Risk Sharing with the Monarch

2017 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth
Keyword(s):  
Sovereign Debt ◽  
Risk Sharing ◽  
Cash Flows ◽  
Short Term ◽  
Philip Ii ◽  
Debt Accumulation ◽  
Different Types ◽  
Institutional Solution

This chapter analyzes the role of contingent scenarios and nature of the defaults. Over the last 800 years, many periods of debt accumulation have been followed by default. Despite these disruptions, the market for sovereign debt did not disappear. At least, in the case of asiento lending to Philip II, excusable defaults were an important factor. Studying the loan documents directly, the chapter shows that a significant share of short-term loans contained contingency clauses. It then explores the different types of loan modifications along with their impact on cash flows and loan maturity. These modifications allowed effective risk sharing between king and bankers—an institutional solution that offered many of the desirable properties that contingent debt would have today.

Lending to the Borrower from Hell

2017 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth
Keyword(s):  
United States ◽  
Sixteenth Century ◽  
Sovereign Debt ◽  
Risk Sharing ◽  
The United States ◽  
Philip Ii ◽  
Loan Contracts ◽  
The Right ◽  
Intelligent Model ◽  
New Evidence

Why do lenders time and again loan money to sovereign borrowers who promptly go bankrupt? When can this type of lending work? As the United States and many European nations struggle with mountains of debt, historical precedents can offer valuable insights. This book looks at one famous case—the debts and defaults of Philip II of Spain. Ruling over one of the largest and most powerful empires in history, King Philip defaulted four times. Yet he never lost access to capital markets and could borrow again within a year or two of each default. Exploring the shrewd reasoning of the lenders who continued to offer money, the book analyzes the lessons from this historical example. Using detailed new evidence collected from sixteenth-century archives, the book examines the incentives and returns of lenders. It provides powerful evidence that in the right situations, lenders not only survive despite defaults—they thrive. It also demonstrates that debt markets cope well, despite massive fluctuations in expenditure and revenue, when lending functions like insurance. The book unearths unique sixteenth-century loan contracts that offered highly effective risk sharing between the king and his lenders, with payment obligations reduced in bad times. A fascinating story of finance and empire, this book offers an intelligent model for keeping economies safe in times of sovereign debt crises and defaults.

scholarly journals The Sustainable Debts of Philip II: A Reconstruction of Castile's Fiscal Position, 1566–1596

2010 ◽  
Vol 70 (4) ◽  
pp. 813-842 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth
Keyword(s):  
Sixteenth Century ◽  
Early Modern ◽  
Sovereign Debt ◽  
Archival Data ◽  
Short Term ◽  
Philip Ii ◽  
Debt Crises ◽  
Liquidity Crises

The defaults of Philip II have attained mythical status as the origin of sovereign debt crises. We reassess the fiscal position of Habsburg Castile, deriving comprehensive estimates of revenue, debt, and expenditure from new archival data. The king's debts were sustainable. Primary surpluses were large and rising. Debt-to-revenue ratios remained broadly unchanged during Philip's reign. Castilian finances in the sixteenth century compare favorably with those of other early modern fiscal states at the height of their imperial ambitions, including Britain. The defaults of Philip II therefore reflected short-term liquidity crises, and were not a sign of unsustainable debts.

Short-Term Storage and the Processing of Cohesion during Reading

1986 ◽  
Vol 38 (3) ◽  
pp. 431-460 ◽  
Author(s):  
Beth Fischer ◽  
Murray Glanzer
Keyword(s):  
Distractor Task ◽  
Specific Information ◽  
Short Term ◽  
Efficient Performance ◽  
Different Types ◽  
Short Term Storage ◽  
Thematic Information ◽  
Types Of Information ◽  
Term Storage

Four studies examine the role of short-term storage in the processing of grammatical cohesion devices (reference and conjunction) during reading. They demonstrate that short-term storage carries specific information that resolves reference and conjunction relations demanded by text. They also show that during reading, if short-term storage is unimpaired, these linkages produce smooth, efficient performance. If, however, short-term storage is cleared of its contents with a distractor task, reading is disrupted. The extent of the disruption is determined, in part, by the linkage demands of the text. It is theorized that this occurs because resolution of linkage takes place in short-term storage. Both indirect and direct evidence is also obtained that short-term storage is carrying higher-order thematic information. The first three studies demonstrate that a range of distractor tasks produces the basic results. The fourth study compares the effects of different distractor tasks and permits the specification of different types of information held in short-term storage during reading. A linear model of the process is fitted to the data. It assigns time values to four factors that determine the rate of reading.

