Home Bias, Transactions Costs, and Prospects for the Euro: A More Detailed Analysis

This paper brings together the literature on determination of home bias in equity holdings and the portfolio balance model of exchange rates to consider whether the dollar might be affected by a change in transactions costs that alters international portfolio allocations. Our empirical findings lend support to the view that transactions costs have a significant influence on US portfolio holdings, even after accounting for float market share. In addition, new survey evidence on the equity holdings of European firms indicates home bias for European investors, and points to a reduction in the magnitude of this home bias since 1997.portfolio choice, equity flows, exchange rates

Home Bias, Transaction Costs, and Prospects for the Euro: A More Detailed Analysis

This paper brings together the literature on determination of home bias in equity holdings and the portfolio balance model of exchange rates to consider whether the dollar might be affected by a change in transactions costs that alters international portfolio allocations. Our empirical findings lend support to the view that transactions costs have a significant influence on US portfolio holdings, even after accounting for float market share. In addition, new survey evidence on the equity holdings of European firms indicates home bias for European investors, and points to a reduction in the magnitude of this home bias since 1997.Home bias, Transactions costs, Euro, EMU, Europe, exchange rates, portfolio

Home bias, transactions costs, and prospects for the Euro: A more detailed analysis

This paper brings together the literature on determination of home bias in equity holdings and the portfolio balance model of exchange rates to consider whether the dollar might be affected by a change in transactions costs that alters international portfolio allocations. The empirical findings lend support to the view that transactions costs have a significant influence on US portfolio holdings, even after accounting for float market share. In addition, new survey evidence on the equity holdings of European firms indicates home bias for European investors, and points to a reduction in the magnitude of this home bias since 1997. --portfolio choice,equity flows,exchange rates

Strong contraction of the representations of the three dimensional Lie algebras

For any Inonu-Wigner contraction of a three dimensional Lie algebra we construct the corresponding contractions of representations. Our method is quite canonical in the sense that in all cases we deal with realizations of the representations on some spaces of functions; we contract the differential operators on those spaces along with the representation spaces themselves by taking certain pointwise limit of functions. We call such contractions strong contractions. We show that this pointwise limit gives rise to a direct limit space. Many of these contractions are new and in other examples we give a different proof

They are Small Worlds After All: Revised Properties of Kepler M Dwarf Stars and their Planets

We classified the reddest ($r-J>2.2$) stars observed by the NASA $Kepler$ mission into main sequence dwarf or evolved giant stars and determined the properties of 4216 M dwarfs based on a comparison of available photometry with that of nearby calibrator stars, as well as available proper motions and spectra. We revised the properties of candidate transiting planets using the stellar parameters, high-resolution imaging to identify companion stars, and, in the case of binaries, fitting light curves to identify the likely planet host. In 49 of 54 systems we validated the primary as the host star. We inferred the intrinsic distribution of M dwarf planets using the method of iterative Monte Carlo simulation. We compared several models of planet orbital geometry and clustering and found that one where planets are exponentially distributed and almost precisely coplanar best describes the distribution of multi-planet systems. We determined that $Kepler$ M dwarfs host an average of $2.2 \pm 0.3$ planets with radii of 1-4$R_{\oplus}$ and orbital periods of 1.5-180 d. The radius distribution peaks at $\sim 1.2R_{\oplus}$ and is essentially zero at $4R_{\oplus}$, although we identify three giant planet candidates other than the previously confirmed Kepler-45b. There is suggestive but not significant evidence that the radius distribution varies with orbital period. The distribution with logarithmic orbital period is flat except for a decline for orbits less than a few days. Twelve candidate planets, including two Jupiter-size objects, experience an irradiance below the threshold level for a runaway greenhouse on an Earth-like planet and are thus in a "habitable zone".Comment: MNRAS, in press. Tables 1, 3, and 4 are available in electronic form in the "anc" director

