Sticky processes, local and true martingales

We prove that for a so-called sticky process $S$ there exists an equivalent probability $Q$ and a $Q$-martingale $\tilde{S}$ that is arbitrarily close to $S$ in $L^p(Q)$ norm. For continuous $S$, $\tilde{S}$ can be chosen arbitrarily close to $S$ in supremum norm. In the case where $S$ is a local martingale we may choose $Q$ arbitrarily close to the original probability in the total variation norm. We provide examples to illustrate the power of our results and present applications in mathematical finance

No arbitrage without semimartingales

We show that with suitable restrictions on allowable trading strategies, one has no arbitrage in settings where the traditional theory would admit arbitrage possibilities. In particular, price processes that are not semimartingales are possible in our setting, for example, fractional Brownian motion.Comment: Published in at http://dx.doi.org/10.1214/08-AAP554 the Annals of Applied Probability (http://www.imstat.org/aap/) by the Institute of Mathematical Statistics (http://www.imstat.org

On the Existence of Consistent Price Systems

We formulate a sufficient condition for the existence of a consistent price system (CPS), which is weaker than the conditional full support condition (CFS) introduced by Guasoni, Rasonyi, and Schachermayer [Ann. Appl. Probab., 18(2008), pp. 491-520] . We use the new condition to show the existence of CPSs for certain processes that fail to have the CFS property. In particular this condition gives sufficient conditions, under which a continuous function of a process with CFS admits a CPS, while the CFS property might be lost.Comment: To appear in "Stochastic Analysis and Applications". Keywords: Consistent pricing systems, No-arbitrage, Transaction costs, Full support, Conditional Full Support, Stability under Composition with Continuous Function

Sticky continuous processes have consistent price systems

Under proportional transaction costs, a price process is said to have a consistent price system, if there is a semimartingale with an equivalent martingale measure that evolves within the bid-ask spread. We show that a continuous, multi-asset price process has a consistent price system, under arbitrarily small proportional transaction costs, if it satisfies a natural multi-dimensional generalization of the stickiness condition introduced by Guasoni [Math. Finance 16(3), 569-582 (2006)].Comment: 10 pages, v3: incorporates minor corrections and the proof of the main result has been clarified, to appear in Journal of Applied Probabilit

Weak convergence implies convergence in mean within GGC

We prove that weak convergence within generalized gamma convolution (GGC) distributions implies convergence in the mean value. We use this fact to show the robustness of the expected utility maximizing optimal portfolio under exponential utility function when return vectors are modelled by hyperbolic distributions.Comment: 21 page

The origin of the asymmetry in the Iceland hotspot along the Mid-Atlantic Ridge from continental breakup to present-day

The Iceland hotspot has profoundly influenced the creation of oceanic crust throughout the North Atlantic basin. Enigmatically, the geographic extent of the hotspot influence along the Mid-Atlantic Ridge has been asymmetric for most of the spreading history. This asymmetry is evident in crustal thickness along the present-day ridge system and anomalously shallow seafloor of ages ∼49–25 Ma created at the Reykjanes Ridge (RR), SSW of the hotspot center, compared to deeper seafloor created by the now-extinct Aegir Ridge (AR) the same distance NE of the hotspot center. The cause of this asymmetry is explored with 3-D numerical models that simulate a mantle plume interacting with the ridge system using realistic ridge geometries and spreading rates that evolve from continental breakup to present-day. The models predict plume-influence to be symmetric at continental breakup, then to rapidly contract along the ridges, resulting in widely influenced margins next to uninfluenced oceanic crust. After this initial stage, varying degrees of asymmetry along the mature ridge segments are predicted. Models in which the lithosphere is created by the stiffening of the mantle due to the extraction of water near the base of the melting zone predict a moderate amount of asymmetry; the plume expands NE along the AR ∼70–80% as far as it expands SSW along the RR. Without dehydration stiffening, the lithosphere corresponds to the near-surface, cool, thermal boundary layer; in these cases, the plume is predicted to be even more asymmetric, expanding only 40–50% as far along the AR as it does along the RR. Estimates of asymmetry and seismically measured crustal thicknesses are best explained by model predictions of an Iceland plume volume flux of ∼100–200 m^3/s, and a lithosphere controlled by a rheology in which dehydration stiffens the mantle, but to a lesser degree than simulated here. The asymmetry of influence along the present-day ridge system is predicted to be a transient configuration in which plume influence along the Reykjanes Ridge is steady, but is still widening along the Kolbeinsey Ridge, as it has been since this ridge formed at ∼25 Ma

Analysis On Political Speech Of Susilo Bambang Yudhoyono: Common Sense Assumption And Ideology

