Bank capital for market risk: a study in incentive compatible regulation
Traditionally, government regulation in the United States follows a straightforward command approach. The government states the desired activities of the regulated firm, the allowable actions, and the prohibited actions. The firm is punished if it violates these strictures. Regulatory economists have identified many problems with this approach. First, there is the problem of asymmetry in information: Regulations cannot be enforced if they require information from the firm that the regulator cannot elicit reliably and at reasonable cost.
The Pre-Commitment Approach in a Model of Regulatory Banking Capital
The pre-commitment approach offers a novel way to improve bank capital regulation. It requires that banks choose their capital levels and that regulators fine them if losses exceed this level. In essence, the approach is a proposal to use menus of contracts, a device commonly employed in other economic settings. Using a private-information model, the author derives optimal fine schedules and compares them to the proposal's schedules. He shows the latter schedules to be inefficient and potentially to require high levels of fines.
Phase characterisation of simulated high burn-up UO2 fuel
Abstract To determine the lattice constant variation with burn-up and the oxidation behaviour at high temperatures, simulated UO2-spent fuels with burn-ups up to 200 GWd tM−1 were prepared by cold pressing and sintering and characterised by X-ray diffraction analysis and thermogravimetry. The fcc-lattice parameter of the sintered samples determined at room temperature, showed a continuous decrease with the simulated burn-up. During oxidation the conversion of the simulated fuels to the (U,FP)4O9 and (U,FP)3O8-type phases was strongly delayed when the simulated burn-up exceeded 80 GWd tM−1. Also, at high burn-ups (>100 GWd tM−1), large fractions of the (U,FP)4O9-type phase remained untransformed to (U,FP)3O8 after prolonged exposure to air at 950–1000°C. This suggests a marked widening of the (U,FP)4O9-phase field when the amount of substituted uranium atoms exceeds values of about 8%.