Forward Integration Research Articles

Optimal Ramsey taxation with hidden actions

Purpose – The purpose of this paper is to study the problem of optimal Ramsey taxation in a finite-planning-horizon, representative-agent endogenous growth model including government expenditures as a productive input in capital formation and also with hidden actions. Design/methodology/approach – Technically, Malliavin calculus and forward integrals are naturally introduced into the macroeconomic theory when economic agents are faced with different information structures arising from a non-Markovian environment. Findings – The major result shows that the well-known Judd-Chamley Theorem holds almost surely if the depreciation rate is strictly positive, otherwise Judd-Chamley Theorem only holds for a knife-edge case or on a Lebesgue measure-zero set when the physical capital is completely sustainable. Originality/value – The author believes that the approach developed as well as the major result established is new and relevant.

Collisionless encounters and the origin of the lunar inclination

The Moon is generally thought to have formed from the debris ejected by the impact of a planet-sized object with the proto-Earth towards the end of planetary accretion. Models of the impact process predict that the lunar material was disaggregated into a circumplanetary disk and that lunar accretion subsequently placed the Moon in a near-equatorial orbit. Forward integration of the lunar orbit from this initial state predicts a modern inclination at least an order of magnitude smaller than the lunar value--a long-standing discrepancy known as the lunar inclination problem. Here we show that the modern lunar orbit provides a sensitive record of gravitational interactions with Earth-crossing planetesimals that were not yet accreted at the time of the Moon-forming event. The currently observed lunar orbit can naturally be reproduced via interaction with a small quantity of mass (corresponding to 0.0075-0.015 Earth masses eventually accreted to the Earth) carried by a few bodies, consistent with the constraints and models of late accretion. Although the encounter process has a stochastic element, the observed value of the lunar inclination is among the most likely outcomes for a wide range of parameters. The excitation of the lunar orbit is most readily reproduced via collisionless encounters of planetesimals with the Earth-Moon system with strong dissipation of tidal energy on the early Earth. This mechanism obviates the need for previously proposed (but idealized) excitation mechanisms, places the Moon-forming event in the context of the formation of Earth, and constrains the pristineness of the dynamical state of the Earth-Moon system.

A Donsker Delta Functional Approach to Optimal Insider Control and Applications to Finance

We study optimal insider control problems, i.e., optimal control problems of stochastic systems where the controller at any time t, in addition to knowledge about the history of the system up to this time, also has additional information related to a future value of the system. Since this puts the associated controlled systems outside the context of semimartingales, we apply anticipative white noise analysis, including forward integration and Hida–Malliavin calculus to study the problem. Combining this with Donsker delta functionals, we transform the insider control problem into a classical (but parametrised) adapted control system, albeit with a non-classical performance functional. We establish a sufficient and a necessary maximum principle for such systems. Then we apply the results to obtain explicit solutions for some optimal insider portfolio problems in financial markets described by Ito–Levy processes. Finally, in the Appendix, we give a brief survey of the concepts and results we need from the theory of white noise, forward integrals and Hida–Malliavin calculus.

On the age and formation mechanism of the core of the Quadrantid meteoroid stream

The Quadrantid meteor shower is among the strongest annual meteor showers, and has drawn the attention of scientists for several decades. The stream is unusual, among others, for several reasons: its very short duration around maximum activity (≈12–14h) as detected by visual, photographic and radar observations, its recent onset (around 1835 AD Quetelet, L.A.J. [1839]. Catalogue des principles apparitions d’etoiles filantes) and because it had been the only major stream without an obvious parent body until 2003. Ever since, there have been debates as to the age of the stream and the nature of its proposed parent body, asteroid 2003 EH1.In this work, we present results on the most probable age and formation mechanism of the narrow portion of the Quadrantid meteoroid stream. For the first time we use data on eight high precision photographic Quadrantids, equivalent to gram–kilogram size, to constrain the most likely age of the core of the stream. Out of eight high-precision photographic Quadrantids, five pertain directly to the narrow portion of the stream. In addition, we also use data on five high-precision radar Quadrantids, observed within the peak of the shower.We performed backwards numerical integrations of the equations of motion of a large number of ‘clones’ of both, the eight high-precision photographic and five radar Quadrantid meteors, along with the proposed parent body, 2003 EH1. According to our results, from the backward integrations, the most likely age of the narrow structure of the Quadrantids is between 200 and 300years. These presumed ejection epochs, corresponding to 1700–1800AD, are then used for forward integrations of large numbers of hypothetical meteoroids, ejected from the parent 2003 EH1, until the present epoch. The aim is to constrain whether the core of the Quadrantid meteoroid stream is consistent with a previously proposed relatively young age (≈200years).

