With the rapid development of information technology, the electricity consumption of Internet Data Centers (IDCs) increases drastically, resulting in considerable carbon emissions that need to be reduced urgently. In addition to the introduction of Renewable Energy Sources (RES), the joint use of the spatial migration capacity of IDC workload and the temporal flexibility of the demand of Electric Vehicle Charging Stations (EVCSs) provides an important means to change the carbon footprint of the IDC. In this paper, a sustainability improvement strategy (...) for the IDC carbon emission reduction was developed by coordinating the spatial-temporal dispatch flexibilities of the IDC workload and the EVCS demand. Based on the Minkowski sum algorithm, a generalized flexible load model of the EVCSs, considering traffic flow and Road Impedance (RI) was formulated. The case studies show that the proposed method can effectively increase the renewable energy consumption, reduce the overall carbon emissions of multi-IDCs, reduce the energy cost of the DCO, and utilize the EV dispatching potential. Discussions are also provided on the relationship between workload processing time delay and the renewable energy consumption rate. (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)

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)

Jeagwon Kim's exclusion argument is a well-known argument against non-reductive physicalism in the contemporary debate on mental causation. In this essay, we will first discuss two versions of the exclusion argument: the simple version and the sophisticated version. Secondly, we will take a conservative strategy to defend the kind of non-reductive physicalism initiated by Donald Davidson: the Token Identity Theory. Namely, we will explain where Kim failed to appropriately understand Davidson's work and argue that the simple version and the sophisticated (...) version of the exclusion argument won't work against the clarified token identity theory at all. Lastly, Since much of Kim's inappropriate interpretation of Davidson's work is rooted in their difference in metaphysics, there is reason to believe the proper understanding and evaluation on contemplation as such on mental causation, non-reductive physicalism, and other related problems can't be achieved without finding an appropriate metaphysical frame. (shrink)

The Polluter Pays, Then Receives (PPTR) principle claims that, had an agent innocently benefited from climate change, it owes moral obligations to the polluters who contributed to a warmer globe. This critical review assesses the evidence, the externalities argument, and the luck egalitarian approach and suggests that there are profound flaws in each of them. In consequence, the PPTR fails to accomplish its objective to incentivise efficient practices since polluting should neither be incentivised nor considered an efficient practice.

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.

[English abstract] In his last metaethical statement, Parfit revisits his earlier arguments for non-metaphysical normative non-naturalism , and points to the possibility of convergence between his view and Railton's non-analytical normative naturalism. I examine the basis of this convergence claim and find it unpersuasive, mainly because if their views converge on the same position, Parfit's non-natural norms exist only as predicates. In order to avoid this consequence, he needs to present a reason for believing in the existence of normative properties (...) . There is an indispensability argument implicit in his text, with concepts of sui generis normative ground and necessity at its centre. I discuss their main features and present problems besetting these concepts. (shrink)

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

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)

Faced with the choice between saving one person and saving two others, what should we do? It seems intuitively plausible that we ought to save the two, and many forms of consequentialists offer a straightforward rationale for the intuition by appealing to interpersonal aggregation. But still many other philosophers attempt to provide a justification for the duty to save the greater number without combining utilities or claims of separate individuals. I argue against one such attempt proposed by Iwao Hirose. Despite (...) being consequentialist, his argument is aggregation-free since it relies on a non-aggregative value judgement method, instead of interpersonal aggregation, to establish that (other things being equal) a state of affairs is better when more people survive therein. I do not take issue with its consequentialist element; rather, I claim that there is no good reason to adopt the method in question, and thus no good reason to be moved by his argument overall. What we are in search of is not merely a logically possible method that can produce the conclusion that we already want, but one that we have good reason to adopt. Hirose's argument elegantly demonstrates how it could possibly be true that it is right to save the greater number; but it fails to show that we have reason to believe so - even when we do not combine the interests of different individuals. (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.

