How deep is your model? Network topology selection from a model validation perspective

Deep learning is a powerful tool, which is becoming increasingly popular in financial modeling. However, model validation requirements such as SR 11-7 pose a significant obstacle to the deployment of neural networks in a bank’s production system. Their typically high number of (hyper-)parameters poses a particular challenge to model selection, benchmarking and documentation. We present a simple grid based method together with an open source implementation and show how this pragmatically satisfies model validation requirements. We illustrate the method by learning the option pricing formula in the Black–Scholes and the Heston model.

Analysis of Some Essential Aspects Related to the Navigation Conditions on the Danube River

The European Union has emphasized the creation of an appropriate framework to optimize the internal market and inland transport waterways, and remove barriers to their wider use. Administrative barriers in the logistics of goods on the Danube waterway and its navigable tributaries constitute a significant obstacle to the efficient and sustainable use of the Danube as the region’s central transport hub. The approach proposed in this paper was designed to identify and analyze the relationship between the main variables leading to problematic inland waterway traffic, in this case, on the Danube, and the measures taken by the European Commission to improve it. In terms of the applied research method, “Quality Function Deployment” (QFD), we assign global (overall) and local priority degrees. The proposed framework for adapting QFD as a tool for improving quality and, therefore, performance, aims to identify and prioritize directions for this improvement. The House of Quality (HOQ) is the tool that links areas for improvement to technical requirements. The disclosure of these connections helps identify and prioritize the technical features that will generate the most significant improvements.

Complex Biomineralization Pathways of the Belemnite Rostrum Cause Biased Paleotemperature Estimates

Paleotemperatures based on δ18O values derived from belemnites are usually “too cold” compared to other archives and paleoclimate models. This temperature bias represents a significant obstacle in paleoceanographic research. Here we show geochemical evidence that belemnite calcite fibers are composed of two distinct low-Mg calcite phases (CP1, CP2). Phase-specific in situ measurement of δ18O values revealed a systematic offset of up to 2‰ (~8 °C), showing a lead–lag signal between both phases in analyses spaced less than 25 µm apart and a total fluctuation of 3.9‰ (~16 °C) within a 2 cm × 2 cm portion of a Megateuthis (Middle Jurassic) rostrum. We explain this geochemical offset and the lead–lag signal for both phases by the complex biomineralization of the belemnite rostrum. The biologically controlled formation of CP1 is approximating isotope fractionation conditions with ambient seawater to be used for temperature calculation. In contrast, CP2 indicates characteristic non-isotope equilibrium with ambient seawater due to its formation via an amorphous Ca-Mg carbonate precursor at high solid-to-liquid ratio, i.e., limited amounts of water were available during its transformation to calcite, thus suggesting lower formation temperatures. CP2 occludes syn vivo the primary pore space left after formation of CP1. Our findings support paleobiological interpretations of belemnites as shelf-dwelling, pelagic predators and call for a reassessment of paleoceanographic reconstructions based on belemnite stable isotope data.

Activity of terpenes derived from essential oils against Sarcoptes scabiei eggs

Background The limited ovicidal activity of currently available acaricides is a significant obstacle to efficacious scabies treatment. Several essential oils or their respective components have proved to be active against the eggs of arthropods, mainly lice and ticks. Information on the activity of these oils and/or components against the eggs of mites remains very limited. The aim of this study was to assess the activity of six terpenes (carvacrol, eugenol, geraniol, citral, terpinen-4-ol and linalool) commonly found in essential oils against the eggs of Sarcoptes scabiei. Methods Sarcoptes eggs were exposed to paraffin oil containing 1, 2.5, or 5% of each terpene tested. After a 12-h exposure period, the eggs were washed and placed in paraffin oil for hatching. Embryonic development following treatment was assessed every day to determine the stage of developmental arrest. Results The median effective concentration to obtain 50% egg mortality (EC50) was 0.5, 0.9, 2.0, 4.8, 5.1 and 9.8% for carvacrol, eugenol, geraniol, citral, terpinen-4-ol and linalool, respectively. The microscopic images of eggs after each treatment indicated that these six terpenes may act by penetrating through the aeropyles on the egg surface. Conclusions In conclusion, carvacrol, eugenol and geraniol possess significant ovicidal activities, which should be considered as promising ovicidal agents for the treatment of scabies. Graphical Abstract

THE MECHANISM OF FORMATION OF THE ENTREPRENEURIAL CLIMATE IN AN INDUSTRIALLY DEVELOPED REGION

A significant obstacle to the formation and development of small enterprises is the issues of production and technological and innovation-technological support of small enterprises at all stages of their life cycle. With limited resources, the solution of this issue is possible only if the potential available at the regional and municipal levels is used to the maximum. The author introduces the concept of "strategic entrepreneurial potential" into scientific circulation.

