Ratio, Volume 34, Issue 4, Page 303-311, December 2021.

Both motivational internalism and externalism need to explain why sometimes moral judgments tend to motivate us. In this paper, I argue that Dreier’ second-order desire model cannot be a plausible externalist alternative to explain the connection between moral judgments and motivation. I explain that the relevant second-order desire is merely a constitutive requirement of rationality because that desire makes a set of desires more unified and coherent. As a rational agent with the relevant second-order desire is disposed towards coherence, she (...) will have some motivation to act in accordance with her moral judgments. Dreier’s second-order desire model thus collapses into a form of internalism and cannot be a plausible externalist option to explain the connection between moral judgments and motivation. (shrink)

In this thesis, I explore motivational internalism and externalism, which concern the relationship between moral judgments and motivation. I first introduce the basic terms and different forms of internalism and externalism, including the externalist objections to internalism based on the famous counterexamples. I then argue against externalism by defending and developing Michael Smith’s fetishism argument. I not only respond to the externalist objections to the fetishism argument but also further argue against different externalist explanations of moral motivation that intend to (...) avoid the fetishism charge. Finally, I re-examine different forms of internalism in order to argue for a new form of internalism that can better preserve our internalist intuitions whilst accommodating the externalist counterexamples. My ultimate conclusion will be that the most plausible form of internalism to accept is constitutional, unconditional, relatively strong, direct internalism that is formulated in terms of dispositional desires. (shrink)

