Identifying asymmetric, multi-period Euler equations estimated by non-linear IV/GMM

In this article, the identification of instrumental variables and generalized method of moment (GMM) estimators with multi-period perceptions is discussed. The state space representation delivers a conventional first order condition that is solved for expectations when the Generalized Bézout Theorem holds. Here, it is shown that although weak instruments may be enough to identify the parameters of a linearized version of the Quasi-Reduced Form (Q-RF), their existence is not sufficient for the identification of the structural model. Necessary and sufficient conditions for local identification of the Quasi-Structural Form (Q-SF) derive from the product of the data moments and the Jacobian. Satisfaction of the moment condition alone is only necessary for local and global identification of the Q-SF parameters. While the conditions necessary and sufficient for local identification of the Q-SF parameters are only necessary to identify the expectational model that satisfies the regular solution. If the conditions required for the decomposition associated with the Generalized Bézout Theorem are not satisfied, then limited information estimates of the Q-SF are not consistent with the full solution. The Structural Form (SF) is not identified in the fundamental sense that the Q-SF parameters are not based on a forward looking expectational model. This suggests that expectations are derived from a forward looking model or survey data used to replace estimated expectations

Identification and Identifiability of non-linear IV/GMM Estimators

In this article, the identi¯cation of instrumental variables and generalised method of moment (GMM) estimators is discussed. It is common that representations of such models are derived from the solution to linear quadratic optimisation problems. Here, it is shown that even though the rank condition on the Jacobian and the instrument set is valid, that the transversality condition may not be satis¯ed by the estimated model. Further, acceptance of the transversality condition does occur when identi ¯cation fails or the forward model vanishes. As a result the parameters of such models irrespective of any correction for serial correlation may not be identi¯ed in a fundamental sense. This suggests that either forward looking models should be estimated directly or more complex non-linear restrictions should be imposed

Mechanism of operation of the TFE-bonded gas-diffusion electrode

Mathematical analytical model predicts the performance of an electrode as a function of certain measurable physical characteristics. Concept assumes the catalyst particles form porous electrically conductive agglomerates which are completely flooded with electrolyte

Internal organization and economic performance: the case of large U.S. commercial banks

Banks and banking - Costs ; Bank management

Cognitive appraisals, emotional reactions, and their associations with three forms of peer-victimization

Victimized students’ cognitive appraisals (perceived threat, control) are related to emotional reactions. Furthermore, psychosocial wellbeing is differentially associated with form of victimization (direct vs. indirect), suggesting that emotional reactions to direct and indirect victimization may also differ. The present study therefore evaluated appraisals and emotional reactions within the context of verbal, physical, and indirect victimization experiences, testing a mediational model which considers appraisals to mediate the effect of victimization upon emotional reaction. Participants were 146 students (44% male) aged 10-13 years attending mainstream schools in Scotland (UK). Self-report measures assessed peer-victimization (physical, verbal, indirect), appraisal (control, threat) and emotional reaction (anger, sadness). All forms of victimization were positively associated with both emotions. Threat appraisals were positively associated with all forms of victimization and control appraisals were negatively associated with physical victimization. The relationships between appraisals and emotions varied according to victimization type. The effects of victimization upon emotions were not mediated via appraisals. These results extend our understanding of the relationships between victimization and affect

Thoughts on financial derivatives, systematic risk, and central banking: a review of some recent developments

This paper critically reviews the literature examining the role of central banks in addressing systemic risk. We focus on how the growth in derivatives markets might affect that role. Analysis of systemic risk policy is hampered by the lack of a consensus theory of systemic risk. We propose a set of criteria that theories of systemic risk should satisfy, and we critically discuss a number of theories proposed in the literature. We argue that concerns about systemic effects of derivatives appear somewhat overstated. In particular, derivative markets do not appear unduly prone to systemic disturbances. Furthermore, derivative trading may increase informational efficiency of financial markets and provide instruments for more effective risk management. Both of these effects tend to reduce the danger of systemic crises. However, the complexity of derivative contracts (in particular, their high implicit leverage and nonlinear payoffs) do complicate the process of regulatory oversight. In addition, derivatives may make the conduct of monetary policy more difficult. Most theories of systemic risk imply a critical role for central banks as the ultimate provider of liquidity. However, the countervailing danger of moral hazard must be recognized and addressed through vigilant supervision.Banks and banking, Central ; Derivative securities ; Risk

Maladaptive cognitive appraisals in children with high-functioning autism : associations with fear, anxiety and theory of mind

Despite the well-documented success of cognitive restructuring techniques in the treatment of anxiety disorders, there is still little clarity on which cognitions underpin fear and anxiety in children with high-functioning spectrum disorders (HFASD). This study examined whether certain cognitive appraisals, known to be associated with fear and anxiety in non-HFASD groups, may help explain these emotions in children with HFASD. It also investigated relations between these cognitive appraisals and theory-of-mind (TOM). Using a vignette approach, appraisals, fear and anxiety were assessed in 22 children with HFASD and 22 typically developing (TD) children. The two groups differed significantly on all four appraisal types. Anxiety was negatively correlated with future expectancy and positively with problem-focused coping potential in the HFASD group, but was not correlated with appraisals in the TD group. Emotion-focused coping potential was the only appraisal correlated with fear in the HFASD group and only self-accountability in the TD group. Linear regression analysis found appraisals of emotion-focused coping potential, problem-focused coping potential and future expectancy to be significant predictors of TOM ability in the HFASD group. These findings indicate that specific, problematic patterns of appraisal may characterise children with HFASD