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)

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)

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)

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)

A fundamental entity is an entity that is ‘ontologically independent’; it does not depend on anything else for its existence or essence. It seems to follow that a fundamental entity is ‘modally free’ in some sense. This assumption, that fundamentality entails modal freedom (or ‘FEMF’ as I shall label the thesis), is used in the service of other arguments in metaphysics. But as I will argue, the road from fundamentality to modal freedom is not so straightforward. The defender of FEMF (...) should provide positive reasons for believing it, especially in light of recent views that are incompatible with it. I examine both direct and indirect routes to FEMF. (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 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.

The dominant way to define physical entities is by appeal to ideal physics (as opposed to current physics). However, it has been worried that physicalism understood in terms of ideal physics would be too liberal to rule out “psychism”, the view that mentality exists at the fundamental metaphysical level. In this article, I argue that whereas physicalism is incompatible with some psychist cases, such as the case of “phenomenalism” in which ideal physics adopts mental concepts to denote fundamental entities, physicalism (...) should accommodate a certain type of psychist case in which fundamental mental entities are denoted by non-mental concepts in ideal physics. In so doing, I propose a distinctive account of physical entities, which asserts that physical entities are entities denoted by non-mental natural concepts in ideal physics. Physicalism thus understood is expected to be neither too liberal nor too demanding. (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)

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)

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)

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

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)

Comparative philosophy between two disparate cultural-philosophic traditions, such as Western and Chinese philosophy, has become a new trend of philosophical fashion in the late twentieth and early twenty-first centuries. Having learned from the past, contemporary comparative philosophers cautiously safeguard their comparative studies against two potential pitfalls, namely cultural universalism and cultural relativism. The Orientalism that assumed the superiority of the Occidental has become a memory of the past. The historical pendulum has apparently swung to the other extreme. The more recent (...) "reverse Orientalism" has started to reclaim the superiority of the Oriental. We have even been told that the twenty-first... (shrink)

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 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 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)

Aim: Low professional help-seeking intention (PHSI) hinders effective treatment of mental illness. PHSI among Chinese students is still understudied and under-recognized. This study aimed to evaluate the status of PHSI and its associated risk factors among Chinese medical students. -/- Methods: A cross-sectional survey was conducted in Hainan province, South China, between January 1, 2021, and May 31, 2021. A total of 2182 medical students were recruited and surveyed via an anonymous structured questionnaire. Logistic regression analyses were performed to identify (...) the factors associated with PHSI. -/- Results: Among the 2182 medical students (mean age 21.0 years (SD = 3.70), 61.5% females), those with and without PHSI were 72.0% and 28.0%, and 16.4% with moderate to severe depression. Male students, those with a high level of depression stigma, serious family dysfunction, and heavy dependence on mobile phones were significantly less likely to seek professional mental health help, with odds ratios (ORs) of 1.5, 2.0, 2.1, and 1.7, respectively. -/- Conclusion: A significant proportion of Chinese medical students demonstrate low PHSI, influenced by factors such as gender, depression stigma, family dysfunction, and mobile phone dependence. Future interventions aimed at increasing medical students’ PHSI should prioritize reducing depression stigma, mitigating reliance on mobile phone use, and enhancing family function to address these key barriers to seeking professional mental health support. (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.

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)

Kuhn's alleged taxonomic interpretation of incommensurability is grounded on an ill defined notion of untranslatability and is hence radically incomplete. To supplement it, I reconstruct Kuhn's taxonomic interpretation on the basis of a logical-semantic theory of taxonomy, a semantic theory of truth-value, and a truth-value conditional theory of cross-language communication. According to the reconstruction, two scientific languages are incommensurable when core sentences of one language, which have truth values when considered within its own context, lack truth values when considered within (...) the context of the other due to the unmatchable taxonomic structures underlying them. So constructed, Kuhn's mature interpretation of incommensurability does not depend upon the notion of truth-preserving translatability, but rather depends on the notion of truth-value-status-preserving cross-language communication. The reconstruction makes Kuhn's notion of incommensurability a well grounded, tenable and integrated notion.Author Keywords: Incommensurability; Thomas Kuhn; Taxonomic structures; Lexicons; Truth-value; Untranslatability; Cross-language communication. (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.

