The current COVID-19 pandemic and the previous SARS/MERS outbreaks of 2003 and 2012 have resulted in a series of major global public health crises. We argue that in the interest of developing effective and safe vaccines and drugs and to better understand coronaviruses and associated disease mechenisms it is necessary to integrate the large and exponentially growing body of heterogeneous coronavirus data. Ontologies play an important role in standard-based knowledge and data representation, integration, sharing, and analysis. Accordingly, we initiated the (...) development of the community-based Coronavirus Infectious Disease Ontology in early 2020. -/- As an Open Biomedical Ontology (OBO) library ontology, CIDO is open source and interoperable with other existing OBO ontologies. CIDO is aligned with the Basic Formal Ontology and Viral Infectious Disease Ontology. CIDO has imported terms from over 30 OBO ontologies. For example, CIDO imports all SARS-CoV-2 protein terms from the Protein Ontology, COVID-19-related phenotype terms from the Human Phenotype Ontology, and over 100 COVID-19 terms for vaccines (both authorized and in clinical trial) from the Vaccine Ontology. CIDO systematically represents variants of SARS-CoV-2 viruses and over 300 amino acid substitutions therein, along with over 300 diagnostic kits and methods. CIDO also describes hundreds of host-coronavirus protein-protein interactions (PPIs) and the drugs that target proteins in these PPIs. CIDO has been used to model COVID-19 related phenomena in areas such as epidemiology. The scope of CIDO was evaluated by visual analysis supported by a summarization network method. CIDO has been used in various applications such as term standardization, inference, natural language processing (NLP) and clinical data integration. We have applied the amino acid variant knowledge present in CIDO to analyze differences between SARS-CoV-2 Delta and Omicron variants. CIDO's integrative host-coronavirus PPIs and drug-target knowledge has also been used to support drug repurposing for COVID-19 treatment. -/- CIDO represents entities and relations in the domain of coronavirus diseases with a special focus on COVID-19. It supports shared knowledge representation, data and metadata standardization and integration, and has been used in a range of applications. (shrink)

Can we conceive of disorder in a positive sense? We organize our desks, we discipline our children, we govern our polities--all with the aim of reducing disorder, of temporarily reversing the entropy that inevitably asserts itself in our lives. Going all the way back to Hesiod, we see chaos as a cosmogonic state of utter confusion inevitably reigned in by laws of regularity, in a transition from fearful unpredictability to calm stability. In contrast to a similar early Chinese notion of (...) chaotic disorder (luan), early Daoists posit a type of chaos that is to be cultivated rather than feared. This chaos is a primal disorder, akin to Hesiod's, but rather than threatening disruption, it is replete with creative potential and through spontaneous action yields orderly processes that proceed from the concretion of things to their dissolution and back, in a complex web of relations. This processional activity, although taken in one sense as cosmogonic, in a more important sense is immanent at every moment of activity. This article identifies terms of chaos, such as dun dun 沌 沌, hundun 渾 沌, and xingming 涬 溟 in Laozi and Zhuangzi and examines the passages in which they occur. Analyzing these passages brings us to a better understanding of "chaos" in a Chinese sense and to a familiarity with related terms in its semantic field, such as xuan 玄 (dark, mysterious), miao 妙 (subtle/profound), wei 微 (minute/inchoate), xiao 小 (small/minute), and pu 樸 (uncarved block). We see that the Daoist ideal is to return to a chaotic inchoateness by melding with the cosmos and there finding a repository of creative potential. This notion of chaos as the inchoate is used a springboard into understanding the origins of Daoist spontaneity. (shrink)

Statistics play a critical role in biological and clinical research. To promote logically consistent representation and classification of statistical entities, we have developed the Ontology of Biological and Clinical Statistics (OBCS). OBCS extends the Ontology of Biomedical Investigations (OBI), an OBO Foundry ontology supported by some 20 communities. Currently, OBCS contains 686 terms, including 381 classes imported from OBI and 147 classes specific to OBCS. The goal of this paper is to present OBCS for community critique and to describe a (...) number of use cases designed to illustrate its potential applications. The OBCS project and source code are available at http://obcs.googlecode.com. (shrink)