Love is often seen as the most intimate aspect of our lives, but it is increasingly engineered by a few programmers with Artificial Intelligence (AI). Nowadays, numerous dating platforms are deploying so-called smart algorithms to identify a greater number of potential matches for a user. These AI-enabled matchmaking systems, driven by a rich trove of data, can not only predict what a user might prefer but also deeply shape how people choose their partners. This paper draws on Jürgen Habermas’s “colonization (...) of the lifeworld” thesis to critically explore the insidious influence of delegating romantic decision-making to an algorithm. The love lifeworld is colonized inasmuch as online dating algorithms encroach into our romantic relations to the extent that communicative action within romance is replaced by the technocratic rules of an algorithm. (shrink)

In this paper I argue that Leibniz's ethics is a kind of virtue ethics where virtues of the agent are explanatorily primary. I first examine how Leibniz obtained his conception of justice as a kind of love in an early text, Elements of Natural Law. I show that in this text Leibniz's goal was to find a satisfactory definition of justice that could reconcile egoism with altruism, and that this was achieved through the Aristotelian virtue of friendship where friends treat (...) each other as “other selves.” Following this decisive moment, Leibniz adopted an Aristotle‐inspired ethical framework where the virtuous agent is central for moral evaluations. I then show that, despite certain developments, Leibniz's ethics retained this essential feature throughout his career. In Leibniz's later writings, God constitutes the foundation of the moral realm, and the fundamental moral endeavor of human beings consists in the imitation of God. (shrink)

In this paper I argue that there is a structural parallelism between law and physics in Leibniz since his early years, which has significant influence on the formation of his views. I start by examining Leibniz's early physical system and an analogy with juridical laws that he uses to explain the structure of physical laws. Then, I argue that this analogy stems from an envisioned parallelism between law and physics. Finally, I illustrate the significance of this legal-physical parallelism by arguing (...) that it underlies some of Leibniz's mature views. Most importantly, I argue that the parallelism explains the origin of architectonic principles or optimality principles in Leibniz's mature physics. (shrink)

Luck egalitarians equalize the outcome enjoyed by people who exemplify the same degree of distributive desert by removing the influence of luck. They also try to calibrate differential rewards according to the pattern of distributive desert. This entails that they have to decide upon, among other things, the rate of reward, i.e., a principled way of distributing rewards to groups exercising different degrees of the relevant desert. However, the problem of the choice of reward principle is a relatively and undeservedly (...) neglected issue among luck egalitarians. The main goal of this paper is to highlight the importance and difficulty of this problem, and to elaborate upon G. A. Cohen's community-oriented response to it. In the last section, I provide a taxonomy of distributive pluralism, contrasting Cohen’s view with other (not so genuine) pluralisms - especially with all-things-considered varieties - while trying to motivate readers to adopt the more robust form of pluralism. (shrink)

Despite being a milestone in the history of statistical causal inference, Sewall Wright’s 1918 invention of path analysis did not receive much immediate attention from the statistical and scientific community. Through a careful historical analysis, this paper reveals some previously overlooked philosophical issues concerning the history of causal inference. Placing the invention of path analysis in a broader historical and intellectual context, I portray the scientific community’s initial lack of interest in the method as a natural consequence of relevant scientific (...) and philosophical conditions. In addition to Karl Pearson’s positivist refutation of causation, I contend that the acceptance of path analysis faced several other challenges, including the introduction of a new formalism, conceptual barriers to causal inference, and the lack of model-based statistical thinking. The presence of these challenges shows that the delayed progress in causal inference in the early twentieth century was inevitable. (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)

