This paper explores the connections between being Chinese in various senses and the study of Chinese philosophy.

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)

Objectives: The growing rate of retraction of scientific publications has attracted much attention within the academic community, but there is little knowledge about the nature of such retractions in schizophrenia-related research. This study aimed to analyze the characteristics of retractions of schizophrenia-related publications.

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)

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)

Few would deny that something ontologically depends on something else. Given that something depends on something, what depends on what? Huayan Buddhism 華嚴宗, a prominent Chinese Buddhist school, is known for its extensive thesis of interdependence, according to which everything depends on everything else. This intriguing thesis is entangled with seemingly paradoxical claims that everything is not only identified with everything else but also contained within it. Moreover, the radical thesis of interdependence entails that dependence is pervasive and symmetric. In (...) this paper, I first develop a contemporary interpretation of Huayan interdependence by employing the definitional account of essence and the essence-based account of dependence. Through these contemporary resources, I elucidate and unify the theses of interdependence, mutual identity, and mutual containment within Huayan Buddhism. I then propose a unique framework of ontological dependence that suggests varying degrees of ontological dependence, aimed at accommodating and explaining away our intuitions against pervasive and symmetric dependence. By contemporizing Huayan Buddhism, I explore its potential and facilitate engagement between contemporary metaphysics and Huayan Buddhism. (shrink)

According to Zhiyi 智顗 (538–597), the founder of the Chinese Buddhist Tiantai school 天臺宗, “one object is all objects;” hence, all objects are profoundly interconnected. In this paper, I critically examine Zhiyi’s metaphysics of objects as presented in the historical Tiantai texts and subsequently develop a contemporary and accessible thesis of interconnectedness by integrating Zhiyi’s views with resources from contemporary analytic philosophy, particularly relative identity. By drawing on Zhiyi’s insights and incorporating contemporary philosophical ideas, I also illustrate how historical Chinese (...) Buddhism and contemporary analytic metaphysics can be mutually informing. (shrink)

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

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)

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)

It is a truism that there are erroneous convictions in criminal trials. Recent legal findings show that 3.3% to 5%of all convictions in capital rape-murder cases in the U.S. in the 1980s were erroneous convictions. Given this fact, what normative conclusions can be drawn? First, the article argues that a moderately revised version of Scanlon’ s contractualism offers an attractive moral vision that is different from utilitarianism or other consequentialist theories, or from purely deontological theories. It then brings this version (...) of Scanlonian contractualism to bear on the question of whether the death penalty, life imprisonment, long sentences, or shorter sentences can be justified, given that there is a non-negligible rate of erroneous conviction. Contractualism holds that a permissible act must be justifiable to everyone affected by it. Yet, given the non-negligible rate of erroneous conviction, it is unjustifiable to mete out the death penalty, because such a punishment is not justifiable to innocent murder convicts. It is further argued that life imprisonment will probably not be justified (unless lowering the sentence to a long sentence will drastically increase the murder rate). However, whether this line of argument could be further extended would depend on the impact of lowering sentences on communal security. (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 connection between Chinese sexism and Confucianism has been a subject of study on the condition of Chinese women in the West since the rise of feminist consciousness in the 1970s. However Confucianism in feminist scholarship is inescapably construed as a misogynous ideology that is incapable of self-rectification in regards to the issue of gender parity. Hence, conceptually the eradication of Confucianism becomes the necessary condition for the liberation of Chinese women, and the adoption of Western ideology let it be (...) Marxist-socialism, Liberalism, or Existentialism is then a logical next step for Chinese women. Yet, such a dichotomization of the West as a superior moral subject and the East as a passive object victimized by their "sexist" tradition is nevertheless an oversimplification of the condition and the liberation of women in the developing world. In the end, it is essentially a neo-colonial discourse in a feminist disguise. This dissertation sets itself up to accomplish two tasks: first, it is to obtain a conceptual clarity of what constitutes Confucianism and its connection with dominant sexist, social practices; second, it is to go beyond a mere critique of Confucianism and feminism as an ally of Chinese patriarchal family structure and Western imperialism respectively, and to lay a foundation for a future construction of a gender theory based on Confucianism as a theoretical ground to explain the cultural construct of Chinese women and to conceive an alternative ethical ground for women's liberation. Eventually, the whole project can be seen as an act of self-affirmation of my ethnic identity as a Chinese and an act of reconciliation with my feminist identity in the modern world. (shrink)

