Religion and Derivative Use: Evidence from the Hedge Fund Industry

We examine how local religions influence derivative usage in the hedge fund industry. Measuring religiosity by the ratio of religious adherents in the county of a U.S. hedge fund headquarters, we find that religiosity is negatively related to the probability of hedge funds using derivatives for speculative purposes. In contrast, funds in regions with higher ratios of Catholics to Protestants are more likely to engage in speculation-based trading of derivatives. Finally, we show that the effects of local religion are more pronounced if the hedge fund size is small. Overall, our study highlights the significant role of local religion in shaping the purpose of hedge fund derivative usage.     

A Comparison of Two-Stage Approaches for Fitting Nonlinear Ordinary Differential Equation Models with Mixed Effects

Several approaches exist for estimating the derivatives of observed data for model exploration purposes, including functional data analysis (FDA; Ramsay &; Silverman, 2005 Ramsay, J. O., &; Silverman, B. W. (2005). Functional data analysis (2nd ed.). New York, NY: Springer-Verlag. [Google Scholar]), generalized local linear approximation (GLLA; Boker, Deboeck, Edler, &; Peel, 2010 Boker, S. M., Deboeck, P. R., Edler, C., &; Peel, P. K. (2010). Generalized local linear approximation of derivatives from time series. In S. Chow, E. Ferrer, &; F. Hsieh (Eds.), Statistical methods for modeling human dynamics: An interdisciplinary dialogue (pp. 161–178). New York, NY: Taylor &; Francis. [Google Scholar]), and generalized orthogonal local derivative approximation (GOLD; Deboeck, 2010 Deboeck, P. R. (2010). Estimating dynamical systms: Derivative estimation hints from Sir Ronald A. Fisher. Multivariate Behavioral Research, 45, 725–745. doi:10.1080/00273171.2010.498294[Taylor &; Francis Online], [Web of Science ®] , [Google Scholar]). These derivative estimation procedures can be used in a two-stage process to fit mixed effects ordinary differential equation (ODE) models. While the performance and utility of these routines for estimating linear ODEs have been established, they have not yet been evaluated in the context of nonlinear ODEs with mixed effects. We compared properties of the GLLA and GOLD to an FDA-based two-stage approach denoted herein as functional ordinary differential equation with mixed effects (FODEmixed) in a Monte Carlo (MC) study using a nonlinear coupled oscillators model with mixed effects. Simulation results showed that overall, the FODEmixed outperformed both the GLLA and GOLD across all the embedding dimensions considered, but a novel use of a fourth-order GLLA approach combined with very high embedding dimensions yielded estimation results that almost paralleled those from the FODEmixed. We discuss the strengths and limitations of each approach and demonstrate how output from each stage of FODEmixed may be used to inform empirical modeling of young children’s self-regulation.     

Nonparametric Estimation of Standard Errors in Covariance Analysis Using the Infinitesimal Jackknife

The infinitesimal jackknife provides a simple general method for estimating standard errors in covariance structure analysis. Beyond its simplicity and generality what makes the infinitesimal jackknife method attractive is that essentially no assumptions are required to produce consistent standard error estimates, not even the requirement that the population sampled has the covariance structure assumed. Commonly used covariance structure analysis software uses parametric methods for estimating parameters and standard errors. When the population sampled has the covariance structure assumed, but fails to have the distributional form assumed, the parameter estimates usually remain consistent, but the standard error estimates do not. This has motivated the introduction of a variety of nonparametric standard error estimates that are consistent when the population sampled fails to have the distributional form assumed. The only distributional assumption these require is that the covariance structure be correctly specified. As noted, even this assumption is not required for the infinitesimal jackknife. The relation between the infinitesimal jackknife and other nonparametric standard error estimators is discussed. An advantage of the infinitesimal jackknife over the jackknife and the bootstrap is that it requires only one analysis to produce standard error estimates rather than one for every jackknife or bootstrap sample.     

Clinical implications of Bion's thought

The author focuses on some clinical implications of Bion's thought. He takes into particular consideration the great technical importance of Bion's concept of 'waking dream thought'. He also proposes some developments of Bion's thought. Psychoanalytic exercises like those suggested by Bion are presented along with clinical material in order to render the author's theoretical-technical ideas as clear as possible. Furthermore, he deals with the fertile connection between Bion's theories and the fi eld concept in psychoanalysis.     

Derivative free gradient projection algorithms for rotation

A simple modification substantially simplifies the use of the gradient projection (GP) rotation algorithms of Jennrich (2001, 2002). These algorithms require subroutines to compute the value and gradient of any specific rotation criterion of interest. The gradient can be difficult to derive and program. It is shown that using numerical gradients gives almost precisely the same results as using exact gradients. The resulting algorithm is very easy to use because the only problem specific code required is that needed to define the rotation criterion. The computing time is increased when using numerical gradients, but it is still very modest for most purposes. While used extensively elsewhere, numerical derivatives seem to be underutilized in statistics.