Current situation and future potential of further integration between UK and EU

Abstract: The article analyses potential consequences of Brexit as well as the current costs and benefits of UK’s membership in the EU, furthermore focusing on alternative agreements that may result between the members. Keywords: financial and economic integration, economical and political institutions, European Union. In 2013, David Cameron, British prime minister deliv-ered a speech on Britain and Europe. He offered the British public a referendum concerning the United Kingdom being part of the European Union [1; 4]. The “Brexit” is a very structural reform that will have a substantial impact both for the UK and the EU.The UK is one of the largest mem -bers with big contributions both in economical and political spheres of the EU.Both countries will come across the challenge of manag-ing the process of separation. Despite the fact, that there is an article that informs the process of the separation included in the Treaty of the European Union, there has been no practical experience since the EU emerged [1; 6].Secondly, it may change the ongoing cooperation of the European Union after the loss of one of its most influential states [2; 12].Last but not least, it is hard to predict the relationships of the UK and the EU after the withdrawal [3, 44].The essay is structured in the following way: first section explains what happens in the UK and its “value” for the EU. It is crucial to understand the implications of the separation to in order to have a full understanding of the situation in Europe. Hence, the first section will explain why the UK may benefit without being a member state of the EU. To keep the chronology, the second section concentrates on the procedural actions towards the withdrawal and institutional changes necessary for the separation. It will take a look on the core economical and political institutions of the EU and analyse their changes after the UK withdrawal. Third sec-tion will be focused on the post-withdrawal operations of the EU and relationships between United Kingdom and the European Union.David Cameron has announced committing a future Con-servative government to renegotiating Brittan’s relationship with the EU, to then be put to a referendum, widely expected to be around 2017 [1; 7].The Euro crisis made a crucial impact on the British pub -lics’ faith in the European Union. Stepping forward further in-tegration is not something the Britons are comfortable with. The past experience of Portugal, Italy, Greece and Spain made both the UK government and the UK citizens to understand that it will be harmful to use EURO as a currency. Therefore, we can see that the efficiency of Single Currency Area The-ory is not applicable for the United Kingdom at the current stage of development of the Euro Zone [4].The UK will also be benefiting from less migration, no EU budget payments, better opportunities with emerging markets and less regulation from the EU [2; 14]. The last argument explains the actions of Cameron towards “Brexit”. The big controversies between the UK and the union appeared dur-ing the EU summit in December 2011 [5]. David Cameron put a veto on the EU fiscal treaty 2011 for two reasons. Firstly, the UK did not want further European Integration; secondly, the following changes in Growth and Stability Pact may lead to economic downturn of the UK [6].In the Article 3 of Fiscal Compact there were made some changes in Stability and Growth Pact. The main idea of the pact is that the ratio of the general government debt to gross domestic product should be significantly below 60% in order to keep the risks of default relatively low and the structural deficit should not accumulate more than 0.5 % of nominal GDP [7]. The new fiscal treaty contained the in-formation about stricter sanctions for the countries that ac -cumulate higher level of debt. A country can be funded up to 0.1 % of GDP [6].The change of pact helps Europe to minimize the risk of a default of its member states because it does not allow the country to get heavily indebted. The changes in the fiscal treaty are made to prevent a country such as Greece getting heavily indebted [6].It is possible to look on this situation through the prism of Fiscal Fatigue theory.

Teaching case and teaching note systems equipment division at Ferrofluidics

This article comprises a case and teaching note regarding the acquisition of a capital equipment business from a large company by a small nanotechnology materials firm. Specifically, in 1981, Ferrofluidics, a nanotechnology components manufacturer operating in New Hampshire, vertically integrates by acquiring Varian's silicon crystal puller division. Ferrofluidics intends to improve the Varian puller. However, there is little overlap between the firm's materials-based capabilities and competencies, and the capabilities and competencies required for the fabrication & assembly and after-sales service of the puller. Thus the case seeks to introduce students to the discipline of intelligently choosing a new project, here in the context of commercializing a novel nanotechnology component through forward or vertical integration into an oligopolistic competitive environment. The case is appropriate for a general management of technology core class, a technology strategy class, a class on project management, a class of corporate entrepreneurial action or a class on technology entrepreneurship. The teaching note provides the instructor with the opportunity to introduce students to the Strategy Technology Firm Fit Audit, core competencies, models of innovation, forward or vertical integration, the Technology Market Matrix, the technology lifecycle and winner-take-all-or-most.