1 Introduction1 In the 1980s, hermeneutics was often incorporated into deconstructionism and literary theory. Rather than focus on authorial intentions, the nature of writing itself including codes used to construct meaning, socio-economic contexts and inequalities of power,2 Gadamer introduced a different perspective; the interplay between effects of history on a reader’s understanding and the tradition(s) handed down in writing. This interplay in which a reader’s prejudices are called into question and modified by the text in a fusion of understanding and (...) topic revitalized the study of the printed word. Gadamer’s turn to language for understanding the meaning of Being also appealed to the post-modern antipathy toward modernity and metaphysics.3 If the truth and validity of interpretations are limited to communities of language, then our mode of being in history cannot but be historical. This point of view rendered Gadamer’s phenomenological hermeneutics vulnerable to the critique of moral and epistemological relativism. However, Gadamer’s theory of interpretation also stems from re-examination of the beginning of knowledge in the Pre-Socratics and Plato, and on this basis, is receptive to another dimension of inquiry than that which was trending in North America. -/- At the East-West Center, University of Hawai’i at Manoa in 1982, Chung-ying Cheng for the first time introduced onto-hermeneutics to an audience of esteemed philosophers including Li Zehou, Ren Jiyu, Feng Youlan, and Zhang Liwen.4 In contrast to schools of deconstruction and literary theory that had disengaged the interpreter from trans-historical sources of meaning and truth, Cheng explained that interpreters exist within a cosmological order inextricable from responsibility to harmonize Heaven and Earth in creative acts of interpretation. By integrating Chinese cosmology into hermeneutics through ontology, he tacitly challenged philosophers in the West to re-examine assumptions about humanity’s place in nature and by implication, Gadamer’s recovery of the beginnings of knowledge in Western philosophy. -/- Cheng’s Neo-Confucianism is inspired by the method and goals of Thomé H. Fang. The following words by Fang seem to prefigure, although in an indistinct and bundled way, aspects of Cheng’s philosophy including a Mencian theory of human nature, comprehensive observation, and creativity: “In the very process of living in concord with creative Nature, Man is charged with an ideal to be fully realized in the light of the principle of comprehensive harmony.”5 Like Fang, Cheng reinvigorates Chinese culture and language, but not solely in order to vindicate the insights of Neo-Confucianism. He has studied Western thought, from pragmatism and the analytic school to German idealism and phenomenology, to unlock and clarify philosophical concepts within the Yijing tradition and thereby render them intelligible to Anglophones. The result has been an awakening of Western scholars to the moral and cultural consequences of decoupling their thought from metaphysical foundations that are neither dogmatic nor doctrinal. -/- Not unlike the dialectic of Gadamer’s dialogue form, onto-generative hermeneutics integrates contrary positions on the same topic in order to blend both sides into a world philosophy, or as Cheng says, a “totalizing or integrative theory,”6 not to be confused with a theoretical rewording of a theory. On the contrary, the universal scope and relevance of hermeneutics stems from personal experience. Just as Gadamer, in response to faction and strife, immersed himself in Plato during the war years, and developed a method with which to harmonize opposites, so too, according to On-cho Ng, was Cheng moved by faction, strife and political persecution to develop a path toward unity.7 Gadamer taught at McMaster University in Hamilton, Ontario, and Cheng at the University of Hawai’i at Manoa among other institutions in North America. They facilitated trans-continental educational and cultural ties. Similar experiences yield similar insights irrespective of differences of time and place. Hence, authors in this issue who reside in Europe, China and North America, delineate the differences between Gadamer and Cheng, yet also, in light of Cheng’s onto-generative method and cosmology, develop integrative theories. Due to the page-budget restriction of the publisher, certain articles of this special theme will be subsequently published in the next issue. -/- 2 Integrative Theory This special issue of The Journal of Chinese Philosophy confirms a dimension of hermeneutics that Cheng has both motivated and inspired. The contributors do not abide by the conviction that since thought is mediated by language, interpretations cannot transcend culture. On the contrary, their research exemplifies the fruits of trans-historical onto-dialogical hermeneutics within limits defined by their field inquiry, organized into Parts I and II, around three themes: language, the philosophy of history and ethics. -/- Andrew Fuyarchuk introduces the theme of ontology in relation to Gadamer’s turn to language. Fuyarchuk argues that Chung-ying Cheng’s criticism of Gadamer’s hermeneutics is informed by Heidegger’s concept of Dasein and thereby overlooks how Gadamer’s Platonic-Pythagorean problem of the division between the One and Many is harmonized in the event of language, which in turn positions Gadamer in proximity to the presupposed grounds of receptivity in Cheng’s onto-generative hermeneutics. Lauren Pfister’s contributing article addresses the year 2000 meeting between Cheng and Gadamer in Heidelberg and expands the transhistorical grounds of meaning in Gadamer to matters of theology. Pfister’s summary of the written Chinese record of their conversation indicates that Cheng does not address the role of Christian philosophy and hence, the role of the inner word in Gadamer’s hermeneutics. This is important not only for detecting changes in Cheng’s philosophical development, but also for modifying his hermeneutics along the lines of a living conversation, possibilities explored by Pfister in a sequel to the article submitted to this issue. Nevertheless, by raising the issue of how Gadamer’s turn to language for understanding the meaning of Being extends possibilities in Cheng’s thought, Pfister anticipates the article by Katarina Gajdosova. She returns to the roots of Chinese thought during the Warring States period and broadens the meaning of names in recently excavated texts. Contrary to the conventions about how to understand terms, she appeals to both Heidegger’s ontology and Cheng’s notion of receptivity and creativity to reinterpret naming in relation to cosmology. Along the same lines, insofar as the event of Being is lingual, Jay Goulding captures its emergent structure in an evolving community of scholars and scholarship. He recalls his philosophical journey toward Cheng’s philosophy that begins in conversations with Gadamer at McMaster University in Hamilton, leads to Heidegger and Asian thought, expands into turning points with teachers and colleagues from various backgrounds that by increments contributed to Goulding’s formulation of “Daoist phenomenology.” -/- Although differing traditions guide their inquiries and research, Cheng and Gadamer recall the wisdom of the past to ameliorate the fragmentation in contemporary life. This leads them to re-examine the origins of philosophy; historical roots and thus sources of creative re-interpretations East and West whose affinities are developed in contributions by Hyun Höchsmann and Friederike Assandri. Höchsmann assesses convergences and divergences in the origins of Chinese and Western philosophy (Confucius and Socrates, the Yijing and Pre-Socratics) that culminates in pairing Gadamer’s understanding of paideia in the context of Plato’s political cosmology in the Timaeus with moral and social cultivation in The Western Inscription. She delineates the limits of this comparison which in turn justifies introducing Vattimo’s notion of locality. Assandri’s comparative analysis moves between India and China, Buddhism and Tang Daoism. Based on Gadamer’s argument that writing detaches concepts from their cultural moorings, she defines and applies three levels of understanding in onto-generative hermeneutics to Buddhist terms that were assimilated into the Benji Jing and in so doing clarifies essential dimensions of Daoism. -/- Contributions by Stephen Palmquist and Nicholas Brasovan position Cheng in relation to Kant and Gadamer by way of Aristotle’s ethics respectively. On the one hand, Palmquist plots Cheng’s evolving criticism of Kant’s moral philosophy and draws on crucial dimensions of Gadamer’s hermeneutics to reposition that criticism in a constructive relation to Kant’s emphasis on the philosophical conditions of morality while also indicating how religious dimensions of his thought answer Cheng’s concerns for lived moral action. For Palmquist, Gadamer enables a constructive criticism of Cheng. On the other hand, Brasovan compares Cheng’s Yijing-based account of moral deliberation with Gadamer’s Aristotelian-based ethics and reasons that in contrast to Cheng, Gadamer’s hermeneutical consciousness is disengaged from practical knowledge. For Brasovan, Cheng is a constructive critic of Gadamer. Palmquist and Brasovan’s divergent angles on Gadamer and Cheng map onto a dialectic of contrast and complementarity that constitutes the inner logic of Cheng’s philosophy. In other words, Gadamer and Cheng ought to be read alongside one another for the sake of removing discrepancies and contradictions, which constitutes the organic structure of their thinking. -/- 3 Our Mode of Being in History Is Not Historical The conversations between Cheng and Gadamer in this issue of The Journal of Chinese Philosophy pivot on language, philosophy of history and ethics within a comparative framework of analysis, but also explore the grounds that make the comparisons possible. Those grounds are informed by Chinese cosmology, and function to wrest Gadamer from the shadow of Heideggerian facticity and reposition him within the range of Cheng’s ideas about our place in nature that is embedded in his question about how mind emerges from inorganic matter.8 -/- For Gadamer scholars of Heidegger, human finitude, our ownmost individuating death ensures that hermeneutics is always open to the other as other, always on the way toward understanding the meaning of Being. To arrest the process in a concept of “the Absolute” cannot but represent someone’s point of view, and thereby render hermeneutics indistinguishable from ideology. However, insofar as finitude is defined by them in terms of an onto-theological concept of immorality, finitude is a metaphysical concept consistent with epistemologies and confuse beings with the meaning of Being. As a result, the celebrated political value of hermeneutics to always be on the way toward an understanding of the meaning of Being admits subtle variations on the same worldview that are insufficiently self-critical. -/- Gadamer scholars of Heidegger are right. A transformation in ethos and opening to the meaning of Being depends on awareness of finitude. Yet this awareness does not yield openness to more of the same, i.e., discourse structurally incapable of coming to unity but instead, for both Gadamer and Cheng, openness to a distinctly different ontological dimension of reality. As Sandra Wawrytko and So-Seong Park indicate,9 this ontological dimension is prefigured in the experience of being-as-a-whole or the totality of all possible relations in both Chinese totemic shamanistic rituals,10 and Greek Dionysian festivals.11 Through these religious experiences human ethos and therefore consciousness is expanded and elevated from being centered on one’s ownmost concerns toward an affinity with all sentient beings from insects and plants to animals. The channel for this affinity is an auditory disposition and hence, the emotions, compassion, and feeling response. -/- The capacity for an auditory disposition, or as Gadamer calls it, listening consciousness to respond to the inter-relationality and therefore inherent balance of nature is developed through music, song and dance of the religious rituals and festivals. They facilitate the unity of mind with nature. This use of music, that transforms ordinary consciousness, explains Cheng’s emphasis on the receptivity of feeling response in comprehensive observation, and Gadamer’s emphasis on openness to the other in attunement. However, an auditory disposition characteristic of pre-literate oral cultures that reveals the “All” need not rely on religion. As theorists about the evolution of language have explained,12 modern languages preserve their pre-historical past in music or prosody. That is to say, the song and dance that revealed the totality of inter-related beings to an ethos of comprehensive observation and attunement toward beings in classical civilizations is retained in the back-and-forth movement or rhythm of the dialogue form. Our mode of being in history is a mode of being in nature – through the music of language. -/- While alerting the reader to the limits of a nominalist interpretation, Gadamer expresses the inner law of the nature as follows: “in perishing there is always becoming, and in becoming there is always perishing.”13 Considered in process, opposites generate and blend into each other. This law of nature applies to everything.14 Hence, in a manner comparable to Pfister’s concluding insights, onto-dialogical hermeneutics is not only open to discrete events of otherness but moreover, to the moving structure of reality expressed, as Gajdosova suggests, in the existential moment of naming. Considered as interplay of tension and resolution with a life of its own, the dialectic of a dialogue is self-similar to the way in which an organism grows (by instinct). There is, therefore, a sense in which the art of interpretation extends the human mind into the eternal cycles of nature such that we participate in the articulation of the inner telos/homeostasis toward which all beings strive and importantly for Gadamer scholars of Heidegger, within the material limits of energy to which our embodied minds are self-evidently subject. In mortality there is always immortality. (shrink)

