Tim Button explores the relationship between words and world; between semantics and scepticism. -/- A certain kind of philosopher – the external realist – worries that appearances might be radically deceptive. For example, she allows that we might all be brains in vats, stimulated by an infernal machine. But anyone who entertains the possibility of radical deception must also entertain a further worry: that all of our thoughts are totally contentless. That worry is just incoherent. -/- We cannot, then, (...) be external realists, who worry about the possibility of radical deception. Equally, however, we cannot be internal realists, who reject all possibility of deception. We must position ourselves somewhere between internal realism and external realism, but we cannot hope to say exactly where. We must be realists, for what that is worth, and realists within limits. -/- In establishing these claims, The Limits of Realism critically explores and develops several themes from Hilary Putnam’s work: the model-theoretic arguments; the connection between truth and justification; the brain-in-vat argument; semantic externalism; and conceptual relativity. The book establishes the continued significance of these topics for all philosophers interested in mind, logic, language, or the possibility of metaphysics. (shrink)

In 1907–8, Russell and Stout presented an objection against James and Schiller, to which both James and Schiller replied. In this paper, I shall revisit their transatlantic exchange. Doing so will yield a better understanding of Schiller’s relationship to a worryingly solipsistic brand of phenomenalism. It will also allow us to appreciate a crucial difference between Schiller and James; a difference which James explicitly downplayed.

Universals are putative objects like wisdom, morality, redness, etc. Although we believe in properties (which, we argue, are not a kind of object), we do not believe in universals. However, a number of ordinary, natural language constructions seem to commit us to their existence. In this paper, we provide a fictionalist theory of universals, which allows us to speak as if universals existed, whilst denying that any really do.

Standard Type Theory, STT, tells us that b^n(a^m) is well-formed iff n=m+1. However, Linnebo and Rayo have advocated the use of Cumulative Type Theory, CTT, has more relaxed type-restrictions: according to CTT, b^β(a^α) is well-formed iff β > α. In this paper, we set ourselves against CTT. We begin our case by arguing against Linnebo and Rayo’s claim that CTT sheds new philosophical light on set theory. We then argue that, while CTT ’s type-restrictions are unjustifiable, the type-restrictions imposed by (...) STT are justified by a Fregean semantics. What is more, this Fregean semantics provides us with a principled way to resist Linnebo and Rayo’s Semantic Argument for CTT. We end by examining an alternative approach to cumulative types due to Florio and Jones; we argue that their theory is best seen as a misleadingly formulated version of STT. (shrink)

Hilary Putnam once suggested that “the actual existence of sets as ‘intangible objects’ suffers… from a generalization of a problem first pointed out by Paul Benacerraf… are sets a kind of function or are functions a sort of set?” Sadly, he did not elaborate; my aim, here, is to do so on his behalf. There are well-known methods for treating sets as functions and functions as sets. But these do not raise any obvious philosophical or foundational puzzles. For that, we (...) first need to provide a full-fledged function theory. I supply such a theory: it axiomatizes the iterative notion of function in exactly the same sense that ZF axiomatizes the iterative notion of set. Indeed, this function theory is synonymous with ZF. It might seem that set theory and function theory present us with rival foundations for mathematics, since they postulate different ontologies. But appearances are deceptive. Set theory and function theory provide the very same judicial foundation for mathematics. They do not supply rival metaphysical foundations; indeed, if they supply metaphysical foundations at all, then they supply the very same metaphysical foundations. (shrink)

In “Models and Reality” (1980), Putnam sketched a version of his internal realism as it might arise in the philosophy of mathematics. Here, I will develop that sketch. By combining Putnam’s model-theoretic arguments with Dummett’s reflections on Gödelian incompleteness, we arrive at (what I call) the Skolem-Gödel Antinomy. In brief: our mathematical concepts are perfectly precise; however, these perfectly precise mathematical concepts are manifested and acquired via a formal theory, which is understood in terms of a computable system of proof, (...) and hence is incomplete. Whilst this might initially seem strange, I show how internal categoricity results for arithmetic and set theory allow us to face up to this Antinomy. This also allows us to understand why “Models are not lost noumenal waifs looking for someone to name them,” but “constructions within our theory itself,” with “names from birth.”. (shrink)