FORMULASI STRATEGI BISNIS PT INDONESIA ASAHAN ALUMINIUM SETELAH PENGAMBILALIHAN OLEH PEMERINTAH

<p>The aim of this study is to identify the internal and external factors in the company after being taken over by the Government of Indonesia from Japanese investors and to formulate appropriate strategies to improve the performance of the company after the takeover by Indonesian government to be supporting the national aluminum industry that can fulfill the needs of the domestic aluminum and simultaneously increase profitability. This type of research is action research, with a population of 78 (seventy eight), which consists of five Directors, 21, General Managers, 49 Managers and 3 consultants in the aluminum industry. Data were analyzed with IFE and EFE matrix, then analysed by SWOT analysis and IE Matrix which produces Grow and Build strategy with the strategies used are either integrative strategy of backward integration, forward integration, as well as horizontal integration and diversification.</p>

EXAMINING EFFECT OF FORWARD INTEGRATION CREDIT RISK MITIGATION MECHANISMS ON RETURN ON EQUITY (ROE) OF AGRIBUSINESS FIRMS IN KENYA

Commercial Banks apply Forward Integration Credit Risk Mitigation Mechanisms (FICRMMs) to promote credit access, security and productivity for various sectors, since credits make a significant portion in business’ capital structure and performance. Credits to the agribusiness sector; which contributes 53% to employment in developing countries, and 80% in Kenya, has registered decreasing trends between 2002 and 2016; ranging from 6.5% to 2.9%. However, there is little information on the effect of Forward Integration Credit Risk Mitigation Mechanisms on agribusiness firms’ performance with respect to Equity as owner investments in Agribusiness Enterprises in Nyanza region; where agribusiness operations play core absorption over 80% of its labour-force. The purpose of this study was to analyse the effect of Forward Integration Credit Risk Mitigation Mechanisms on Return on Equity (ROE) of agribusinesses enterprises. With objectives of determining the effect of the mechanisms on ROE, the single period Regression results reveal R2 of 0. 647 to return on equity (ROE), implying that FICRMMs account for 57% of ROE at significant level p<0.05.

Operational aspects of asynchronous filtering for flood forecasting

Abstract. This study investigates the suitability of the asynchronous ensemble Kalman filter (AEnKF) and a partitioned updating scheme for hydrological forecasting. The AEnKF requires forward integration of the model for the analysis and enables assimilation of current and past observations simultaneously at a single analysis step. The results of discharge assimilation into a grid-based hydrological model (using a soil moisture error model) for the Upper Ourthe catchment in the Belgian Ardennes show that including past predictions and observations in the data assimilation method improves the model forecasts. Additionally, we show that elimination of the strongly non-linear relation between the soil moisture storage and assimilated discharge observations from the model update becomes beneficial for improved operational forecasting, which is evaluated using several validation measures.

Limits on movement integration in children: The concatenation of trained subsequences into composite sequences as a specific experience-triggered skill

Complex movement sequences may be easier to acquire in sub-segments. Nevertheless, the neuro-behavioral constraints on assembling short multi-element movement segments, acquired piecemeal and serially, into larger, composite units of action, are not clear. Here we examined the ability of children to combine movement subsequences into longer, composite, sequences. Eleven-year-olds were trained in the performance of two, 3-elements, finger-to-thumb opposition movement sequences and were tested, overnight, in the performance of composite, 6-elements, sequences. Two experiments were compared, differing only in whether or not a brief test for integration into a composite sequence was afforded immediately post-training. This composite sequence (Full) was a direct forward integration of the two subsequences, maintaining the order in which the two subsequences were trained. In both experiments, overnight performance of movement elements within the composite sequences was better than naive performance, but slower and less accurate compared to the performance of the identical movement elements in the context of the trained subsequences. Integration was as effective in the Full sequence as when the order between subsequences was switched (Reversed). However, the early test for subsequence integration was critical in inducing clear between-session (‘offline’) gains, as expressed in overnight performance, in both the Full and Reversed sequences. Without this brief experience in integration, no overnight gains were expressed in any of the 6-elements sequences. Moreover, the immediate post-training test resulted in a relative advantage of the Full and Reversed sequences over a 6-element sequence in which the order of the elements was mirror-reversed within each subsequence. Thus, training on subsequences may not spontaneously lead to an advantage in the performance of composite sequences, in children. However, an early brief experience with a composite sequence can suffice to trigger the establishment and consolidation of an integration routine. This routine is specific for the order of movement within the trained subsequences, but not for the order in which the subsequences were practiced.