According to doxastic pragmatism, certain perceived practical factors, such as high stakes and urgency, have systematic effects on normal subjects’ outright beliefs. Upholders of doxastic pragmatism have so far endorsed a particular version of this view, which we may call threshold pragmatism. This view holds that the sensitivity of belief to the relevant practical factors is due to a corresponding sensitivity of the threshold on the degree of credence necessary for outright belief. According to an alternative but yet unrecognised version (...) of doxastic pragmatism, practical factors affect credence rather than the threshold on credence. Let’s call this alternative view credal pragmatism. In this paper, I argue that credal pragmatism is more plausible than threshold pragmatism. I show that the former view better accommodates a cluster of intuitive and empirical data. I conclude by considering the issue of whether our doxastic attitudes’ sensitivity to practical factors can be considered rational, and if yes, in what sense. (shrink)

According to evidentialist views, credence in a proposition p should be proportional to the degree of evidential support that one has in favor of p. However, empirical evidence suggests that our credences are systematically sensitive to practical factors. In this article, I provide a cost–benefit analysis of credences' practical sensitivity. The upshot of this analysis is that credences sensitive to practical factors fare better than practically insensitive ones along several dimensions. All things considered, our credences should be sensitive to practical (...) factors. (shrink)

Imagine that only the state can meet the need for housing but decides not to do so. Unsurprisingly, participants in a vignette experiment deem this scenario unjust. Hence, justice ratings increase when the living situation improves. To a lesser extent, this also holds beyond the need threshold, understood as the minimum amount necessary for a decent life. Surprisingly, however, the justice evaluation function is highly convex below this point. The resulting S-shaped curve is akin to the value function in prospect (...) theory, with the need threshold providing the point of reference and inflection. A control treatment without needs-information supports this interpretation. Needs-information furthermore compresses the perceived injustice of arbitrary inequality. As in prospect theory, such reference dependency suggests biases in judgment and decision making. A consequence may be that the lot of the poorest in society does not receive the attention it would otherwise get. (shrink)

According to pragmatic encroachment, whether an epistemic attitude towards p has some positive epistemic status (e.g., whether a belief is epistemically rational or justified, or it amounts to knowledge) partially depends on practical factors such as the costs of being wrong or the practical goals of the agent. Pragmatic encroachment comes in many varieties. This survey article provides an overview of different kinds of pragmatic encroachment. It focuses on three dimensions under which kinds of pragmatic encroachment differ: the type of (...) epistemic status affected by practical factors, the type of practical factors affecting the epistemic status, and the type of normative considerations encroaching on the epistemic status. (shrink)

The concept of human dignity has been criticized as either too thick or too thin. However, according to the non-positivistic standpoint, the legal normativity of human dignity can be justified and thus strengthened by means of its moral correctness. From the individual perspective, Mencius’ understanding of human dignity as an intrinsic value and Kant’s formula of ‘man as an end in itself’ can be adequately understood based on the differentiation of, as well as the connection between, principium diiudicationis and principium (...) executionis, between will and choice, and between homo phaenomenon and homo noumenon (that is, ‘humanity in the personality’). From the social perspective, since the dual dimensions of the individual and the social person are both fictive constructions, even Radbruch, once as a supporter of social law, has not replaced the concept of ‘legal person’ and, in the post-War period, acknowledges individualistic human dignity as the criterion for applying the famous ‘disavowal formula’. On the one hand, human dignity shows at least a weak normative character, which requires, firstly, balancing between the exercise of state powers and the constitutional review under the guidance of the dual dimensions of man and, secondly, optimization of the principle of human dignity in individual cases. On the other hand, through the necessary connection between the concept of dignity and that of personality, human dignity can exhibit a strong normative character, which unavoidably requires a metaphysical justification. (shrink)