Synthetic biology (SynBio) covers two main areas: application engineering, exemplified by metabolic engi- neering, and the design of life from artificial building blocks. As the general public is often reluctant to embrace synthetic approaches, preferring nature to artifice, its immediate future will depend very much on the public’s reaction to the unmet needs created by the pervasive demands of sustainability. On the other hand, this reluctance should not have a negative impact on research that will now take into account the (...) existence of the multiple transitions that cells face over time. The ages of life—birth, development, maturation, senescence and death—reflect specific key transitions and have, until now, rarely been taken into account in SynBio designs. This results in a mismatch between novelty and the very long evolutionary time that led to the existing chassis [remember that this is the common term used to describe the cellular framework as seen by synthetic biologists (de Lorenzo & Danchin, 2008)]. It also implies that, in general, transitions between growth stages will be taken into account with the appro- priate embodiment of highly specific processes. This is particularly important when adapting new models to their host, whether natural or artificial. Adaptation fol- lows two stages, short-term accommodation of new entities and long-term assimilation into the cell as a whole. This requires discrimination between classes of entities. We suggest that proteins playing the essential role of Maxwell’ demons, here named Maxwell’s dis- criminators (MxDs) to refer to their original function, will permit the assimilation and accommodation of artificial constructs. As a consequence, we can foresee that class discrimination, beyond mere recognition, will be implemented in SynBio 2.0, leading to an authentic par- adigm shift (Kuhn, 1996), based on conceptions that embody information as a genuine currency of reality. (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)

This paper aims both to tackle the technical issue of deciphering Hobbes’s derivation of the sine law of refraction and to throw some light to the broader issue of Hobbes’s mechanical philosophy. I start by recapitulating the polemics between Hobbes and Descartes concerning Descartes’ optics. I argue that, first, Hobbes’s criticisms do expose certain shortcomings of Descartes’ optics which presupposes a twofold distinction between real motion and inclination to motion, and between motion itself and determination of motion; second, Hobbes’s optical (...) theory presented in Tractatus Opticus I constitutes a more economical alternative, which eliminates the twofold distinction and only admits actual local motion, and Hobbes’s derivation of the sine law presented therein, which I call “the early model” and which was retained in Tractatus Opticus II and First Draught, is mathematically consistent and physically meaningful. These two points give Hobbes’s early optics some theoretical advantage over that of Descartes. However, an issue that has baffled commentators is that, in De Corpore Hobbes’s derivation of the sine law seems to be completely different from that presented in his earlier works, furthermore, it does not make any intuitive sense. I argue that the derivation of the sine law in De Corpore does make sense mathematically if we read it as a simplification of the early model, and Hobbes has already hinted toward it in the last proposition of Tractatus Opticus I. But now the question becomes, why does Hobbes take himself to be entitled to present this simplified, seemingly question-begging form without having presented all the previous results? My conjecture is that the switch from the early model to the late model is symptomatic of Hobbes’s changing views on the relation between physics and mathematics. (shrink)

Despite Donald Davidson's influential criticism of the very notion of conceptual schemes, the notion continues enjoying its popularity in contemporary philosophy and, accordingly, conceptual relativism is still very much alive. There is one major reason responsible for Davidson's failure which has not been widely recognized: What Davidson attacks fiercely is not the very notion, but a notion of conceptual schemes, namely, the Quinean notion of conceptual schemes and its underlying Kantian scheme-content dualism. However, such a notion simply cannot carry the (...) weight of conceptual relativism for it does not catch the essences of conceptual relativism. Consequently, I argue that the very notion of conceptual schemes and conceptual relativism have survived Davidson's attack. Therefore, the failure of the Quinean notion of conceptual schemes and Kantian scheme-content dualism, even if Davidson can claim victory, does not mark the end of the very notion of conceptual schemes.[ABSTRACT FROM AUTHOR]. (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)

Through a comparative study of the meanings and origins of justice symbolized in the Greek word dikē and the Chinese word yi 毅, this essay explores an alternative understanding of justice exemplified in Mencius' teaching and illuminates a possibility of social and political justice that originates in the human heart instead of reason. On the basis of a genealogical study of yi that identifies its root meanings as "the dignity of the self" and "amity and affinity," this study recovers and (...) revives a way of justice that may preserve and promote the dignity of the individual and the solidarity of political community at once without succumbing to the violence and rigidity of traditional Western metaphysics. In so doing, it highlights a long overlooked dimension of early Confucian moral practice and establishes its unique relevancy for the contemporary debates on justice. (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)

Various theorists have endorsed the “communication argument”: communicative capacities are necessary for morally responsible agency because blame aims at a distinctive kind of moral communication. I contend that existing versions of the argument, including those defended by Gary Watson and Coleen Macnamara, face a pluralist challenge: they do not seem to sit well with the plausible view that blame has multiple aims. I then examine three possible rejoinders to the challenge, suggesting that a context-specific, function-based approach constitutes the most promising (...) modification of the communication argument. (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.