This paper presents an analysis on political speech of Susilo Bambang Yudhoyono (SBY), the former president of Indonesia at the Indonesian conference on “Moving towards sustainability: together we must create the future we want”. Ideologies are closely linked to power and language because using language is the commonest form of social behavior, and the form of social behavior where we rely most on ‘common-sense’ assumptions. The objectives of this study are to discuss the common sense assumption and ideology by means of language use in SBY’s political speech which is mainly grounded in Norman Fairclough’s theory of language and power in critical discourse analysis. There are two main problems of analysis, namely; first, what are the common sense assumption and ideology in Susilo Bambang Yudhoyono’s political speech; and second, how do they relate to each other in the political discourse? The data used in this study was in the form of written text on “moving towards sustainability: together we must create the future we want”. A qualitative descriptive analysis was employed to analyze the common sense assumption and ideology in the written text of Susilo Bambang Yudhoyono’s political speech which was delivered at Riocto entro Convention Center, Rio de Janeiro on June 20, 2012. One dimension of ‘common sense’ is the meaning of words. The results showed that the common sense assumption and ideology conveyed through SBY’s specific words or expressions can significantly explain how political discourse is constructed and affected by the SBY’s rule and position, life experience, and power relations. He used language as a powerful social tool to present his common sense assumption and ideology to convince his audiences and fellow citizens that the future of sustainability has been an important agenda for all people.  Keywords: Political speech, common sense, assumption, ideology, sustainability, growth

Personal Naming System of Bima Tribe in West Nusa Tenggara: Usage and Naming Behaviour

The naming system in Bima tribe is unique and interesting to be investigated because the naming system distinguishes one individual name from others among the community. The purpose of the present study is to describe the Bimanese personal naming system in terms of its usage and naming behavior attributed to the Kempo community, one of the sub-districts within Dompu regency, Sumbawa Island, West Nusa Tenggara province. A qualitative study and descriptive analysis were employed to explain the Bimanese personal naming system, usage, and naming behavior. The naming system is related to the Semantic theory of personal names and references. The data were obtained from semi-structured interviews with some respondents in the Sub-district of Kempo. In addition, previous research findings and related documentation studies were used to support the data needed. The findings revealed that the naming system of Kempo community can be divided into four different ways, and they are varied in their usages. The naming system is unique as it distinguishes one individual name from others among the community and can be used as an instrument to manage their interpersonal relations among the community. Moreover, the Kemponese will recall their knowledge of someone's physical appearance, personal character, social relations, family background, life history records, and professions to easily recognize the person being talked.Keywords: Bimanese, community, personal naming system, usage, naming behavio

Mapping the Problems of Indonesia’s Education System: Lessons Learned from Finland

ABSTRACT: The emergence of having a good education system is one of the hot issues among scholars and stakeholders. Indonesia is now facing various challenges to create a good education system for the better future of its people. This paper examines the problems of Indonesia's education system. A qualitative descriptive research design was applied for the present study. The data in the present study were obtained through observation, library, and documentation study, as well as make use of state of the art sources in the related studies both education in Indonesia and Finland as a role model. Furthermore, the literature review was used to elucidate the findings from the previous studies. The data were analyzed qualitatively by mapping and describing the problems of Indonesia’s education system and take a look at the similar aspects of the Finland system. It discusses Indonesia’s education problems, including well-trained teacher’s deployment, student’s tuition fee, class size, and school facilities and access, then further explores Finland's success story in the educational sector as a role model. Mapping the problems of Education in Indonesia enables us to improve Indonesia's education system to achieve the international competitiveness in 2025. Keywords: better education, education quality, Finland, Indonesi

DEVELOPING AN INDONESIAN TEXTBOOK FOR NON-NATIVE LEARNERS OF INDONESIAN AT ELEMENTARY LEVEL

The present study aims at (1) exploring the learningmaterials which are available for non-native learners ofIndonesian who learn Indonesian at Elementary level, andtheir weaknesses; (2) examining and developing thealternative model to suit the needs of non-native learners ofIndonesian to communicate intensively in Indonesian; and(3) evaluating the effectiveness of the learning material usedfor non-native learners of Indonesian at Elementary level.The research design in this study was research anddevelopment (R&D) model by Borg and Gall (1983: 775).The subjects of the try out were six Darmasiswa students atUNNES BIPA program in the academic year of 2012/2013.They were one student from Japan, one from Poland, twofrom Estonia, one from Czechoslovakia, and one studentfrom the Netherlands.The product developed has been examined in the tryoutsession. Students’ achievement was improved after usingthe product. The improvement of students’ achievement wasabout 20% to 25%. Finally, it can be concluded that theIndonesian textbook developed for non-native learners ofIndonesian at Elementary level is helpful, effective, andappropriate to be used in the Indonesian to speakers of otherlanguages program.Keywords: Material Development, Elementary level,Indonesian textbook, Non-native Learners ofIndonesian