It has been argued recently that knowledge is the norm of practical reasoning. This norm can be formulated as a bi-conditional: it is appropriate to treat p as a reason for acting if and only if you know that p. Other proposals replace knowledge with warranted or justified belief. This paper gives counter-examples of both directions of any such bi-conditional. To the left-to-right direction: scientists can appropriately treat as reasons for action propositions of a theory they believe to be false (...) but good approximations to the truth for present purposes. Cases based on a variant of Pascal’s Wager and actions performed by a skeptic also illustrate the point. To the right-to-left direction: in certain circumstances, it can be unreasonable for a scientist to reason from propositions of a theory she knows to be true. (shrink)

One challenge for moderate invariantists is to explain why we tend to deny knowledge to subjects in high stakes when the target propositions seem to be inappropriate premises for practical reasoning. According to an account suggested by Williamson, our intuitive judgments are erroneous due to an alleged failure to acknowledge the distinction between first-order and higher-order knowledge: the high-stakes subject lacks the latter but possesses the former. In this paper, I provide three objections to Williamson’s account: i) his account delivers (...) counterintuitive verdicts about what it is appropriate for a high-stakes subject to do; ii) the high-stakes subject doesn’t need iterated knowledge in order to be regarded as appropriately relying on the relevant proposition in practical reasoning; iii) Williamson’s account doesn’t provide a good explanation of why the high-stakes subject would be blameworthy if she were relying on the relevant proposition in her practical reasoning. (shrink)

Self-deception is typically considered epistemically irrational, for it involves holding certain doxastic attitudes against strong counter-evidence. Pragmatic encroachment about epistemic rationality says that whether it is epistemically rational to believe, withhold belief or disbelieve something can depend on perceived practical factors of one’s situation. In this paper I argue that some cases of self-deception satisfy what pragmatic encroachment considers sufficient conditions for epistemic rationality. As a result, we face the following dilemma: either we revise the received view about self-deception or (...) we deny pragmatic encroachment on epistemic rationality. I suggest that the dilemma can be solved if we pay close attention to the distinction between ideal and bounded rationality. I argue that the problematic cases fail to meet standards of ideal rationality but exemplify bounded rationality. The solution preserves pragmatic encroachment on bounded rationality, but denies it on ideal rationality. (shrink)

This article presents a generic model for pricing financial derivatives subject to counterparty credit risk. Both unilateral and bilateral types of credit risks are considered. Our study shows that credit risk should be modeled as American style options in most cases, which require a backward induction valuation. To correct a common mistake in the literature, we emphasize that the market value of a defaultable derivative is actually a risky value rather than a risk-free value. Credit value adjustment (CVA) is also (...) elaborated. A practical framework is developed for pricing defaultable derivatives and calculating their CVAs at a portfolio level. (shrink)

This paper presents a new model for valuing hybrid defaultable financial instruments, such as, convertible bonds. In contrast to previous studies, the model relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence (...) supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This article presents a new model for valuing a credit default swap (CDS) contract that is affected by multiple credit risks 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)

Lack of a historical sense is the hereditary defect of philosophers. … So what is needed from now on is historical philosophizing, and with it the virtue of modesty.

In this entry, we provide an overview of some of the methodological debates surrounding contextualism and consider whether they are, in effect, based on an underlying methodological dispute. We consider three modes of motivation of epistemic contextualism including i) the method of cases, ii) the appeal to linguistic analogies and iii) the appeal to conceptual analogies and functional roles. We also consider the methodological debates about contextualism arising from experimental philosophy. We conclude that i) there is no distinctive methodological doctrine (...) or set of methodological doctrines that is centrally invoked by all epistemic contextualists and ii) the substantive dispute about the truth of contextualism very frequently, although not invariably, reflects an underlying methodological dispute. (shrink)

