Approximate solution to a hybrid model with stochastic volatility: a singular-perturbation strategy

We study a hybrid model of Schobel-Zhu-Hull-White-type from a singular-perturbation-analysis perspective. The merit of the paper is twofold: On one hand, we find boundary conditions for the deterministic non-linear degenerate parabolic partial differential equation for the evolution of the stock price. On the other hand, we combine two-scales regular- and singular-perturbation techniques to find an approximate solution to the pricing PDE. The aim is to produce an expression that can be evaluated numerically very fast

Can the Services Sector Be an Engine of Economic Growth for the Philippines?

With the services sector outpacing the Philippines' manufacturing sector in terms of growth and contribution to the country's gross domestic product (GDP) for decades now, is it prudent, as some quarters propose, for the government to "abandon" the manufacturing sector and shift its policy in support of the services sector as the engine of economic growth for the Philippines? This Policy Notes emphatically says "no" and highlights the arguments against such policy shift.services sector, manufacturing sector, deindustrialization

An Investigation of the Effects of Categorization and Discrimination Training on Auditory Perceptual Space

Psychophysical phenomena such as categorical perception and the perceptual magnet effect indicate that our auditory perceptual spaces are warped for some stimuli. This paper investigates the effects of two different kinds of training on auditory perceptual space. It is first shown that categorization training, in which subjects learn to identify stimuli within a particular frequency range as members of the same category, can lead to a decrease in sensitivity to stimuli in that category. This phenomenon is an example of acquired similarity and apparently has not been previously demonstrated for a category-relevant dimension. Discrimination training with the same set of stimuli was shown to have the opposite effect: subjects became more sensitive to differences in the stimuli presented during training. Further experiments investigated some of the conditions that are necessary to generate the acquired similarity found in the first experiment. The results of these experiments are used to evaluate two neural network models of the perceptual magnet effect. These models, in combination with our experimental results, are used to generate an experimentally testable hypothesis concerning changes in the brain's auditory maps under different training conditions.Alfred P. Sloan Foundation and the National institutes of Deafness and other Communication Disorders (R29 02852); Air Force Office of Scientific Research (F49620-98-1-0108

On the comparative cutting performance of nature inspired structured cutting tool in dry cutting of AISI/SAE 4140

In this study, femtosecond laser was used to create micro-structures on the flank face of a cutting tool. For the first time, a nature-inspired design (shape) of structure was created and explored. The inspiration for the nature-inspired design was the ball python (snake). This is because these creatures have high resistance to damage, originating from skin surface design feature. This was the main reason in replicating its scale design on cutting tool surface. Orthogonal cutting test was performed on AISI/SAE 4140 at the cutting speeds of 283 and 628 m/min and a feed of 0.1 mm/rev to study the effects of structure shapes. Results showed that nature-inspired design structures significantly reduced forces, temperature, compression ratio, contact length and power consumption. Characterisation of sticking and sliding contact was also made.</p

Acceptance conditions in automated negotiation

In every negotiation with a deadline, one of the negotiating parties has to accept an offer to avoid a break off. A break off is usually an undesirable outcome for both parties, therefore it is important that a negotiator employs a proficient mechanism to decide under which conditions to accept. When designing such conditions one is faced with the acceptance dilemma: accepting the current offer may be suboptimal, as better offers may still be presented. On the other hand, accepting too late may prevent an agreement from being reached, resulting in a break off with no gain for either party. Motivated by the challenges of bilateral negotiations between automated agents and by the results and insights of the automated negotiating agents competition (ANAC), we classify and compare state-of-the-art generic acceptance conditions. We focus on decoupled acceptance conditions, i.e. conditions that do not depend on the bidding strategy that is used. We performed extensive experiments to compare the performance of acceptance conditions in combination with a broad range of bidding strategies and negotiation domains. Furthermore we propose new acceptance conditions and we demonstrate that they outperform the other conditions that we study. In particular, it is shown that they outperform the standard acceptance condition of comparing the current offer with the offer the agent is ready to send out. We also provide insight in to why some conditions work better than others and investigate correlations between the properties of the negotiation environment and the efficacy of acceptance condition

Coalbed methane producibility from the Mannville coals in Alberta, Canada: A comparison of two areas

International audienceThe Mannville coals in the Fenn area, Alberta Plains, have desorbed gas content averaging 8.57 cm3/g (275 scf/t), which is similar to the same coals in the Corbett Creek area, almost 400 km away. Vitrinite reflectance values are also similar, although the coals at Corbett Creek are situated about 300 m shallower, which points to a rank excursion from Hilt's burial law curves at Corbett Creek. Coals from both areas are within the “oil window”. The Medicine River Seam in the Fenn area has higher total inertinite content and greater proportions of inertodetrinite and detrovitrinite, suggesting that peat deposition occurred in swamps and marshes and were prone to periodic flooding. At Corbett Creek, the Mannville coal seams are characterized by greater concentrations of telo-inertinite, which contributes to coal meso-porosity and the potential for free gas storage in the open cell lumens, and to an increased gas flow along lithotype boundaries (horizontal permeability). Non-fluorescing vitrinite was present mostly in the upper Medicine River Seam, which was deposited in a regressive environment. The lower Medicine River Seam, which formed during a marine transgressive phase, contained greater amounts of fluorescing vitrinite. The Mannville coals in the Fenn area are moderately under-pressured in relation to those at Corbett Creek, which may have an impact on gas retention capacity. The difference in absolute coal permeability (1-3.5 mD at Fenn versus 3-4 mD at Corbett Creek), which is likely the result of higher in-situ stresses in the deeper Mannville coals at Fenn, has had an effect on both gas and water production rates from these coals. However, the largest impact on gas production volumes has been made by the application of horizontal drilling technology, initially at Fenn, and more recently by multiple horizontal wells drilled at Corbett Creek

Achieving the ASEAN Economic Community 2015: Challenges for the Philippines

ASEAN member countries are moving toward achieving the ASEAN Economic Community (AEC) with the timeline set at 2015. It is therefore important for policymakers in the region to sustain the momentum - or perhaps even accelerate the pace - toward establishing the AEC. Policy measures are being implemented based on the AEC Blueprint agreed upon in 2007. However, progress among the ASEAN member countries in meeting their commitments has been uneven. This paper reviews the progress of the Philippines in meeting its commitments on the AEC and comparing it with achievements of other ASEAN countries. The paper also discusses some of the problems and constraints that may prevent the Philippines from benefiting from the AEC