He (和), or harmony, has traditionally been a central concept in Chinese thought, and to this day continues to shape the way in which people in China and East Asia think about ethics and politics. Yet, there is no systematic and comprehensive introduction of harmony as has been variously articulated in different Chinese schools. This edited volume aims to fill this gap. The individual contributions elaborate the conceptions of harmony as these were exemplified in central Chinese schools of thought, including (...) Daoism, Confucianism, Legalism, Mohism, Buddhism, and trace their impact on contemporary Chinese philosophy. The volume explores the various meanings and implications of harmony so as to consider its relevance as a value and virtue in the modern world. It provides an accessible but substantial introductory work for readers interested in learning about pertinent core concepts and theories in Chinese thought, as well as engages specialists in Chinese philosophy by explicating its implications for ethical, political, epistemological, and metaphysical reflection as the basic point of reference. (shrink)

I argue that a Heideggerian reading of the concept of cheng 誠 strengthens Roger Ames's interpretation of the Confucian concept by providing a grounding framework that connects various dimensions of the concept.

Conciliationism faces a challenge that has not been satisfactorily addressed. There are clear cases of epistemically significant merely possible disagreement, but there are also clear cases where merely possible disagreement is epistemically irrelevant. Conciliationists have not yet accounted for this asymmetry. In this paper, we propose that the asymmetry can be explained by positing a selection constraint on all cases of peer disagreement—whether actual or merely possible. If a peer’s opinion was not selected in accordance with the proposed constraint, then (...) it lacks epistemic significance. This allows us to distinguish the epistemically significant cases of merely possible disagreement from the insignificant ones. (shrink)

Ang papel ay paglalagom ng itinuturing na pinakamahalagang yugto ng buhay ni José Rizal—ang kanyang pagkakatapon sa Dapitan, sa lente ng konseptong “bagani” ng ating mga ninuno. Sa pagbanggit sa lang nauna nang pag-aaral ukol kay Rizal, ipapakitang kung papaanong ang yugto sa Dapitan ay ang katuparan ng kanyang mga layunin sa La Liga Filipina, na kanyang isinabuhay kasama ang bayan. Sa lente ng kasalukuyang pandemyang COVID 19, makikita natin na tila naranasan din ni Rizal sa kanyang pagkakatapon ang ilang (...) bagay na ating dinaranas ngayon, na tila siya isang frontliner na nasa lockdown, inilagay sa kuwarentena, nag-homeschooling, nagkaroon ng lockdown sickness at namahagi ng ayudang pangkabuhayan sa mga mamamayan ng isang natutulog na bayan upang ito ay sumiglang muli. Nawa ay maging inspirasyon sa bayan na anuman ang hamon at mga balakid, walang makapipigil sa isang Pilipino na magsilbi sa bayan gamit ang kanyang mga talento at manatiling liwanag ng katotohanan at kaalaman. (shrink)

Chinese international students who studied in the United States received “double stigmatization” from American and Chinese authorities because of the “political othering” tactic during COVID-19. The research used a phenomenological approach to examine why and how specifically the transnational identity of Chinese international students in the United States shifted during the double stigmatization. The researcher conducted a total of three rounds of interviews with 15 Chinese international students who studied in the United States and returned to China between 2018 and (...) 2020, which culminated in 45 interviews through a longitudinal study to probe the transnational identities of this population before and during the double stigmatization; the study also examined how the mindsponge mechanism worked during the identity shifts and the interplay among stigmatization, transnational identity shifts, and the mindsponge mechanism. The study concluded that before COVID-19, Chinese international students had been stigmatized in both China and the United States. (shrink)

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.