According to an increasingly popular view in epistemology and philosophy of mind, beliefs are sensitive to contextual factors such as practical factors and salient error possibilities. A prominent version of this view, called credal sensitivism, holds that the context-sensitivity of belief is due to the context-sensitivity of degrees of belief or credence. Credal sensitivism comes in two variants: while credence-one sensitivism (COS) holds that maximal confidence (credence one) is necessary for belief, threshold credal sensitivism (TCS) holds that belief consists in (...) having credence above some threshold, where this threshold doesn’t require maximal confidence. In this paper, I argue that COS has difficulties in accounting for three important features about belief: i) the compatibility between believing p and assigning non-zero credence to certain error possibilities that one takes to entail not-p, ii) the fact that outright beliefs can occur in different strengths, and iii) beliefs held by unconscious subjects. I also argue that TCS can easily avoid these problems. Finally, I consider an alleged advantage of COS over TCS in terms of explaining beliefs about lotteries. I argue that lottery cases are rather more problematic for COS than TCS. In conclusion, TCS is the most plausible version of credal sensitivitism. (shrink)

This essay develops an inferential account of model explanation, based on Mauricio Suárez’s inferential conception of scientific representation and Alisa Bokulich’s counterfactual account of model explanation. It is suggested that the fact that a scientific model can explain is essentially linked to how a modeler uses an established model to make various inferences about the target system on the basis of results derived from the model. The inference practice is understood as a two-step activity, with the first step involving making (...) counterfactual statements about the model itself and the second step involving making hypothetical statements transferring over claims derived from the model onto the target. To illustrate how this two-step activity proceeds, an agent-based simulation model is discussed. (shrink)

The present study aimed to explore the effect of subliminal priming on team trust and the mechanism through the mediating role of perceived trustworthiness. A total of 144 participants were asked to complete a lexical decision task that was embedded with the “trust” or “suspicion” Chinese words as the subliminal stimuli. Then, they played a public good game and evaluated the perceived trustworthiness of the team. The results of the study showed that subliminal stimuli had a significant effect on team (...) trust [β = –0.99, 95% CI = (−1.64, −0.33)]. Perceived trustworthiness was found to have a significant mediating effect between the priming condition and team trust [β = −0.35, 95% CI = (−0.72, −0.02)]. The current study revealed the underlying mechanism through which subliminal priming techniques influence team trust and informed efforts by altering perceived trustworthiness. (shrink)

E. Husserl’s reflections in Logical Investigations on “intentional feelings” and “non-intentional feelings” are significant in both his later ethical explorations and M. Scheler’s thought on ethics. Through the incorporation of the views of Husserl and Scheler, we find that the phenomenology of the intentional feeling-acts is not only the foundation of the non-formal ethics of values in Scheler’s phenomenology, but also at least the constitutive foundation of the ethics of Husserl’s first orientation.

An endomorphism on an algebra \ is said to be strong if it is compatible with every congruence on \; and \ is said to have the strong endomorphism kernel property if every congruence on \, other than the universal congruence, is the kernel of a strong endomorphism on \. Here we characterise the structure of those double MS-algebras that have this property by the way of Priestley duality.

When a widely reused ontology appears in a new version which is not compatible with older versions, the ontologies reusing it need to be updated accordingly. Ontobull has been developed to automatically update ontologies with new term IRI(s) and associated metadata to take account of such version changes. To use the Ontobull web interface a user is required to (i) upload one or more ontology OWL source files; (ii) input an ontology term IRI mapping; and (where needed) (iii) provide update (...) settings for ontology headers and XML namespace IDs. Using this information, the backend Ontobull Java program automatically updates the OWL ontology files with desired term IRIs and ontology metadata. The Ontobull subprogram BFOConvert supports the conversion of an ontology that imports a previous version of BFO. A use case is provided to demonstrate the features of Ontobull and BFOConvert. (shrink)

Michael Weisberg’s account of scientific models concentrates on the ways in which models are similar to their targets. He intends not merely to explain what similarity consists in, but also to capture similarity judgments made by scientists. In order to scrutinize whether his account fulfills this goal, I outline one common way in which scientists judge whether a model is similar enough to its target, namely maximum likelihood estimation method. Then I consider whether Weisberg’s account could capture the judgments involved (...) in this practice. I argue that his account fails for three reasons. First, his account is simply too abstract to capture what is going on in MLE. Second, it implies an atomistic conception of similarity, while MLE operates in a holistic manner. Third, Weisberg’s atomistic conception of similarity can be traced back to a problematic set-theoretic approach to the structure of models. Finally, I tentatively suggest how these problems might be solved by a holistic approach in which models and targets are compared in a non-set-theoretic fashion. (shrink)

