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)

Driven by the use cases of PubChemRDF and SCAIView, we have developed a first community-based clinical trial ontology (CTO) by following the OBO Foundry principles. CTO uses the Basic Formal Ontology (BFO) as the top level ontology and reuses many terms from existing ontologies. CTO has also defined many clinical trial-specific terms. The general CTO design pattern is based on the PICO framework together with two applications. First, the PubChemRDF use case demonstrates how a drug Gleevec is linked to multiple (...) clinical trials investigating Gleevec’s related chemical compounds. Second, the SCAIView text mining engine shows how the use of CTO terms in its search algorithm can identify publications referring to COVID-19-related clinical trials. Future opportunities and challenges are discussed. (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)

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.

Is the societal-level of analysis sufficient today to understand the values of those in the global workforce? Or are individual-level analyses more appropriate for assessing the influence of values on ethical behaviors across country workforces? Using multi-level analyses for a 48-society sample, we test the utility of both the societal-level and individual-level dimensions of collectivism and individualism values for predicting ethical behaviors of business professionals. Our values-based behavioral analysis indicates that values at the individual-level make a more significant contribution to (...) explaining variance in ethical behaviors than do values at the societal-level. Implicitly, our findings question the soundness of using societal-level values measures. Implications for international business research are discussed. (shrink)

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

Although the idea that sexual violence is a “structural” problem is not new, the lack of specification as to what that entails blocks effective responses to it. This paper illustrates the concept of sexual violence as structural in the sense of containing a type of moral wrong called “structural wrong” and discusses its practical implications. First, I introduce a distinction between two types of moral wrongs—interactional wrongs and structural wrongs—and I argue that the moral problem of sexual violence includes both (...) types, each of which calls for a different set of moral responses. Second, drawing on Iris Marion Young’s social connection model of responsibility, I argue that recognizing the structural-wrong element of sexual violence does not reduce individual perpetrators’ responsibility for it. Instead, it implies that a broader group of agents are required to join collective actions to reform the social structure. I conclude by evaluating some preventive programs against sexual violence through the lens of structural wrongs and providing directions to advance them. (shrink)

Cover Date: July 2006.Source Info: 115(3), 317-354. Language: English. Journal Announcement: 41-2. Subject: ACTION; CAUSATION; METAPHYSICS; REPRESENTATION; TELEOLOGY. Subject Person: SPINOZA, BENEDICT DE (BARUCH). Update Code: 20130315.

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)

The desire-satisfaction theory of welfare says that what is basically good for a subject is the satisfaction of his desires. One challenge to this view is the existence of quirky desires, such as a desire to count blades of grass. It is hard to see why anyone would desire such things, and thus hard to believe that the satisfaction of such desires could be basically good for anyone. This suggests that only some desires are basically good when satisfied, and that (...) desire satisfactionists owe us an account of which desires these are, and why. In "Quirky Desires and Well-Being," Donald Bruckner proposes such an account: a desire is welfare-relevant (i.e., such that its satisfaction would be basically good for its subject) if and only if and because its subject could describe its object in a way that makes it comprehensible what about the object attracts him or appeals to him. We are inclined to view quirky desires as welfare-irrelevant because we assume that their objects cannot be described in such a way. But if there were a quirky desire whose object could be so described by the subject whose desire it is, then this desire would be relevant to that subject's welfare. I will argue that while Bruckner's view delivers plausible verdicts about the cases to which it is meant to apply, its account of what makes a desire welfare-relevant is unmotivated and implausible. Desire satisfactionists can retain what is plausible about his view while endorsing a better explanation of why welfare-relevant desires have that status if they accept the following account instead: a desire is welfare-relevant if and only if and because something about its object attracts, or appeals to, the subject who has the desire. (shrink)

: Perhaps the central problem which preoccupies Spinoza as a moral philosopher is the conflict between reason and passion. He belongs to a long tradition that sees the key to happiness and virtue as mastery and control by reason over the passions. This mastery, however, is hard won, as the passions often overwhelm its power and subvert its rule. When reason succumbs to passion, we act against our better judgment. Such action is often termed 'akratic'. Many commentators have complained that (...) the psychological principles that Spinoza appeals to in his account of akrasia are mere ad hoc modifications to his philosophical psychology. I show, on the contrary, that these principles follow from some of the most important and interesting aspects of Spinoza's philosophy of mind. (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)

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 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 addresses the always online behavior of the data owner in proxy re- encryption schemes for re-encryption keys issuing. We extend and adapt multi-authority ciphertext policy attribute based encryption techniques to type-based proxy re-encryption to build our solution. As a result, user authentication and user authorization are moved to the cloud server which does not require further interaction with the data owner, data owner and data users identities are hidden from the cloud server, and re-encryption keys are only issued (...) to legitimate users. An in depth analysis shows that our scheme is secure, flexible and efficient for mobile cloud computing. (shrink)