Data assimilation experiments using diffusive back-and-forth nudging for the NEMO ocean model

Abstract. The diffusive back-and-forth nudging (DBFN) is an easy-to-implement iterative data assimilation method based on the well-known nudging method. It consists of a sequence of forward and backward model integrations, within a given time window, both of them using a feedback term to the observations. Therefore, in the DBFN, the nudging asymptotic behaviour is translated into an infinite number of iterations within a bounded time domain. In this method, the backward integration is carried out thanks to what is called backward model, which is basically the forward model with reversed time step sign. To maintain numeral stability, the diffusion terms also have their sign reversed, giving a diffusive character to the algorithm. In this article the DBFN performance to control a primitive equation ocean model is investigated. In this kind of model non-resolved scales are modelled by diffusion operators which dissipate energy that cascade from large to small scales. Thus, in this article, the DBFN approximations and their consequences for the data assimilation system set-up are analysed. Our main result is that the DBFN may provide results which are comparable to those produced by a 4Dvar implementation with a much simpler implementation and a shorter CPU time for convergence. The conducted sensitivity tests show that the 4Dvar profits of long assimilation windows to propagate surface information downwards, and that for the DBFN, it is worth using short assimilation windows to reduce the impact of diffusion-induced errors. Moreover, the DBFN is less sensitive to the first guess than the 4Dvar.

Development of Multi-modal Result Processing Software for Tertiary Institution

Result processing is a major task for any educational institution. In the past, result processing software has been written on different platform such as stand-alone database system, distributed system e.t.c. The era of web based multitier system has necessitated that these software be reengineered. This paper presents the re-engineering of result processing software of the Yaba College of Technology into a multi-modal system. The system analysis of existing software was conducted to know people pains and develop the requirement for the new system. A multimodal, 3-teir (separating the application into data access layer, program logic layer and the user interface) methodology was adopted in re-writing this software. The tools used include visual studio, Borland Delphi and SQL Server database. A modular design approach was adopted with five major modules designed each module serve as an interface for specific user group with assign privileges to ensure people only manipulate data that belongs to them. The implementation produced a robust, highly secured, multimodal system. The system was tested and found to cope with change in policies, unavailability of staff which might be due to industrial strike action, occasional unavailability of network and power failure. It operates in online and offline mode as such it works well and is efficient in managing students’ results seamlessly. It has ability for forward and backward integration with student’s portal; this has made the software highly efficient as registration data are handled directly by the portal while results are posted on the portal. General Terms Software Engineering

The effect of forward integration on a single-vendor–multi-retailer supply chain under retailer competition

This paper studies a single-vendor–multi-retailer supply chain and considers the case where the vendor merges with one of its retailers. After the merger, the vendor supplies products to the market both through a direct (integrated) sales channel and through the remaining retailers. Different types of competition are considered for the retailers, namely volume competition, price competition, and no competition. The operations policies of the vendor and the retailers are considered explicitly in this paper by taking account of inventory carrying, setup and ordering costs that result from production and ordering decisions. We compare the pre-merger situation to the situation after the merger and show under which conditions the merger is beneficial to the vendor, the retailers, the supply chain, and the consumers. The results of our paper indicate that the type of competition is of major importance for the structure of the supply chain after the merger, and that under certain conditions, the merger may benefit all parties involved, i.e. the vendor, the retailers, and the consumers.

Forward integration, convergence and non-adapted pointwise multipliers

In this paper we study the forward integral of operator-valued processes with respect to a cylindrical Brownian motion. In particular, we provide conditions under which the approximating sequence of processes of the forward integral, converges to the stochastic integral process with respect to Sobolev norms of smoothness α < 1/2. This result will be used to derive a new integration by parts formula for the forward integral.

Thermomechanically coupled modelling for land-terminating glaciers: a comparison of two-dimensional, first-order and three-dimensional, full-Stokes approaches

AbstractFor many regions, glacier inaccessibility results in sparse geometric datasets for use as model initial conditions (e.g. along the central flowline only). In these cases, two-dimensional (2-D) flowline models are often used to study glacier dynamics. Here we systematically investigate the applicability of a 2-D, first-order Stokes approximation flowline model (FLM), modified by shape factors, for the simulation of land-terminating glaciers by comparing it with a 3-D, ‘full’-Stokes ice-flow model (FSM). Based on steady-state and transient, thermomechanically uncoupled and coupled computational experiments, we explore the sensitivities of the FLM and FSM to ice geometry, temperature and forward model integration time. We find that, compared to the FSM, the FLM generally produces slower horizontal velocities, due to simplifications inherent to the FLM and to the underestimation of the shape factor. For polythermal glaciers, those with temperate ice zones, or when basal sliding is important, we find significant differences between simulation results when using the FLM versus the FSM. Over time, initially small differences between the FLM and FSM become much larger, particularly near cold/temperate ice transition surfaces. Long time integrations further increase small initial differences between the two models. We conclude that the FLM should be applied with caution when modelling glacier changes under a warming climate or over long periods of time.