This sixth volume of Collected Papers includes 74 papers comprising 974 pages on (theoretic and applied) neutrosophics, written between 2015-2021 by the author alone or in collaboration with the following 121 co-authors from 19 countries: Mohamed Abdel-Basset, Abdel Nasser H. Zaied, Abduallah Gamal, Amir Abdullah, Firoz Ahmad, Nadeem Ahmad, Ahmad Yusuf Adhami, Ahmed Aboelfetouh, Ahmed Mostafa Khalil, Shariful Alam, W. Alharbi, Ali Hassan, Mumtaz Ali, Amira S. Ashour, Asmaa Atef, Assia Bakali, Ayoub Bahnasse, A. A. Azzam, Willem K.M. Brauers, Bui (...) Cong Cuong, Fausto Cavallaro, Ahmet Çevik, Robby I. Chandra, Kalaivani Chandran, Victor Chang, Chang Su Kim, Jyotir Moy Chatterjee, Victor Christianto, Chunxin Bo, Mihaela Colhon, Shyamal Dalapati, Arindam Dey, Dunqian Cao, Fahad Alsharari, Faruk Karaaslan, Aleksandra Fedajev, Daniela Gîfu, Hina Gulzar, Haitham A. El-Ghareeb, Masooma Raza Hashmi, Hewayda El-Ghawalby, Hoang Viet Long, Le Hoang Son, F. Nirmala Irudayam, Branislav Ivanov, S. Jafari, Jeong Gon Lee, Milena Jevtić, Sudan Jha, Junhui Kim, Ilanthenral Kandasamy, W.B. Vasantha Kandasamy, Darjan Karabašević, Songül Karabatak, Abdullah Kargın, M. Karthika, Ieva Meidute-Kavaliauskiene, Madad Khan, Majid Khan, Manju Khari, Kifayat Ullah, K. Kishore, Kul Hur, Santanu Kumar Patro, Prem Kumar Singh, Raghvendra Kumar, Tapan Kumar Roy, Malayalan Lathamaheswari, Luu Quoc Dat, T. Madhumathi, Tahir Mahmood, Mladjan Maksimovic, Gunasekaran Manogaran, Nivetha Martin, M. Kasi Mayan, Mai Mohamed, Mohamed Talea, Muhammad Akram, Muhammad Gulistan, Raja Muhammad Hashim, Muhammad Riaz, Muhammad Saeed, Rana Muhammad Zulqarnain, Nada A. Nabeeh, Deivanayagampillai Nagarajan, Xenia Negrea, Nguyen Xuan Thao, Jagan M. Obbineni, Angelo de Oliveira, M. Parimala, Gabrijela Popovic, Ishaani Priyadarshini, Yaser Saber, Mehmet Șahin, Said Broumi, A. A. Salama, M. Saleh, Ganeshsree Selvachandran, Dönüș Șengür, Shio Gai Quek, Songtao Shao, Dragiša Stanujkić, Surapati Pramanik, Swathi Sundari Sundaramoorthy, Mirela Teodorescu, Selçuk Topal, Muhammed Turhan, Alptekin Ulutaș, Luige Vlădăreanu, Victor Vlădăreanu, Ştefan Vlăduţescu, Dan Valeriu Voinea, Volkan Duran, Navneet Yadav, Yanhui Guo, Naveed Yaqoob, Yongquan Zhou, Young Bae Jun, Xiaohong Zhang, Xiao Long Xin, Edmundas Kazimieras Zavadskas. (shrink)

