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In distilling a vast literature spanning the rational— irrational divide, this paper offers reflections on why asset bubbles continue to threaten economic stability despite financial markets becoming more informationally-efficient, more complete, and more heavily influenced by sophisticated (i.e. presumably rational) institutional investors. Candidate explanations for bubble persistence—such as limits to learning, frictional limits to arbitrage, and behavioral errors—seem unsatisfactory as they are inconsistent with the aforementioned trends impacting global capital markets. In lieu of the short-term nature of the asset owner—manager relationship, and the momentum bias inherent in financial benchmarks, I argue that the business risk of asset managers acts as strong motivation for institutional herding and ‘rational bubble-riding.’ Two key policy implications follow. First, procyclicality could intensify as institutional assets under management continue to grow. Second, remedial policies should extend beyond the standard suite of macroprudential and monetary measures to include time-invariant policies targeted at the cause (not just symptom) of the problem. Prominent among these should be reforms addressing principal-agent contract design and the implementation of financial benchmarks.
Asset-backed financing. --- Capital assets pricing model. --- Investments. --- United States
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In the aftermath of the global financial crisis, the issue of how best to identify speculative asset bubbles (in real-time) remains in flux. This owes to the difficulty of disentangling irrational investor exuberance from the rational response to lower risk based on price behavior alone. In response, I introduce a two-pillar (price and quantity) approach for financial market surveillance. The intuition is straightforward: while asset pricing models comprise a valuable component of the surveillance toolkit, risk taking behavior, and financial vulnerabilities more generally, can also be reflected in subtler, non-price terms. The framework appears to capture stylized facts of asset booms and busts—some of the largest in history have been associated with below average risk premia (captured by the ‘pricing pillar’) and unusually elevated patterns of issuance, trading volumes, fund flows, and survey-based return projections (reflected in the ‘quantities pillar’). Based on a comparison to past boom-bust episodes, the approach is signaling mounting vulnerabilities in risky U.S. credit markets. Policy makers and regulators should be attune to any further deterioration in issuance quality, and where possible, take steps to ensure the post-crisis financial infrastructure is braced to accommodate a re-pricing in credit risk.
Business. --- Finance. --- Financial crisis. --- United States
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"This book demonstrates the utility of the computer-aided optimal design approach using real industrial examples. These examples address questions such as the following: How can I do screening inexpensively if I have dozens of factors to investigate? What can I do if I have day-to-day variability and I can only perform 3 runs a day? How can I do RSM cost effectively if I have categorical factors? How can I design and analyze experiments when there is a factor that can only be changed a few times over the study? How can I include both ingredients in a mixture and processing factors in the same study? How can I design an experiment if there are many factor combinations that are impossible to run? How can I make sure that a time trend due to warming up of equipment does not affect the conclusions from a study? How can I take into account batch information in when designing experiments involving multiple batches? How can I add runs to a botched experiment to resolve ambiguities?While answering these questions the book also shows how to evaluate and compare designs. This allows researchers to make sensible trade-offs between the cost of experimentation and the amount of information they obtain. The structure of the book is organized around the following chapters: 1) Introduction explaining the concept of tailored DOE. 2) Basics of optimal design. 3) Nine case studies dealing with the above questions using the flow: description → design → analysis → optimization or engineering interpretation. 4) Summary. 5) Technical appendices for the mathematically curious"
Industrial engineering --- Experimental design --- SCIENCE / Experiments & Projects --- 001.891 --- 519.2 --- 519.242 --- 519.242 Experimental design. Optimal designs. Block designs --- Experimental design. Optimal designs. Block designs --- 519.2 Probability. Mathematical statistics --- Probability. Mathematical statistics --- 001.891 Wetenschappelijk onderzoek. Research. Onderzoekmethoden --- Wetenschappelijk onderzoek. Research. Onderzoekmethoden --- Management engineering --- Simplification in industry --- Engineering --- Value analysis (Cost control) --- Design of experiments --- Statistical design --- Mathematical optimization --- Research --- Science --- Statistical decision --- Statistics --- Analysis of means --- Analysis of variance --- Experiments --- Computer-aided design. --- Data processing. --- Methodology --- Mathematical statistics --- Computer-aided design --- Data processing --- Génie industriel --- Plan d'expérience --- Case studies --- Expériences --- Conception assistée par ordinateur --- Informatique --- Cas, Etudes de --- Experiments&delete& --- Industrial engineering - Experiments - Computer-aided design --- Experimental design - Data processing --- Industrial engineering - Case studies --- Science - Experiments --- Experimental design -- Data processing --- Industrial engineering -- Case studies --- Industrial engineering -- Experiments -- Computer-aided design
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The gripping real life account of a soldiers service up through the ranks to lead the "Air Pirates" a battalion of combat experienced soldiers, including his own son, demonstrating how inspired leadership mentors and develops subordinates before, during and after serving in combat.
Leadership. --- Soldiers --- Jones, Bradley P. --- E-books
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