Hilary Putnam’s BIV argument first occurred to him when ‘thinking about a theorem in modern logic, the “Skolem–Löwenheim Theorem”’ (Putnam 1981: 7). One of my aims in this paper is to explore the connection between the argument and the Theorem. But I also want to draw some further connections. In particular, I think that Putnam’s BIV argument provides us with an impressively versatile template for dealing with sceptical challenges. Indeed, this template allows us to unify some of Putnam’s most enduring (...) contributions to the realism/antirealism debate: his discussions of brains-in-vats, of Skolem’s Paradox, and of permutations. In all three cases, we have an argument which does not merely defeat the sceptic; it also shows us that we must reject some prima facie plausible philosophical picture. (shrink)

Amie Thomasson and Eli Hirsch have both attempted to deflate metaphysics, by combining Carnapian ideas with an appeal to ordinary language. My main aim in this paper is to critique such deflationary appeals to ordinary language. Focussing on Thomasson, I draw two very general conclusions. First: ordinary language is a wildly complicated phenomenon. Its implicit ontological commitments can only be tackled by invoking a context principle; but this will mean that ordinary language ontology is not a trivial enterprise. Second: ordinary (...) language often points in different directions simultaneously, so that a wide variety of existence questions cannot be deflated merely by appealing to ordinary language. (shrink)

We offer two arguments against the halving repose to Sleeping Beauty. First, we show that halving violates the Epistemological Sure-Thing Principle, which we argue is a necessary constraint on any reasonable probability assignment. The constraint is that if hypothetically on C you assign to A the same probability you assign to A hypothetical on not-C, you must assign that probability to A simpliciter. Epistemically, it's a sure thing for you that A has this probability. Second, we show that halving violates (...) solid statistical reasoning (or draws absurdly irrelevant distinctions). (shrink)

The following bare-bones story introduces the idea of a cumulative hierarchy of pure sets: 'Sets are arranged in stages. Every set is found at some stage. At any stage S: for any sets found before S, we find a set whose members are exactly those sets. We find nothing else at S.' Surprisingly, this story already guarantees that the sets are arranged in well-ordered levels, and suffices for quasi-categoricity. I show this by presenting Level Theory, a simplification of set theories (...) due to Scott, Montague, Derrick, and Potter. (shrink)

No-futurists ('growing block theorists') hold that that the past and the present are real, but that the future is not. The present moment is therefore privileged: it is the last moment of time. Craig Bourne (2002) and David Braddon-Mitchell (2004) have argued that this position is unmotivated, since the privilege of presentness comes apart from the indexicality of 'this moment'. I respond that no-futurists should treat 'x is real-as-of y' as a nonsymmetric relation. Then different moments are real-as-of different times. (...) This reunites privilege with indexicality, but entails that no-futurists must believe in ineliminably tensed facts. (shrink)

This article surveys recent literature by Parsons, McGee, Shapiro and others on the significance of categoricity arguments in the philosophy of mathematics. After discussing whether categoricity arguments are sufficient to secure reference to mathematical structures up to isomorphism, we assess what exactly is achieved by recent ‘internal’ renditions of the famous categoricity arguments for arithmetic and set theory.

Keränen (2001) raises an argument against realistic (ante rem) structuralism: where a mathematical structure has a non-trivial automorphism, distinct indiscernible positions within the structure cannot be shown to be non-identical using only the properties and relations of that structure. Ladyman (2005) responds by allowing our identity criterion to include 'irreflexive two-place relations'. I note that this does not solve the problem for structures with indistinguishable positions, i.e. positions that have all the same properties as each other and exactly the same (...) relations to all objects (including themselves). I conclude that realistic structuralists must compromise and treat some structures eliminativistically. (shrink)

Tallant (2007) has challenged my recent defence of no-futurism (Button 2006), but he does not discuss the key to that defence: that no-futurism's primitive relation 'x is real-as-of y' is not symmetric. I therefore answer Tallant's challenge in the same way as I originally defended no-futurism. I also clarify no-futurism by rejecting a common mis-characterisation of the growing-block theorist. By supplying a semantics for no-futurists, I demonstrate that no-futurism faces no sceptical challenges. I conclude by considering the problem of (...) how to interpret the relation 'x is real-as-of y'. -/- (NB: A correction to this article appears in Analysis 68.1.). (shrink)