While investigating the value of achievements, Dunkle claims that lucky achievements are possible. For instance, if a person does great works, then it is possible that the works have the status of achievements, even if luck plays a crucial role in doing the great works. Rather than examining Dunkle’s claim, this paper proceeds discussion under the assumption that lucky achievements are possible. In particular, based on this assumption, this paper suggests a new approach to the nature of achievement named the (...) Comparative Value Approach. According to the comparative value approach, a product can have the status of an achievement if the product is valuable in an achievement-relevant domain, and in that domain the product is valuable more than most other items which either have been achieved or can be achieved by others. This paper shows that the comparative value approach successfully explains the cases of achievements, including the cases of lucky achievements. Besides this reason, this paper provides three more reasons to show that the comparative value approach is a feasible view of achievements. The comparative value approach can accommodate the fact that there are various kinds of achievements; the approach can explain the relation between the nature of achievement and the achievement-value of a product; and the approach can show why in determining the status of a product it matters that for average people achieving a similar kind of product is sufficiently difficult. Based on these four reasons, this paper concludes that the comparative value approach is a plausible understanding of achievements. (shrink)

Simion and Kelp explain the trustworthiness of an AI based on that AI’s disposition to meet its obligations. Roughly speaking, according to Simion and Kelp, an AI is trustworthy regarding its task if and only if that AI is obliged to complete the task and its disposition to complete the task is strong enough. Furthermore, an AI is obliged to complete a task in the case where the task is the AI’s etiological function or design function. This account has a (...) strength in that it can provide a unificatory rationale for the trustworthy-making properties of AIs. According to this account, being explainable, being safe, and being transparent are the trustworthy-making properties of an AI because an AI can fulfill its etiological or design functions in the case where it is explainable, safe, and transparent. This paper shows that though Simion and Kelp’s account has a strength, this account is not satisfactory for two reasons. The first reason is that an AI’s trustworthiness is not determined just by the AI’s disposition to meet obligations, and the second reason is that it is difficult to explain how an AI’s etiological function and design function have to do with that AI’s obligations. To provide a full-fledged account, Simion and Kelp should dismiss these concerns. (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)

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)

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)

Why is mutual understanding between two substantially different comprehensive language communities often problematic and even unattainable? To answer this question, the author first introduces a notion of presuppositional languages. Based on the semantic structure of a presuppositional language, the author identifies a significant condition necessary for effective understanding of a language: the interpreter is able to effectively understand a language only if he/she is able to recognize and comprehend its metaphysical presuppositions. The essential role of the knowledge of metaphysical presuppositions (...) in understanding is further strengthened by developing a truth-value conditional theory of understanding. It is concluded that if the interpreter approaches an incompatible alien language from the standpoint of the interpreter's own language by projecting the metaphysical presuppositions of his/her own language upon the alien language, then the mutual understanding between the two language communities is doomed to failure. (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)

Some goals have special significance to agents. For instance, an agent could find her life worth living because she is pursuing her current goal, and the agent could also think that her previous life has no value because she did not pursue the current goal. If an agent’s current goal has special importance to the agent, then in terms of prudence the agent’s decision to obtain her current goal could be permissible even in the case where achieving her previous goal (...) brings out larger advantages. A widely endorsed thesis of prudence (i.e. the temporal neutrality thesis) does not successfully explain this phenomenon of goal achievement. Furthermore, the present-aim thesis and the harmony thesis also fail in explaining why an agent has prudential reason to prioritize her current goal. This paper introduces a new thesis of prudence, according to which an agent’s caring is significant in deciding whether the agent’s actions are prudentially permissible. In particular, after introducing this thesis named the care thesis, I argue that the care thesis can explain why an agent has reason to prioritize her current goal if the agent finds her life worth living due to her current goal. It is permissible that an agent obtains her current goal rather than previous goal because achieving her current goal benefits the agent’s cared one (i.e. the self who pursues her current goal). (shrink)

