OCTOBER 2, 2009 THE RELATIONSHIP BETWEEN DEFAULT RISK AND INTEREST RATES: AN EMPIRICAL STUDY RESEARCH INSIGHT ABSTRACT Understanding the relationship between credit and interest rate risk is critical to many applications in finance, from valuation of credit and interest rate-sensitive instruments to risk management. This study empirically examines the relationship between interest rates and default risk using firm level corporate default data in the United States between 1982 and 2008. We find significant negative contemporaneous correlations between the changes in short interest rates and aggregate default rates, with a particularly strong relationship around financial crises. We also explore the explanatory power of interest rate variables in predicting default when conditioned on Moody’s KMV EDF™ credit measures. In addition, we study the impact of changes in short rates, expected changes in short rates, interest rate slopes, and unexpected changes in short rates. Conditional on the EDF credit measure, interest rates and default were not found to have any statistically significant correlation. Our findings have a number of important implications for risk measurement and management. AUTHORS Andrew Kaplin Amnon Levy Shisheng Qu Danni Wang Yashan Wang Jing Zhang Copyright © 2009, Moody’s Analytics, Inc. All rights reserved. Credit Monitor, CreditEdge, CreditEdge Plus, CreditMark, DealAnalyzer, EDFCalc, Private Firm Model, Portfolio Preprocessor, GCorr, the Moody’s logo, the Moody’s KMV logo, Moody’s Financial Analyst, Moody’s KMV LossCalc, Moody’s KMV Portfolio Manager, Moody’s Risk Advisor, Moody’s KMV RiskCalc, RiskAnalyst, RiskFrontier, Expected Default Frequency, and EDF are trademarks or registered trademarks owned by MIS Quality Management Corp. and used under license by Moody’s Analytics, Inc. ACKNOWLEDGEMENTS We are grateful to our MKMV Research colleagues for their generous comments. All remaining errors are, of course, our own. Published by: Moody’s KMV Company To contact Moody’s KMV, visit us online at www.moodyskmv.com. You can also contact Moody’s KMV through e-mail at info@mkmv.com, or call us by using the following phone numbers: NORTH AND SOUTH AMERICA, NEW ZEALAND, AND AUSTRALIA: 1 866 321 MKMV (6568) or 415 874 6000 EUROPE, THE MIDDLE EAST, AFRICA, AND INDIA: 44 20 7280 8300 ASIA-PACIFIC: 852 3551 3000 JAPAN: 81 3 5408 4250 TABLE OF CONTENTS THE RELATIONSHIP BETWEEN DEFAULT RISK AND INTEREST RATES: AN EMPIRICAL STUDY 3 1 INTRODUCTION 5 2 LITERATURE REVIEW . 6 3 DATA AND VARIABLE DESCRIPTION 7 4 THE RELATIONSHIP BETWEEN INTEREST RATES AND AGGREGATE DEFAULT RATES 11 4.1 Contemporaneous Correlations . 11 4.2 Corr(Δr, DR) Over Time . 12 5 CONDITIONAL CORRELATION ANALYSIS USING FIRM-LEVEL DATA 12 5.1 Predictive Logistic Regression Model at Firm Level . 12 5.2 Contemporaneous Logistic Regression Model at Firm Level . 13 6 CONCLUSION 14 APPENDIX A SIMULATION PROCEDURE FOR CALCULATING SE( ) . 15 2ˆβ 1 INTRODUCTION Credit and The Tradeoff between Economic Output and Environmental Protection The Tradeoff between Economic Output and Environmental Protection By: OpenStaxCollege The tradeoff between economic output and the environment can be analyzed with a production possibility frontier (PPF) such as the one shown in [link] At one extreme, at a choice like P, a country would be selecting a high level of economic output but very little environmental protection At the other extreme, at a choice like T, a country would be selecting a high level of environmental protection but little economic output According to the graph, an increase in environmental protection involves an opportunity cost of less economic output No matter what their preferences, all societies should wish to avoid choices like M, which are productively inefficient Efficiency requires that the choice should be on the production possibility frontier The Tradeoff between Economic Output and Environmental Protection 1/5 The Tradeoff between Economic Output and Environmental Protection Each society will have to weigh its own values and decide whether it prefers a choice like P with more economic output and less environmental protection, or a choice like T with more environmental protection and less economic output Economists not have a great deal to say about the choice between P, Q, R, S and T in [link], all of which lie along the production possibility frontier Countries with low per