Consider a variant of the usual story about the iterative conception of sets. As usual, at every stage, you find all the (bland) sets of objects which you found earlier. But you also find the result of tapping any earlier-found object with any magic wand (from a given stock of magic wands). -/- By varying the number and behaviour of the wands, we can flesh out this idea in many different ways. This paper's main Theorem is that any loosely constructive (...) way of fleshing out this idea is synonymous with a ZF-like theory. -/- This Theorem has rich applications; it realizes John Conway's (1976) Mathematicians' Liberation Movement; and it connects with a lovely idea due to Alonzo Church (1974). (shrink)

Recent work on hypercomputation has raised new objections against the Church–Turing Thesis. In this paper, I focus on the challenge posed by a particular kind of hypercomputer, namely, SAD computers. I first consider deterministic and probabilistic barriers to the physical possibility of SAD computation. These suggest several ways to defend a Physical version of the Church–Turing Thesis. I then argue against Hogarth's analogy between non-Turing computability and non-Euclidean geometry, showing that it is a non-sequitur. I conclude that the Effective version (...) of the Church–Turing Thesis is unaffected by SAD computation. (shrink)

Prior’s Tonk is a famously horrible connective. It is defined by its inference rules. My aim in this article is to compare Tonk with some hitherto unnoticed nasty connectives, which are defined in semantic terms. I first use many-valued truth-tables for classical sentential logic to define a nasty connective, Knot. I then argue that we should refuse to add Knot to our language. And I show that this reverses the standard dialectic surrounding Tonk, and yields a novel solution to the (...) problem of many-valued truth-tables for classical sentential logic. I close by outlining the technicalities surrounding nasty connectives on many-valued truth-tables. (shrink)

This paper develops my (BJPS 2009) criticisms of the philosophical significance of a certain sort of infinitary computational process, a hyperloop. I start by considering whether hyperloops suggest that "effectively computable" is vague (in some sense). I then consider and criticise two arguments by Hogarth, who maintains that hyperloops undermine the very idea of effective computability. I conclude that hyperloops, on their own, cannot threaten the notion of an effective procedure.

Can we quantify over everything: absolutely, positively, definitely, totally, every thing? Some philosophers have claimed that we must be able to do so, since the doctrine that we cannot is self-stultifying. But this treats restrictivism as a positive doctrine. Restrictivism is much better viewed as a kind of militant quietism, which I call dadaism. Dadaists advance a hostile challenge, with the aim of silencing everyone who holds a positive position about ‘absolute generality’.

On a very natural conception of sets, every set has an absolute complement. The ordinary cumulative hierarchy dismisses this idea outright. But we can rectify this, whilst retaining classical logic. Indeed, we can develop a boolean algebra of sets arranged in well-ordered levels. I show this by presenting Boolean Level Theory, which fuses ordinary Level Theory (from Part 1) with ideas due to Thomas Forster, Alonzo Church, and Urs Oswald. BLT neatly implement Conway’s games and surreal numbers; and a natural (...) extension of BLT is definitionally equivalent with ZF. (shrink)

Putnam famously attempted to use model theory to draw metaphysical conclusions. His Skolemisation argument sought to show metaphysical realists that their favourite theories have countable models. His permutation argument sought to show that they have permuted models. His constructivisation argument sought to show that any empirical evidence is compatible with the Axiom of Constructibility. Here, I examine the metamathematics of all three model-theoretic arguments, and I argue against Bays (2001, 2007) that Putnam is largely immune to metamathematical challenges.

Minimalists, such as Paul Horwich, claim that the notions of truth, reference and satisfaction are exhausted by some very simple schemes. Unfortunately, there are subtle difficulties with treating these as schemes, in the ordinary sense. So instead, minimalists regard them as illustrating one-place functions, into which we can input propositions (when considering truth) or propositional constituents (when considering reference and satisfaction). However, Bertrand Russell's Gray's Elegy argument teaches us some important lessons about propositions and propositional constituents. When applied to minimalism, (...) these lessons show us why we should abandon it. (shrink)

There are several relations which may fall short of genuine identity, but which behave like identity in important respects. Such grades of discrimination have recently been the subject of much philosophical and technical discussion. This paper aims to complete their technical investigation. Grades of indiscernibility are defined in terms of satisfaction of certain first-order formulas. Grades of symmetry are defined in terms of symmetries on a structure. Both of these families of grades of discrimination have been studied in some detail. (...) However, this paper also introduces grades of relativity, defined in terms of relativeness correspondences. This paper explores the relationships between all the grades of discrimination, exhaustively answering several natural questions that have so far received only partial answers. It also establishes which grades can be captured in terms of satisfaction of object-language formulas and draws connections with definability theory. (shrink)