Polger and Shapiro argue that their official recipe, a criterion for judging when the phenomenon of multiple realization exists, renders MR less widespread than its proponents have assumed. I argue that, although Polger and Shapiro’s criterion is a useful contribution, they arrive at their conclusion too hastily. Contrary to Polger and Shapiro, I claim that the phenomenon of multiple realization in the biological world, judged by their criterion, is not as scarce as they suggest. To show this, an updated official (...) recipe, namely a multiple mechanistic realization thesis, integrating Polger and Shapiro’s criterion with a compositional conception of realization, is developed. Then, three examples of varied kinds are examined, showing that cases of MR are not so hard to find in the biological world. (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)

I propose a dynamic causal approach to characterizing the notion of a mechanism. Levy and Bechtel, among others, have pointed out several critical limitations of the new mechanical philosophy, and pointed in a new direction to extend this philosophy. Nevertheless, they have not fully fleshed out what that extended philosophy would look like. Based on a closer look at neuroscientific practice, I propose that a mechanism is a dynamic causal system that involves various components interacting, typically nonlinearly, with one another (...) to produce a phenomenon of interest. (shrink)

This paper focuses on a potential problem with Sosa’s theory of default assumption, viz., the alleged incompatibility of this theory with the closure principle. Given the similarity between the notion of default assumption and Wittgenstein’s notion of hinge commitment, I suggest that two influential hinge epistemologies including Wright’s entitlement theory and Pritchard’s non-belief theory provide resources for possible solutions to the problem. I argue that default assumption should be classified as acceptance and hence as a non-doxastic propositional attitude. Sosa’s theory (...) can deal with the apparent incompatibility with the closure principle by adopting the solution of the non-belief theory, while also avoiding problems affecting the latter view. (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)

Improvements of the happiness of the rural population are an essential sign of the effectiveness of relative poverty governance. In the context of today’s digital economy, assessing the relationship between digital literacy and the subjective happiness of rural low-income groups is of great practicality. Based on data from China Family Panel Studies, the effect of digital literacy on the subjective well-being of rural low-income groups was empirically tested. A significant happiness effect of digital literacy on rural low-income groups was found. (...) Digital literacy promotes the subjective happiness of rural low-income groups through income increase and consumption growth effects. The observed happiness effect is heterogeneous among different characteristic groups, and digital literacy significantly positively impacts the subjective happiness of rural low-income groups. Decomposition of subjective happiness into life satisfaction and job satisfaction shows that digital literacy significantly positively affects the job and life satisfaction of rural low-income groups. This paper demonstrates that digital literacy induces a practical happiness effect. To further strengthen the subjective welfare effect of digital literacy in the construction of digital villages, the government should focus on cultivating digital literacy among low-income groups from the demand side. The construction of digital infrastructure should be actively promoted from the supply side. (shrink)

Equity-linked securities with a guaranteed return become popular in a volatile market environment. This paper presents a new model for valuing guaranteed equity-linked notes. We consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is floored by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. The (...) model provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear to be accurate over a wide range of underlying security parameter values, based on numerical testing against a Monte Carlo benchmark, Finally, we apply our method to value a type of segregated fund with a maturity guarantee. (shrink)

The paper investigates what type of motivation can be given for adopting a knowledge-based decision theory. KBDT seems to have several advantages over competing theories of rationality. It is commonly argued that this theory would naturally fit with the intuitive idea that being rational is doing what we take to be best given what we know, an idea often supported by appeal to ordinary folk appraisals. Moreover, KBDT seems to strike a perfect balance between the problematic extremes of subjectivist and (...) objectivist decision theory. We argue that these alleged advantages do not stand up to a closer scrutiny: KBDT inherits the same kinds of problems as alternative decision theoretic frameworks but doesn’t retain any of the respective advantages. Moreover, differently from other knowledge-action principles advanced in the literature, KBDT cannot fully explain the intuitive connections between knowledge and rational action. We conclude that the most serious challenge for knowledge-based decision theorists is to provide a substantive rationale for the adoption of such a view. (shrink)