capita gross domestic product (GDP), such as China, place a greater emphasis on economic output—which in turn helps to produce nutrition, shelter, health, education, and desirable consumer goods Countries with higher income levels, where a greater share of people have access to the basic necessities of life, may be willing to place a relatively greater emphasis on environmental protection However, economists are united in their belief that an inefficient choice such as M is undesirable Rather than choosing M, a nation could achieve either greater economic output with the same environmental protection, as at point Q, or greater environmental protection with the same level of output, as at point S The problem with commandand-control environmental laws is that they sometimes involve a choice like M Marketoriented environmental tools offer a mechanism either for providing either the same environmental protection at lower cost, or providing a greater degree of environmental protection for the same cost Keystone XL So how would an economist respond to claims of environmental damage caused by the Keystone XL project? Clearly the environmental cost of oil spills would be considered a negative externality, but how many external costs would arise? And are these costs “too high” when measured against any potential for economic benefit? As this chapter indicates, in deciding whether construction of the pipeline is a good idea, an economist would want to know not only about the marginal benefits resulting from the additional pipeline construction, but also the potential marginal costs—and especially the marginal external costs of the pipeline Typically these come in the form of environmental impact statements, which are usually required for these kinds of projects The most recent impact statement, released in March 2013 by the Nebraska Department of State, considered the possibility of fewer miles of pipeline going over the aquifer system and avoiding completely environmentally fragile areas; it indicated that “most resources” would not be harmed by construction of the pipeline As of press time, the Obama Administration has not approved construction of the Keystone XL project While the economic benefits of additional oil in the United States may be fairly easily quantified, the social costs are not It seems that, in a period of economic expansion, people want to err on the side of caution and estimate the marginal costs to be greater than the marginal benefits of additional oil generation Those estimates may change, however, if the price of gasoline continues to rise 2/5 The Tradeoff between Economic Output and Environmental Protection Key Concepts and Summary Depending on their different income levels and political preferences, countries are likely to make different choices about allocative efficiency—that is, the choice between economic output and environmental protection along the production possibility frontier However, all countries should prefer to make a choice that shows productive efficiency—that is, the choice is somewhere on the production possibility frontier rather than inside it Revisit Choice in a World of Scarcity for more on these terms Self-Check Questions A country called Sherwood is very heavily covered with a forest of 50,000 trees There are proposals to clear some of Sherwood’s forest and grow corn, but obtaining this additional economic output will have an environmental cost from reducing the number of trees [link] shows possible combinations of economic output and environmental ...DOI: 10.1002/cphc.201200412Contributions of Various Noncovalent Bonds to theInteraction between an Amide and S-Containing MoleculesUpendra Adhikari and Steve Scheiner*[a]1. IntroductionBecause of its prevalence in proteins, the peptide linkage hasbeen studied extensively, and there is a great deal of informa-tion available about its proclivity toward planarity, its flexibility,and its electronic structure. The peptide group involves itselfin a multitude of H-bonds within proteins, which are largely re-sponsible for a great deal of secondary structure, as in a heli-ces and b sheets. For this reason, a large amount of effort hasbeen expended in elucidating details about the ability of boththe NH and C=O groups of the peptide to engage in H-bonds,not only with other peptide groups but also with some of themore widely occurring amino acid side chains.Whereas many of the polar side chains, for example, Ser, Lys,and His, would of course form H-bonds with the proton-donat-ing and -accepting sites of the ÀCONHÀ peptide group, the sit-uation is less clear for those containing sulfur. The SH group ofCys certainly offers the possibility of an SH···O or SH··N H-bond,but SH is not known as a strong proton donor.