Wittgenstein’s atomist picture, as embodied in his Tractatus, is initially very appealing. However, it faces the famous colour-exclusion problem. In this paper, I shall explain when the atomist picture can be defended in the face of that problem; and, in the light of this, why the atomist picture should be rejected. I outline the atomist picture in Section 1. In Section 2, I present a very simple necessary and sufficient condition for the tenability of the atomist picture. The condition is: (...) logical space is a power of two. In Sections 3 and 4, I outline the colour-exclusion problem, and then show how the cardinality-condition supplies a response to exclusion problems. In Section 5, I explain how this amounts to a distillation of a proposal due to Moss, which goes back to Carruthers. And in Section 6, I show how all this vindicates Wittgenstein’s ultimate rejection of the atomist picture. The brief reason is that we have no guarantee that there are any solutions to a given exclusion problem but, if there are any, then there are far too many. (shrink)

It is a metaphysical orthodoxy that interesting non-symmetric relations cannot be reduced to symmetric ones. This orthodoxy is wrong. I show this by exploring the expressive power of symmetric theories, i.e. theories which use only symmetric predicates. Such theories are powerful enough to raise the possibility of Pythagrapheanism, i.e. the possibility that the world is just a vast, unlabelled, undirected graph.

Potentialists think that the concept of set is importantly modal. Using tensed language as an heuristic, the following bar-bones story introduces the idea of a potential hierarchy of sets: 'Always: for any sets that existed, there is a set whose members are exactly those sets; there are no other sets.' Surprisingly, this story already guarantees well-foundedness and persistence. Moreover, if we assume that time is linear, the ensuing modal set theory is almost definitionally equivalent with non-modal set theories; specifically, with (...) Level Theory, as developed in Part 1. (shrink)

In the early-to-mid 1930s, Wittgenstein investigated solipsism via the philosophy of language. In this paper, I want to reopen Wittgenstein's ‘grammatical’ examination of solipsism.Wittgenstein begins by considering the thesis that only I can feel my pains. Whilst this thesis may tempt us towards solipsism, Wittgenstein points out that this temptation rests on a grammatical confusion concerning the phrase ‘my pains’. In Section 1, I unpack and vindicate his thinking. After discussing ‘my pains’, Wittgenstein makes his now famous suggestion that the (...) word ‘I’ has two distinct uses: a subject-use and an object-use. The purpose of Wittgenstein's suggestion has, however, been widely misunderstood. I unpack it in Section 2, explaining how the subject-use connects with a phenomenological language, and so again tempts us into solipsism. In Sections 3–4, I consider various stages of Wittgenstein's engagement with this kind of solipsism, culminating in a rejection of solipsism via reflections on private languages. (shrink)

Whatever the attractions of Tolkein's world, irrealists about fictions do not believe literally that Bilbo Baggins is a hobbit. Instead, irrealists believe that, according to The Lord of the Rings {Bilbo is a hobbit}. But when irrealists want to say something like “I am taller than Bilbo”, there is nowhere good for them to insert the operator “according to The Lord of the Rings”. This is an instance of the operator problem. In this paper, I outline and criticise Sainsbury's (2006) (...) spotty scope approach to the operator problem. Sainsbury treats the problem as syntactic, but the problem is ultimately metaphysical. (shrink)

forall x: Calgary is a full-featured textbook on formal logic. It covers key notions of logic such as consequence and validity of arguments, the syntax of truth-functional propositional logic TFL and truth-table semantics, the syntax of first-order (predicate) logic FOL with identity (first-order interpretations), symbolizing English in TFL and FOL, and Fitch-style natural deduction proof systems for both TFL and FOL. It also deals with some advanced topics such as modal logic, soundness, and functional completeness. Exercises with solutions are available. (...) It is provided in PDF (for screen reading, printing, and a special version for dyslexics), HTML, and in LaTeX source code. (shrink)

Hilary Putnam’s Realism with a Human Face began with a quotation from Rilke, exhorting us to ‘try to love the questions themselves like locked rooms and like books that are written in a very foreign tongue’. Putnam followed this advice throughout his life. His love for the questions permanently changed how we understand them. In Naturalism, Realism, and Normativity – published only a few weeks after his death – Putnam continued to explore central questions concerning realism and perception, from the (...) perspective of ‘liberal naturalism’. The volume’s thirteen papers were written over the past fifteen years (only one paper is new), and they show a man who fully inhabited the questions he loved. And the main significance of this book is that it shows – implicitly, but very clearly – quite how much of Putnam’s contribution to his philosophy is continuous with his ‘The Meaning of “Meaning”’. (shrink)

Ontology after Carnap focusses on metaontology in the light of recent interest in Carnap’s ‘Empiricism, Semantics and Ontology’. That paper is at the centre of things, as it is where Carnap formulates his internal/external dichotomy. If you haven’t already encountered the dichotomy, then neither Ontology after Carnap, nor this review, is for you. My aim in this review is to try to tease out some of the book’s themes, thereby giving some sense of contemporary neo-Carnapianism.

