Morality INDEX

Bad as that was, it was nothing compared to the morale the week after July 4, 2002, after The Wall Street Journal reported that Merck had booked 12.4 billion in revenue from its Medco subsidiary over the prior three years that it hadn t actually received. Coming on top of months of corporate scandals, the news sent Merck stock—as well as the Dow Jones Industrial Average, the Standard Poor s 500 stock index, and even the Nikkei Stock Average in Japan—plunging. Merck shares toyed with a five-year low, and the initial public offering of Medco was postponed, then withdrawn. 

Alvidrez-Morales, A., Gonzalez-Martinez, B.E., and Jimenez-Salas, Z. Tendencias en la produccion de alimentos Alimentos Funcionales, Respyn. Revista de la Facultad de Salud Publica y Nutricion. Universidad Autonoma de Nuevo Leon (Mexico). Vol. 3, No. 3. Julio-Septiembre http //www.uanl.mx/ publicaciones/respyn/iii/3/index.html. 

Hosoya found that the values of the Z index for linear graphs coincide with the —> Fibonacci numbers, that is, Z = F, where A is the number of vertices in the molecular graph [Hosoya, 1973] therefore, for a linear graph, the Z index is closely related to the Merrifield-Simmons index [Gutman, Hosoya et al, 1992 Randic, Morales et al., 1996]. 

Gutman, I., Araujo, O. and Morales, D.A. (2000b) Estimating the connectivity index of a saturated hydrocarbon. Indian J. Chem., 39, 381-385. 

Biogenic amines have been used to establish quality indexes in various foods in order to signal the degree of freshness and/or deterioration of meat, fish, wines, and other foods and beverages (Mietz and Karmas, 1977 Hernandez-Jover et al., 1996a Ruiz-Capillas and Moral, 2001 Silva and Gloria, 2002 Vinci and Antonelli, 2002 Ruiz-Capillas and Jimenez-Colmenero, 2004 Ruiz-Capillas et al., 2007, 2011). A food with toxic levels of amines such as histamine or tyramine often appears organoleptically normal, like tuna or fermented chorizo, so that unacceptable and toxic levels of histamine are undetectable prior to consumption (Vidal-Carou et al., 1990 Lopez-Sabater et al., 1996). 

With the aim of reducing moral hazard, new techniques for risk transfer became popular during the 1990s (Bisping 2013). Indexed, modeled loss, or parametric solutions remove the need to assess particular losses to a portfolio by tying the payment of recoveries to an independent proxy. 

PROPERTY CLAIM SERVICES (PCS), a company operating in the USA, or PERILS, a similar entity operating in Europe, collect loss data from the major insurance companies after a catastrophe and aggregate them into an overall loss estimate. Risk transfer solutions based on these market estimates tie particular recoveries to the overall loss reported by the insurance market. By removing the direct connection between recoveries and particular portfolio losses, moral hazard is greatly diminished. If the event created a large loss for the insurance industry as a whole, it seems intuitive that recoveries for a particular insurer should be somewhat proportional to the overall loss. Naturally, this type of index works best for large companies whose portfolios mimic the distribution of the entire industry. For companies that operate within an industry niche, these types of solutions need to be tailored somehow since they may involve too much basis risk, the potential difference between actual losses and recoveries. 

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