Introduction: The development of advanced sewage technologies empowers the industry to produce high-quality recycled water, which greatly influences human’s life and health. Thus, this study investigates the mechanism of individuals’ adoption of recycled water from the technology adoption perspective. -/- Methods: Employing the mixed method of structural equation modeling and artificial neural network analysis, we examined a research model developed from the extended Unified Theory of Acceptance and Use of Technology (UTAUT2) framework. To examine the research model, this study employs (...) a leading web-survey company (Sojump) to collect 308 valid samples from the residents in mainland China. -/- Results: The structural equation modeling results verified the associations between the six predictors (performance expectancy, effort expectancy, social influence, facilitating conditions, environmental motivation, and price value), individuals’ cognitive and emotional attitudes, and acceptance intention. The artificial neural network analysis validates and complements the structural equation modeling results by unveiling the importance rank of the significant determinants of the acceptance decisions. -/- Discussion: The study provides theoretical implications for recycled water research and useful insights for practitioners and policymakers to reduce the environmental hazards of water scarcity. (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 article proposes a term structure model for dual-currency interest rate markets. The model assumes that volatility is a deterministic function of time alone. This volatility structure can reduce the dimension of the required state variables. An important special case is presented, which corresponds essentially to a Vasicek/Hull-White yield curve model in each currency. The model is very useful for pricing cross-currency derivatives.