The call to make artificial intelligence (AI) more democratic, or to “democratize AI,” is sometimes framed as a promising response for mitigating algorithmic injustice or making AI more aligned with social justice. However, the notion of “democratizing AI” is elusive, as the phrase has been associated with multiple meanings and practices, and the extent to which it may help mitigate algorithmic injustice is still underexplored. In this paper, based on a socio-technical understanding of algorithmic injustice, I examine three notable notions (...) of democratizing AI and their associated measures—democratizing AI use, democratizing AI development, and democratizing AI governance—regarding their respective prospects and limits in response to algorithmic injustice. My examinations reveal that while some versions of democratizing AI bear the prospect of mitigating the concern of algorithmic injustice, others are somewhat limited and might even function to perpetuate unjust power hierarchies. This analysis thus urges a more fine-grained discussion on how to democratize AI and suggests that closer scrutiny of the power dynamics embedded in the socio-technical structure can help guide such explorations. (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)

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 paper calls for a paradigm shift in studying academic dependency, towards the paradigm of brokered dependency. Using Chinese academia as an example, I demonstrate how the neocolonial condition of academic dependency is always mediated through blockage-brokerage mechanisms. The two most salient blockage-brokerage mechanisms of dependency in the Chinese context are linguistic barrier and authoritarian malepistemization, and the effects of the latter consist of three layers: institutional, informational and incorporational. On top of their domestic impacts, those mechanisms jointly exacerbate spectacularized (...) postcoloniality in anglophone-hegemonic global academic publishing. The paradigm of brokered dependency not only represents a more nuanced approach to the study of academic dependency, but also underscores the fact that the dismantling of the neocolonial condition cannot be conceived and pursued in isolation from comprehending and confronting the authoritarian condition, especially when the latter pertains under the disguise of anticolonialism. (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)

Aim: This study determined the relationship between the assessed conflict management and communication styles of the university leaders of Guangdong Business and Technology University in China towards a leadership development training program. -/- Methodology: This study adopted a descriptive quantitative- comparative- correlational research design. It was conducted during the second semester of school year 2021-2022. The data gathered were collated and treated using the Statistical Package for Social Sciences or SPSS software. -/- Results: Based on the results, the most evident (...) conflict management styles of the university leaders are the compromising, and collaborating styles which ranked first and second respectively among the five identified management styles. It can also be noticed that avoiding and accommodating styles were evident among the university leaders as assessed by the teachers, while competing style was given the lowest assessment by the respondents. An over-all mean values of 3.50 shows that the conflict management style of the university leaders is evident as perceived by the teacher respondents. -/- Conclusion: Compromising and collaborating styles of conflict management are the most evident styles among the university leaders. Older teachers have seen avoiding style of conflict management more evident in their university leaders, while least evident in the eyes of the younger ones. Aggressive communication style was most evident among the university leaders while passive style was the least as observed by the teachers. Older teachers have seen their leaders to be more assertive than how the younger ones have seen them. The way the educational leaders handle conflict management is affected by the way how they communicate with their subordinates. It can also be said that effective communication style is a factor in managing and solving conflicts in the workplace. (shrink)

In ‘Equity and Marxist Buddhism,’ Tzu-wei Hung engages with the Marxist Buddhism developed by Taiwanese philosopher Lin Qiu-wu in the 1920s, brings this underexplored theory to the table and discusses a few merits and insights of the theory. Building on Hung’s analysis, this paper paper elaborates on the lessons and insights that Taiwanese Marxist Buddhism provides for modern times. The first three lessons are distinctive points that Taiwanese Marxist Buddhism brings to the discussion on combining Marxism and Buddhism: the connections (...) between the ethical and political, the responsibility for pursuing social justice and the nonviolence means towards social justice. The last lesson comes at the meta-philosophical level, focusing on how Hung’s engagement with Taiwanese Marxist Buddhism sheds light on the issue of diversifying the discipline philosophy. Overall, I argue that Taiwanese Marxist Buddhism not only makes contributions to theoretical frameworks while providing a practical means for pursuing equity and social justice, but it also manifests the epistemic and moral values for engaging with under-represented philosophical traditions. (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.