[1–3]In the caseof Met, with no SH the only H-bonding opportunity would uti-lize S as proton acceptor, in the capacity of which this atom isagain not very potent. Another option might utilize a CH unitas a proton donor, which previous work has suggested canprovide a fairly strong H-bond under certain circumstances[4–12]including protein models.[13–15]This CH might arise from theCaH element of the protein skeleton[16–18]or from the alkylchains that are part of the S-containing residues.There are options for attractive contacts other than H-bond-ing. As an example, there have been numerous observationsof pairs of carbonyl groups[19]wherein the two groups are ori-ented either perpendicular or parallel to one another, a patternthat was originally attributed to dipolar interactions.[20–22]Thisidea was further elaborated, invoking the concept of anisotro-py of the electrostatic field around the O atom.[23,24]Otherwork[25–27]suggested that the transfer of charge from an O lonepair to a CO p* antibonding orbital was a major contributor aswell.Molecules containing sulfur are also capable of interactionsother than H-bonds. Early analyses of crystal structures[28]re-vealed a tendency of nucleophiles to approach S along an ex-tension of one of its covalent bonds, a pattern that won someinitial support from calculations.[29]Subsequent crystal data-base analyses[30, 31]confirmed this geometric preference withinthe context of both proteins and smaller molecules. Othergroups[32–35]attributed the attraction, at least in part, to chargetransfer from the nucleophilic atom’s lone pair to the anti-bonding orbital of the CÀS bond, although induction and dis-persion can be important as well.[36]Recent research in this lab-oratory[37–41]has amplified and generalized the concept ofcharge transfer from the lone pair of an atom on one moleculeto a s* antibonding orbital on its partner, to a range of atomsthat include P and Cl. The S atom too has been shown to bea prime candidate for accepting this charge into an SÀX anti-bond to form surprisingly strong noncovalent bonds.[42–45]Therange of possibilities for THE RELATIONSHIP BETWEEN CONSUMER ACCEPTABILITY AND DESCRIPTIVE SENSORY ATTRIBUTES IN CHEDDAR CHEESE* E.L. CASPIA 1 , P.C. COGGINS 1,2 , M.W. SCHILLING 1 , Y. YOON 1 and C.H. WHITE 1 1 Department of Food Science, Nutrition and Health Promotion Mississippi State University Mississippi State, MS 39762 Accepted for publication November 8, 2005 ABSTRACT The relationship between the consumer acceptability of Cheddar cheese and its descriptive sensory attributes was determined using preference mapping and logistic regression for three Cheddar cheeses. A trained panel (n = 9) differentiated the cheeses based on taste, aroma and textural attributes. The overall order of consumer preference (P Ͻ 0.05) for the three cheeses was 9, 7 and 12 months of aging time, respectively. The trained panel characterized the 7- and 9-month-old cheeses as having young/undeveloped flavors such as “cooked,” “buttery” and “creamy” flavors, and had volatiles that were responsible for the creamy flavor in cheeses. The 12-month-old cheese was characterized by aged/developed flavors and included volatile compounds responsible for fruity aromas and sulfurous, earthy and free fatty acid flavors. External preference mapping revealed six clusters of consumers with varying Cheddar cheese preferences; 74, 95 and 61% of the consumers found 7-, 9- and 12-month-old cheeses to be acceptable, respectively. INTRODUCTION The demand for dairy products has significantly increased over the past 25 years. World cheese production has steadily increased from 1.18 ¥ 10 10 to 1.34 ¥ 10 10 kg in 1996 and 2004, respectively (US Dairy Export Council * Approved for publication as Journal Article No. J-10789 of the Mississippi Agricultural and Forestry Experiment Station, Mississippi State University, CRIS No. 501070. 