Truth pluralism is the view that there is more than one truth property. The strong version of it (i.e. strong pluralism) further contends that no truth property is shared by all true propositions. In this paper, I help strong pluralism solve two pressing problems concerning mixed discourse: the problem of mixed inferences (PI) and the problem of mixed compounds (PC). According to PI, strong pluralism is incompatible with the truth- preservation notion of validity; according to PC, strong pluralists cannot find (...) any appropriate truth property for mixed compound propositions, whose atomic constituents are from different domains of discourse (e.g., <sky is blue and chocolate is tasty>). I argue that the strong pluralist is motivated to take the truth predicate in truth-involving universal statements to be deflationary to avoid the two pressing problems. Such a move entails that the truth predicate in the platitude of validity (V) for any argument, it is valid if and only if necessarily its conclusion is true when its premises are all true does not denote any substantive truth property. Instead, it is merely an expressive device to help people generalize instances of (V) to (V). Analogous stories hold for the truth predicate in the platitudes of compound (e.g., conjunction). The upshot is that, the strong pluralist can solve PI and PC by further conceding that mixed compounds are true/false in a deflationary way. (shrink)

Meritocracy claims to reward the meritorious with more resources, thereby achieving social efficiency and justice in a level playground. This article argues that the rise of meritocracy in a society is the institutional consequence of adopting progressive humanism, an ideal-type worldview that advocates the harmonious co-realization of individual achievement and social contribution. However, meritocracy is a self-defeating illusion because, even in a level playground, it only rewards conspicuous and wasteful display of ‘merit’ rather than genuine contributions to society. Similar to (...) the promise of an afterlife to Catholicism, the illusion of meritocracy constitutes an indispensable theodicy to progressive humanism. For societies holding such worldviews, meritocracy is a necessary illusion that cannot be dispelled by institutional reforms or political movements. (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)

Stephen Yablo’s notion of proportionality, despite controversies surrounding it, has played a significant role in philosophical discussions of mental causation and of high-level causation more generally. In particular, it is invoked in James Woodward’s interventionist account of high-level causation and explanation, and is implicit in a novel approach to constructing variables for causal modeling in the machine learning literature, known as causal feature learning (CFL). In this article, we articulate an account of proportionality inspired by both Yablo’s account of proportionality (...) and the CFL account of variable construction. The resulting account has at least three merits. First, it illuminates an important feature of the notion of proportionality, when it is adapted to a probabilistic and interventionist framework. The feature is that at the center of the notion of proportionality lies the concept of “determinate intervention effects.” Second, it makes manifest a virtue of (common types of) high-level causal/explanatory statements over low-level ones, when relevant intervention effects are determinate. Third, it overcomes a limitation of the CFL framework and thereby also addresses a challenge to interventionist accounts of high-level causation. (shrink)

Deep self views of moral responsibility suggest that an agent fully satisfies the freedom condition for responsibility if and only if her actions or omissions issue from, and so express, her deep self. This analysis generates both false negatives and false positives regarding people's responsibility, and counterexamples proliferate. I defend a novel version of the deep self view by offering a necessary condition for accountability while retaining the core of deep self views. Indeed, an agent may be blameworthy for her (...) wrongdoing without it issuing from, and so expressing, her deep self. And yet, I argue that she must have a deep self for which she is responsible. This is achieved by paying closer attention to history than standard views have. Focusing on history then reveals a less discussed problem for standard views: the ahistorical features of them make them less equipped to explain cases of blameworthiness that is undermined. (shrink)