Low-carbon agriculture is essential for protecting the global climate and sustainable agricultural economics. Since China is a predominantly agricultural country, the adoption of low-carbon agricultural technologies by local farmers is crucial. The past literature on low-carbon technologies has highlighted the influence of demographic, economic, and environmental factors, while the psychological factors have been underexplored. A questionnaire-based approach was used to assess the psychological process underlying the adoption of low-carbon agricultural technologies by 1,114 Chinese rice farmers in this paper, and structural (...) equation modeling (SEM) was empirically employed to test our theoretical model. (shrink)

With the naturalist worldview having become widely accepted, the trend of naturalistic Buddhism has likewise become popular in both academic and religious circles. In this article, I preliminarily reflect on this naturalized approach to Buddhism in two main sections. In section 1, I point out that the Buddha rejects theistic beliefs that claim absolute power over our destiny, opting instead to encourage us to inquire intellectually and behave morally. The distinguishing characteristics of naturalism such as a humanistic approach, rational enquiry, (...) empirical observation, as well as a pragmatic and realistic outlook can all be seen in the Buddha’s teachings. In section 2, however, I advance arguments to show that while the Buddha is opposed to theistic doctrines, his views are not entirely in accordance with the presuppositions of naturalism. Firstly, the Buddha’s foremost concern is not purely intellectual in nature—the purpose of his teachings is to realize a soteriological goal through spiritual practice. Secondly, naturalism tends to subscribe to ‘self-being,’ while the Buddha holds all things to exist conditionally and impermanently. Because of the dependent nature of all things, it is not possible to discover their essence through reduction. Thirdly, naturalized philosophy would be a kind of belief-habit that follows from certain preconditioned assumptions. But the Buddha encourages us to re-examine our conceptual proliferation leading to biased views, as that ultimately leads to suffering. I conclude by proposing a broader naturalist outlook that would allow for a more inclusive conception of the natural world that would take the axiological dimension of human transcendence into account and increase an overall understanding of human potentiality. (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)

Gilbert Ryle’s The Concept of Mind (1949/2002. Chicago, IL: University of Chicago Press) is generally considered a landmark in the quest to refute Cartesian dualism. The work contains many inspirational ideas and mainly posits behavioral disposition as the referent of mind in order to refute mind–body dualism. In this article, I show that the Buddhist theory of ‘non-self’ is also at odds with the belief that a substantial soul exists distinct from the physical body and further point out similarities between (...) the Buddhist outlook and Ryle’s ideas in three parts. First, I illustrate that Ryle’s ‘category mistake’ has certain points in common with the Buddhist refutation of ‘self’. Within the Buddhist framework, referents such as ‘mind’ and ‘self’ are merely imputed terms. The presumed existence of an independent substance such as a ‘soul’, when considered in isolation from the expedient usage of the term ‘mind’, can therefore also be viewed as a ‘category mistake’. Second, attempting to solve the questions of ‘what mind is’ and ‘how mind operates’ are two entirely different approaches to the study of mind. I argue that it is necessary to focus on ‘knowing-how’ rather than ‘knowing-that’, if we are to gain a more comprehensive understanding of mind and avoid any kind of category mistake such as those that follow from isolating the physical properties of brain or drawing inferences from a mystical soul. Third, I aim to show why investigating mind from the perspective of ‘dispositions’ of behavior is a valid approach. The Buddhist concept of karma-vāsanā elucidates the habitual tendency to act or not act in various situations. Based on this theory, I argue that the workings of the human mind bears strong links to the formation of karma and as such have important axiological implications that cannot be ignored. I conclude by pointing out that Ryle’s insightful ideas could in certain ways be complemented by the Buddhist theory of mind. In my view, his philosophy is not only a mediator between Analytic Philosophy and Phenomenology, but could perhaps also be seen as a mediator between traditional Eastern systems of thought and contemporary philosophies of mind. (shrink)

Past work has shown systematic differences between Easterners' and Westerners' intuitions about the reference of proper names. Understanding when these differences emerge in development will help us understand their origins. In the present study, we investigate the referential intuitions of English- and Chinese-speaking children and adults in the U.S. and China. Using a truth-value judgment task modeled on Kripke's classic Gödel case, we find that the cross-cultural differences are already in place at age seven. Thus, these differences cannot be attributed (...) to later education or enculturation. Instead, they must stem from differences that are present in early childhood. We consider alternate theories of reference that are compatible with these findings and discuss the possibility that the cross-cultural differences reflect differences in perspective-taking strategies. (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)