2 Corresponding author: TEL: (662) 325-4002; FAX: (662) 325-8728; EMAIL: pcoggins@ ra.msstate.edu Journal of Sensory Studies 21 (2006) 112–127. All Rights Reserved. © 2006, The Author(s) Journal compilation © 2006, Blackwell Publishing 112 2004). Per capita consumption of cheese in the U.S.A. accounted for 13.6 kg in 2003, out of which 4.2 kg consisted of Cheddar cheese (USDA 2004). Consumers have a wide variety of cheese products to choose from, and depending on population segments and regional locations, flavor preferences of consumers also vary. Therefore, understanding the development and varia- tions in taste that occur during the maturation process of Cheddar cheese is an important tool in defining consumers’ expectations of taste. Aroma and texture of Cheddar cheese also change over ripening time, and although taste changes more readily than other sensory attributes, all may be useful in discriminating Cheddar cheese as well as explaining consumer preferences. The heteroge- neous nature of milk predisposes its derived products, such as cheese, to a complex biochemical process in which three major catabolic pathways – glycolysis, lipolysis and proteolysis – are involved (McSweeney and Sousa 2000). As a result, new flavor compounds are produced with each reaction. Flavor variations are also closely linked to the manufacturing process starting Hindawi Publishing Corporation EURASIP Journal on Wireless Communications and Networking Volume 2010, Article ID 726750, 13 pages doi:10.1155/2010/726750 Research Article Analysis of the Tradeoff between Delay and Source Rate in Multiuser Wireless Systems Beatriz Soret, M. Carmen Aguayo Torres, and J. Tom ´ as Entrambasaguas Depar tment of Ingenier ´ ıa de Comunicaciones, Universidad de M ´ alaga, 29071 M ´ alaga, Spain Correspondence should be addressed to Beatriz Soret, bsoret@ic.uma.es Received 25 January 2010; Revised 23 May 2010; Accepted 3 August 2010 Academic Editor: Hyunggon Park Copyright © 2010 Beatriz Soret et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. This work addresses the limits on the information that can be transmitted over the wireless channel under the conditions stated by the MAC layer: a selected scheduling discipline and an ensured level of QoS. Based on the effective bandwidth theory, the joint influence of the channel fading, the data outsourcing process, and the scheduling discipline in the QoS metrics are studied. We obtain a closed-form expression of the vector of attainable users’ rates R u D t ,ε for several scheduling algorithms, representing the maximum constant rate that the uth user can transmit under the selected discipline and fulfilling a target Bit Error Rate (BER) and the delay constraint given by the pair (D t , ε), where D t is the target delay and ε is the probability of exceeding D t . 1. Introduction Providing Quality of Service (QoS) guarantees to different applications is an important issue in the design of next generation of high-speed networks. The QoS metrics of interest are likely to vary from one application to another, but are predicted to include measures such as throughput, Bit Error Rate (BER), and delay. Unlike traditional data com- munication, where system performance is largely measured in terms of the average overall throughput and loss rate, real- time communications may require QoS metrics expressed in terms of the mean delay or its variance (jitter). Traditional networking approaches design separately, the physical and the medium access layer (MAC). Instead, in future wireless networks the physical knowledge of the wireless medium is shared with higher layers on a cross-layer basis [1], an increasingly important topic for the evolving wireless build-out. User multiplexing for QoS guarantees is an active research topic [2] in wireless systems, under different names such as, subcarrier and slot allocation, resource allocation or scheduling. Exploiting both the source diversity and the variations in channel conditions can increase the system throughput. A scheduling scheme ideally should be able not only to handle the uncertainty of the channel but also to exploit it, that is, opportunistically serve users with good channels. Using such an approach leads to a system capacity that increases with the number of users (multiuser diversity) [3]. Many questions regarding the performance of most used opportunistic algorithms are still open. For example, very few works consider the MINISTRY OF EDUCATION AND TRAINING THE UNIVERSITY OF DA NANG PHAN THANG AN STUDY OF RELATION BETWEEN ECONOMIC GROWTH AND INEQUALITY IN THE CENTRAL VIETNAM KEY