The discussion of collective agency involves the reduction problem of the concept of a collective. Individualism and Cartesian internalism have long restricted orthodox theories and made them face the tension between an irreducible concept of a collective and ontological reductionism. Heterodox theories as functionalism and interpretationism reinterpret the concept of agency and accept it as realized on the level of a collective. In order to adequately explain social phenomena that have relations as their essence, in this paper we propose a (...) relational, holistic account of collective agency and argue that functionalism and interpretationism can be integrated into such an account. (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)

In this paper, I attempt to show how Davidson’s anti-sceptical argument can respond to the closureRK-based radical scepticism. My approach will focus on the closureRK principle rather than the possibility that our beliefs could be massively wrong. I first review Davidson’s principle of charity and the triangulation argument, and then I extract his theory on content of a belief. According to this theory, content of a belief is determined by its typical cause and other relevant beliefs. With this constraint on (...) content, I argue that doubt must be local. Furthermore, since one cannot rationally believe that one’s commitment to the cause of beliefs could be false, our commitment to the denial of a sceptical hypothesis is not a knowledge-apt belief. Therefore, the closureRK principle is not applicable to rational evaluations of this commitment. As a result, the closureRK-based sceptical argument fails while the closureRK principle remains. (shrink)

Today, the focus of consumption has been shifting from pure use value to aesthetic-experiential value. Against this backdrop, the concept of design is undergoing a corresponding transformation - design is no longer solely about the manufacture of the product itself. Instead, the creation of atmosphere is brought to the forefront of design work, so much so that the product becomes one of the design elements. The focus on the design of atmosphere allows us to better reflect on the interaction between (...) object, form, space, environment and human body, emotion and action. Our study will focus on the following issues: how can we create an atmosphere that can be experienced as good and meaningful? For a designer who often works in an international context, another question seems even more critical: to what extent can a significant atmosphere have an impact that transcends individual cultural boundaries? To answer these questions, we attempt to introduce the concept resonance into an ethical exploration of atmosphere design. A resonant relationship can occur in almost all dimensions of the human-world relationship and thus provide normative guidance for a good way of life. It is the responsibility of designers to enhance resonant sensitivity of ecological, interpersonal, cross-cultural as well as marginalized issues through the creation of atmospheric scenarios. (shrink)

on how to justify the rationality of sciences.

It is a common wisdom that linguistic communication is different from linguistic understanding. However, the distinction between communication and understanding is not as clear as it seems to be. It is argued that the relationship between linguistic communication and understanding depends upon the notions of understanding and communication involved. Thinking along the line of propositional understanding and informative communication, communication can be reduced to mutual understanding. In contrast, operating along the line of hermeneutic understanding and dialogical communication, the process of (...) understanding is in essence a process of communication. However, dialogical communication should not be confused with propositional understanding. Conversely, hermeneutic understanding should not be confused with informative communication either. The former is dialogical in nature while the latter is monological. (shrink)

Despite a growing interest in and sympathy with Confucianism, there remains a stereotyped conception of Confucian civil order as a form of authoritarian hierarchy that is responsible for various oppressions in ancient China and is reprehensible from a modern egalitarian perspective. One central target of this modern criticism is the Confucian maxim of sangang 三綱, whose underlying idea is essential for regulating the relationship between sovereign and subject, father and son, and husband and wife in traditional Confucian society. Tu Wei-ming (...) translates sangang as the “Three Bonds” and argues that it is the “least defensible legacy of Confucian ethics” from the “modern egalitarian and liberal perspective.” For Tu.. (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)

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)

斯特劳逊 （Strawson）的语义预设概念在语义学和语言哲学研究上颇有建树。尽管如此，语义预设概念一直遭受来自各方面的批判。概要说来，对语义预设概念之批判主要来自两个方面：其一，试图抽去语义预设概念的逻辑基础 ，即非真值概念 (the notion of truthvaluelessness)，从而达到间接地拒斥语义预设概念之目的。其二，直接批判语义预设概念本身。他们或者论证此概念在理论上不自恰或微不足道，或者断定即使此概念本身在理论上自恰，但实为一空 洞无物之概念。因为我们根本找任何一个语义预设的具体例证。所以，语义预设概念不具任何真正的哲学意义。它只是一个当代神话，理应拒斥。 -/- 玻尔(S. Ber)和莱肯(W. Lycan)对语义预设概念的批判集中代表了以上两个方面。据我所知，迄今不曾有人对他们的批判予以全面和公正的反驳，以致于许多人人云亦云，使得他们的论点至今颇有影响。给予玻尔和莱恩的批判以全面反驳乃本文初 衷。于此相关，我以为很有必要澄清对语义预设概念的诸多误解，从而确立一个理论上自恰，实际上可行，和确有实质性内容的语义预设概念。基于以上考虑，我对语义预设概念批判之反驳包括正 反两个方面。在第二节，我试图建立一个自恰，完备，非庸俗的语义预设概念。基于这一概念，第三节对玻尔和莱恩反对语义预设的两个核心批判予以全面反驳。第四节着重辩护非真值概念。本文的最后结论是：各种批判并未损 伤斯特劳逊的语义预设概念的精髓。语 义预设概念非但不是一个当代神话，而且具有重大哲学意义。 .