The LIBOR Market Model has become one of the most popular models for pricing interest rate products. It is commonly believed that Monte-Carlo simulation is the only viable method available for the LIBOR Market Model. In this article, however, we propose a lattice approach to price interest rate products within the LIBOR Market Model by introducing a shifted forward measure and several novel fast drift approximation methods. This model should achieve the best performance without losing much accuracy. Moreover, the calibration (...) is almost automatic and it is simple and easy to implement. Adding this model to the valuation toolkit is actually quite useful; especially for risk management or in the case there is a need for a quick turnaround. (shrink)

This study aims to provide a coherent new interpretation of the notorious anti-hedonism of Speusippus, Plato’s nephew and the second scholarch of the Academy, by reconsidering all the relevant sources concerning his attitude toward pleasure—sources that seem to be in tension or even incompatible with each other. By reassessing Speusippus’ anti-hedonism and Aristotle’s response, it also sheds new light on the Academic debate over pleasure in which he and Aristotle participated: This debate is not merely concerned with the truth and (...) credibility of the arguments for or against hedonism; there are also notable differences among the participants in their understanding of the practical significance of evaluating hedonic experiences. This new interpretation allows us to better understand Aristotle’s selective representation of the intra-school debate and some neglected features of his responses to different interlocutors. (shrink)

This article argues for the explanatory autonomy of psychology drawing on cases from the multilevel modeling practice. This is done by considering a multilevel linear model in personality and social psychology, and discussing its philosophical implications for the reductionism debate in philosophy of psychology. I argue that this practice challenges the reductionist position in philosophy of psychology, and supports the explanatory autonomy of psychology.

This paper examines Aristotle’s vocabulary of pain, that is the differences and relations of the concepts of pain expressed by synonyms in the same semantic field. It investigates what is particularly Aristotelian in the selection of the pain-words in comparison with earlier authors and specifies the special semantic scope of each word-cluster. The result not only aims to pin down the exact way these terms converge with and diverge from each other, but also serves as a basis for further understanding (...) Aristotle’s philosophical conception of pain. (shrink)

The debate over the value of pleasure among Eudoxus, Speusippus, and Aristotle is dramatically documented by the Nicomachean Ethics, particularly in the dialectical pros-and-cons concerning the so-called argument from contraries. Two similar versions of this argument are preserved at EN VII. 13, 1153b1–4, and X. 2, 1172b18–20. Many scholars believe that the argument at EN VII is either a report or an appropriation of the Eudoxean argument in EN X. This essay aims to revise this received view. It will explain (...) why these two arguments differ in premises, contents and purposes, and why these distinctions matter for a proper assessment of Aristotle’s understanding of pleasure and pain in general and his dialectical art in particular. (shrink)