Consciousness may not only be a problem how to know the brain but also a problem how to understand what known. Understanding is always an ontological system created as the explanation of what known by us. And, if all brains, including human brains, may be defined as the mind, consciousness must be part of our understanding of the mind. The author argues that no mind may exist if not be a life or lives, no life may exist if not be (...) a mind or a part of it, and, if it is the mind that needs to be explained, it must finally and fundamentally be explained as a life or a living system. An ontological definition of life is proposed first in this article, which is also applicable to fields such as physics, biology, psychology, and sociology. Based on an analysis of two kinds of lives and their relationship with matter and energy, a living system is modeled as the organization of two system relations, which explains not only consciousness but also wakefulness, emotion, intelligence, language and mind-body relationship. And finally, a semantic theory is reached, which takes lives as the only meaning of all symmetrical and conservative changes, such as the location changes or form changes of consciousness, or the state changes of memories. The concept of life, the model of living systems and the semantic theory together provide a framework for us to understand what and how consciousness is, why there is consciousness, where and when consciousness occurs. (shrink)

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement 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 derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

In Appearance and Explanation, McCain and Moretti propose a novel internalist account of epistemic justification called phenomenal explanationism, which combines phenomenal conservatism and explanationism. I argue that the current version of phenomenal explanationism faces a dilemma: either it omits the awareness requirement but implies an implausible form of logical-mathematical omniscience, or it preserves the requirement but leads to a vicious regress. I suggest how phenomenal explanationism might be revised to avoid this dilemma.

The author argues that consciousness and its meaning may only be defined and explained within an ontological system. Such a system is proposed in this article, with matter, energy, and life as its components, and with all its components defined as changes. The systematic relations between matter and energy and the semantic relations among all its components together may define and explain what and how consciousness is, why there is consciousness, where and when it may occur, and what is its (...) significance or meaning. (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)

Critical realism, championed by its proponents as the most promising post-positivist social science paradigm, has gained significant influence in the last few decades. This paper provides a critical evaluation of the critical realism movement in the hope of facilitating more fruitful dialogues between its proponents and rivalling schools of sociologists. Two concerns are raised about contemporary critical realism. First, critical realism is not the only philosophical school against positivism and not necessarily the best. Second, critical realists exaggerate the importance of (...) critical realism to social science and conflate philosophy of science with sociological theories. (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)

How do essentialist beliefs about categories arise? We hypothesize that such beliefs are transmitted via language. We subject large language models (LLMs) to vignettes from the literature on essentialist categorization and find that they align well with people when the studies manipulated teleological information -- information about what something is for. We examine whether in a classic test of essentialist categorization -- the transformation task -- LLMs prioritize teleological properties over information about what something looks like, or is made of. (...) Experiments 1 and 2 find that telos and what something is made of matter more than appearance. Experiment 3 manipulates all three factors and finds that what something is for matters more than what it's made of. Overall, these studies suggest that language alone may be sufficient to give rise to essentialist beliefs, and that information about what something is for matters more. (shrink)

The results revealed that students who remained in China experienced challenges which included anxiety, closure of campuses, lockdown, their parents’ concern regarding health issues, and not being able to meet with friends. On the other hand, students who had left China during the pandemic were confined to their home countries. This group of students experienced more severe problems than the students who remained in China. Since the transition to home countries was “unplanned,” they were not ready to readjust to their (...) native culture and were vulnerable to severe reverse culture shock. Upon returning to their home countries, international students faced a number of challenges, including readjustment to their home countries and changes in their lives in host and home countries. In addition, they lost social and academic resources, such as the disruption of study environment, losing important group memberships, financial constraints, visa expiry, graduation delay, and academic suspension. (shrink)

The author argues that consciousness may never be defined or explained with entities or their properties. As an alternative, the author proposes a system with matter, energy, and lives as its components, and with all its components defined as changes. Based on the relationships among these three components, a triple definition or explanation of consciousness is reached: • Ontologically, consciousness is universal, since it is the distinction between matter and energy. • Epistemologically, consciousness is unique, since it is the energy (...) formalized, qualified, or diversified by the matter. • Semantically, consciousness is a meaningless language with lives as its only meaning. Many theories of consciousness have neglected such a universality or uniqueness and even ignored lives as the only cause or effect of consciousness. -/- . (shrink)

