Banking from Leeds, not London: regional strategy and structure at the Yorkshire Bank, 1859–1952

Industrial philanthropist Edward Akroyd created the Yorkshire Penny Savings Bank in 1859. Despite competition from the Post Office Savings Bank after 1861 and a serious reserve problem in 1911, it sustained his overall strategy to become a successful regional bank. Using archival and contemporary sources to build on recent scholarship illustrating how savings banks were integrated into local economies and the complementary roles of philanthropy and paternalism, we analyse an English regional bank's strategy, including an assessment of strategic innovation, ownership changes and management structure. This will demonstrate that the founder's vision continued, even though the 1911 crisis radically altered both strategy and structure

Socio-economical dynamics as a solvable spin system on co-evolving networks

We consider social systems in which agents are not only characterized by their states but also have the freedom to choose their interaction partners to maximize their utility. We map such systems onto an Ising model in which spins are dynamically coupled by links in a dynamical network. In this model there are two dynamical quantities which arrange towards a minimum energy state in the canonical framework: the spins, s_i, and the adjacency matrix elements, c_{ij}. The model is exactly solvable because microcanonical partition functions reduce to products of binomial factors as a direct consequence of the c_{ij} minimizing energy. We solve the system for finite sizes and for the two possible thermodynamic limits and discuss the phase diagrams.Comment: 5 pages 3 fig

Identification of new Keynesian Phillips curves from a global perspective

This paper is concerned with the estimation of New Keynesian Phillips Curves (NKPC) and focuses on two issues: the weak instrument problem and the characterization of the steady states. It proposes some solutions from a global perspective. Using a global vector autoregressive (GVAR) model steady states are estimated as long-horizon expectations and valid instruments are constructed from the global variables as weighted averages. The proposed estimation strategy is illustrated using estimates of the NKPC for eight developed industrial countries. The GVAR generates global factors that are valid instruments and help alleviate the weak instrument problem. The steady states also reflect global influences and any long-run theoretical relationships that might prevail within and across countries in the global economy. The GVAR measure of the steady state performed better than the HP measure, and the use of foreign instruments substantially increased the precision of the estimates of the output coefficient

Valuations and dynamic convex risk measures

This paper approaches the definition and properties of dynamic convex risk measures through the notion of a family of concave valuation operators satisfying certain simple and credible axioms. Exploring these in the simplest context of a finite time set and finite sample space, we find natural risk-transfer and time-consistency properties for a firm seeking to spread its risk across a group of subsidiaries.Comment: 26 page

Strong anonymity and infinite streams.

The extended rank-discounted utilitarian social welfare order introduced and axiomatized by Stéphane Zuber and Geir B. Asheim satisfies strong anonymity (J. Econ. Theory (2011), doi:10.1016/j.jet.2011.08.001). We question the appropriateness of strong anonymity in the context of a countably infinite sequence of subsequent generations. A modified criterion that is incomplete and satisfies finite anonymity is presented.

Diversity and Arbitrage in a Regulatory Breakup Model

In 1999 Robert Fernholz observed an inconsistency between the normative assumption of existence of an equivalent martingale measure (EMM) and the empirical reality of diversity in equity markets. We explore a method of imposing diversity on market models by a type of antitrust regulation that is compatible with EMMs. The regulatory procedure breaks up companies that become too large, while holding the total number of companies constant by imposing a simultaneous merge of other companies. The regulatory events are assumed to have no impact on portfolio values. As an example, regulation is imposed on a market model in which diversity is maintained via a log-pole in the drift of the largest company. The result is the removal of arbitrage opportunities from this market while maintaining the market's diversity.Comment: 21 page

Velocity autocorrelation function of a Brownian particle

In this article, we present molecular dynamics study of the velocity autocorrelation function (VACF) of a Brownian particle. We compare the results of the simulation with the exact analytic predictions for a compressible fluid from [6] and an approximate result combining the predictions from hydrodynamics at short and long times. The physical quantities which determine the decay were determined from separate bulk simulations of the Lennard-Jones fluid at the same thermodynamic state point.We observe that the long-time regime of the VACF compares well the predictions from the macroscopic hydrodynamics, but the intermediate decay is sensitive to the viscoelastic nature of the solvent.Comment: 7 pages, 6 figure

Microscopic Calculation of the Constitutive Relations

Homogenization theory is used to calculate the macroscopic dielectric constant from the quantum microscopic dielectric function in a periodic medium. The method can be used to calculate any macroscopic constitutive relation, but it is illustrated here for the case of electrodynamics of matter. The so-called cell problem of homogenization theory is solved and an explicit expression is given for the macroscopic dielectric constant in a form akin to the Clausius-Mossotti or Lorentz-Lorenz relation. The validity of this expression is checked by showing that the macroscopic dielectric constant is causal and has the expected symmetry properties, and that the average of the microscopic energy density is the macroscopic one. Finally, the general expression is applied to Bloch eigenstates. Finally, the corresponding many-body problem is briefly discussed.Comment: 14 pages, 2 figure

Closed-Form Bayesian Inferences for the Logit Model via Polynomial Expansions

Articles in Marketing and choice literatures have demonstrated the need for incorporating person-level heterogeneity into behavioral models (e.g., logit models for multiple binary outcomes as studied here). However, the logit likelihood extended with a population distribution of heterogeneity doesn't yield closed-form inferences, and therefore numerical integration techniques are relied upon (e.g., MCMC methods). We present here an alternative, closed-form Bayesian inferences for the logit model, which we obtain by approximating the logit likelihood via a polynomial expansion, and then positing a distribution of heterogeneity from a flexible family that is now conjugate and integrable. For problems where the response coefficients are independent, choosing the Gamma distribution leads to rapidly convergent closed-form expansions; if there are correlations among the coefficients one can still obtain rapidly convergent closed-form expansions by positing a distribution of heterogeneity from a Multivariate Gamma distribution. The solution then comes from the moment generating function of the Multivariate Gamma distribution or in general from the multivariate heterogeneity distribution assumed. Closed-form Bayesian inferences, derivatives (useful for elasticity calculations), population distribution parameter estimates (useful for summarization) and starting values (useful for complicated algorithms) are hence directly available. Two simulation studies demonstrate the efficacy of our approach.Comment: 30 pages, 2 figures, corrected some typos. Appears in Quantitative Marketing and Economics vol 4 (2006), no. 2, 173--20

On a "New" Deformation of GL(2)

We refute a recent claim in the literature of a "new" quantum deformation of GL(2).Comment: 4 pages, LATE