Modeling Short-Term Synaptic Depression in Silicon

2003 ◽  
Vol 15 (2) ◽  
pp. 331-348 ◽  
Author(s):  
Malte Boegerhausen ◽  
Pascal Suter ◽  
Shih-Chii Liu
Keyword(s):  
Theoretical Models ◽  
Synaptic Depression ◽  
Resting Potential ◽  
Transient Responses ◽  
Short Term ◽  
Dynamic Synapses ◽  
Different Types ◽  
Recovery Dynamics ◽  
Synaptic Model

We describe a model of short-term synaptic depression that is derived from a circuit implementation. The dynamics of this circuit model is similar to the dynamics of some theoretical models of short-term depression except that the recovery dynamics of the variable describing the depression is nonlinear and it also depends on the presynaptic frequency. The equations describing the steady-state and transient responses of this synaptic model are compared to the experimental results obtained from a fabricated silicon network consisting of leaky integrate-and-fire neurons and different types of short-term dynamic synapses. We also show experimental data demonstrating the possible computational roles of depression. One possible role of a depressing synapse is that the input can quickly bring the neuron up to threshold when the membrane potential is close to the resting potential.

Investment–cash flow sensitivities of restaurant firms

2018 ◽  
Vol 24 (5) ◽  
pp. 560-575 ◽  
Author(s):  
Serin Choi ◽  
Seoki Lee ◽  
Kyuwan Choi ◽  
Kyung-A Sun
Keyword(s):  
Cash Flow ◽  
Risk Sharing ◽  
Investment Decisions ◽  
Cash Flows ◽  
Resource Scarcity ◽  
Restaurant Industry ◽  
Financing Decisions ◽  
Close Relationship ◽  
Cash Flow Sensitivity

Although some theories argued that investment decisions are irrelevant to financing decisions under the assumption of perfect market, investment decisions and capital structure seem interdependent in real-world circumstances. Further, the past literature also suggested a close relationship between internal cash flows and investment decisions, that is, investment–cash flow sensitivity (ICFS), but this issue has not been closely examined in the restaurant setting. Therefore, the current study first proposes to examine ICFS in the context of the restaurant industry. More importantly, this study also examines a moderating role of franchising to better explain ICFS, considering a major role of franchising in the restaurant industry, based on theories of pecking order, resource scarcity, and risk sharing. Findings of the current study deepens the understanding of ICFS via franchising, making meaningful contributions to not only to existing ICFS literature but also restaurant franchising literature.

scholarly journals Predictive value of accruals and the moderating role of company size: Empirical evidence from Jordan

2021 ◽  
Vol 18 (3) ◽  
pp. 142-150
Author(s):  
Mohammad Fawzi Shubita
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Company Size ◽  
Short Term ◽  
Accounts Payable ◽  
Accounting Accruals ◽  
Cash Flow Statement ◽  
The Relationship ◽  
Future Cash Flows

The cash flow statement aids the management to ascertain the profitability and liquidity position of a company. One can understand from the cash flow statement how efficiently the company is paying its obligation in various forms of liability and expense. This study aimed to explore the ability of short-term accounting accruals to predict cash flows. The sample included 77 Jordanian companies listed between 2006–2019. Cash flows were measured by net operating cash flows, and short-term accounting accruals were expressed as: change in account receivable, change in accounts payable, change in inventories, and other accruals. The results demonstrated the ability of short-term accounting accruals to predict future cash flows. The relationship between future cash flows and the short-term accounting accruals was significant, except for its relationship to the change in accounts payable. However, the findings indicate that the size of the company has not moderated the relationship between accounting accruals and operating cash flow. The study recommends using other accounting items besides short-term accounting accruals, to improve their ability to predict future cash flows and use of control variables that can increase the predictive power of the study model, such as financial leverage and company size. AcknowledgmentsI would like to thank Amman Arab University for its great support, and for funding this study.