In The American Pragmatists (2013), Cheryl Misak casts Peirce and Lewis as the heroes of American pragmatism. She establishes an impressive continuity between pragmatism and both logical empiricism and contemporary analytic philosophy. However, in casting James and Dewey as the villains of American pragmatism, she underplays the pragmatists' interest in action.

Putnam’s most famous contribution to mathematical logic was his role in investigating Hilbert’s Tenth Problem; Putnam is the ‘P’ in the MRDP Theorem. This volume, though, focusses mostly on Putnam’s work on the philosophy of logic and mathematics. It is a somewhat bumpy ride. Of the twelve papers, two scarcely mention Putnam. Three others focus primarily on Putnam’s ‘Mathematics without foundations’ (1967), but with no interplay between them. The remaining seven papers apparently tackle unrelated themes. Some of this disjointedness would (...) doubtless have been addressed, if Putnam had been able to compose his replies to these papers; sadly, he died before this was possible. In this review, I do my best to tease out some connections between the paper; and there are some really interesting connections to be made. (shrink)

In Truth by Analysis (2012), Colin McGinn aims to breathe new life into conceptual analysis. Sadly, he fails to defend conceptual analysis, either in principle or by example.

Livro-texto de introdução à lógica, com (mais do que) pitadas de filosofia da lógica, produzido como uma versão revista e ampliada do livro Forallx: Calgary. Trata-se da versão de 13 de outubro de 2022. Comentários, críticas, correções e sugestões são muito bem-vindos.

Reading Putnam consists largely of papers from the fantastic ‘Putnam @80’ conference (organised by Maria Baghramian in 2007) together with replies from Hilary Putnam. Given the diversity of Putnam’s work, the papers in this collection cover many different topics. This makes the collection difficulty to read but, ultimately, extremely rewarding. In this review, I focus on the contributions from Michael Devitt, Charles Parsons, Richard Boyd, Ned Block, Charles Travis and John McDowell, together with Putnam’s responses. My aim is to highlight (...) some connections between Putnam’s (evolving) views on ontology, conceptual relativism, and perception. (shrink)

This paper presents a Least Square Monte Carlo approach for accurately calculating credit value adjustment (CVA). In contrast to previous studies, the model relies on the probability distribution of a default time/jump rather than the default time itself, as the default time is usually inaccessible. As such, the model can achieve a high order of accuracy with a relatively easy implementation. We find that the valuation of a defaultable derivative is normally determined via backward induction when their payoffs could be (...) positive or negative. Moreover, the model can naturally capture wrong or right way risk. (shrink)

By definition, pain is a sensory and emotional experience that is felt in a particular part of the body. The precise relationship between somatic events at the site where pain is experienced, and central processing giving rise to the mental experience of pain remains the subject of debate, but there is little disagreement in scholarly circles that both aspects of pain are critical to its experience. Recent experimental work, however, suggests a public view that is at odds with this conceptualisation. (...) By demonstrating that the public does not necessarily endorse central tenets of the “mental” view of pain (subjectivity, privacy, and incorrigibility), experimental philosophers have argued that the public holds a more “body-centric” view than most clinicians and scholars. Such a discrepancy would have important implications for how the public interacts with pain science and clinical care. In response, we tested the hypothesis that the public is capable of a more “mind-centric” view of pain. Using a series of vignettes, we demonstrate that in situations which highlight mental aspects of pain the public can, and does, recognize pain as a mental phenomenon. We also demonstrate that the public view is subject to context effects, by showing that the public’s view is modified when situations emphasizing mental and somatic aspects of pain are presented together. (shrink)