In this chapter, we examine the key moral issues for the intelligence community with regard to the use of robots for intelligence collection. First, we survey the diverse range of spy robots that currently exist or are emerging, and examine their value for national security. This includes describing a number of plausible scenarios in which they have been (or could be) used, including: surveillance, attack, sentry, information collection, delivery, extraction, detention, interrogation and as Trojan horses. Second, we examine several areas (...) in which spy robots present serious ethical and legal challenges. We conclude by examining some moral concerns with shifting from intelligence collection to action, as enabled by robotics technology. (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 scarcity mindset is considered to impact consumer behaviors. Our research aimed to examine the moderating effect of the scarcity mindset on the relationship between mental accounting and hedonic (vs. utilitarian) consumption. We conducted an online experimental design (mental accounting: windfall gains vs. hard-earning gains; consumption: hedonic products vs. utilitarian products) and verified our hypotheses in two distinct samples: a student sample and an adult sample. Our results showed that consumers who received windfall gains tended to use it for hedonic (...) consumption rather than utilitarian consumption. Intriguingly, such an effect was insignificant under a high level of a scarcity mindset but significant under a low level of the scarcity mindset. Moreover, consumers who received hard-earning gains tended to spend the money on utilitarian (vs. hedonic) consumption. However, we did not detect the impact of the scarcity mindset on such effects. Our research suggested an asymmetric effect of the scarcity mindset on hedonic (vs. utilitarian) consumption under two different mental accounts. It highlights the important role of the scarcity mindset in consumer behaviors, which leaves avenues for future research to understand marketing promotion strategies for distinct products. (shrink)

This paper summarizes the evolution of analytic philosophy in Taiwan, examines its impact within and beyond academia, and discusses the future of the discipline. The roots of modern philosophy in Taiwan can be traced back to the Japanese colonial era, and analytic philosophy was introduced to the country in the late 1940s when many intellectuals in China moved to Taiwan. However, massive curbs were imposed on philosophy during Chiang Kai-shek’s dictatorship, and the discipline began to thrive again only after Taiwan’s (...) democratization in the late 1980s. Nonetheless, since its introduction in the colonial era, modern philosophy has made significant contributions in Taiwan, encouraging interdisciplinary engagements, advancing civic education, and promoting the spirit of democracy and political liberation. Philosophy has played a key role in Taiwan’s remarkable transformation from an island colonized for hundreds of years to a country that recognizes democracy, freedom, and human rights. The themes of anti-colonialism and anti-domination seen in the works of modern Taiwanese philosophers not only reflect the discipline’s political and historical underpinnings but also signal how Taiwanese philosophy can acquire a distinct identity, despite being influenced by many other philosophical traditions. While still at a nascent stage, Taiwanese philosophy has the potential to join forces with other philosophical traditions in advancing the vision of decolonizing philosophy. (shrink)

Structural injustice exists when the influence of social structure exposes some groups of people to undeserved burdens while conferring unearned power to others. It has been argued that the responsibility for addressing structural injustices should be shared among those participating in the social structure and can only be discharged through collective action; however, the proper form of collective action does not happen easily. To address structural injustice effectively, we need to gain clarity on the practical challenges that are involved and (...) explore possible means of implementing shared responsibility. This chapter thus aims to contribute to the study of addressing structural injustice in the following two ways. First, building on previous studies, I categorize three forms of practical challenges that have been encountered by existing proposals for discharging shared responsibility for structural injustice. Second, I offer an alternative proposal, which I will refer to as the deliberative mini-public proposal, and argue that it has the potential to mobilize structural change and better overcome the identified practical challenges. (shrink)

The translational research community, in general, and the Clinical and Translational Science Awards (CTSA) community, in particular, share the vision of repurposing EHRs for research that will improve the quality of clinical practice. Many members of these communities are also aware that electronic health records (EHRs) suffer limitations of data becoming poorly structured, biased, and unusable out of original context. This creates obstacles to the continuity of care, utility, quality improvement, and translational research. Analogous limitations to sharing objective data in (...) other areas of the natural sciences have been successfully overcome by developing and using common ontologies. This White Paper presents the authors’ rationale for the use of ontologies with computable semantics for the improvement of clinical data quality and EHR usability formulated for researchers with a stake in clinical and translational science and who are advocates for the use of information technology in medicine but at the same time are concerned by current major shortfalls. This White Paper outlines pitfalls, opportunities, and solutions and recommends increased investment in research and development of ontologies with computable semantics for a new generation of EHRs. (shrink)

So-called “traditional epistemology” and “Bayesian epistemology” share a word, but it may often seem that the enterprises hardly share a subject matter. They differ in their central concepts. They differ in their main concerns. They differ in their main theoretical moves. And they often differ in their methodology. However, in the last decade or so, there have been a number of attempts to build bridges between the two epistemologies. Indeed, many would say that there is just one branch of philosophy (...) here—epistemology. There is a common subject matter after all. In this paper, we begin by playing the role of a “bad cop,” emphasizing many apparent points of disconnection, and even conflict, between the approaches to epistemology. We then switch role, playing a “good cop” who insists that the approaches are engaged in common projects after all. We look at various ways in which the gaps between them have been bridged, and we consider the prospects for bridging them further. We conclude that this is an exciting time for epistemology, as the two traditions can learn, and have started learning, from each other. (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)

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)

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

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

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

In this paper, I respond to criticisms of my book Being and Reason recently made by Yitzhak Melamed.