Quasiclassical Coarse Graining and Thermodynamic Entropy

Our everyday descriptions of the universe are highly coarse-grained, following only a tiny fraction of the variables necessary for a perfectly fine-grained description. Coarse graining in classical physics is made natural by our limited powers of observation and computation. But in the modern quantum mechanics of closed systems, some measure of coarse graining is inescapable because there are no non-trivial, probabilistic, fine-grained descriptions. This essay explores the consequences of that fact. Quantum theory allows for various coarse-grained descriptions some of which are mutually incompatible. For most purposes, however, we are interested in the small subset of ``quasiclassical descriptions'' defined by ranges of values of averages over small volumes of densities of conserved quantities such as energy and momentum and approximately conserved quantities such as baryon number. The near-conservation of these quasiclassical quantities results in approximate decoherence, predictability, and local equilibrium, leading to closed sets of equations of motion. In any description, information is sacrificed through the coarse graining that yields decoherence and gives rise to probabilities for histories. In quasiclassical descriptions, further information is sacrificed in exhibiting the emergent regularities summarized by classical equations of motion. An appropriate entropy measures the loss of information. For a ``quasiclassical realm'' this is connected with the usual thermodynamic entropy as obtained from statistical mechanics. It was low for the initial state of our universe and has been increasing since.Comment: 17 pages, 0 figures, revtex4, Dedicated to Rafael Sorkin on his 60th birthday, minor correction

Composition of Jupiter irregular satellites sheds light on their origin

Irregular satellites of Jupiter with their highly eccentric, inclined and distant orbits suggest that their capture took place just before the giant planet migration. We aim to improve our understanding of the surface composition of irregular satellites of Jupiter to gain insight into a narrow time window when our Solar System was forming. We observed three Jovian irregular satellites, Himalia, Elara, and Carme, using a medium-resolution 0.8-5.5 micro m spectrograph on the National Aeronautics and Space Administration (NASA) Infrared Telescope Facility (IRTF). Using a linear spectral unmixing model we have constrained the major mineral phases on the surface of these three bodies. Our results confirm that the surface of Himalia, Elara, and Carme are dominated by opaque materials such as those seen in carbonaceous chondrite meteorites. Our spectral modeling of NIR spectra of Himalia and Elara confirm that their surface composition is the same and magnetite is the dominant mineral. A comparison of the spectral shape of Himalia with the two large main C-type asteroids, Themis (D 176 km) and Europa (D 352 km), suggests surface composition similar to Europa. The NIR spectrum of Carme exhibits blue slope up to 1.5 microm and is spectrally distinct from those of Himalia and Elara. Our model suggests that it is compositionally similar to amorphous carbon. Himalia and Elara are compositionally similar but differ significantly from Carme. These results support the hypotheses that the Jupiter irregular satellites are captured bodies that were subject to further breakup events and clustered as families based on their similar physical and surface compositions

Self-completeness and spontaneous dimensional reduction

A viable quantum theory of gravity is one of the biggest challenges facing physicists. We discuss the confluence of two highly expected features which might be instrumental in the quest of a finite and renormalizable quantum gravity -- spontaneous dimensional reduction and self-completeness. The former suggests the spacetime background at the Planck scale may be effectively two-dimensional, while the latter implies a condition of maximal compression of matter by the formation of an event horizon for Planckian scattering. We generalize such a result to an arbitrary number of dimensions, and show that gravity in higher than four dimensions remains self-complete, but in lower dimensions it is not. In such a way we established an "exclusive disjunction" or "exclusive or" (XOR) between the occurrence of self-completeness and dimensional reduction, with the goal of actually reducing the unknowns for the scenario of the physics at the Planck scale. Potential phenomenological implications of this result are considered by studying the case of a two-dimensional dilaton gravity model resulting from dimensional reduction of Einstein gravity.Comment: 12 pages, 3 figures; v3: final version in press on Eur. Phys. J. Plu

Resonant Leptogenesis and Verifiable Seesaw from Large Extra Dimensions

In the presence of large extra dimensions, the fundamental scale could be as low as a few TeV. This yields leptogenesis and seesaw at a TeV scale. Phenomenologically two TeV-scale Majorana fermions with a small mass split can realize a resonant leptogenesis whereas a TeV-scale Higgs triplet with a small trilinear coupling to the standard model Higgs doublet can give a verifiable seesaw. We propose an interesting scenario where the small parameters for the resonant leptogenesis and the type-II seesaw can be simultaneously generated by the propagation of lepton number violation from distant branes to our world.Comment: 5 pages. More discussions and references. Published in PR