In The Mushroom at the End of the World: On the Possibility of Life in Capitalist Ruins, Anna Lowenhaupt Tsing explains how bare land is formed. Capitalism produces ‘ruins’ by stripping living beings of the capacity to form their own ecological relations, a necessary condition for the reproduction of life. Contemporary capitalism alienates living beings from ecological relations, i.e. capitalism generates “the ability to stand alone, as if the entanglements of living did not matter. Through alienation, people and things become (...) mobile assets; they can be removed from their lifeworlds in distance-defying transport to be exchanged with other assets from other life worlds, elsewhere” (Tsing 2021, 5). Cutting the threads of the web of life through capitalist alienation, however, produces bare land as a side effect, infertile waste deprived of the means to reproduce itself without capitalist support. Alienation is the deracination of living beings from their lifeworld, transforming them into passive cogs for capitalist accumulation. However, Tsing upholds matsutake mushrooms, rare fungi popular among Japa- nese foodies, as exemplars of the resilience of ecological relations. Even amidst ruins, matsutakes successfully form beneficial relations with other living beings, like pine trees, other fungi and human beings. The insistent capacity to regenerate ecological relations is the ineluctable means of reproduction for the matsutake mushroom. Even at the end of the world, the matsutake persists by perpetually co-producing new lifeworlds for itself and fellow living beings (see also Haraway 2016). I claim that Tsing’s approach to capitalist alienation is descriptively convinc- ing but lacks the affective force for ecological class consciousness. Tsing surveys the web of life from the perspective of living beings quite distant from humankind, articulating a theoretical diagnosis rather than a political exhortation. On an affective level, it is challenging to generate ecological class consciousness among the (presumably) human readers of my chapter if they are presented with only the biographies of mushrooms growing far beyond my home. As Chantal Mouffe (2018, 72) argues, the construction of an emphatically political identity requires an appeal to the affects, like hope, indignation or compassion. Latour and Schultz also stress that ecological politics currently suffers from an affective misalignment, with people failing to identify with the fate of their increasingly inhospitable environments (2022, 47). Why would European humans care about these unknown fungi? The reproduction of our CO2-intensive livelihoods largely depends on the emission of bare land elsewhere, so in the short run, we stand to benefit more from putting our heads in the sand. I employ Chakrabarty’s (2021) suggestion of grounding post-humanist politics first in strategic anthropocentrism to subsequently push for a post-humanist expansion of our human understanding. One must first feel personally interpellated by the crisis of the global means of reproduction before one can grasp the need for an ecological class politics beyond human confines. I turn to John Steinbeck’s 1939 novel The Grapes of Wrath as a kindred spirit with more mobilising potential. Steinbeck tells the story of a family of impoverished farmers from Oklahoma, the Joads, travelling to California in pursuit of a better life, yet only encountering more poverty, exploitation and anti-immigrant racism. Steinbeck describes in detail the environmental and social devastation, but he focuses on the commodified labour power of migrant farmers rather than commodified mushrooms. Steinbeck’s main characters are also uprooted from their entangled histories in the land and community of rural Oklahoma, but they present a more familiar face of the ecological class deprived of the means of reproduction. Steinbeck’s outcry against alienation-as-deracination is clear, but the shift in perspective facilitates the empathetic outrage required for building ecological class consciousness. Steinbeck’s strategic anthropocentrism helps human readers understand why alienation-as-deracination is a concern. (shrink)

This article presents a comprehensive framework for valuing financial instruments subject to credit risk. In particular, we focus on the impact of default dependence on asset pricing, as correlated default risk is one of the most pervasive threats in financial markets. We analyze how swap rates are affected by bilateral counterparty credit risk, and how CDS spreads depend on the trilateral credit risk of the buyer, seller, and reference entity in a contract. Moreover, we study the effect of collateralization on (...) valuation, since the majority of OTC derivatives are collateralized. The model shows that a fully collateralized swap is risk-free, whereas a fully collateralized CDS is not equivalent to a risk-free one. (shrink)

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean (...) decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets. (shrink)