ECONOMIC REGION Major: Development economics Code: 62.31.01.05 DISSERTATION SUMMARY ECONOMIC Da Nang, 2016 The work was completed in THE UNIVERSITY OF DA NANG Instructor: ASSOC PROF DR BUI QUANG BINH DR NINH THI THU THUY Objection 1: assoc.prof.dr Lê Quốc Hội Objection 2: assoc.prof.dr Đỗ Ngọc Mỹ Objection 3: assoc.prof.dr Đào Hữu Hòa The dissertation defended before the Board dots thesis the university of Da Nang granted on March 20, 2016 Can learn dissertation at: - Materials Information Center – The University of Da Nang - Library of University of Economics – The University of Da Nang INTRODUCTION Urgency of research Income inequality and economic growth are two associate phenomenon in the process of national development, as well as the important content contribute to sustainable development goal Many studies both at home and abroad about this relationship have been done Results are vary depend on economic state, duration and characteristics of the data collected Research on this topic in the Key central Economic Region (VKTTDTB) is not mentioned, this is the gap the research will exploit Therefore, a study within VKTTDTB will allow verification of the results were announced, while pointing out the significant of regional factors, and this will be a new contribution to Economic development According to the decision of the Prime Minister, VKTTDTB include the following province Danang and Hue, Quang Nam, Quang Ngai, Binh Dinh with the same goal to break through, to create a driving force of economic development – within region and country, create opportunity to raise the standard of living of the entire population and rapidly achieve social justice in the country Since VKTTDTB been established, in my ability to research, have not seen any research to assess the relationship between economic growth and income inequality which was illustrated in interactions model, to be the base for policy recommendations related to economic growth and social welfare in VKTTDTB That is the reason for choosing the topic "Study the relationship between economic growth and inequality in the key central economic zone " research thesis Objectives of the study Theoretical framework and methods of assessment; analyses the state of economic development and income inequality, examine the interaction between economic growth and income inequality at VKTTDTB; Recommend some major implications Scope of research Content focused on the relationship between economic growth and income inequality In geography and time aspect, there are provinces and cities in VKTTDTB between 2000 to 2013 Research Methodology This study used a combination of both quantitative and qualitative approach The scientific significance of the thesis 5.1 Contribution to literature and academic: Firstly, the results of this study within VKTTDTB will allow verification of the result in previous literature, while pointing out the significant of specific factors will be the new contributions of the thesis Secondly, strengthen the theory of a causal relationship between economic growth and income inequality Thirdly, enrich the research results, contributing to increase scientific knowledge in this research field Fourthly, this is one of the few studies in Vietnam quantifiable interaction relationship of income inequality and economic growth 5.2 Contributions to practical Firstly, the thorough idea of the thesis is provide comprehensive perspective and correct understanding of the relationship between economic growth and inequality of incomes in development Secondly, assess the situation of inequality in income distribution and economic growth in VKTTDTB with some success but there are still few shortcomings Thirdly, the warning needs to improve social policies to maintain a reasonable level Fourthly, confirmed the need to develop ... 4/5 The Tradeoff between Economic Output and Environmental Protection Review Questions In the tradeoff between economic output and environmental protection, what the combinations on the protection. . .The Tradeoff between Economic Output and Environmental Protection Each society will have to weigh its own values and decide whether it prefers a choice like P with more economic output and. .. however, if the price of gasoline continues to rise 2/5 The Tradeoff between Economic Output and Environmental Protection Key Concepts and Summary Depending on their different income levels and political