With growing global concerns about water scarcity and environmental sustainability, understanding the factors influencing individual water conservation behaviors is crucial. This study utilizes the Bayesian Mindsponge Framework (BMF) analytics to investigate the relationship between concerns of local issues and water conservation behaviors in a sample of 1831 residents in Albuquerque, New Mexico, USA. New Mexico is an arid region of which 90% faced severe drought driven by the most significant wildfire in state history and some of the driest months ever (...) recorded in 2022. The results show a positive association between the drought or water scarcity concern and the number of water conservation behaviors adopted. Likewise, the positive association between the concern about population growth and development and water conservation behaviors is also observed. However, further examination is needed due to the weak reliability of this relationship. In contrast, negative associations between concerns about water quality and water bills with water conservation behaviors are also identified. Based on these findings, the study discusses the potential of building the eco-surplus culture by improving information dissemination of water-saving methods and existing water-related issues in the local areas. (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)

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 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)

In this paper, we attempt to de-naturalize the prevailing economistic imaginary of work that Max Weber and later commentators described as ‘protestant work ethic,’ epitomized in the figure of homo economicus. We do so by contrasting it with the imaginary of skillful work that can be found in vignettes about artisans in the Zhuangzi. We argue that there are interesting contrasts between these views concerning 1) direct goal achievement vs. indirect goal achievement through the cultivation of skills; 2) the hierarchization (...) of mental versus physical dimensions of work; 3) the crafting of non-dominating relationships between the working subject, their object, and their instruments of work, which leads to questions about the sustainability of these relationships; and 4) the relationship between work and well-being, which the Daoist texts conceptualize in a much more holistic, but also more presentist way than Western economic rationality. We conclude by pointing out the relevance of these differences for several contemporary debates about work, by denaturalizing a dominant imaginary of work, by distinguishing different forms of work, by suggesting a different relation between work and nature, and by raising questions about the desirability of the automation of work. (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)

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)

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 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)

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)

Reluctance to adopt mask-wearing as a preventive measure is widely observed in many Western societies since the beginning of the COVID-19 pandemics. This reluctance toward mask adoption, like any other complex social phenomena, will have multiple causes. Plausible explanations have been identified, including political polarization, skepticism about media reports and the authority of public health agencies, and concerns over liberty, amongst others. In this paper, we propose potential explanations hitherto unnoticed, based on the framework of epistemic injustice. We show how (...) testimonial injustice and hermeneutical injustice may be at work to shape the reluctant mask adoption at both the societal and individual levels. We end by suggesting how overcoming these epistemic injustices can benefit the global community in this challenging situation and in the future. (shrink)

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)

On the basis of PM2.5 data of the national air quality monitoring sites, local population data, and baseline all-cause mortality rate, PM2.5-related health economic benefits of the Air Improvement Action Plan implemented in Wuhan in 2013–2017 were investigated using health-impact and valuation functions. Annual avoided premature deaths driven by the average concentration of PM2.5 decrease were evaluated, and the economic benefits were computed by using the value of statistical life (VSL) method. Results showed that the number of avoided premature deaths (...) in Wuhan are 21,384 (95% confidence interval (CI): 15,004 to 27,255) during 2013–2017, due to the implementation of the Air Improvement Action Plan. According to the VSL method, the obtained economic benefits of Huangpi, Wuchang, Hongshan, Xinzhou, Jiang’an, Hanyang, Jiangxia, Qiaokou, Jianghan, Qingshan, Caidian, Dongxihu, and Hannan District were 8.55, 8.19, 8.04, 7.39, 5.78, 4.84, 4.37, 4.04, 3.90, 3.30, 2.87, 2.42, and 0.66 billion RMB (1 RMB = 0.1417 USD On 14 October 2019), respectively. These economic benefits added up to 64.35 billion RMB (95% CI: 45.15 to 82.02 billion RMB), accounting for 4.80% (95% CI: 3.37% to 6.12%) of the total GDP of Wuhan in 2017. Therefore, in the process of formulating a regional air quality improvement scheme, apart from establishing hierarchical emission-reduction standards and policies, policy makers should give integrated consideration to the relationship between regional economic development, environmental protection and residents’ health benefits. Furthermore, for improving air quality, air quality compensation mechanisms can be established on the basis of the status quo and trends of air quality, population distribution, and economic development factors. (shrink)