Nearly thirty years ago, Robert Alexy in his book The Concept and Validity of Law as well as in other early articles raised non-positivistic arguments in the Continental European tradition against legal positivism in general, which was assumed to be held by, among others, John Austin, Hans Kelsen and H.L.A. Hart. The core thesis of legal positivism that was being discussed among contemporary German jurists, just as with their Anglo- American counterparts, is the claim that there is no necessary connection (...) between law and morality. Robert Alexy has argued, however, that the law, besides consisting conceptually of elements of authoritative issuance and social efficacy, necessarily lays a claim to substantial correctness, which is derived from analytical arguments. Furthermore, if this claim to substantial correctness necessarily requires the incorporation of moral elements into law, then the ‘necessary connection thesis’, as defended by non-positivism, can be justified. Some of the most significant objections to this sort of claim, stemming from the Anglo-American world, are those introduced by Joseph Raz. In his ‘Reply’ to Robert Alexy, Raz raises at least three interesting criticisms, including, first, the ambiguity of ‘legal theory in the positivistic tradition’, second, the indeterminate formulations of the ‘separation thesis’, and, third, the necessary claim of law to legitimate authority as a moral claim. As a point of departure, I will argue that Raz’s three criticisms are misleading. For they do not enhance our understanding of the genuine compatibility or incompatibility between legal positivism and non-positivism. Despite the frequently reformulated theses of legal positivism and the various kinds of opponents responding thereto, the essential divergence between legal positivism and non-positivism was and remains the answer to the question of the relation between law and morality. Furthermore, I will clarify that in the strictest sense there can be three and only three logically possible positions concerning the relation between law and morality: the connection between them is either necessary, or impossible (i. e. they are necessarily separate), or contingent (i. e. they are neither necessarily connected nor necessarily separate). The first position is non-positivistic, while the latter two positions are, indeed, both positivistic, but in different forms: one may be called ‘exclusive’ legal positivism, the other ‘inclusive’ legal positivism. I will continue by showing that these three positions stand to one another in the relation of contraries, not contradictories, and that, taken together, they exhaust the logically possible positions concerning the relation between law and morality, never mind the tradition or authority from which these positions are derived. Raz mentions, however, many changeable formulations of the separation thesis, which even leads him to acknowledge ‘necessary connections between law and morality’. One who is trying to understand legal positivism would no doubt be puzzled by this claim. Nevertheless, I will argue that this is an alternative strategy of legal positivism, and it points to naturalistically oriented view. Although this necessary separation between law and morality, understood naturalistically, strikes one as strengthening the separation, in the end it leads to a weakened notion of necessity. This weakened necessary separation thesis, however, cannot be justified through the so-called claim of the law to legitimate authority, defended by Raz, for it is difficult to answer the question of whether a normally justified but factual authority can gain legitimate authority. Finally, the necessary connection between law and morality in a strong sense can still be justified by the claim of law to correctness, as per Alexy’s argument. (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)

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)

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)

El concepto de dignidad humana ha sido considerado o demasiado denso o demasiado delgado. Sin embargo, desde el punto de vista del no-positivismo, la normatividad jurídica de la dignidad humana puede ser justificada y reforzada por medio de su corrección moral. Desde una perspectiva individual, la comprensión de Mencio sobre la dignidad humana como un valor intrínseco y el imperativo categórico de Kant (el ser humano como un fin en sí mismo) podrían ser adecuadamente comprendidos con base en la diferencia (...) (así como la conexión) entre el principium diiudicationis y el principium executionis, entre voluntad y “elección”; así como entre homo phaenomenon y homo noumenon (es decir, humanidad en la persona de los seres humanos). Desde una perspectiva social, las dimensiones del individuo y la persona social son construcciones ficticias; inclusive Radbruch -alguna vez defensor del derecho social- no remplazó el concepto de “persona jurídica” y, en el periodo de posguerra, reconoció la dignidad humana individual como el criterio para aplicar su famosa “fórmula de Radbruch". Por una parte, la dignidad humana muestra cuando menos un carácter normativo débil, el cual requiere, primero, ponderar entre el ejercicio de los poderes estatales y el control de constitucionalidad bajo la guía de la dimensión dual del ser humano y, segundo, la optimización del principio de la dignidad humana en casos particulares. Por otra, a través de la conexión necesaria entre el concepto de dignidad y personalidad, la dignidad humana puede exhibir un carácter normativo fuerte, el cual requiere inevitablemente una justificación metafísica. (shrink)