Newcomers to the philosophy of mind are sometimes resistant to the idea that pain is a mental state. If asked to defend their view, they might say something like this: pain is a physical state, it is a state of the body. A pain in one’s leg feels to be in the leg, not ‘in the mind’. After all, sometimes people distinguish pain which is ‘all in the mind’ from a genuine pain, sometimes because the second is ‘physical’ while the (...) first is not. And we also occasionally distinguish mental pain (which is normally understood as some kind of emotional distress) from the ‘physical pain’ one feels in one’s body. So what can be meant by saying that pain is a mental state? Of course, it only takes a little reflection shows that this naive view is mistaken. Pain is a state of consciousness, or an event in consciousness, and whether or not all states of mind are conscious, it is indisputable that only minds, or states of mind, are conscious.2 But does the naive view tell us anything about the concept of pain, or the concept of mind? I think it does. In this paper, I shall give reasons for thinking that consciousness is a form of intentionality, the mind’s ‘direction upon its objects’. I shall claim that the consciousness involved in bodily sensations like pain is constituted by the mind’s direction upon the part or region of the body where the sensation feels to be. Given this, it is less surprising that the naive view of pain says what it does: the apparent ‘physicality’ of pain is a consequence of confusing the object of the intentional state—the part of the body in which the pain is felt—with the state of being in pain. (shrink)

This paper is about a puzzle which lies at the heart of contemporary physicalist theories of mind. On the one hand, the original motivation for physicalism was the need to explain the place of mental causation in the physical world. On the other hand, physicalists have recently come to see the explanation of mental causation as one of their major problems. But how can this be? How can it be that physicalist theories still have a problem explaining something which their (...) physicalism was intended to explain in the first place? If physicalism is meant to be an explanation of mental causation, then why should it still face the problem of mental causation? (shrink)

I advocate scepticism about epistemic blame; the view that we have good reason to think there is no distinctively epistemic form of blame. Epistemologists often find it useful to draw a distinction between blameless and blameworthy norm violation. In recent years, this has led several writers to develop theories of ‘epistemic blame.’ I present two challenges against the very idea of epistemic blame. First, everything that is supposedly done by epistemic blame is done by epistemic evaluation, at least according to (...) a prominent view about the social role of epistemic evaluation. Parsimony considerations count against introducing an idle mechanism that does the same work as an existing one. Second, no current theory of epistemic blame includes a plausible account of the force of epistemic blame or the practices that could express it. I conclude that we should give up the notion of epistemic blame. (shrink)

Much recent discussion has focused on the nature of artifacts, particularly on whether artifacts have essences. While the general consensus is that artifacts are at least intention-dependent, an equally common view is function essentialism about artifacts, the view that artifacts are essentially functional objects and that membership in an artifact kind is determined by a particular, shared function. This paper argues that function essentialism about artifacts is false. First, the two component conditions of function essentialism are given a clear and (...) precise formulation, after which counterexamples are offered to each. Second, ways to handle the counterexamples suggested by Randall Dipert and Simon Evnine are considered and rejected. Third, I then consider the prospects for restricting function essentialism to so-called technical artifacts, as Lynne Baker does, and argue that this, too, fails. This paper thereby consolidates the scattered literature on function essentialism and shows that, despite the seeming plausibility of the thesis, it should be rejected as an account of artifact essences. (shrink)

Tennenbaum's Theorem yields an elegant characterisation of the standard model of arithmetic. Several authors have recently claimed that this result has important philosophical consequences: in particular, it offers us a way of responding to model-theoretic worries about how we manage to grasp the standard model. We disagree. If there ever was such a problem about how we come to grasp the standard model, then Tennenbaum's Theorem does not help. We show this by examining a parallel argument, from a simpler model-theoretic (...) result. (shrink)

The incremental risk charge (IRC) is a new regulatory requirement from the Basel Committee in response to the recent financial crisis. Notably few models for IRC have been developed in the literature. This paper proposes a methodology consisting of two Monte Carlo simulations. The first Monte Carlo simulation simulates default, migration, and concentration in an integrated way. Combining with full re-valuation, the loss distribution at the first liquidity horizon for a subportfolio can be generated. The second Monte Carlo simulation is (...) the random draws based on the constant level of risk assumption. It convolutes the copies of the single loss distribution to produce one year loss distribution. The aggregation of different subportfolios with different liquidity horizons is addressed. Moreover, the methodology for equity is also included, even though it is optional in IRC. (shrink)

The one-side defaultable financial derivatives valuation problems have been studied extensively, but the valuation of bilateral derivatives with asymmetric credit qualities is still lacking convincing mechanism. This paper presents an analytical model for valuing derivatives subject to default by both counterparties. The default-free interest rates are modeled by the Market Models, while the default time is modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a (...) better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread. (shrink)

This article presents a new model for valuing financial contracts subject to credit risk and collateralization. Examples include the valuation of a credit default swap (CDS) contract that is affected by the trilateral credit risk of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to (...) a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market. (shrink)