Weber's 'science as a vocation' has often been viewed as a therapeutic concept with no functional significance in the fully bureaucratized and professionalized modern science. However, development in the philosophy of science in the last century, especially the Kuhn thesis of the discontinuity of scientific progress and the Duhem-Quine thesis of underdetermination, shows that Weber's distinction between science as a vocation and science as a profession (career) can potentially answer one of the oldest questions in science studies: What makes scientific (...) breakthroughs possible? (shrink)

Creativity is a crucial aspect of entrepreneurship. However, research on the information processing mechanism of creativity in relation to entrepreneurship is still very limited. To explore factors contributing to creativity performance among entrepreneurs in terms of information processing, we applied the Bayesian Mindsponge Framework. We used the Serendipity-Mindsponge-3D (SM3D) knowledge management theory to construct models and conducted Bayesian analysis on the most comprehensive and well-designed dataset of 3071 Vietnamese entrepreneurs up to date. We found that entrepreneurs who give more time (...) to their startup attempts are likely to have lower levels of creativity. Both factors of higher levels of knowledge within one’s discipline and better connections to out-of-discipline knowledge are positively associated with more creativity. While the effect of openmindedness on the relationship between within-discipline knowledge and creativity is unclear, openmindedness was found to have a positive moderating effect on the association between out-of-discipline knowledge and creativity. These findings support entrepreneurs in understanding the information processing mechanisms behind creativity for creating more effective knowledge management strategies. (shrink)

Based on a crowdsourced truth value judgment experiment, we provide empirical evidence challenging two classical views in semantics, and we develop a novel account of counterfactuals that combines ideas from inquisitive semantics and causal reasoning. First, we show that two truth-conditionally equivalent clauses can make different semantic contributions when embedded in a counterfactual antecedent. Assuming compositionality, this means that the meaning of these clauses is not fully determined by their truth conditions. This finding has a clear explanation in inquisitive semantics: (...) truth-conditionally equivalent clauses may be associated with different propositional alternatives, each of which counts as a separate counterfactual assumption. Second, we show that our results contradict the common idea that the interpretation of a counterfactual involves minimizing change with respect to the actual state of affairs. We propose to replace the idea of minimal change by a distinction between foreground and background for a given counterfactual assumption: the background is held fixed in the counterfactual situation, while the foreground can be varied without any minimality constraint. (shrink)

Sora from Open AI has shown exceptional performance, yet it faces scrutiny over whether its technological prowess equates to an authentic comprehension of reality. Critics contend that it lacks a foundational grasp of the world, a deficiency V-JEPA from Meta aims to amend with its joint embedding approach. This debate is vital for steering the future direction of Artificial General Intelligence(AGI). We enrich this debate by developing a theory of productive imagination that generates a coherent world model based on Kantian (...) philosophy. We identify three indispensable components in the coherent world model that enable genuine world understanding: latent representations of isolated objects, an a priori law of change across space and time, and Kantian categories. Our analysis reveals that Sora is limited because of its oversight of the a priori law of change and Kantian categories, flaws that are not rectifiable through scaling up the training. V-JEPA learns the context-dependent aspect of the a priori law of change. Yet it fails to fully comprehend Kantian categories and incorporate experience, leading us to conclude that neither system currently achieves a comprehensive world understanding. Nevertheless, each system has developed components essential to advancing an integrated AI productive imagination-understanding engine. Finally, we propose an innovative training framework for an AI productive imagination-understanding engine, centered around a joint embedding system designed to transform disordered perceptual input into a structured, coherent world model. Our philosophical analysis pinpoints critical challenges within contemporary video AI technologies and a pathway toward achieving an AI system capable of genuine world understanding, such that it can be applied for reasoning and planning in the future. (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.

This article presents a new methodology for pricing and hedging commodity derivatives. A generic model calibration is provided. The calibration procedure consists of an offline step where the mean reversion rates, the ratio of the long and short factor volatilities and the correlation between the long and short factors are determined via historical analysis. This offline step is performed relatively infrequently. There’s also an online step of the calibration which happens every time the model is used to price an option (...) or to simulate price paths. Empirical study shows that the model is quite accurate. (shrink)

The emphasis on evidence based medicine (EBM) has placed increased focus on finding timely answers to clinical questions in presence of patients. Using a combination of natural language processing for the generation of clinical excerpts and information theoretic distance based clustering, we evaluated multiple approaches for the efficient presentation of context-sensitive EBM excerpts.

