Precision Lattice Calculation of SU(2) 't Hooft loops

The [dual] string tension of a spatial 't Hooft loop in the deconfined phase of Yang-Mills theory can be formulated as the tension of an interface separating different Z_N deconfined vacua. We review the 1-loop perturbative calculation of this interface tension in the continuum and extend it to the lattice. The lattice corrections are large. Taking these corrections into account, we compare Monte Carlo measurements of the dual string tension with perturbation theory, for SU(2). Agreement is observed at the 2% level, down to temperatures O(10) T_c.Comment: 17 pages, 7 figures; reference added, typos correcte

Does IT standardization help to boost cost and profit efficiency? Empirical evidence from German savings banks

This paper investigates the impact of IT standardization on bank performance based on a panel of 457 German savings banks over the period from 1996 to 2006. We measure IT standardization as the fraction of IT expenses for centralized services over banks' total IT expenses. Bank efficiency, in turn, is measured by traditional accounting performance indicators as well as by cost and profit efficiencies that are estimated by a stochastic frontier approach. Our results suggest that IT standardization is conducive to cost efficiency. The relation is positive and robust for small and medium-sized banks but vanishes for very large banks. Furthermore, our study confirms the often cited computer paradox by showing that total IT expenditures negatively impact cost efficiency and have no influence on bank profits. To the best of our knowledge, this paper is first to empirically explore whether IT standardization enhances efficiency by employing genuine data of banks' IT expenditures. JEL Classification: C23, G21 Keywords: IT standardization, cost and profit efficiency, savings bank

't Hooft loops and perturbation theory

We show that high-temperature perturbation theory describes extremely well the area law of SU(N) spatial 't Hooft loops, or equivalently the tension of the interface between different Z_N vacua in the deconfined phase. For SU(2), the disagreement between Monte Carlo data and lattice perturbation theory for sigma(T)/T^2 is less than 2%, down to temperatures O(10) T_c. For SU(N), N>3, the ratios of interface tensions, (sigma_k/sigma_1)(T), agree with perturbation theory, which predicts tiny deviations from the ratio of Casimirs, down to nearly T_c. In contrast, individual tensions differ markedly from the perturbative expression. In all cases, the required precision Monte Carlo measurements are made possible by a simple but powerful modification of the 'snake' algorithm.Comment: presented at Lattice 2005 (topology and confinement), 6 pages, 7 figure

Bank Risk Proxies and the Crisis of 2007/09: A Comparison

Motivated by the variety of bank risk proxies, our analysis reveals that nonperforming assets are a well-suited complement to the Z-score in studies of bank risk

Einlagensicherungssysteme erhöhen das moralische Risiko von Banken

Einlagensicherungsmechanismen sind Bestandteil vieler Finanzsysteme und sollen in Krisenzeiten einen Ansturm der Sparer auf Banken und daraus resultierende Ansteckungseffekte verhindern. Jedoch bergen Sicherungssysteme zusätzliche Risikoanreize für Kreditinstitute, da eine solche Versicherung die Überwachungsanreize der Einlagengeber reduziert. Im Zuge der Finanzkrise von 2007 bis 2009 ist es in vielen Ländern zu Reformen hinsichtlich der Einlagensicherungssysteme gekommen. Dieser Artikel diskutiert die jüngste Anhebung der Einlagensicherungsgrenze in den USA von 100 000 auf 250 000 US-Dollar aus dem Jahr 2008 vor dem Hintergrund eines aktuellen Forschungsbeitrags. Dieser zeigt deutlich, dass durch die Erhöhung der Einlagensicherung in den USA das Risiko der Banken, die von der Erhöhung besonders profitierten, deutlich gestiegen ist, und gibt damit Hinweise auf den bekannten Zielkonflikt von Einlagensicherungssystemen: kurzfristige Stabilisierung während einer Krise gegenüber langfristigen Risikoanreizen für Banken

Corporate Governance Structures and Financial Constraints in Multinational Enterprises – An Analysis in Selected European Transition Economies on the Basis of the IWH FDI Micro Database 2013 –

In our analysis, we consider the distribution of decision power over financing and investment between MNEs' headquarters and foreign subsidiaries and its influence on the foreign affiliates' financial restrictions. Our research results show that headquarters of multinational enterprises have not (yet) moved much decision power to their foreign subsidiaries at all. We use data from the IWH FDI Micro Database which contains information on corporate governance structures and financial restrictions of 609 enterprises with a foreign investor in Hungary, Poland, the Czech Republic, Slovakia, Romania and East Germany. We match data from Bureau van Dijk's AMADEUS database on financial characteristics. We find that a high concentration of decision power within the MNE's headquarter implicates high financial restrictions within the subsidiary. Square term results show, however, that the effect of financial constraints within the subsidiary decreases and finally turns insignificant when decision power moves from headquarter to subsidiary. Thus, economic policy should encourage foreign investors in the case of foreign acquisition of local enterprises to leave decision power within the enterprise and in the case of Greenfield investment to provide the newly established subsidiaries with as much power over corporate governance structures as possible

Bank bailouts and competition - Did TARP distort competition among sound banks?

