Heterogeneity,nonlinearity and endogenous market volatility

This paper aims to contribute to the literature on the explanatory power of behavior models with heterogeneous agents. The authors present a new nonlinear structural stock market model which is a nonlinear deterministic process buffeted by dynamic noise. An exogenous noise is introduced to the model with the assumption of IID normal innovations of the fundamental value in order to investigate how noisy dynamics interacts with deterministic process. The market is composed of two typical trader types: the rational fundamentalists and the boundedly rational traders governed by greed and fear. The interaction between noise and deterministic element determines the evolution process of the system as key parameters are changed. The authors find the model is able to generate time series that exhibit dynamical and statistical properties closely resembling those of the S&P500 index, such as volatility clustering, fat tails (leptokurtosis), autocorrelation in square and absolute return, larger amplitude, crashes and bubbles. The authors also investigate the nonlinear dependence structure in our data. The results indicate that the GARCH-type model cannot completely account for all nonlinearity in our simulated market, which is thus consistent with the results from real markets. It seems that the nonlinear structural model is more powerful to give a satisfied explanation to market behavior than the traditional stochastic approach.     

Optimal multi-asset investment with no-shorting constraint under mean-variance criterion for an insurer

This paper considers the optimal investment strategy for an insurer under the criterion of mean-variance. The risk process is a compound Poisson process and the insurer can invest in a risk-free asset and multiple risky assets. This paper obtains the optimal investment policy using the stochastic linear quadratic (LQ) control theory with no-shorting constraint. Then the efficient strategy (optimal investment strategy) and efficient frontier are derived explicitly by a verification theorem with the viscosity solution of Hamilton-Jacobi-Bellman (HJB) equation.     

Sample average approximation method for a class of stochastic variational inequality problems

This paper considers a class of stochastic variational inequality problems. As proposed by Jiang and Xu (2008), by using the so-called regularized gap function, the authors formulate the problems as constrained optimization problems and then propose a sample average approximation method for solving the problems. Under some moderate conditions, the authors investigate the limiting behavior of the optimal values and the optimal solutions of the approximation problems. Finally, some numerical results are reported to show efficiency of the proposed method.     

Codimension-two bifurcations analysis and tracking control on a discrete epidemic model

In this paper, the dynamic behaviors of a discrete epidemic model with a nonlinear incidence rate obtained by Euler method are discussed, which can exhibit the periodic motions and chaotic behaviors under the suitable system parameter conditions. Codimension-two bifurcations of the discrete epidemic model, associated with 1:1 strong resonance, 1:2 strong resonance, 1:3 strong resonance and 1:4 strong resonance, are analyzed by using the bifurcation theorem and the normal form method of maps. Moreover, in order to eliminate the chaotic behavior of the discrete epidemic model, a tracking controller is designed such that the disease disappears gradually. Finally, numerical simulations are obtained by the phase portraits, the maximum Lyapunov exponents diagrams for two different varying parameters in 3-dimension space, the bifurcation diagrams, the computations of Lyapunov exponents and the dynamic response. They not only illustrate the validity of the proposed results, but also display the interesting and complex dynamical behaviors.     

Community Development and Renaissance Social Humanism: Some Lessons for Systems Science

Starting from the crisis in our communities—research has indicated it to be widely spread—the author explores the scientific tradition preceding the rise of modernism in order to draw out a more humane way of thinking that may help our contemporary societies. He discerns between two types of Renaissance humanism, one characterised by its cleverness, the other by its compassion and desire to restore dignity to the lives of people struggling to escape the clutches of medievalism. The father of the latter is Erasmus of Rotterdam and we follow the development of his conception of a social humanism as it branches out, through the work of his successors, into every scientific discipline, both natural and human. These disciplines are united by an embracing systemic idea of philosophy that unites the mind with the heart and which Erasmus called “Philosophia Christi”. We examine the two main pillars upon which this philosophy is built, love for our neighbour and education as the only legitimate instrument to change society, and the extraordinary impact it had on science and on communities living in the seventeenth century. We contrast this with the idea of power, the chosen instrument of modernity to transform society, and trace some of its tragic outcomes. We conclude by discussing the incorporation of an Erasmian type of social humanism into systems education and the future development of such programmes.     

