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PDF Ebook The Determinants of Default Correlations
Submitted by antoq on Mon, 03/08/2010 - 08:22Corporate defaults exhibit two key characteristics that have profound implications for default risk management. First, default risk is correlated through time. Bankruptcies are normally the end of a process that begins with adverse economic shock and end with financial distress. Although some bankruptcies are unexpected and, therefore, are point events, like Enron and Worldcom, investors become aware of the company’s difficulties some years prior to the bankruptcy event. Second, financial wealth of companies in the same industry, or within the same economic area, is a function of managers’ skills and common factors that introduce correlations.
Companies’ default risk is linked through sector-specific and/or macroeconomic factors. Whilst a great deal of effort has been made by practitioners to measure and explain companies’ default correlations, academics have only recently began to devote attention to this issue. The existing literature on default correlations can be divided into two approaches: the structural approach that models default correlations through companies’ assets values; and the reduced-form approach that models default correlations through default intensities. While financial institutions, namely banks, are aware of these relationships, their ability to model such correlations is still not fully developed. Basle Committee on Banking and Supervision (BCBS 1999, p. 31) states “… the factors affecting the credit worthiness of obligors sometimes behave in a related manner…” which “… requires consideration of the dependencies between the factors determining credit related losses”. Whilst there are many different models and approaches to compute default probabilities, there is no consensus on the importance of different factors that drive default correlations. BCBS (1999) report points out that whilst practitioners have been managing and studying this dependence, there is a lack of theoretical and empirical work on this issue that tests the robustness of the frameworks.
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Ebook Diet, Fruit Choice And Variation In Body Condition Of Frugivorous Warblers In Mediterranean Scrubland
Submitted by puput on Thu, 10/22/2009 - 03:36Most dispersal mutualisms between animals and plants depend on the inclusion of plant propagules (seeds, pollen) as a part of the animal food, and result from the animal feeding on the plant (Janzen 1985). A major constraint on the evolution of a tight mutuatistic relationship between animals that gather food and plants that provide this food is that no single plant part produces an adequately balanced set of nutrients for the consumer and, as a consequence, the animal must build up a diverse diet in terms of both plant species and plant parts. The consequences of these nutritional constraints for the animals involved have been repeatedly documented (e.g. Belowski 1978, Westoby 1978, Bergeron & Jodoin 1984, Karasov 1985), and involve, as a generalization, the need to build up a diverse diet including 'minor' components that might be difficult to obtain. This has consequences for the patterns of habitat use, time budget, digestive physiology or body condition.
Frugivorous birds feeding on fleshy fruits experience nutritional constraints quite similar to those of herbivores feeding on vegetative plant parts (Foster 1978, Moermond & Denslow 1985). The fruit pulp is extremely scarce in protein and, if the amount present is adequate, it is usually imbalanced with other fractions, such as lipids or carbohydrates, resulting an inadequate food even when ingestion rate is not limiting (Foster 1978, Robbins 1983). The need to obtain minor nutrients (minerals, vitamins) and the presence of secondary plant metabolites, acting as digestion inhibitors or poisons, might impose deviations from the predictions derived from energetic models by creating partial preferences (Westoby 1978). Shortage of specific nutrients may result in individual preferences for particular meals, i.e., combinations of food items that better supply the nutritional needs (Rozin & Kalat 1971, Clark 1980). In addition, the seed(s) acts as an indigestible ballast decreasing the profitability of the nutrients within the fruit (Herrera 1981, Levey 1986). Therefore, a short retention time of the ingesta is the most commonly reported characteristic of frugivores. It can be seen as an adaptation to deal with digestive bottlenecks, arising when the caloric demand is fulfilled but the nitrogen or mineral need is not supplemented because food processing is limiting (Sibly 1981).
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PDF Ebook Capitalism with Chinese Characteristics: the Public, the Private and the International
Submitted by antoq on Sat, 08/08/2009 - 01:52This working paper considers the politics of China’s economic transition from socialism. It is not intended to provide a comprehensive account of domestic reform in China – that would take a book in itself - but instead is conceived as providing an understanding of the domestic context of change for those scholars interested in International Political Economy (IPE) who are not familiar with the specifics of the Chinese case. It shows how different interests influenced the emergence of a public-private relationship by focussing on three factors the changing bases of CCP legitimacy, formal policy relating to the socialist nature of the Chinese economy and state, and reform of the financial structure.
It starts from two basic assumptions. First, economic systems and structures do not just emerge on their own but are constructed to serve specific ends. This does not mean that their evolution follows some sort of pre-ordained plan. Often, as is the case with China, the development of the economic system can be dysfunctional in that the system that emerges owes more to the agglomeration of numerous initiatives to interpret and implement economic change to serve particular interests than it does to the plans and strategies of national level decision making elites. Second, and very much related, emerging economic systems in transitional states are politically, historically, socially and culturally embedded – where they came from is a key determinant of where they are going.
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