Simultaneous multi-scale diffusion estimation and tractography guided by entropy spectrum pathways.

We have developed a method for the simultaneous estimation of local diffusion and the global fiber tracts based upon the information entropy flow that computes the maximum entropy trajectories between locations and depends upon the global structure of the multi-dimensional and multi-modal diffusion field. Computation of the entropy spectrum pathways requires only solving a simple eigenvector problem for the probability distribution for which efficient numerical routines exist, and a straight forward integration of the probability conservation through ray tracing of the convective modes guided by a global structure of the entropy spectrum coupled with a small scale local diffusion. The intervoxel diffusion is sampled by multi b-shell multi q-angle diffusion weighted imaging data expanded in spherical waves. This novel approach to fiber tracking incorporates global information about multiple fiber crossings in every individual voxel and ranks it in the most scientifically rigorous way. This method has potential significance for a wide range of applications, including studies of brain connectivity.

Axis–Enam: The Investment Banking Marriage—Will They Produce Superior Cash Flows?

The India-based private-sector financial institution Axis Bank demonstrated its triumph moving into the investment-banking business by acquiring the privately owned Enam Securities. Indeed, Axis considered that the Enam deal would generate superior cash flows in the growing competitive prolific business, that is, financial advisory services. In other words, the merger with Enam was only a forward integration, which might help in collecting a fee-based income and advisory fee that strengthens future earnings. Axis shareholders were poignant when the corporate board declared a merger announcement with Enam. In this regard, had they been influenced by new market information, which was formally a merger announcement? Likewise, did Axis shareholders benefit from this merger? Will Axis sustain their acquired business in the growing advisory services? How did Axis benefit from the non-compete agreement with Enam? More importantly, will they produce superior future free cash flows? In addition, students would learn various motives behind bank mergers in India and business opportunities in investment banking. Specifically, students would acquire hands-on experience related to the estimation of future free cash flows and business valuation. List of supplementary materials: Teaching note, exercises with solutions (spreadsheets are available upon request).

INFORMATION AND OPTIMAL INVESTMENT IN DEFAULTABLE ASSETS

We study optimal investment in an asset subject to risk of default for investors that rely on different levels of information. The price dynamics can include noises both from a Wiener process and a Poisson random measure with infinite activity. The default events are modeled via a counting process in line with large part of the literature in credit risk. In order to deal with both cases of inside and partial information we consider the framework of the anticipating calculus of forward integration. This does not require a priori assumptions typical of the framework of enlargement of filtrations. We find necessary and sufficient conditions for the existence of a locally maximizing portfolio of the expected utility at terminal time. We consider a large class of utility functions. In addition we show that the existence of the solution implies the semi-martingale property of the noises driving the stock. Some discussion on unicity of the maxima is included.

Rotating gravitational lenses: a kinematic approach

This paper uses the Kerr geodesic equations for massless particles to derive an acceleration vector in both Boyer-Lindquist and Cartesian coordinates. As a special case, the Schwarzschild acceleration due to a non-rotating mass has a particularly simple and elegant form in Cartesian coordinates. Using forward integration, these equations are used to plot the caustic pattern due to a system consisting of a rotating point mass with a smaller non-rotating planet. Additionally, first and second order approximations to the paths are identified, which allows for fast approximations of paths, deflection angles and travel-time delays.

Analysis of South African Commercial Traditional Linefish Snoek Value Chain

Commercial traditional linefish snoek reaches consumers through retail outlets supplied by large hawkers and processors or directly through small hawkers. While the former channel caters to middle- to high-income consumers, the latter mainly services low-income consumers. Retail outlets govern the first chain, while fishers believe hawkers are the lead actors in the second chain based on the thinking that they have a monopoly on the selling of snoek in townships. The real reason most fishers do not practice forward integration, though, is the impracticality of extending value chain functions beyond catching. Three suggestions are put forward for improving the value chain position for fishers: making crew members rights holders in their own right; forward integration into retailing and delivery contracts with processors and fish shops; and/or direct supply contracts with supermarkets. All these options would require government policy intervention and financial and technical backing for fishers.