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)

Conclusion: Needle-free vaccination is a promising technology for the next generation of vaccines, but we found that intramuscular injection was still the most acceptable immunization route in this survey. One major reason might be that most people lack knowledge about needle-free vaccination. We should strengthen the publicity of needle-free vaccination technology, and thus improve the acceptance and coverage of vaccination in different populations.

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)

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.

According to the accepted translation-failure interpretation, the problem of incommensurability involves the nature of the meaning-referential relation between scientific languages. The incommensurability thesis is that some competing scientific languages are mutually untranslatable due to the radical variance of meaning or/and reference of the terms they employ. I argue that this interpretation faces many difficulties and cannot give us a tenable, coherent, and integrated notion of incommensurability. It has to be rejected. ;On the basis of two case studies, I find that (...) the confrontations between many classical incommensurable languages are not confrontations between two untranslatable languages with different distribution of truth values, but rather the confrontations between incompatible fundamental presuppositions at the ontological level. We can always identify a truth-value gap between two incommensurable languages. Such a truth-value gap indicates a communication breakdown between the two language communities on the one hand, and is caused by the incompatible fundamental presuppositions underlying them on the other. ;I thereby identify the truth-value functional relationship between sentences, instead of the meaning-referential relationship between terms, as the dominant semantic relation between two incommensurable languages. According to my presuppositional interpretation of incommensurability, the real secret of incommensurability lies in the ontological setup of two competing presuppositional languages. When two presuppositional languages with incompatible factual commitments encounter with each other, the confrontation leads to a truth-value gap, and consequently a communication breakdown between them. Formally put, two scientific languages are incommensurable when core sentences of one language, which have truth values when considered within its own context, lack truth values when considered within the context of the other due to an ontological gap between them. ;The presuppositional interpretation makes many significant contributions to the discussion of the issue of incommensurability and the related metaphysical and epistemological issues: It confirms the existence of the phenomenon of incommensurability and makes it metaphysically and epistemologically significant. It establishes the tenability and integrity of the notion of incommensurability. It avoids many alleged unattractive epistemological and metaphysical consequences of the translation-failure interpretation. (shrink)

Against the received translation-failure interpretation, this book presents a presuppositional interpretation of incommensurability, that is, the thesis of incommensurability as cross-language communication breakdown due to the incompatible metaphysical presuppositions underlying two competing presuppositional languages, such as scientific languages. This semantically sound, epistemologically well-established, and metaphysically profound interpretation not only affirms the tenability of the notion of incommensurability and confirms the reality of the phenomenon of incommensurability, but also makes some significant contributions to the discussion of many related issues, such as (...) the notion of conceptual schemes, the notion of truth-value status and truth-value conditions, and the issue of cross-language understanding and communication. (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)

In the first Critique, Kant famously holds a novel practical notion of Belief (Glauben) as assent justified not by evidence but by practical considerations. This paper examines the early development of Kant’s practical notion of Belief prior to the first Critique. It aims to make clear what prompted Kant to develop this notion in the first place, and how this notion came to assume its crucial role in Kant’s critical system. This development, I argue, has two main steps. The first (...) is his introduction of a practical notion of Belief in mid-to-late 1760s. I argue that he did so because he regards this notion as a useful tool to get ordinary people to justifiably commit to the existence of God and an after-life. The second step is Kant’s abandonment of the objective validity of his logical proof of God around 1772. This step elevated Belief from a merely useful means to the only justified way to commit to the existence of God and an after-life. This second step, I argue, is closely connected to Kant’s pivot to the view that the objective validity of concepts requires sensibly given objects, and it is motivated by Kant’s concern with subject-cancelling real repugnance. (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 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)