The redemption thesis assumes that how events in a person’s life are related to one another is important in evaluating the person’s welfare throughout life. In particular, according to this thesis of welfare, the fact that a person’s previous hardships contribute to bringing out the same person’s later successes, and the person would regard the hardships as having been worthwhile in light of the successes makes the person’s life better for the person herself. Recently, Ian D. Dunkle provided four objections (...) to the redemption thesis: the intuition concern, the different redemptions argument, the downplaying hardships argument, and the reconciled irreconcilables argument. This paper examines these four objections. In particular, this paper dismisses all the objections showing that the redemption thesis bases on an appealing idea, does not consider the degree of hardship significant in itself, has plausible reasons to evaluate hardships not as serious as people think, and can successfully reconcile its synchronic and diachronic evaluations. (shrink)

Once known as the city of silk, Suzhou 苏州 has become the centre of wedding dress production, selling paradise on earth for one day, including copies of the last royal wedding dress, out of shops at the foot of mythic Tiger Hill. Suzhou is also the host of what is known as the Silicon Valley of the East. It has attracted millions of migrants searching for a better future; millions of tourists visit every year to experience the past, strolling through (...) the gardens and courtyards of its Old Town. The contrasts could hardly be more apparent. Slow time, and fast time, and the time of the in-between, are woven into the city’s complex spatial fabric. This is a conversation by eight authors in eight frames on a city that connects them. (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.

Mathematical cognition is one of the most important cognitive functions of human beings. The latest brain and cognitive research have shown that mathematical cognition is a system with multiple components and subsystems. It has phylogenetic root, also is related to ontogenetic development and learning, relying on a large-scale cerebral network including parietal, frontal and temporal regions. Especially, the parietal cortex plays an important role during mathematical cognitive processes. This indicates that language and visuospatial functions are both key to mathematical cognition. (...) All of those advances have important implications for basic mathematical education. (shrink)

on how to justify the rationality of sciences.

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)

Numerous societal issues, from climate change to pandemics, require public engagement with scientific research. Such engagement reveals challenges that can arise when experts communicate with laypeople. One of the most common frameworks for framing these communicative interactions is the deficit model of science communication, which holds that laypeople lack scientific knowledge and/or positive attitudes towards science, and that imparting knowledge will fill knowledge gaps, lead to desirable attitude/behavior changes, and increase trust in science. §1 introduces the deficit model in more (...) detail and shows that adhering to this model often fails to achieve its aims, which motivates the main question of this chapter: how can Ludwik Fleck’s theory of thinking collectives address the persistent problem of deficit approaches in science communication? I suggest that it can do so by exposing the deficit model’s implicit assumption of an expert-lay divide. Accordingly, §2 lays out Fleck’s theory and §3 contrasts it with contemporary debates about science communication. Following this descriptive work, §4 draws on Fleck’s ideas to make four concrete suggestions for further questioning the expert-lay divide. (shrink)

This paper reconciles an inconsistency between the benefits of mind wandering and a prominent conception of attention in philosophy and cognitive psychology, namely, the prioritization view. Since we prioritize the information in a task less if we are doing it while mind wandering compared to solely concentrating on it, why does our performance in the task sometimes improve when we are mind wandering? To explain this, we offer a conception of diffuse attention that generalizes from external to internal forms of (...) attention and captures deep commonalities between the two (Chun et al. 2011). We conceptualize mind wandering as an instance of internal diffuse attention that also induces diffuse attention in other concurrent tasks. Moreover, pace the prioritization view, certain tasks are in fact better performed with diffuse attention, which prioritizes information less than focused attention. Our account of mind wandering as an instance of the more general category of diffuse attention improves upon current leading philosophical views of mind wandering (such as Irving 2016) by better explaining the interaction between mind wandering and other tasks. (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)

According to the received translational interpretation of incommensurability, incommensurability is viewed as untranslatability due to radical variance of meaning or reference of the terms in two competing scientific languages. The author argues that the translational approach to incommensurability does not effectively clarify the concept of incommensurability. Since it cannot provide us with tenable, integrated concept of incommensurability, it should be rejected.

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)