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   In this paper we extend our analysis to incorporate the sample back to December 1995, the date at which Mexico began selling Cetes using discriminatory auctions. We analyze the data using a model of multiunit discriminatory auctions with risk-averse bidders and asymmetric information about the bond’s common value. We find that the insurance benefit of discriminatory auctions is substantial. 

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   Using bid-level data from discriminatory auctions for Mexican government bonds, we demonstrate that asymmetric information about default risk is a key friction in sovereign bond markets. We document that large bidders achieve higher bid-acceptance rates than other bidders despite paying no more for executed bids.We then propose a new model of primary markets in which investors may differ in wealth, risk aversion, market power, and information. Only asymmetric information can qualitatively account for our empirical finding, and asymmetric information about rare disasters can quantitatively match bidding and yield moments. Counterfactuals reveal substantial effects of asymmetric information on yields. 

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5. A Longitudinal Study of Identifying and Paying Down Architecture Debt

   https://doi.org/10.1109/ICSE-SEIP.2019.00026  

   Nayebi, Maleknaz; Cai, Yuanfang; Kazman, Rick; Ruhe, Guenther; Feng, Qiong; Carlson, Chris; Chew, Francis (May 2019, 2019 IEEE/ACM 41st International Conference on Software Engineering: Software Engineering in Practice)

   Architecture debt is a form of technical debt that derives from the gap between the intended and the actual architecture design. In this study we measured architecture debt in two ways: 1) in terms of system-wide coupling measures, and 2) in terms of the number and severity of architecture flaws. In recent research it was shown that the amount of architecture debt has a huge impact on software maintainability and evolution. Consequently, reducing debt is expected to make software less costly and more amenable to change. This paper reports on a longitudinal study of a healthcare communications product created by BrightSquid Secure Communications Corp. This young company is facing the typical trade-off problem of desiring responsiveness to change requests, but wanting to avoid the ever-increasing effort that the accumulation of quick-and- dirty changes eventually incurs. In the first stage of the study, we analyzed the status of the “before” system, which showed the impacts of change requests. This initial study motivated a more in-depth analysis of architecture debt. The results of this debt analysis were used in the second stage of the work to motivate a comprehensive refactoring of the software system. The third stage was a follow-on architecture debt analysis which quantified the improvements realized. Using this quantitative evidence, augmented by qualitative evidence gathered from in- depth interviews with BrightSquid’s architects, we present lessons learned about the costs and benefits of paying down architecture debt in practice. 

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