Sharing Our Concepts with Machines

As AI systems become increasingly competent language users, it is an apt moment to consider what it would take for machines to understand human languages. This paper considers whether either language models such as GPT-3 or chatbots might be able to understand language, focusing on the question of whether they could possess the relevant concepts. A significant obstacle is that systems of both kinds interact with the world only through text, and thus seem ill-suited to understanding utterances concerning the concrete objects and properties which human language often describes. Language models cannot understand human languages because they perform only linguistic tasks, and therefore cannot represent such objects and properties. However, chatbots may perform tasks concerning the non-linguistic world, so they are better candidates for understanding. Chatbots can also possess the concepts necessary to understand human languages, despite their lack of perceptual contact with the world, due to the language-mediated concept-sharing described by social externalism about mental content.

The Harmonisation of Transfer Pricing: the Obstacles, the Arm's Length Principle and the OECD Guidelines

<p>This essay argues that the complete harmonisation of transfer pricing rules with the arm’s length principle is unattainable for three reasons. First, states are not under a legal obligation to apply the principle outside of treaty or domestic law. Second, the theoretical shortcomings of the principle are creating a divergence from the OECD guidelines on how the principle should be applied. Third, the perception held by states that multinational enterprises are not paying a fair share of tax is also creating a divergence from the OECD guidelines on the principle. The resultant divergence is a significant obstacle to transfer pricing harmonisation.</p>

The Harmonisation of Transfer Pricing: the Obstacles, the Arm's Length Principle and the OECD Guidelines

<p>This essay argues that the complete harmonisation of transfer pricing rules with the arm’s length principle is unattainable for three reasons. First, states are not under a legal obligation to apply the principle outside of treaty or domestic law. Second, the theoretical shortcomings of the principle are creating a divergence from the OECD guidelines on how the principle should be applied. Third, the perception held by states that multinational enterprises are not paying a fair share of tax is also creating a divergence from the OECD guidelines on the principle. The resultant divergence is a significant obstacle to transfer pricing harmonisation.</p>

Problems of Legal Regulation of the Implementation of Fixed Assets of Legal Entities, Serving Sentences as an Incentive for Law-abiding Behavior of Those Sentenced to Imprisonment, Respect for Individual Rights

The aim of the work is to study criminal-executive relations in the field of application of the basic means of correction to convicts serving a sentence of imprisonment. The analysis of the legal basis for the implementation of fixed assets for the correction of convicts established by the criminal executive legislation of Russia is carried out. There is a deficiency in the legal regulation of certain remedies, including social impact and educational work with prisoners. This circumstance is a significant obstacle to their implementation in practice, which negatively affects the formation of law-abiding behavior of persons serving a prison sentence, as well as the observance of rights. A number of recommendations are made, aimed at improving the criminal-executive policy in this area, including on the basis of the analysis of the legal support of remedies for convicted countries of the Commonwealth of Independent States convicted under the law

Landmines: The Local Effects of Demining

Demining campaigns are key to remove anti-personnel landmines, one of the main causes of civilian victimization in conflict-affected areas and a significant obstacle for post-war reconstruction and long-term development. We argue that the documented positive economic effects of mines' clearance campaigns are likely not the case if demining operations take place while conflicts are ongoing or if they are only partial. Using highly disaggregated data on demining operations in Colombia from 2004 to 2019 and exploiting the staggered fashion of demining, we find that only post-conflict humanitarian demining generates economic growth (measured with nighttime light density) and increases students' performance in test scores. In contrast, economic activity does not react to post-conflict demining events carried out during military operations, and it decreases if demining takes place while the conflict is ongoing. Rather, those types of demining are more likely to exacerbate extractive activities that do not manifest in higher economic growth but increase deforestation instead.