Potential Uses of Vinegar as a Medicine and Related in vivo Mechanisms

2016 ◽  
Vol 86 (3-4) ◽  
pp. 127-151 ◽  
Author(s):  
Zeshan Ali ◽  
Zhenbin Wang ◽  
Rai Muhammad Amir ◽  
Shoaib Younas ◽  
Asif Wali ◽  
...  
Keyword(s):  
Chemical Structure ◽  
Review Paper ◽  
Heart Diseases ◽  
Folk Medicine ◽  
Active Role ◽  
Current Review ◽  
Different Types ◽  
Positive Effect

While the use of vinegar to fi ght against infections and other crucial conditions dates back to Hippocrates, recent research has found that vinegar consumption has a positive effect on biomarkers for diabetes, cancer, and heart diseases. Different types of vinegar have been used in the world during different time periods. Vinegar is produced by a fermentation process. Foods with a high content of carbohydrates are a good source of vinegar. Review of the results of different studies performed on vinegar components reveals that the daily use of these components has a healthy impact on the physiological and chemical structure of the human body. During the era of Hippocrates, people used vinegar as a medicine to treat wounds, which means that vinegar is one of the ancient foods used as folk medicine. The purpose of the current review paper is to provide a detailed summary of the outcome of previous studies emphasizing the role of vinegar in treatment of different diseases both in acute and chronic conditions, its in vivo mechanism and the active role of different bacteria.

Role of affect in short-term memory for paired associates.

1968 ◽  
Vol 78 (3, Pt.1) ◽  
pp. 494-501 ◽  
Author(s):  
Calvin F. Nodine ◽  
James H. Korn
Keyword(s):  
Short Term Memory ◽  
Short Term ◽  
Term Memory ◽  
Paired Associates

The Diagnosis of Lupus Anticoagulants by the Activated Partial Thromboplastin Time - The Central Role of Phosphatidyl Serine

1984 ◽  
Vol 52 (02) ◽  
pp. 172-175 ◽  
Author(s):  
P R Kelsey ◽  
K J Stevenson ◽  
L Poller
Keyword(s):  
Screening Method ◽  
Coagulation Factors ◽  
Phosphatidyl Serine ◽  
Test System ◽  
Specific Factor ◽  
Marginal Effect ◽  
Constant Composition ◽  
Lupus Anticoagulants ◽  
Different Types

SummaryLiposomes of pure phospholipids were used in a modified APTT test system and the role of phosphatidyl serine (PS) in determining the sensitivity of the test system to the presence of lupus anticoagulants was assessed. Six consecutive patients with lupus anticoagulants and seven haemophiliacs with anticoagulants directed at specific coagulation factors, were studied. Increasing the concentration of phospholipid in the test system markedly reduced the sensitivity to lupus anticoagulants but had marginal effect on the specific factor inhibitors. The same effect was achieved when the content of PS alone was increased in a vehicle liposome of constant composition.The results suggest that the lupus anticoagulants can best be detected by a screening method using an APTT test with a reagent of low PS content. The use of a reagent rich in PS will largely abolish the lupus anticoagulant’s effect on the APTT. An approach using the two different types of reagent may facilitate differentiation of lupus inhibitors from other types of anticoagulant.

The Sustainable Debts of Philip II

2017 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth
Keyword(s):  
Sixteenth Century ◽  
Strong Evidence ◽  
Military Expenditure ◽  
Debt Service ◽  
Fiscal Sustainability ◽  
Short Term ◽  
Systematic Analysis ◽  
Philip Ii ◽  
Long Run

This chapter addresses the sustainability of debt. A systematic analysis based on the International Monetary Fund's (IMF) methodology to evaluate fiscal sustainability shows that Castile was able to service its debts in the long run. While liquidity was scarce during periods of intense warfare, years of relative peace brought large surpluses. The data collected from Castile's annual fiscal accounts produced new yearly series of revenue, military expenditure, short-term debt issues, and short-term debt service. The resulting database spans a full 31-year period—enough to employ modern quantitative techniques. This analysis provides strong evidence that Castile's fiscal position in the second half of the sixteenth century was on a solid footing. The chapter then assesses whether the events that led to major downturns in Castile's financial fortunes could have been anticipated.

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