This study investigates if the Troubled Asset Relief Program (TARP) distorted price competition in U.S. banking. Political indicators reveal bailout expectations after 2009, manifested as beliefs about the predicted probability of receiving equity support relative to failing during the TARP disbursement period. In addition, the TARP affected the competitive conduct of unsupported banks after the program stopped in the fourth quarter of 2009. The risk premium required by depositors was lower, and loan rates were higher for banks with higher bailout expectations. The interest margins of unsupported banks increased in the immediate aftermath of the TARP disbursement but not after 2010. These effects are economically very small though. No effects emerged for loan or deposit growth, which suggests that protected banks did not increase their market shares at the expense of less protected banks

Does IT standardization help to boost cost and profit efficiency? Empirical evidence from German savings banks

This paper investigates the impact of IT standardization on bank performance based on a panel of 457 German savings banks over the period from 1996 to 2006. We measure IT standardization as the fraction of IT expenses for centralized services over banks' total IT expenses. Bank efficiency, in turn, is measured by traditional accounting performance indicators as well as by cost and profit efficiencies that are estimated by a stochastic frontier approach. Our results suggest that IT standardization is conducive to cost efficiency. The relation is positive and robust for small and medium-sized banks but vanishes for very large banks. Furthermore, our study confirms the often cited computer paradox by showing that total IT expenditures negatively impact cost efficiency and have no influence on bank profits. To the best of our knowledge, this paper is first to empirically explore whether IT standardization enhances efficiency by employing genuine data of banks' IT expenditures.

Brexit (probability) and effects on financial market stability

[Background] On 23 June 2016, there will be a referendum in the United Kingdom (UK) on the stay of the country in the European Union (EU). Based on recent poll data, the share of supporters and opponents of an exit varies around 50% (see Figure 1). Opponents of the UK breaking up with Brussels („Brexit“) refer to high costs in terms of stagnating economic growth if the UK leaves the EU. The risk of reduced trade, declining foreign direct investment, and a lower degree of financial market integration is high following an exit of the “single market”. Supporters of the leave campaign suppose that costs of a Brexit should not be that high. They see the advantage of increased flexibility in decision making if the UK no longer has to adhere to directives coming from Brussels. Also financial markets are concerned about the upcoming referendum. This study analyses the reaction of different financial market indicators to poll results pointing toward a Brexit

Particle Size Distribution in Aluminum Manufacturing Facilities.

As part of exposure assessment for an ongoing epidemiologic study of heart disease and fine particle exposures in aluminum industry, area particle samples were collected in production facilities to assess instrument reliability and particle size distribution at different process areas. Personal modular impactors (PMI) and Minimicro-orifice uniform deposition impactors (MiniMOUDI) were used. The coefficient of variation (CV) of co-located samples was used to evaluate the reproducibility of the samplers. PM2.5 measured by PMI was compared to PM2.5 calculated from MiniMOUDI data. Mass median aerodynamic diameter (MMAD) and concentrations of sub-micrometer (PM1.0) and quasi-ultrafine (PM0.56) particles were evaluated to characterize particle size distribution. Most of CVs were less than 30%. The slope of the linear regression of PMI_PM2.5 versus MiniMOUDI_PM2.5 was 1.03 mg/m3 per mg/m3 (± 0.05), with correlation coefficient of 0.97 (± 0.01). Particle size distribution varied substantively in smelters, whereas it was less variable in fabrication units with significantly smaller MMADs (arithmetic mean of MMADs: 2.59 μm in smelters vs. 1.31 μm in fabrication units, p = 0.001). Although the total particle concentration was more than two times higher in the smelters than in the fabrication units, the fraction of PM10 which was PM1.0 or PM0.56 was significantly lower in the smelters than in the fabrication units (p < 0.001). Consequently, the concentrations of sub-micrometer and quasi-ultrafine particles were similar in these two types of facilities. It would appear, studies evaluating ultrafine particle exposure in aluminum industry should focus on not only the smelters, but also the fabrication facilities