Die Disziplin, die als „Juristische Methodenlehre“ bezeichnet wird, ist gegenwärtig chinesischen Juristen nicht fremd, sie stammt aber ursprünglich aus dem deutschen Sprachraum. In der Literatur finden sich auch verwandte Ausdrücke wie „Juristische Methodologie“, „Juristische Methodik“ bzw.„Methodenlehre der Rechtswissenschaft“. Seit Anfang des 21. Jahrhunderts wurde ihre Rezeption in China durch zwei Übersetzungen gekennzeichnet, nämlich die „rechtswissenschaftliche Methodenlehre“ (faxue fangfalun) und die „rechtliche Methodenlehre“ (falü fangfalun). Neben der herkömmlichen Methodenlehre entwickelte sich auch eine jüngere Theorie der juristischen Argumentation, die die weltweite Aufmerksamkeit (...) sogar außerhalb Deutschlands auf sich lenken konnte und deren Bestand in China einen ganz selbständigen Abschnitt verdient. Als Hintergrund dafür soll von vornherein ein Blick auf die Entwicklungen der chinesischen Rechtstheorie und Rechtsphilosophie nach 1978 und demzufolge auf die Entstehung der Methodenfrage in der chinesischen Rechtswissenschaft geworfen werden. (shrink)

Les questions les plus fondamentales de la phénoménologie du sentir de Max Scheler concernent la place de l’intentionnalité dans la phénoménologie du sentir et la structuration de la sphère émotionnelle. Dans la première section, nous nous focaliserons avant tout sur la différence entre les sentiments non intentionnels et le sentir intentionnel, en comparant sur ce point les positions de Scheler et de Husserl. En effet, Scheler critique ces deux thèses fondamentales de Husserl: 1) les actes affectifs et leurs corrélats (« (...) valeurs ») doivent être associés aux représentations et à leurs corrélats (« choses », Sachen ); 2) les actes affectifs, en tant qu’actes non objectivants, sont fondés dans les actes objectivants. D’une part, pour Scheler, la valeur est un objet unique en son genre du sentir des valeurs, et le sentir intentionnel est donc un acte indépendant. D’autre part, Scheler a d’abord entrepris de dépasser la séparation entre acte objectivant et acte non objectivant. Dans ce contexte, la recherche actuelle consacrée à Scheler se heurte à de nombreuses difficultés relatives à la structuration de la sphère émotionnelle en rapport avec la hiérarchie des modalités axiologiques et avec l’a priori corrélationnel. Dans la deuxième section, nous expliquerons d’abord les idées de Scheler, puis en discuterons les difficultés. C’est par le « commerce vivant » avec le monde dans le sentir intentionnel et dans les actes émotionnels intentionnels, par les corrélats intentionnels (valeurs matérielles), que Scheler se sépare du formalisme en éthique. A travers un « apriorisme matériel » qui présente trois espèce d’a priori (a priori axiologique, a priori émotionnel et a priori corrélationnel), l’éthique matérielle phénoménologique des valeurs de Sche­ler est guidée par l’esprit d’un « objectivisme et absolutisme éthique rigoureux ». (shrink)

In this essay, we will follow Tang Junyi’s lead in exploring issues related to Chinese diaspora and Chinese philosophy. While we largely endorse Tang’s call for overseas Chinese to establish themselves in their adopted lands, we will argue for a more nuanced view on the identity of Chinese people outside China: they are not marginalized individuals scattered out of “homeland” China, rather they are people legitimately established in their own respective countries. In this connection, we will also advance a view (...) of future Chinese philosophy as a world philosophy that takes roots in China as well as in the world at large. In our view, although Chinese immigrant thinkers in the past century have played a major role in promoting Chinese philosophy outside China, the importance of such a role is likely to decline along with the success of Chinese philosophy becoming a world philosophy. (shrink)

This paper argues that the reduced-form jump diffusion model may not be appropriate for credit risk modeling. To correctly value hybrid defaultable financial instruments, e.g., convertible bonds, we present a new framework that relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due (...) to convertible underpricing. Empirically, however, we do not find evidence supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This paper reexamines Theophrastus’ Metaphysics 11a18–26, an obscure testimony about Speusippus, the second head of the Platonic Academy. As opposed to the traditional interpretation, which takes this passage as Theophrastus’ polemic against Speusippus’ doctrine of value, I argue that he here dialectically takes advantage of, rather than launches an attack on, the Platonist. Based on this new reading, I further propose a revision and a reassessment of the ‘gloomy metaphysics’ of Speusippus which will shed new light on his ethics.