence in science. Previous studies have shown that school teaching often places limited emphasis on the development of these skills, which are necessary for children to engage in scientific debate and decision-making. The research, undertaken in the UK, involved four collaborative decision-making activities to stimulate group discussion, each was carried out with five groups of four children (10-11 years old). The research shows how the children evaluated evidence for possible choices and judged whether their evidence was sufficient to support a particular conclusion or the rejection of alternative conclusions. A mapping technique was developed to analyse the discussions and identify different "levels" of argumentation. The authors conclude that suitable collaborative activities that focus on the discussion of evidence can be developed to exercise children's ability to argue effectively in making decisions