The ML community recognizes the importance of anticipating and mitigating the potential negative impacts of benchmark research. In this position paper, we argue that more attention needs to be paid to areas of ethical risk that lie at the technical and scientific core of ML benchmarks. We identify overlooked structural similarities between human IQ and ML benchmarks. Human intelligence and ML benchmarks share similarities in setting standards for describing, evaluating and comparing performance on tasks relevant to intelligence. This enables us (...) to unlock lessons from feminist philosophy of science scholarship that need to be considered by the ML benchmark community. Finally, we outline practical recommendations for benchmark research ethics and ethics review. (shrink)

In this article Quine's program for reducing ontology to the semantic level is compared to Aquinas' metaphysical ontology. Some internal inconsistencies of Quine's quantificational account of existence are discussed. Aquinas' account of existence is explicated in response to Quine' mischaracterization of Scholastic ontology. The general nature of an amended logical account of existence incorporating Aquinas' ontological categories is indicated. Finally, recent attempts to harmonize Thomism and analytic philosophy are criticized for failing to note that the quantificational account of existence is (...) motivated by analytic philosophy's rejection of metaphysical ontology. Nothing short of a logical account of existence within the broader framework of the philosophy of being can legitimate the efforts of analytical Thomists. (shrink)

In this chapter, we argue that a distinct concept of “aesthetic hope” emerges from the way Kierkegaard’s Aesthete treats hope [Haab] and its relationship to recollection [Erindring] in “The Unhappiest One” and “Rotation of Crops.” We first show that aesthetic hope is distinct from the two other kinds of hope discussed by Kierkegaard: temporal hope and eternal hope. We then consider the suggestion that aesthetic hope is also an expression of despair – an inverse hope against hope, which seeks to (...) avoid disappointment by hoping for things that are in some sense certain. The aesthete’s recommendation that we hope in such a way illuminates Kierkegaard’s view of the “dialectic” of temporal hope and eternal hope. Finally, we explore the treatment of hope in Either/Or as essentially involving a controlled, attentional element that anticipates some contemporary trends in the philosophy of hope. (shrink)

Artificial intelligence systems have been widely applied to various contexts, including high-stake decision processes in healthcare, banking, and judicial systems. Some developed AI models fail to offer a fair output for specific minority groups, sparking comprehensive discussions about AI fairness. We argue that the development of AI systems is marked by a central paradox: the less participation one stakeholder has within the AI system’s life cycle, the more influence they have over the way the system will function. This means that (...) the impact on the fairness of the system is in the hands of those who are less impacted by it. However, most of the existing works ignore how different aspects of AI fairness are dynamically and adaptively affected by different stages of AI system development. To this end, we present a use case to discuss fairness in the development of corporate wellness programs using smart wearables and AI algorithms to analyze data. The four key stakeholders throughout this type of AI system development process are presented. These stakeholders are called service designer, algorithm designer, system deployer, and end-user. We identify three core aspects of AI fairness, namely, contextual fairness, model fairness, and device fairness. We propose a relative contribution of the four stakeholders to the three aspects of fairness. Furthermore, we propose the boundaries and interactions between the four roles, from which we make our conclusion about the possible unfairness in such an AI developing process. (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 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)

Given the close relatedness of local issues, water scarcity, and sustainability, this research sought to investigate the factors affecting residents’ willingness to reuse direct and indirect potable water in the arid region. Utilizing the Bayesian Mindsponge Framework (BMF), an analysis was undertaken with a sample of 1,831 water consumers in the City of Albuquerque, the most populous city in New Mexico, United States. The primary analysis revealed positive associations between local concerns about drought or water scarcity and population growth with (...) residents' willingness to reuse direct and indirect potable water. Conversely, concerns about water quality and water bills were found to be negatively associated with the willingness to utilize directly and indirectly recycled water for drinking. In light of these findings, the study explores the potential of fostering an eco-surplus culture by cultivating a sense of environmental responsibility and acknowledging the relationship between local issues and environmental conditions. Simultaneously, the study proposes collaboration between the government and residents to promote water reuse programs to conserve water resources effectively. (shrink)

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

This paper 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.

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)