Identifying the Real Effects of Zombie Lending

The policy response to COVID-19 includes the provision of credit guarantees to firms, a provision that may generate zombie lending. According to the recent literature, the relative performance of healthy firms deteriorates as the fraction of zombies increases. We argue that this literature faces a serious identification problem, because firm performance is often used to define zombies (sometimes implicitly). We show that, under general conditions for the distribution of firm performance, the correlation between healthy firm performance and zombies is a mechanical consequence of an increase in the fraction of zombies with no causal meaning. (JEL E44, G21) Received June 2, 2020; editorial decision June 23, 2020 by Editor Uday Rajan.

Nanotechnology in its Socio-economic Context

Nanotechnologies are commonly touted as instruments to be exploited for the benefit of developed, as well as for developing countries, and especially for alleviating the problems of the poor. Defenders of nanotechnology argue that it is possible to learn from experience, avoiding the errors made with past technologies. Precaution,however, should not slow down innovation, which is the key factor in solving many of the problems of the poor. Clearly the focus is on innovation, and finding a solution to the problems of the poor is just a mechanical consequence. But it is not necessary,and nor is it true, that the faster the technological path, the narrower the gap between rich and poor. Indeed, judging from past experience, the opposite has usually been shown to be the case. We put forward the argument that nanotechnologies,like any other type of technology, cannot be separated from the socio-economic and political context in which they are generated, commercialized and utilized. Considering the current context, it is highly likely that the nanotechnology revolution will help widen the gap between rich and poor in the world.

Effects of a Heel Wedge in Horses with Superficial Digital Flexor Tendinitis

SummaryThe objective was to determine whether the use of heel wedges is an appropriate treatment for superficial digital flexor (SDF) tendinitis. The subjects were six warmblood horses in which SDF tendinitis was induced in one forelimb using a collagenase model. The stride characteristics were compared under four conditions: flat shoes; 6° heel wedge following a one hour adaptation; 6° heel wedge following five days adaptation; and one hour after reapplication of flat shoes. Videographic and force data were collected for both forelimbs during the stance phase of the trot, and were combined with morphometric measurements using an inverse dynamics method to calculate net joint moments and joint powers at each of the joints of the forelimbs. Repeated measures ANOVA was used to compare the stride variables across conditions in the lame limb and in the compensating forelimb. Significant kinematic changes in response to the use of heel wedges were confined to the coffin joint which was more flexed due to the more upright orientation of the hoof segment. The onset of breakover was delayed with the hoof wedges. In the compensating limb only, the use of heel wedges was associated with a shift of the net joint moment to the dorsal side of the coffin joint during the first one third of stance. Both forelimbs had significantly smaller peak palmar moments at the coffin joint with heel wedges in the second half of stance, which appeared to be a mechanical consequence of the more flexed position of the coffin joint. Tension was increased in the extensor branches of the suspensory ligament and common digital extensor tendon on the dorsal side, and reduced in the deep digital flexor tendon and its distal accessory ligament on the palmar side. Less energy was absorbed across the coffin joint in both limbs with heel wedges. The study did not reveal changes associated with the use of heel wedges that could be interpreted as a reduction of the effects of lameness due to SDF tendinitis.The objective was to determine whether the application of 60 heel wedges was appropriate for treating horses with superficial digital flexor (SDF) tendinitis. The significant effects of the heel wedges affected the coffin joint and included a more flexed position due to the more upright orientation of the hoof segment, a reduction in the peak palmar moment and less energy absorption across the joint. Since these changes were confined to the coffin joint, they were not interpreted as being beneficial in treating lameness due to SDF tendinitis.

Acute promyelocytic leukemia cases with nonreciprocal PML/RARa or RARa/PML fusion genes

Tumor-associated chromosome translocations usually lead to the formation of two reciprocal fusion genes: one thought to be involved in the transformation process, the other the mechanical consequence of the translocation event. In the case of acute promyelocytic leukemia (APL) blasts, the 15;17 chromosome translocation generates the putatively transforming PML/RARa fusion gene and its reciprocal RARa/PML. We report APL cases with submicroscopic 15;17 recombinations leading to the formation of nonreciprocal PML/RARa or RARa/PML fusion genes. Therefore, each of the two reciprocal translocation products may be independently formed and selected by the leukemic phenotype, implying that both are involved in tumorigenesis.