The gradation of know-how is a prominent challenge to intellectualism. Know-how is prima facie gradable, whereas know-that is not, so the former is unlikely to be a species of the latter. Recently, Pavese refuted this challenge by explaining the gradation of know-how as concerning either the quantity or the quality of practical answers one knows to a question. Know-how per se remains absolute. This paper argues, however, that in addition to the quantity and quality of practical answers, know-how also differs (...) in how reliably the agent is supposed to fulfil the task given her default constitution. Intellectualism is still troubled by the gradability challenge. (shrink)

This dissertation is a collection of standalone papers about a novel version of the deep self view of moral responsibility. Taken on its own, each chapter deals with a different thesis. But as the title of my dissertation reveals, taken together, the three chapters in it constitute the groundwork for my deep self view of moral responsibility. In Chapter 1, I develop and defend the thesis of responsibility for the deep self. In Chapter 2, I argue for a sufficient condition (...) for responsibility for one’s self that centers on the idea of aspiration. Drawing upon resources form the first two chapters, in Chapter 3, I further develop and defend a thesis of responsibility for what one does and its downstream consequences. -/- Here is a summary of my view. I argue that an agent acts freely and is morally responsible for what she does in the accountability sense only if she has a deep self for which she is responsible. How is one responsible for one’s deep self? To be responsible for the deep self, one must have a history where one was afforded the unimpeded opportunity to develop and exercise the ability to shape one’s own self. Exercise that ability in what way? I suggest that a critical way in which an agent shapes her own self is when she engages with various activities that I call aspirational self-shaping. Nevertheless, an agent needs not exercise the ability to shape her self and thus engage with aspirational self-shaping every time she acts freely. Indeed, being responsible for what she does is consistent with her failing to exercise that ability when she acts freely and responsibly. -/- Standard deep self views in the literature say something much stronger. They contend that an agent acts freely and responsibly for what she does if and only if her actions or omissions issue from, and so express, her deep self. Counterexamples proliferate. By offering a necessary condition for accountability drawing upon resources from responsibility for the deep self, my view escapes counterexamples that standard views face, while retains the core of the deep self view. Indeed, an agent may be blameworthy for her wrongdoing without it issuing from, and so expressing, her deep self. And yet, she must have a deep self for which she is responsible to be blameworthy for her wrongdoing. All of this is ultimately achieved by paying closer attention to the historical dimension of the deep self than other deep self proponents have. (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 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)

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)

A combinatorial analysis of intrinsicality takes intrinsic properties to be independent of accompaniment: a property is intrinsic only if it is possible for a lonely or an accompanied thing to have it or lack it (I). Cameron argues that the combinatorial analysis in Langton & Lewis (1998) faces an epistemic circularity, which makes (I) suspicious. In this paper, I examine two approaches to free the combinatorial analyses from the circularity and find them all fail. Then I provide an outline of (...) an argument for (I) by appealing to the grounding analyses of intrinsicality, which shows an advantage of the grounding analyses over the combinatorial ones. (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 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)

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)

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 paper presents an analytical model for valuing interest rate swaps, subject to bilateral counterparty credit risk. The counterparty defaults are 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.

During the lifetime of a structured product, payment events and cancellation events mainly affect the value of the option. This article presents a model for pricing generic cancellable option. The model is used to build most common kinds of cancellation schedules and compute the cancellation probability.

Plato's view on time, a key aspect of his doctrine of forms, is influenced by his reception of Parmenides, but the way in which Plato takes up and modifies Parmenides' view is a matter of ongoing scholarly debate. In this article, the author analyzes Plato's revision of Parmenidean time by exploring four temporalities: the eternal present, timeless eternity, the enduring present, and the instant between time and eternity. Through this examination, she uncovers the common origin of both the eternal present (...) of Parmenides' fragment B8 and the flowing present of the phenomenal realm in the instant (ἐξαίφνης) in Plato's Parmenides. This perspective on time offers a promising solution to Plato's problem of participation, bridging the gap between the eternal being of the form and the being in time of the particulars. (shrink)

In last part of his life, Kuhn claimed that he is a post-Kantian in many aspects. This paper aims to inquire the post-Kantian thesis of Kuhn from two paths. One is metaphors in science, and the other is Kuhn's theory of concepts. Following Andersen, Barker and Chen , who apply the new results of cognitive psychology (particularly, the frame model of concept representation), I propose a reinterpretation of Kuhn' s latest philosophy of science.