Polo inhibits progenitor self-renewal and regulates Numb asymmetry by phosphorylating Pon

Self-renewal and differentiation are cardinal features of stem cells. Asymmetric cell division provides one fundamental mechanism by which stem cell self-renewal and differentiation are balanced. A failure of this balance could lead to diseases such as cancer. During asymmetric division of stem cells, factors controlling their self-renewal and differentiation are unequally segregated between daughter cells. Numb is one such factor that is segregated to the differentiating daughter cell during the stem-cell-like neuroblast divisions in Drosophila melanogaster, where it inhibits self-renewal. The localization and function of Numb is cell-cycle-dependent. Here we show that Polo (ref. 13), a key cell cycle regulator, the mammalian counterparts of which have been implicated as oncogenes as well as tumour suppressors, acts as a tumour suppressor in the larval brain. Supernumerary neuroblasts are produced at the expense of neurons in polo mutants. Polo directly phosphorylates Partner of Numb (Pon, ref. 16), an adaptor protein for Numb, and this phosphorylation event is important for Pon to localize Numb. In polo mutants, the asymmetric localization of Pon, Numb and atypical protein kinase C are disrupted, whereas other polarity markers are largely unaffected. Overexpression of Numb suppresses neuroblast overproliferation caused by polo mutations, suggesting that Numb has a major role in mediating this effect of Polo. Our results reveal a biochemical link between the cell cycle and the asymmetric protein localization machinery, and indicate that Polo can inhibit progenitor self-renewal by regulating the localization and function of Numb.     

Hydroxyl radical electrochemically generated with water as the complete atom source and its environmental application

The most reactive hydroxyl radical （OH） was generated by electrochemical approach with safe water as the complete atom source. The direct evidence for OH formation was obtained by electron spin resonance method. The powerful OH electrochemically generated could effectively degrade organic pollutants and reduce the toxicity of wastewater. Electrochemical disinfection by OH was considerably efficient even without the aid of active chlorine. Bacteria inactivation of 99.99% was achieved for contact time of 30 min and current density of 5 mA·cm^-2, In comparison with active chlorine, OH is rather attractive as a promising environmentally benign disinfectant and opens a new route for microbial inactivation.     

An improved traitor tracing scheme based on bilinear map

T6 et al presented a bilinear-map-based traitor tracing scheme（TSZ scheme） with revocation, but it is a symmetric scheme because it does not provide non-repudiation. In this paper, an improved TSZ scheme was proposed by using oblivious polynomial evaluation （OPE） protocol and service parameters. Under the recondition of general sameness capabilities of both TSZ and improved TSZ scheme, the new scheme adds some advantages such as providing multi-service capability, user＇s non-repudiation and data provider＇s no-framing innocent users. Furthermore, it is also proved to be semantically secure under the decisional bilinear Diffie-Hellman （DBDH problem） assumption.     

New crystal structure of molecular complex 1-piperidine carboxylate-piperidinium-H<Subscript>2</Subscript>O studied by X-ray single crystal diffraction

Piperidine absorbs CO2 and H2O in air to form a molecular complex： piperidium-l-piperidinecarboxylate-H2O. The structure of the complex was characterized by X-ray single crystal diffraction. The crystal structure was determined to be triclinic, space group P1^-with a=0.648 6（8） nm, b=0.809 200） nm, c= 1.357 1（16） nm, a=96.96706）°, β =102.506（15）°,γ=104.202 05）°, Z=2. The complex is stabilized via five hydrogen bonds between the three components, N-O electrostatic interaction and O-O interaction （electron transfer） betweenl-piperidinecarboxylate and H2O. Due to electron transference of carbamate ion, the oxygen atom in water molecule is strongly negatively charged and the O-H bond is considerably shorter than that of the free molecule of water. The formation of the molecular complex is a reversible process and will decompose upon heating. The mechanism of formation and stabilization is further investigated herein.     

Erratum to: <Emphasis Type="Italic">In vitro</Emphasis> induction of mouse meningeal-derived iPS cells into neural-like cells

The authors report that incorrect figures were included as Figures 4 and 5 in the original publication of this paper. This error occurred during the figure editing process of the publishing company. This information should have been presented as follows: