PDF Mathematical Analysis and Applications 1St Edition Themistocles M Rassias Ebook Full Chapter

Mathematical Analysis and
Applications 1st Edition Themistocles

M. Rassias
Visit to download the full and correct content document:
https://textbookfull.com/product/mathematical-analysis-and-applications-1st-edition-th
emistocles-m-rassias/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
Mathematical Analysis and Applications Selected Topics

1st Edition Michael Ruzhansky
https://textbookfull.com/product/mathematical-analysis-and-
applications-selected-topics-1st-edition-michael-ruzhansky/
Optimal Mean Reversion Trading Mathematical Analysis

and Practical Applications Tim Leung
https://textbookfull.com/product/optimal-mean-reversion-trading-
mathematical-analysis-and-practical-applications-tim-leung/
Current Trends in Mathematical Analysis and Its

Interdisciplinary Applications Hemen Dutta
https://textbookfull.com/product/current-trends-in-mathematical-
analysis-and-its-interdisciplinary-applications-hemen-dutta/
Mathematical Statistics With Applications in R (Third

Edition) Kandethody M. Ramachandran
https://textbookfull.com/product/mathematical-statistics-with-
applications-in-r-third-edition-kandethody-m-ramachandran/
Mathematical Analysis and Applications Plenary Lectures
ISAAC 2017 Växjö Sweden Luigi G. Rodino
https://textbookfull.com/product/mathematical-analysis-and-
applications-plenary-lectures-isaac-2017-vaxjo-sweden-luigi-g-
rodino/
Nonlinear Differential Problems with Smooth and

Nonsmooth Constraints Mathematical Analysis and its
Applications 1st Edition Dumitru Motreanu
https://textbookfull.com/product/nonlinear-differential-problems-
with-smooth-and-nonsmooth-constraints-mathematical-analysis-and-
its-applications-1st-edition-dumitru-motreanu/
Mathematical Analysis and the Mathematics of

Computation 1st Edition Werner Römisch
https://textbookfull.com/product/mathematical-analysis-and-the-
mathematics-of-computation-1st-edition-werner-romisch/
Mathematical Analysis of Continuum Mechanics and

Industrial Applications III Proceedings of the
International Conference CoMFoS18 Hiromichi Itou
https://textbookfull.com/product/mathematical-analysis-of-
continuum-mechanics-and-industrial-applications-iii-proceedings-
of-the-international-conference-comfos18-hiromichi-itou/
Real Mathematical Analysis Charles Chapman Pugh
https://textbookfull.com/product/real-mathematical-analysis-
charles-chapman-pugh/
Springer Optimization and Its Applications 154
Themistocles M. Rassias
Panos M. Pardalos Editors
Mathematical
Analysis and
Applications
Springer Optimization and Its Applications
Volume 154
Managing Editor
Panos M. Pardalos (University of Florida)
My T. Thai (University of Florida)
Editor-Combinatorial Optimization
Ding-Zhu Du (University of Texas at Dallas)
Advisory Board
J. Birge (University of Chicago)
S. Butenko (Texas A&M University)
F. Giannessi (University of Pisa)
S. Rebennack (Karlsruhe Institute of Technology)
T. Terlaky (Lehigh University)
Y. Ye (Stanford University)
Aims and Scope

Optimization has continued to expand in all directions at an astonishing rate. New
algorithmic and theoretical techniques are continually developing and the diffusion
into other disciplines is proceeding at a rapid pace, with a spot light on machine
learning, artificial intelligence, and quantum computing. Our knowledge of all
aspects of the field has grown even more profound. At the same time, one of the
most striking trends in optimization is the constantly increasing emphasis on the
interdisciplinary nature of the field. Optimization has been a basic tool in areas
not limited to applied mathematics, engineering, medicine, economics, computer
science, operations research, and other sciences.
The series Springer Optimization and Its Applications (SOIA) aims to publish
state-of-the-art expository works (monographs, contributed volumes, textbooks,
handbooks) that focus on theory, methods, and applications of optimization. Topics
covered include, but are not limited to, nonlinear optimization, combinatorial opti-
mization, continuous optimization, stochastic optimization, Bayesian optimization,
optimal control, discrete optimization, multi-objective optimization, and more. New
to the series portfolio include Works at the intersection of optimization and machine
learning, artificial intelligence, and quantum computing.
Volumes from this series are indexed by Web of Science, zbMATH, Mathematical
Reviews, and SCOPUS.
More information about this series at http://www.springer.com/series/7393

Themistocles M. Rassias • Panos M. Pardalos
Editors
Mathematical Analysis
and Applications
123
Editors
Themistocles M. Rassias Panos M. Pardalos
Department of Mathematics Department of Industrial
Zografou Campus and Systems Engineering
National Technical University of Athens University of Florida
Athens, Greece Gainesville, FL, USA
ISSN 1931-6828 ISSN 1931-6836 (electronic)

Springer Optimization and Its Applications
ISBN 978-3-030-31338-8 ISBN 978-3-030-31339-5 (eBook)
https://doi.org/10.1007/978-3-030-31339-5
Mathematics Subject Classification: 26-XX, 28-XX, 30-XX, 32-XX, 35-XX, 91-XX
© Springer Nature Switzerland AG 2019

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of
the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,
broadcasting, reproduction on microfilms or in any other physical way, and transmission or information
storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.
This Springer imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Preface
Mathematical Analysis and Applications is devoted to the presentation of high-

quality research and survey papers belonging to a broad spectrum of areas in
which Analysis plays a central role. The book in hand provides an insight into
the investigation of several problems and theories in real and complex analysis,
functional analysis, approximation theory, operator theory, analytic inequalities,
Radon transform, nonlinear analysis, and various applications of interdisciplinary
research. The contributing papers have been written by eminent scientists from the
international mathematical community who are experts in the individual subjects.
In this book, some papers are devoted to certain applications as for example in
the three-body problem, finite element analysis in fluid mechanics, algorithms for
difference of monotone operators, a vibrational approach to a financial problem, etc.
This publication provides valuable and up-to-date information as well as research
results which are hoped to be useful to graduate students and researchers working
in Mathematics, Physics, Engineering, and Economics.
It is our pleasure to express our thanks to all the contributors of chapters in this
book who participated in this collective effort.
Last but not least, we would like to acknowledge the superb assistance that the
staff of Springer has provided for the publication of this work.
Athens, Greece Themistocles M. Rassias

Gainesville, FL, USA Panos M. Pardalos
v
Contents
Exact Solution to Systems of Linear First-Order

Integro-Differential Equations with Multipoint
and Integral Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
M. M. Baiburin and E. Providas
A Variational Approach to the Financial Problem with Insolvencies
and Analysis of the Contagion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Giorgia Cappello, Patrizia Daniele, Sofia Giuffrè, and Antonino Maugeri
Fixed Point Theorems for a System of Mappings in Generalized
b-Metric Spaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Stefan Czerwik and Themistocles M. Rassias
Inequalities and Approximations for the Finite Hilbert Transform:
A Survey of Recent Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Silvestru Sever Dragomir
On Hyperstability of the Two-Variable Jensen Functional Equation
on Restricted Domain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Iz-iddine EL-Fassi
On the Study of Circuit Chains Associated with a Random
Walk with Jumps in Fixed, Random Environments: Criteria
of Recurrence and Transience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Chrysoula Ganatsiou
On Selections of Some Generalized Set-Valued Inclusions . . . . . . . . . . . . . . . . . . 205
Bahman Hayati, Hamid Khodaei, and Themistocles M. Rassias
Certain Fractional Integral and Differential Formulas Involving
the Extended Incomplete Generalized Hypergeometric Functions . . . . . . . . . 217
Praveen Agarwal, Themistocles M. Rassias, Gurmej Singh,
and Shilpi Jain
vii
viii Contents
On the Stability of the Triangular Equilibrium Points in the Elliptic

Restricted Three-Body Problem with Radiation and Oblateness . . . . . . . . . . . 273
Vassilis S. Kalantonis, Angela E. Perdiou, and Efstathios A. Perdios
Some Different Type Integral Inequalities and Their Applications . . . . . . . . 287
Artion Kashuri and Rozana Liko
Extensions of Kannappan’s and Van Vleck’s Functional Equations
on Semigroups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
Keltouma Belfakih, Elhoucien Elqorachi, and Ahmed Redouani
Recent Advances of Convexity Theory and Its Inequalities . . . . . . . . . . . . . . . . . 339
Jichang C. Kuang
Additive Functional Inequalities and Partial Multipliers in Complex
Banach Algebras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365
Jung Rye Lee, Choonkil Park, and Themistocles M. Rassias
Additive ρ-Functional Inequalities and Their Applications . . . . . . . . . . . . . . . . . 391
Jung Rye Lee, Choonkil Park, Themistocles M. Rassias,
and Xiaohong Zhang
Graphic Contraction Principle and Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411
A. Petruşel and I. A. Rus
A New Approach for the Inversion of the Attenuated
Radon Transform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433
Nicholas E. Protonotarios, George A. Kastis and Athanassios S. Fokas
On Algorithms for Difference of Monotone Operators . . . . . . . . . . . . . . . . . . . . . . 459
Maede Ramazannejad, Mohsen Alimohammady, and Carlo Cattani
Finite Element Analysis in Fluid Mechanics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481
Anastasios Raptis, Konstantina Kyriakoudi, and Michail A. Xenos
On a Hilbert-Type Integral Inequality in the Whole Plane Related
to the Extended Riemann Zeta Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511
Michael Th. Rassias and Bicheng Yang
On Metric Structures of Normed Gyrogroups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529
Teerapong Suksumran
Birelator Spaces Are Natural Generalizations of Not Only
Bitopological Spaces, But Also Ideal Topological Spaces . . . . . . . . . . . . . . . . . . . . 543
Árpád Száz
PPF Dependent Fixed Points in Razumikhin Metrical Chains . . . . . . . . . . . . . 587
Mihai Turinici
Contents ix
Equivalent Properties of Parameterized Hilbert-Type Integral

Inequalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639
Bicheng Yang
Trotter Product Formula for Non-self-Adjoint Gibbs Semigroups . . . . . . . . . 677
Valentin A. Zagrebnov
Exact Solution to Systems of Linear
First-Order Integro-Differential
Equations with Multipoint and Integral
Conditions
M. M. Baiburin and E. Providas
Abstract This paper is devoted to the study of nonhomogeneous systems of linear

first-order ordinary integro-differential equations of Fredholm type with multipoint
and integral boundary constraints. Sufficient conditions for the solvability and
correctness of the problem are established and the unique solution is provided in
closed-form. The approach followed is based on the extension theory of operators.
1 Introduction
Mathematical modeling in the theory of automatic control, the theory of oscillation,

mathematical physics, biology, applied mathematics, and economics, very often,
leads to the study of multipoint boundary value problems for differential, functional-
differential, and integro-differential equations. These types of boundary value
problems and their solutions have been investigated by many researchers, for
example, [1, 2, 5, 8, 9, 21]. Of special interest are the multipoint boundary value
problems for a system of differential equations (DEs) and integro-differential equa-
tions (IDEs), see, for example, [4, 6, 11, 12, 22]. It should be noted that obtaining
exact solutions even to multipoint boundary value problems for a differential, or
an integro-differential equation, is a difficult task. Therefore, usually numerical
methods are employed as in [3, 7, 15] and elsewhere.
Recently, in [6] the solution to a class of boundary value problems for a system
of linear first-order DEs coupled with multipoint and integral conditions has been
obtained in closed-form. Here, we continue this study to systems of linear first-order
M. M. Baiburin
Department of Fundamental Mathematics, L.N. Gumilyov Eurasian National University, Astana,
Republic of Kazakhstan
e-mail: merkhasyl@mail.ru
E. Providas ()
University of Thessaly, Larissa, Greece
e-mail: providas@uth.gr
© Springer Nature Switzerland AG 2019 1

T. M. Rassias, P. M. Pardalos (eds.), Mathematical Analysis
and Applications, Springer Optimization and Its Applications 154,
https://doi.org/10.1007/978-3-030-31339-5_1
2 M. M. Baiburin and E. Providas
ordinary IDEs of Fredholm type with multipoint and integral boundary constraints.
The method proposed is based on the extension theory of linear operators in a
Banach space, as it has been developed in terms of inverse operators [5, 13] and
in terms of direct operators [14], and has been used to investigate the correctness
properties to some extensions of operators [10, 16, 20] and more recently to
solve exactly initial and two-point boundary value problems for integro-differential
equations [17–19].
We first examine the solvability conditions and then obtain the exact solution
of the following system of IDEs subject to multipoint and integral boundary
conditions:

m 1
y (x) − Ay(x) − Gi (x) Hi (t)y(t)dt = f (x), x ∈ [0, 1],
i=0 0

m
s ξ j +1
Ai y(xi ) + Bj Cj (t)y(t)dt = 0, (1)
i=0 j =0 ξj
where A, Ai , Bj are n×n constant matrices, Gi (x), Hi (x), Cj (x) are variable n×
n matrices, whose elements are continuous functions on [0, 1], f (x) is a vector of n
continuous functions on [0, 1], and y(x) is a vector of n sought continuous functions
with continuous derivatives on [0, 1]; the points xi , ξ j satisfy the conditions 0 =
x0 < x1 < · · · < xm−1 < xm = 1, 0 = ξ 0 < ξ 1 < · · · < ξ s < ξ s+1 = 1. The
problem (1) may be obtained as a perturbation of a corresponding boundary value
problem for a system of first-order DEs, specifically
y (x) − Ay(x) = f (x),

m s ξ j +1
Ai y(xi ) + Bj Cj (t)y(t)dt = 0, (2)
i=0 j =0 ξj
whose solvability and the construction of the exact solution were investigated in [6].
The rest of the paper is organized as follows. In Section 2 some necessary
definitions are given and preliminary results are derived. In Section 3 the two main
theorems for the existence and the construction of the exact solution are presented.
Lastly, some conclusions are drawn in Section 4.
2 Definitions and Preliminary Results
Let X, Y be complex Banach spaces. Let P : X → Y denote a linear operator and

D(P ) and R(P ) its domain and the range, respectively. An operator P is called an
extension of the operator P0 : X → Y if D(P0 ) ⊆ D(P ) and P u = P0 u, for all
u ∈ D(P0 ). An operator P : X → Y is called correct if R(P ) = Y and the inverse
operator P −1 exists and is continuous on Y .
Exact Solution to Systems of Linear IDEs with Multipoint and Integral Conditions 3
We say that the problem P u = f , f ∈ Y, is correct if the operator P is correct.

The problem P u = f with a linear operator P is uniquely solvable on R(P ) if
the corresponding homogeneous problem P u = 0 has only a zero solution, i.e. if
ker P = {0}. The problem P u = f is said to be everywhere solvable on Y if it
admits a solution for any f ∈ Y .
Throughout this paper, we use lowercase letters and brackets to designate vectors
and capital letters and square brackets to symbolize matrices. The unit and zero
matrices are denoted by I and [0], respectively, and the zero column vector by 0.
The set of all complex numbers is specified by C. If ci ∈ C, i = 1, . . . , n, then
we write c = (c1 , . . . , cn ) ∈ Cn . By Cn [0, 1], we mean the space of continuous
vector functions f = f (x) = (f1 (x), . . . , fn (x)) with norm
f Cn = f1 (x) + f2 (x) + · · · + fn (x), f (x) = max |f (x)|. (3)
x∈[0,1]
Let f = f (x) = col (f1 (x), . . . , fn (x)) ∈ Cn [0, 1]. Further, let the operators
L, K, H : Cn [0, 1] → Cn [0, 1] be defined by the matrices
⎡ ⎤ ⎡ ⎤
l11 (x) · · · l1n (x) k11 (x) · · · k1n (x)
⎢ ⎥ ⎢ ⎥
L(x) = ⎣ ... · · · ... ⎦ , K(x) = ⎣ ... · · · ... ⎦ ,
ln1 (x) · · · lnn (x) kn1 (x) · · · knn (x)
⎡ ⎤
h11 (x) · · · h1n (x)
⎢ .. .. ⎥ ,
H (x) = ⎣ . ··· . ⎦
hn1 (x) · · · hnn (x)
where lij , kij , hij ∈ C[0, 1]. Let l0 = max |lij |, k0 = max |kij |, h0 = max |hij |,
i, j = 1, . . . , n. Finally, consider the points ξ j , j = 0, . . . , s + 1 satisfying the
conditions 0 = ξ 0 < ξ 1 < · · · < ξ s < ξ s+1 = 1.
We now prove the next lemma which is used several times in the sequel.
Lemma 1 The next estimates are true
Lf Cn ≤ l0 nf Cn , (4)

x
L(t)f (t)dtCn ≤ l0 nf Cn , x ∈ [0, 1], (5)
0
x
K(x) L(t)f (t)dtCn ≤ k0 l0 n2 f Cn , x ∈ [0, 1], (6)
0
1 x
K(x) L(t)f (t)dtdxCn ≤ k0 l0 n2 f Cn , (7)
0 0
ξ j +1 x
K(x) L(t)f (t)dtdxCn ≤ k0 l0 n2 f Cn , (8)
ξj 0
1 ξ
H (x) K(ξ ) L(t)f (t)dtdξ Cn ≤ h0 k0 l0 n3 f Cn , x ∈ [0, 1]. (9)
0 0
Proof The properties (4)–(6), (8) have been proved in [6]. We prove (7) and (9). Let
x
φ(x) = col(φ 1 (x), . . . , φ n (x)) = 0 L(t)f (t)dt. Then, from (5) follows that
1 x 1
K(x) L(t)f (t)dtdxCn = K(x)φ(x)dxCn
0 0 0
≤ k0 nφ(x)Cn
x
= k0 n L(t)f (t)dtCn
0
≤ k0 l0 n f Cn .
2
1 ξ
We now prove (9). Let φ = col φ 1 , . . . , φ n = 0 K(ξ ) 0 L(t)f (t)dtdξ . Then,
from (4) and (7) follows that
1 ξ
H (x) K(ξ ) L(t)f (t)dtdξ Cn = H (x)φCn
0 0
≤ h0 nφCn
1 ξ
= h0 n K(ξ ) L(t)f (t)dtdξ Cn
0 0
≤ h0 k0 l0 n3 f Cn .
The lemma is proved.
3 Main Results
Let the operator P associated with problem (1) be defined as

m 1

P y = y (x) − Ay(x) − Gi (x) Hi (t)y(t)dt,
i=0 0
⎧ ⎫
⎨
m
s ξ j +1 ⎬
D(P ) = y(x) ∈ Cn1 [0, 1] : Ai y(xi ) + Bj Cj (t)y(t)dt = 0 ,
⎩ ξj ⎭
i=0 j =0
(10)
where A, Ai , Bj are n × n constant matrices and Gi (x), Hi (x), Cj (x) are variable
n×n matrices with elements continuous functions on [0, 1]; the points xi , ξ j satisfy
the conditions 0 = x0 < x1 < · · · < xm−1 < xm = 1, 0 = ξ 0 < ξ 1 < · · · < ξ s <
ξ s+1 = 1. Note that the operator P is an extension of the minimal operator P0
defined by
P0 y = y (x) − Ay(x),
ξ j +1
D(P0 ) = y(x) ∈ Cn1 [0, 1] : y(xi ) = 0, Cj (t)y(t)dt = 0,
ξj
1
Hi (t)y(t)dt = 0, i = 0, . . . , m, j = 0, . . . , s . (11)
0
Moreover, we may write the operator P compactly as
P y = y (x) − Ay(x) − Gz(y),

D(P ) = y(x) ∈ Cn1 [0, 1] : Ay(x) + Bψ(y) = 0 , (12)
where the composite matrices

G = G0 G1 . . . Gm , A = A0 A1 . . . Am , B = B 0 B 1 . . . Bs ,
the compound column vectors
z(y) = col (z0 (y), z1 (y), . . . , zm (y)) ,

y(x) = col (y(x0 ), y(x1 ), . . . , y(xm )) ,
ψ(y) = col ψ 0 (y), ψ 1 (y), . . . , ψ s (y) ,
and the n × 1 vectors

1
zi (y) = Hi (t)y(t)dt, i = 0, . . . , m,
0
ξ j +1
ψ j (y) = Cj (t)y(t)dt, j = 0, . . . , s.
ξj
By using (10) or (12), we can express the system (1) equivalently in the elegant
operator form
P y = f (x), f (x) ∈ Cn [0, 1]. (13)
Theorem 1 below provides the criteria for the existence of a unique solution to
the problem (13).
We first consider the n × n matrix exA and define the following n × n matrices
1
Li = Hi (t)etA dt,
0
ξ j +1
Λj = Cj (t)etA dt,
ξj
xi
Δik (G) = e(xi −t)A Gk (t)dt,
0
1 x
Vik (G) = Hi (x) e(x−t)A Gk (t)dtdx,
0 0
ξ j +1 x
Wj k (G) = Cj (x) e(x−t)A Gk (t)dtdx,
ξj 0
where i, k = 0, . . . , m, j = 0, . . . , s, and the compound matrices

exA = col ex0 A ex1 A . . . exm A ,
L = col [L0 L1 · · · Lm ] , Λ = col [Λ0 Λ1 · · · Λs ] ,

ΔG = [Δik (G)] , VG = [Vik (G)] , WG = Wj k (G) . (14)
Theorem 1 The problem (13) is uniquely solvable on Cn [0, 1] if

AΔG + BWG AexA + BΛ
det T = det = 0. (15)
VG − I L
Proof It suffices to show that ker P = {0} if det T = 0. Assume that det T =
0. Consider the homogeneous problem P y = 0 consisting of the homogeneous
equation
y (x) − Ay(x) − Gz(y) = 0, (16)
and the boundary conditions
Ay(x) + Bψ(y) = 0. (17)
Let the auxiliary integro-functional equation

m
x
y(x) = exA d + exA e−tA Gi (t)dtzi (y), (18)
i=0 0
or in a compact form
x
y(x) = exA d + exA e−tA G(t)dtz(y), (19)
0
where exA is a fundamental n × n matrix to the homogeneous differential equa-

tion y (x) − Ay(x) = 0 and d is an arbitrary column vector with constant
coefficients. It is easy to verify that from (19) follows the homogeneous equa-
tion (16). Therefore every solution of (19) is also a solution of (16). From (18),
we have
m
xi
y(xi ) = exi A d + exi A e−tA Gk (t)dtzk (y), (20)
k=0 0
m
x
Hi (x)y(x) = Hi (x)e xA
d + Hi (x)e xA
e−tA Gk (t)dtzk (y), (21)
k=0 0
m
x
Cj (x)y(x) = Cj (x)exA d + Cj (x)exA e−tA Gk (t)dtzk (y), (22)
k=0 0
for i = 0, . . . , m, j = 0, . . . , s. By integrating (21) and (22), we get

1 1
Hi (x)y(x)dx = Hi (x)exA dxd
0 0
m
1 x
+ Hi (x)exA e−tA Gk (t)dtdxzk (y), (23)
k=0 0 0
ξ j +1 ξ j +1
Cj (x)y(x)dx = Cj (x)exA dxd
ξj ξj
m
ξ j +1 x
+ Cj (x)e xA
e−tA Gk (t)dtdxzk (y). (24)
k=0 ξ j 0
We rewrite (20), (23), (24) in the compact matrix form
y(x) = exA d + ΔG z(y), (25)

z(y) = Ld + VG z(y), (26)
ψ(y) = Λd + WG z(y), (27)
where the matrices exA , L, Λ, ΔG , VG , WG are defined in (14). By utilizing (25)

and (27), the boundary conditions in (17) are written as

A exA d + ΔG z(y) + B (Λd + WG z(y)) = 0. (28)
From (26) and (28) we obtain the system

AΔG + BWG AexA + BΛ z(y) 0
= , (29)
VG − I L d 0
or

z(y) 0
T = , (30)
d 0
The assumption that det T = 0 implies z(y) = 0, d = 0. Substituting these values

into (19), we obtain y(x) = 0. Hence ker P = {0} and the operator P is uniquely
solvable. The theorem is proved.
Remark 1 Note that the system of integro-differential equations (1) for Gi ≡
[0], i = 0, . . . , m, degenerates to the system of differential equations (2). By setting
Gi = [0], i = 0, . . . , m, into (15), we obtain

AΔG + BWG AexA + BΛ
det T = det
VG − I L

Gi =[0] [0] AexA + BΛ
= det
−I L

= det AexA + BΛ
⎡ ⎤
m
s ξ j +1
= det ⎣ Ai exi A + Bj Cj (x)exA dx ⎦ = 0, (31)
i=0 j =0 ξj
which is the sufficient solvability condition for the differential problem (2) derived
in [6].
We introduce now the Cn vectors
xi
φ i (f ) = e(xi −t)A f (t)dt,
0
1 x
ν i (f ) = Hi (x) e(x−t)A f (t)dtdx,
0 0
ξ j +1 x
ωj (f ) = Cj (x) e(x−t)A f (t)dtdx,
ξj 0
for i = 0, . . . , m, j = 0, . . . , s, and the combined vectors

φ f = col(φ 0 (f ), φ 1 (f ), . . . , φ m (f )), ν f = col(ν 0 (f ), . . . , ν m (f )),

ωf = col(ω0 (f ), . . . , ωs (f )). (32)
Theorem 2 Let (15) hold true. Then the problem (13) is correct on Cn [0, 1] and its
unique solution is given by
x x
−tA −tA −1 Aφ f + Bωf
y(x) = e xA
e f (t)dt − e xA
e G(t)dt e xA
T .
0 0 νf
(33)
Proof The problem (13) encompasses the nonhomogeneous system of integro-
differential equations
y (x) − Ay(x) − Gz(y) = f (x), (34)
and the boundary conditions
Ay(x) + Bψ(y) = 0. (35)
Take the auxiliary integro-functional equation

m
x x
y(x) = exA d + exA e−tA Gi (t)dtzi (y) + exA e−tA f (t)dt, (36)
i=0 0 0
or in the compact matrix form

x x
−tA z(y)
y(x) = exA e G(t)dt e xA
+ exA e−tA f (t)dt, (37)
0 d 0
for every f (x) ∈ Cn [0, 1]; exA is a fundamental n × n matrix to the homogeneous
differential equation y (x) − Ay(x) = 0 and d is an arbitrary column vector with
constant elements. Observe that differentiation of (37) yields (34). Hence, a solution
of (37) is also a solution of (34). From (36), we get
m
xi xi
y(xi ) = exi A d + exi A e−tA Gk (t)dtzk (y) + exi A e−tA f (t)dt,
k=0 0 0
(38)
m x

Hi (x)y(x) = Hi (x)exA d + Hi (x)exA e−tA Gk (t)dtzk (y)
k=0 0
x
+Hi (x)exA e−tA f (t)dt, (39)
0
m
x
Cj (x)y(x) = Cj (x)exA d + Cj (x)exA e−tA Gk (t)dtzk (y)
k=0 0
x
+Cj (x)exA e−tA f (t)dt, (40)
0
for i = 0, . . . , m, j = 0, . . . , s. By integrating (39), (40), we obtain

1 1
Hi (x)y(x)dx = Hi (x)exA dxd
0 0
m
1 x
+ Hi (x)exA e−tA Gk (t)dtdxzk (y)
k=0 0 0
1 x
+ Hi (x)exA e−tA f (t)dtdx, (41)
0 0
ξ j +1 ξ j +1
Cj (x)y(x)dx = Cj (x)exA dxd
ξj ξj
m
ξ j +1 x
+ Cj (x)exA e−tA Gk (t)dtdxzk (y)
k=0 ξ j 0
ξ j +1 x
+ Cj (x)exA e−tA f (t)dtdx, (42)
ξj 0
for i = 0, . . . , m, j = 0, . . . , s. We rewrite (38), (41), (42) in the compact matrix

form
y(x) = exA d + ΔG z(y) + φ f , (43)

z(y) = Ld + VG z(y) + ν f , (44)
ψ(y) = Λd + WG z(y) + ωf , (45)
where the matrices exA , L, Λ, ΔG , VG , WG are defined in (14) and the vectors
φ f , ν f , ωf are given in (32). By utilizing (43) and (45), the boundary conditions
in (35) are recast as

A exA d + ΔG z(y) + φ f + B Λd + WG z(y) + ωf = 0. (46)
From (44) and (46), we obtain the system

AΔG + BWG AexA + BΛ z(y) Aφ f + Bωf
=− , (47)
VG − I L d νf
or

z(y) Aφ f + Bωf
T =− . (48)
d νf
Since det T = 0 by hypothesis, we have

z(y) Aφ f + Bωf
= −T−1 . (49)
d νf
Substitution of (49) into (37) yields the solution (33) to the problem (34)–(35). Since
this solution holds for all f (x) ∈ Cn [0, 1], then the system (34)–(35) is everywhere
solvable. Thus, (33) is the unique solution to the nonhomogeneous problem (13)
which can be denoted conveniently as y(x) = P −1 f (x). To prove the correctness
of the problem (13) it remains to show that the inverse operator P −1 is bounded.
Let r = m + 1 and write the matrix T conveniently as
1r 11
AΔG + BWG AexA + BΛ T T
T= = , (50)
VG − I L Trr Tr1
where T1r = AΔG + BWG , T11 = AexA + BΛ, Trr = VG − I and Tr1 = L. Let
also the analogously partitioned matrix

Π r1 Π rr
Π = T−1 = , (51)
Π 11 Π 1r
where
⎡ ⎤ ⎡ rr · · · Π rr
⎤
Π0r1 Π00 0m
⎢ ⎥ ⎢ ⎥
Π 1r = Π01r · · · Πm1r , Π r1 = ⎣ ... ⎦ , Π rr = ⎣ ... · · · ... ⎦ ,
Πmr1 rr · · · Π rr
Πm0 mm
(52)
rr , i, k = 0, . . . , m are n × n matrices. Then,
and Π 11 , Πi1r , Πir1 , Πik

Aφ f + Bωf Π r1 Aφ f + Bωf + Π rr ν f
Π = . (53)
νf Π 11 Aφ f + Bωf + Π 1r ν f
Substitution of (53) into solution (33) yields

x
y(x) = e(x−t)A f (t)dt
0
x
Π r1 (Aφ f + Bωf ) + Π rr ν f
− e (x−t)A
G(t)dt e xA
0 Π 11 (Aφ f + Bωf ) + Π 1r ν f
x
= e(x−t)A f (t)dt
0
x x
− e(x−t)A G(t)dtΠ r1 (Aφ f + Bωf ) − e(x−t)A G(t)dtΠ rr ν f
0 0
−exA Π 11 (Aφ f + Bωf ) − exA Π 1r ν f . (54)
Let the maxima absolute elements (ae) for each of the following n × n matrices be
denoted by

k (0) = max exA , kj = max Bj Cj (x)exA , l (0) = max e−xA ,
ae ae ae
! "
x
m
l (1) = max e(x−t)A Gi (t)Πir1 dt , li(2) = max Ai e(xi −t)A ,
ae 0 ae
i=0
! m "
x
lk(3) = max e (x−t)A rr
Gi (t)Πik dt , l (4) = max exA Π 11 ,
ae 0 ae
i=0

ĥk = max Hk (x)exA , h̃i = max exA Πi1r . (55)
ae ae
Notice that the elements of the above matrices are continuous functions on [0, 1]
since the elements of the fundamental matrix exA and the inverse matrix e−xA are
continuous functions.
We now find some estimates for the terms appearing in (54). First, note that
Aφ f + Bωf ∈ Cn , since both Ai φ i (f ) and Bj ωj (f ) ∈ Cn , and by the triangle
inequality and properties (5), (8), we have
Aφ f + Bωf Cn ≤ Aφ f Cn + Bωf Cn

m
s
= Ai φ i (f )Cn + Bj ωj (f )Cn
i=0 j =0

m xi
≤ Ai e(xi −t)A f (t)dtCn
i=0 0

s ξ j +1 x
+ Bj Cj (x)exA e−tA f (t)dtdxCn
j =0 ξj 0

m
(2)

s
≤ li nf Cn + kj l (0) n2 f Cn
i=0 j =0
⎛ ⎞

m
s
= n⎝ kj ⎠ f Cn .
(2)
li + l (0) n (56)
i=0 j =0
By means of (6), we obtain

x x
e(x−t)A f (t)dtCn = exA e−tA f (t)dtCn ≤ k (0) l (0) n2 f Cn . (57)
0 0
Utilization of (4) and the relation (56) produces

x
e(x−t)A G(t)dtΠ r1 (Aφ f + Bωf )Cn
0
x
m
= e(x−t)A Gi (t)Πir1 dt (Aφ f + Bωf )Cn
0 i=0
≤l nAφ f + Bωf Cn

(1)
⎛ ⎞
m
s
≤ l1 n2 ⎝ kj ⎠ f Cn .
(2)
l + l (0) n i (58)
i=0 j =0
From (4) and (7) follows that

x
e(x−t)A G(t)dtΠ rr ν f Cn
0
x ' m (

m
= e(x−t)A rr
Gi (t)Πi0 rr
, . . . , Gi (t)Πim dtcol (ν 0 (f ), . . . , ν m (f ))Cn
0 i=0 i=0

m m x

≤ e(x−t)A Gi (t)Πik
rr
dtν k (f )Cn
k=0 i=0 0

m
(3)
≤ lk nν k (f )Cn
k=0

m 1 x
e−tA f (t)dtdxCn
(3)
= lk n Hk (x)e xA
k=0 0 0

m
≤ lk(3) nĥk nl (0) nf Cn
k=0

m
(3)
= l (0) n3 lk ĥk f Cn . (59)
k=0
Further, by using property (4) and the relation (56), we acquire
exA Π 11 (Aφ f + Bωf )Cn ≤ l (4) nAφ f + BωF Cn

⎛ ⎞
m
s
≤ l (4) n2 ⎝ (2)
li + l (0) n kj ⎠ f Cn . (60)
i=0 j =0
Finally, by employing (9), we get

m
exA Π 1r ν f Cn = exA Πi1r ν i (f )Cn
i=0

m
≤ exA Πi1r ν i (f )Cn
i=0

m 1 ξ
= exA Πi1r Hi (ξ )eξ A e−tA f (t)dtdξ Cn
i=0 0 0

m
≤ l (0) n3 ĥi h̃i f Cn . (61)
i=0
From (54) and (57)–(60), follows that

⎡ ⎛ ⎞
m
s
m
≤ ⎣k (0) l (0) n2 + l1 n2 ⎝ kj ⎠ + l (0) n3
(2) (3)
y(x)Cn l + l (0) n i l ĥk k
i=0 j =0 k=0
⎛ ⎞ ⎤

m
s
m
(4) 2 ⎝
kj ⎠ + l ĥi h̃i ⎦ f Cn
(2)
+l n li +l (0)
n (0) 3
n
i=0 j =0 i=0
≤ γ f Cn . (62)
where γ > 0. The last inequality proves the boundedness and correctness of the
operator P and problem (13). The theorem is proved.
4 Conclusions
We have studied a class of nonhomogeneous systems of n linear first-order ordinary

Fredholm type integro-differential equations subject to general multipoint and inte-
gral boundary constraints. We have established sufficient solvability and uniqueness
criteria and we have derived a ready to use exact solution formula. The method
proposed requires the knowledge of a fundamental matrix of the corresponding

homogeneous system of first-order differential equations. The solution process can
be easily implemented to any computer algebra system.
References
1. A.R. Abdullaev, E.A. Skachkova, On a multipoint boundary-value problem for a second-order

differential equation. Vestn. Perm. Univ. Ser. Math. Mech. Inf. 2(25), 5–9 (2014)
2. A.R. Abdullaev, E.A. Skachkova, On one class of multipoint boundary-value problems for a
second-order linear functional-differential equation. J. Math. Sci. 230, 647–650 (2018). https://
doi.org/10.1007/s10958-018-3761-9
3. R.P. Agarwal, The numerical solutions of multipoint boundary value problems. J. Comput.
Appl. Math. 5, 17–24 (1979)
4. M.T. Ashordiya, A Criterion for the solvability of a multipoint boundary value problem for a
system of generalized ordinary differential equations. Differ. Uravn. 32, 1303–1311 (1996)
5. M.M. Baiburin, Multipoint value problems for second order differential operator. Vestn.
KAZgu. Math. 1(37), 36–40 (2005) [in Russian]
6. M.M. Baiburin, On multi-point boundary value problems for first order linear differential
equations system. Appl. Math. Control Prob. 3, 16–30 (2018) [in Russian]
7. D.S. Dzhumabaev, On one approach to solve the linear boundary value problems for Fredholm
integro-differential equations. J. Comput. Appl. Math. 294, 342–357 (2016). https://doi.org/10.
1016/j.cam.2015.08.023
8. C.P. Gupta, A generalized multi-point boundary value problem for second order ordinary
differential equations. Appl. Math. Comput. 89, 133–146 (1998). https://doi.org/10.1016/
S0096-3003(97)81653-0
9. V.A. Il’in, E.I. Moiseev, Nonlocal boundary value problem of the first kind for a Sturm-
Liouville operator in its differential and finite difference aspects. Differ. Equ. 23, 803–810
(1987)
10. A.K. Iskakova, On the correctness of a single operator in Cn [0, 1]. Vestn. KAZgu. Math. Mech.
Inf. 5(19), 68–72 (1999) [in Russian]
11. I.T. Kiguradze, Boundary-value problems for systems of ordinary differential equations. J.
Math. Sci. 43, 2259–2339 (1988). https://doi.org/10.1007/BF01100360
12. V.S. Klimov, A multipoint boundary value problem for a system of differential equations.
Differ. Uravn. 5, 1532–1534 (1969) [in Russian]
13. B.K. Kokebaev, M. Otelbaev, A.N. Shynybekov, Questions on extension and restriction of
operators. Dokl. Akad. Nauk SSSR 271, 24–26 (1983)
14. R.O. Oinarov, I.N. Parasidis, Correctly solvable extensions of operators with finite deficiencies
in Banach space. Izv. Akad. Kaz. SSR. 5, 42–46 (1988) [in Russian]
15. T. Ojika, W. Wayne, A numerical method for the solution of multi-point problems for ordinary
differential equations with integral constraints. J. Math. Anal. Appl. 72, 500–511 (1979).
https://doi.org/10.1016/0022-247X(79)90243-9
16. M.O. Otelbaev, A.K. Iskakova, On the multipoint value problem for the operator Ly = y (t)
in C1 [0, 1]. Vestn. KAZgu. Math. Mech. Inf. 5(19), 111–115 (1999) [in Russian]
17. I.N. Parasidis, E. Providas, Resolvent operators for some classes of integro-differential
equations, in Mathematical Analysis, Approximation Theory and Their Applications, ed. by
T. Rassias, V. Gupta. Springer Optimization and Its Applications, vol. 111 (Springer, Cham,
2016), pp. 535–558. https://doi.org/10.1007/978-3-319-31281-1
18. I.N. Parasidis, E. Providas, Extension operator method for the exact solution of integro-
differential equations, in Contributions in Mathematics and Engineering, ed. by P. Pardalos,
T. Rassias (Springer, Cham, 2016), pp. 473–496. https://doi.org/10.1007/978-3-319-31317-7
19. I.N. Parasidis, E. Providas, On the exact solution of nonlinear integro-differential equations,
in Applications of Nonlinear Analysis, ed. by T. Rassias. Springer Optimization and Its
Applications, vol. 134 (Springer, Cham, 2018), pp. 591–609. https://doi.org/10.1007/978-3-
319-89815-5
20. I. Parassidis, P. Tsekrekos, Correct selfadjoint and positive extensions of nondensely defined
symmetric operators. Abstr. Appl. Anal. 2005(7), 767–790 (2005)
21. I.V. Parkhimovich, Multipoint boundary value problems for linear integro-differential equa-
tions in a class of smooth functions. Differ. Uravn. 8, 549–552 (1972) [in Russian]
22. M.N. Yakovlev, Estimates of the solutions systems of integro-differential equations subject to
many-points and integral boundary conditions. Zap. Nauchn. Sem. LOMI 124, 131–139 (1983)
[in Russian]
A Variational Approach to the Financial
Problem with Insolvencies and Analysis
of the Contagion
Giorgia Cappello, Patrizia Daniele, Sofia Giuffrè, and Antonino Maugeri
Abstract In this chapter we improve some results in literature on the general

financial equilibrium problem related to individual entities, called sectors, which
invest in financial instruments as assets and as liabilities. Indeed the model, studied
in the chapter, takes into account the insolvencies and we analyze how these
insolvencies affect the financial problem. For this improved model we describe a
variational inequality for which we provide an existence result. Moreover, we study
the dual Lagrange problem, in which the Lagrange variables, which represent the
deficit and the surplus per unit, appear and an economical indicator is provided.
Finally, we perform the contagion by means of the deficit and surplus variables.
As expected, the presence of the insolvencies makes it more difficult to reach
the financial equilibrium and increases the risk of a negative contagion for all the
systems.
1 Introduction
The term “insolvency” is often used to denote that an individual or an organization

can no longer meet its financial obligations with its lender. Usually, before getting
involved in insolvency proceedings, some informal arrangements with creditors are
attempted. Insolvency can be caused by poor cash management, a reduction in cash
inflow forecasts or by an increase in expenses.
When insolvent, the credit loans are revoked both at the credit institution
concerned and at all the institutions and banks to which the customer has had debts;
G. Cappello · P. Daniele () · A. Maugeri

Department of Mathematics and Computer Science, University of Catania, Catania, Italy
e-mail: giorgia.cappello@unict.it; daniele@dmi.unict.it; maugeri@dmi.unict.it
S. Giuffrè
D.I.I.E.S. “Mediterranea” University of Reggio Calabria, Reggio Calabria, Italy
e-mail: sofia.giuffre@unirc.it
© Springer Nature Switzerland AG 2019 17

T. M. Rassias, P. M. Pardalos (eds.), Mathematical Analysis
and Applications, Springer Optimization and Its Applications 154,
https://doi.org/10.1007/978-3-030-31339-5_2
18 G. Cappello et al.
further, it becomes impossible for the client/company to obtain liquidity from other
institutions.
In the USA the number of bankruptcies decreased to 23,106 companies in the
first quarter of 2018 from 23,157 companies in the fourth quarter of 2017. According
to The Guardian, the number of people who went bankrupt in 2017 in the United
Kingdom rose to the highest level after the financial crisis, revealing the devastating
toll of rising debts for the families. According to the Insolvency Service 99,196
people were declared insolvent in 2017, with an increase of 9.4% with respect
to the year before and very close to the peak recorded during the recession. Lots
of households (about 59,220 in 2017) are turning to “bankruptcy-lite” debt deals,
where individuals reschedule their debts and agree to much lower payments. Italy
confirms the unenviable leadership in the ranking of companies in difficulty among
the main Western European countries. According to the surveys of Coface, a group
at the top in credit insurance, in Italy there are 7.2% of companies in difficulty,
in Spain 6.3%, in France 5.7%, and in Germany 4.9%. The percentage takes into
account the insolvent companies and those indebted, unprofitable, who struggle
to honor the payments at maturity. In Italy, the current levels of insolvency are
more than double that of 2007, with one of the worst performances recorded at the
European level. In general, the trend of insolvencies at global level is almost stable
in 2017. The modest decline that was expected last year, equal to about a −1%, is
in fact the weakest result since 2009.
Some financial network models have already been studied in the literature. The
first authors to develop a multi-sector, multi-instrument financial equilibrium model
using the variational inequality theory were Nagurney et al. [35]. Recently, in [1, 7,
8, 11] more general models have been studied allowing that the data are evolving
over time.
In this chapter we improve the previous results, including the insolvencies of the
financial institutions.
We obtain such a result, considering in the utility function the presence of the
n
term rj (t)(1 − τ ij (t))cj (t)(1 + hj (t))yij (t), which represents, by means of the
j =1
insolvency coefficients cj (t), the portion of liabilities that are not reimbursed. Since
a big number of critic situations have been caused by the fact that the banks or
the financial institutions were not able to recover a part of their debts, we focus
our attention on this more complete model, deriving the variational formulation,
applying the infinite-dimensional duality theory and examining the contagion effect
on the economy. In this context, a particular attention is devoted to the problem
of the contagion, in order to know when it happens and also to establish how the
insolvencies contribute to the occurrence of the contagion. We are able to control the
contagion, using the dual Lagrange problem and the dual Lagrange variables, which
represent the deficit and the surplus per unit, arising from instrument j . Considering
the dual problem, we can examine the financial model both from the Point of View
of the Sectors and from the System Point of View (see Section 3.3) and we can
clearly see that liabilities from the point of view of the sectors are investments for
A Variational Approach to the Financial Problem with Insolvencies. . . 19
the economic system, namely a positive factor, upon which to base the development
of the economy. As expected, the presence of the insolvencies, that we are able to
quantify, makes it more difficult to reach the financial equilibrium, since reduced
income has to balance all the expenditure of the system.
The chapter is organized as follows: in Section 2 we present the detailed financial
model, together with the evolutionary variational inequality formulation of the
equilibrium conditions, and an existence result is provided; in Section 3 we apply the
duality to the general financial equilibrium problem, deriving the Deficit Formula,
the Balance Law, and the Liability Formula, we give the dual formulation of the
financial problem, we study the regularity of the Lagrange variables, deficit and
surplus, and we analyze, by means of these variables, the financial contagion; in
Section 4 we provide a numerical financial example and, finally, in Section 5 we
summarize our results and conclusions.
It is worth mentioning that the methods applied in this chapter may be used in
the study of many other equilibrium problems [4, 5, 10, 19–26, 34].
2 The Financial Model and the Equilibrium Conditions
2.1 Presentation of the Model
For the reader’s convenience, we present the detailed financial model (see also [1]).
We consider a financial economy consisting of m sectors, for example households,
domestic business, banks and other financial institutions, as well as state and local
governments, with a typical sector denoted by i, and of n instruments, for example
mortgages, mutual funds, saving deposits, money market funds, with a typical
financial instrument denoted by j , in the time interval [0, T ]. Let si (t) denote the
total financial volume held by sector i at time t as assets, and let li (t) be the total
financial volume held by sector i at time t as liabilities. Further, we allow markets of
assets and liabilities to have different investments si (t) and li (t), respectively. Since
we are working in the presence of uncertainty and of risk perspectives, the volumes
si (t) and li (t) held by each sector cannot be considered stable with respect to time
and may decrease or increase. For instance, depending on the crisis periods, a sector
may decide not to invest on instruments and to buy goods as gold and silver. At
time t, we denote the amount of instrument j held as an asset in sector i’s portfolio
by xij (t) and the amount of instrument j held as a liability in sector i’s portfolio
by yij (t). The assets and liabilities in all the sectors are grouped into the matrices
x(t), y(t) ∈ Rm×n , respectively. At time t we denote the price of instrument j held
as an asset and as a liability by rj (t) and by (1 + hj (t))rj (t), respectively, where
hj is a nonnegative function defined into [0, T ] and belonging to L∞ ([0, T ], R).
We introduce the term hj (t) because the prices of liabilities are generally greater
than or equal to the prices of assets. In this manner we describe, in a more realistic
way, the behavior of the markets for which the liabilities are more expensive than
the assets. We group the instrument prices held as an asset and as a liability
20 G. Cappello et al.
into the vectors r(t) = [r1 (t), r2 (t), . . . , ri (t), . . . , rn (t)]T and (1 + h(t))r(t) =
[(1 + h1 (t))r1 (t), (1 + h2 (t))r2 (t), . . . , (1 + hi (t))ri (t), . . . , (1 + hn (t))rn (t)]T ,
respectively. In our problem the prices of each instrument appear as unknown
variables. Under the assumption of perfect competition, each sector will behave as
if it has no influence on the instrument prices or on the behavior of the other sectors,
but on the total amount of the investments and the liabilities of each sector.
We choose as a functional setting the very general Lebesgue space
) T
L ([0, T ], R ) = f : [0, T ] → R measurable :
2 p p
f (t)2p dt < +∞ ,
0
with the norm

T
1
2
f L2 ([0,T ],Rp ) = f (t)2p dt .
0
Then, the set of feasible assets and liabilities for each sector i = 1, . . . , m becomes
)
Pi = (xi (t), yi (t)) ∈ L2 ([0, T ], R2n
+):

n
n
xij (t) = si (t), yij (t) = li (t) a.e. in [0, T ]
j =1 j =1
and the set of all feasible assets and liabilities becomes

* +
P = (x(t), y(t)) ∈ L2 ([0, T ], R2mn ) : (xi (t), yi (t)) ∈ Pi , i = 1, . . . , m .
Now, we introduce the ceiling and the floor price associated with instrument j ,
denoted by r j and by r j , respectively, with r j (t) > r j (t) ≥ 0, a.e. in [0, T ]. The
floor price r j (t) is determined on the basis of the official interest rate fixed by the
central banks, which, in turn, take into account the consumer price inflation. Then
the equilibrium prices rj∗ (t) cannot be less than these floor prices. The ceiling price
r j (t) derives from the financial need to control the national debt arising from the
amount of public bonds and of the rise in inflation. It is a sign of the difficulty on
the recovery of the economy. However it should be not overestimated because it
produced an availability of money.
In detail, the meaning of the lower and upper bounds is that to each investor a
minimal price r j for the assets held in the instrument j is guaranteed, whereas each
investor is requested to pay for the liabilities in any case a minimal price (1 + hj )r j .
Analogously each investor cannot obtain for an asset a price greater than r j and as
a liability the price cannot exceed the maximum price (1 + hj )r j .
We denote the given tax rate levied on sector i’s net yield on financial instrument
j , as τ ij . Assume that the tax rates lie in the interval [0, 1) and belong to
A Variational Approach to the Financial Problem with Insolvencies. . . 21
L∞ ([0, T ], R). Therefore, the government in this model has the flexibility of
levying a distinct tax rate across both sectors and instruments.
We group the instrument ceiling and floor prices into the column vectors r(t) =
(r j (t))j =1,...,n and r(t) = (r j (t))j =1,...,n , respectively, and the tax rates τ ij into the
matrix τ (t) ∈ L2 ([0, T ], Rm×n ).
The set of feasible instrument prices is:
R = {r ∈ L2 ([0, T ], Rn ) : r j (t) ≤ rj (t) ≤ r j (t), j = 1, . . . , n, a.e. in [0, T ]},
where r and r are assumed to belong to L2 ([0, T ], Rn ).

In order to determine for each sector i the optimal distribution of instruments held
as assets and as liabilities, we consider, as usual, the influence due to risk-aversion
and the optimality conditions of each sector in the financial economy, namely the
desire to maximize the value of the asset holdings while minimizing the value of
liabilities. In the current economic situation there is a serious problem caused by the
suffering that undermines the whole system. For this reason we intend to address
the study of the financial problem in the presence of insolvencies.
Hence, in order to meet this need, we take into account the non-performing loans,
introducing the insolvency coefficients cj (t), j = 1, . . . , n. We assume that the
insolvency coefficients cj (t) lie in the interval [0, 1) and belong to L∞ ([0, T ], R).
Then, we introduce the utility function Ui (t, xi (t), yi (t), r(t)), for each sector i,
defined as follows:
Ui (t, xi (t), yi (t), r(t)) = ui (t, xi (t), yi (t))

n
+ rj (t)(1 − τ ij (t))[xij (t) − (1 − cj (t))(1 + hj (t))yij (t)],
j =1
where the term −u , i (t, xi (t), yi (t)) represents a measure of the risk of the financial
agent, the term nj=1 rj (t)(1 − τ ij (t))[xij (t) − (1 + hj (t))yij (t)] represents the
value of the difference between the asset holdings and the value of liabilities, and
n
the term rj (t)(1 − τ ij (t))cj (t)(1 + hj (t))yij (t) represents, by means of the
j =1
insolvency coefficients cj (t), the portion of liabilities that are not reimbursed. Such
a term appears as a positive contribute for sector i and a loss for the system.
We suppose that the sector’s utility function Ui (t, xi (t), yi (t)) is defined on
[0, T ] × Rn × Rn , is measurable in t, and is continuous with respect to xi and
∂ui ∂ui
yi . Moreover we assume that and exist and that they are measurable in t
∂xij ∂yij
and continuous with respect to xi and yi . Further, we require that ∀i = 1, . . . , m,
∀j = 1, . . . , n, and a.e. in [0, T ] the following growth conditions hold true:
|ui (t, x, y)| ≤ α i (t)xy, ∀x, y ∈ Rn , (1)

Another random document with
no related content on Scribd:
“The number of immigrants of all nations was 720,045 in 1881. Of
these 20,711 were Chinese. There is no record in the Bureau of
Statistics of the number who departed within the year. But a very
high anti-Chinese authority places it above 10,000. Perhaps the
expectation that the hostile legislation under the treaty would not
affect persons who entered before it took effect stimulated somewhat
their coming. But the addition to the Chinese population was less
than one seventy-second of the whole immigration. All the Chinese
in the country do not exceed the population of its sixteenth city. All
the Chinese in California hardly surpass the number which is easily
governed in Shanghai by a police of one hundred men. There are as
many pure blooded Gypsies wandering about the country as there
are Chinese in California. What an insult to American intelligence to
ask leave of China to keep out her people, because this little handful
of almond-eyed Asiatics threaten to destroy our boasted civilization.
We go boasting of our democracy, and our superiority, and our
strength. The flag bears the stars of hope to all nations. A hundred
thousand Chinese land in California and everything is changed. God
has not made of one blood all the nations any longer. The self-
evident truth becomes a self-evident lie. The golden rule does not
apply to the natives of the continent where it was first uttered. The
United States surrender to China, the Republic to the despot,
America to Asia, Jesus to Joss.
“There is another most remarkable example of this prejudice of
race which has happily almost died out here, which has come down
from the dark ages and which survives with unabated ferocity in
Eastern Europe. I mean the hatred of the Jew. The persecution of the
Hebrew has never, so far as I know, taken the form of an affront to
labor. In every other particular the reproaches which for ten
centuries have been leveled at him are reproduced to do service
against the Chinese. The Hebrew, so it was said, was not a Christian.
He did not affiliate or assimilate into the nations where he dwelt. He
was an unclean thing, a dog, to whom the crime of the crucifixion of
his Saviour was never to be forgiven. The Chinese quarter of San
Francisco had its type in every city of Europe. If the Jew ventured
from his hiding-place he was stoned. His wealth made him the prey
of the rapacity of the noble, and his poverty and weakness the victim
of the rabble. Yet how has this Oriental conquered Christendom by
the sublimity of his patience? The great poet of New England, who
sits by every American fireside a beloved and perpetual guest, in that
masterpiece of his art, the Jewish Cemetery at Newport, has
described the degradation and the triumph of these persecuted
children of God.
How came they here? What burst of Christian hate,
What persecution, merciless and blind,
Drove o’er the sea—that desert desolate—
These Ishmaels and Hagars of mankind?
They lived in narrow streets and lanes obscure,
Ghetto and Judenstrass, in mirk and mire;
Taught in the school of patience to endure
The life of anguish and the death of fire.
· · · · ·
Anathema maranatha! was the cry

That rang from town to town, from street to street;
At every gate the accursed Mordecai
Was mocked and jeered, and spurned by Christian feet.
Pride and humiliation hand in hand

Walked with them through the world where’er they went;
Trampled and beaten were they as the sand,
And yet unshaken as the continent.
Forty years ago—

Says Lord Beaconsfield, that great Jew who held England in the
hollow of his hand, and who played on her aristocracy as on an
organ, who made himself the master of an alien nation, its ruler, its
oracle, and through it, and in despite of it, for a time the master of
Europe—
Forty years ago—not a longer period than the children of Israel
were wandering in the desert—the two most dishonored races in
Europe were the Attic and the Hebrew. The world has probably by
this discovered that it is impossible to destroy the Jews. The attempt
to extirpate them has been made under the most favorable auspices
and on the largest scale; the most considerable means that man
could command have been pertinaciously applied to this object for
the longest period of recorded time. Egyptian Pharaohs, Assyrian
kings, Roman emperors, Scandinavian crusaders, Gothic princes,
and holy inquisitors, have alike devoted their energies to the
fulfillment of this common purpose. Expatriation, exile, captivity,
confiscation, torture on the most ingenious and massacre on the
most extensive scale, a curious system of degrading customs and
debasing laws which would have broken the heart of any other
people, have been tried, and in vain.
“Lord Beaconsfield admits that the Jews contribute more than
their proportion to the aggregate of the vile; that the lowest class of
Jews are obdurate, malignant, odious, and revolting. And yet this
race of dogs, as it has been often termed in scorn, furnishes Europe
to-day its masters in finance and oratory and statesmanship and art
and music. Rachel, Mozart, Mendelssohn, Disraeli, Rothschild,
Benjamin, Heine, are but samples of the intellectual power of a race
which to-day controls the finance and the press of Europe.
“I do not controvert the evidence which is relied upon to show that
there are great abuses, great dangers, great offenses, which have
grown out of the coming of this people. Much of the evil I believe
might be cured by State and municipal authority. Congress may
rightfully be called upon to go to the limit of the just exercise of the
powers of government in rendering its aid.
“We should have capable and vigilant consular officers in the
Asiatic ports from which these immigrants come, without whose
certificate they should not be received on board ship, and who should
see to it that no person except those of good character and no person
whose labor is not his own property be allowed to come over.
Especially should the trade in human labor under all disguises be
suppressed. Filthy habits of living must surely be within the control
of municipal regulation. Every State may by legislation or by
municipal ordinance in its towns and cities prescribe the dimension
of dwellings and limit the number who may occupy the same
tenement.
“But it is urged—and this in my judgment is the greatest argument
for the bill—that the introduction of the labor of the Chinese reduces
the wages of the American laborer. ‘We are ruined by Chinese cheap
labor’ is a cry not limited to the class to whose representative the
brilliant humorist of California first ascribed it. I am not in favor of
lowering any where the wages of any American labor, skilled or
unskilled. On the contrary, I believe the maintenance and the
increase of the purchasing power of the wages of the American
working man should be the one principal object of our legislation.
The share in the product of agriculture or manufacture which goes to
labor should, and I believe will, steadily increase. For that, and for
that only, exists our protective system. The acquisition of wealth,
national or individual, is to be desired only for that. The statement of
the accomplished Senator from California on this point meets my
heartiest concurrence. I have no sympathy with any men, if such
there be, who favor high protection and cheap labor.
“But I believe that the Chinese, to whom the terms of the
California Senator attribute skill enough to displace the American in
every field requiring intellectual vigor, will learn very soon to insist
on his full share of the product of his work. But whether that be true
or not, the wealth he creates will make better and not worse the
condition of every higher class of labor. There may be trouble or
failure in adjusting new relations. But sooner or later every new class
of industrious and productive laborers elevates the class it displaces.
The dread of an injury to our labor from the Chinese rests on the
same fallacy that opposed the introduction of labor-saving
machinery, and which opposed the coming of the Irishman and the
German and the Swede. Within my memory in New England all the
lower places in factories, all places of domestic service, were filled by
the sons and daughters of American farmers. The Irishmen came
over to take their places; but the American farmer’s son and
daughter did not suffer; they were only elevated to a higher plane. In
the increased wealth of the community their share is much greater.
The Irishman rose from the bog or the hovel of his native land to the
comfort of a New England home, and placed his children in a New
England school. The Yankee rises from the loom and the spinning-
jenny to be the teacher, the skilled laborer in the machine shop, the
inventor, the merchant, or the opulent landholder and farmer of the
West.”
A letter from F. A. Bee, Chinese Consul, approving the

management of the estate, accompanied the report of the referee:
“Mr. President, I will not detain the Senate by reading the
abundant testimony, of which this is but the sample, of the
possession by the people of this race of the possibility of a
development of every quality of intellect, art, character, which fits
them for citizenship, for republicanism, for Christianity.
“Humanity, capable of infinite depths of degradation, is capable
also of infinite heights of excellence. The Chinese, like all other races,
has given us its examples of both. To rescue humanity from this
degradation is, we are taught to believe, the great object of God’s
moral government on earth. It is not by injustice, exclusion, caste,
but by reverence for the individual soul that we can aid in this
consummation. It is not by Chinese policies that China is to be
civilized. I believe that the immortal truths of the Declaration of
Independence came from the same source with the Golden Rule and
the Sermon on the Mount. We can trust Him who promulgated these
laws to keep the country safe that obeys them. The laws of the
universe have their own sanction. They will not fail. The power that
causes the compass to point to the north, that dismisses the star on
its pathway through the skies, promising that in a thousand years it
shall return again true to its hour and keep His word, will vindicate
His own moral law. As surely as the path on which our fathers
entered a hundred years ago led to safety, to strength, to glory, so
surely will the path on which we now propose to enter ring us to
shame, to weakness, and to peril.”
On the 3d of March the debate was renewed. Senator Farley
protested that unless Chinese immigration is prohibited it will be
impossible to protect the Chinese on the Pacific coast. The feeling
against them now is such that restraint is difficult, as the people,
forced out of employment by them, and irritated by their constantly
increasing numbers, are not in a condition to submit to the
deprivations they suffer by the presence of a Chinese population
imported as slaves and absorbing to their own benefit the labor of
the country. A remark of Mr. Farley about the Chinese led Mr. Hoar
to ask if they were not the inventors of the printing press and of
gunpowder. To this question Mr. Jones, of Nevada, made a brief
speech, which was considered remarkable, principally because it was
one of the very few speeches of any length that he has made since he
became a Senator. Instead of agreeing with Mr. Hoar that the
Chinese had invented the printing press and gunpowder, he said that
information he had received led him to believe that the Chinese were
not entitled to the credit of either of these inventions. On the
contrary, they had stolen them from Aryans or Caucasians who
wandered into the kingdom. Mr. Hoar smiled incredulously and
made a remark to the effect that he had never heard of those Aryans
or Caucasians before.
Continuing his remarks, Mr. Farley expressed his belief that
should the Mongolian population increase and the Chinese come in
contact with the Africans, the contact would result in demoralization
and bloodshed which the laws could not prevent. Pig-tailed
Chinamen would take the place everywhere of the working girl unless
Congress extended its protection to California and her white people,
who had by their votes demanded a prohibition of Chinese
immigration. Mr. Maxey, interpreting the Constitution in such a way
as to bring out of it an argument against Chinese immigration, said
he found nothing in it to justify the conclusion that the framers of it
intended to bring into this country all nations and races. The only
people the fathers had in view as citizens were those of the Caucasian
race, and they contemplated naturalization only for such, for they
had distinctly set forth that the heritage of freedom was to be for
their posterity. Nobody would pretend to express the opinion that it
was expected that the American people should become mixed up
with all sorts of races and call the result “our posterity.” While the
American people had, in consequence of their Anglo-Saxon origin,
been able to withstand the contact with the African, the Africans
would never stand before the Chinese. Mr. Maxey opposed the
Chinese because they do not come here to be citizens, because the
lower classes of Chinese alone are immigrants, and because by
contact they poison the minds of the less intelligent.
Mr. Saulsbury had something to say in favor of the bill, and Mr.
Garland, who voted against the last bill because the treaty had not
been modified, expressed his belief that the Government could
exercise properly all the powers proposed to be bestowed by this bill.
Some time was consumed by Mr. Ingalls in advocacy of an
amendment offered by him, proposing to limit the suspension of
immigration to 10 instead of 20 years. Mr. Miller and Mr. Bayard
opposed the amendment, Mr. Bayard taking the ground that
Congress ought not to disregard the substantially unanimous wish of
the people of California, as expressed at the polls, for absolute
prohibition. The debate was interrupted by a motion for an executive
session, and the bill went over until Monday, to be taken up then as
the unfinished business.
On March 6th a vote was ordered on Senator Ingalls’ amendment.
It was defeated on a tie vote—yeas 23, nays 23.
The vote in detail is as follows:
Yeas—Messrs. Aldrich, Allison, Blair, Brown, Cockrell, Conger,
Davis of Illinois, Dawes, Edmunds, Frye, Harris, Hoar, Ingalls,
Jackson, Lapham, McDill, McMillan, Mitchell, Morrell, Saunders,
Sewell, Sherman and Teller—23.
Nays—Messrs. Bayard, Beck, Call, Cameron of Wisconsin, Coke,
Fair, Farley, Garland, George, Hale, Hampton, Hill of Colorado,
Jonas, Jones of Nevada, McPherson, Marcy, Miller of California,
Miller of New York, Morgan, Ransom, Slater, Vest and Walker—23.
Pairs were announced between Davis, of West Virginia, Saulsbury,
Butler, Johnson, Kellogg, Jones, of Florida, and Grover, against the
amendment, and Messrs. Windom, Ferry, Hawley, Platt, Pugh,
Rollins and Van Wyck in the affirmative. Mr. Camden was also
paired.
Mr. Edmunds, partially in reply to Mr. Hoar argued that the right
to decide what constitutes the moral law was one inherent in the
Government, and by analogy the right to regulate the character of the
people who shall come into it belonged to a Government. This
depended upon national polity and the fact as to most of the ancient
republics that they did not possess homogeneity was the cause of
their fall. As to the Swiss Republic, it was untrue that it was not
homogeneous. The difference there was not one of race but of
different varieties of the same race, all of which are analogous and
consistent with each other. It would not be contended that it is an
advantage to a republic that its citizens should be made of diverse
races, with diverse views and diverse obligations as to what the
common prosperity of all required. Therefore there was no
foundation for the charge of a violation of moral and public law in
our making a distinction as to the foreigners we admit. He
challenged Mr. Hoar to produce an authority on national law which
denied the right of one nation to declare what people of other nations
should come among them. John Hancock and Samuel Adams, not
unworthy citizens of Massachusetts, joined in asserting in the
Declaration of Independence the right of the colonies to establish for
themselves, not for other peoples, a Government of their own, not
the Government of somebody else. The declaration asserted the
family or consolidated right of a people within any Territory to
determine the conditions upon which they would go on, and this
included the matter of receiving the people from other shores into
their family. This idea was followed in the Constitution by requiring
naturalization. The Chinaman may be with us, but he is not of us.
One of the conditions of his naturalization is that he must be friendly
to the institutions and intrinsic polity of our Government. Upon the
theory of the Massachusetts Senators, that there is a universal
oneness of one human being with every other human being on the
globe, this traditional and fundamental principle was entirely
ignored. Such a theory as applied to Government was contrary to all
human experience, to all discussion, and to every step of the
founders of our Government. He said that Mr. Sumner, the
predecessor of Mr. Hoar, was the author of the law on the coolie
traffic, which imposes fines and penalties more severe than those in
this bill upon any master of an American vessel carrying a Chinaman
who is a servant. The present bill followed that legislation. Mr.
Edmunds added that he would vote against the bill if the twenty-year
clause was retained, but would maintain the soundness of principle
he had enunciated.
Mr. Hoar argued in reply that the right of expatriation carried with
it the right to a home for the citizen in the country to which he
comes, and that the bill violated not only this but the principles of
the Fourteenth and Fifteenth Amendments which made citizenship
the birthright of every one born on our soil, and prohibited an
abridgement of the suffrage because of race, color, etc.
Mr. Ingalls moved an amendment postponing the time at which
the act shall take effect until sixty days after information of its
passage has been communicated to China.
After remarks by Messrs. Dawes, Teller and Bayard, at the
suggestion of Mr. Brown Mr. Ingalls modified his amendment by
providing that the act shall not go into effect until ninety days after
its passage, and the amendment was adopted.
On motion of Mr. Bayard, amendments were adopted making the
second section read as follows: “That any master of any vessel of
whatever nationality, who shall knowingly on such vessel bring
within the jurisdiction of the United States and permit to be landed
any Chinese laborer,” &c.
Mr. Hoar moved to amend by adding the following: “Provided,
that this bill shall not apply to any skilled laborer who shall establish
that he comes to this country without any contract beyond which his
labor is the property of any person besides himself.”
Mr. Farley suggested that all the Chinese would claim to be skilled
laborers.
Mr. Hoar replied that it would test whether the bill struck at
coolies or at skilled labor.
The amendment was rejected—Yeas, 17; nays, 27.
Mr. Call moved to strike out the section which forfeits the vessel
for the offense of the master. Lost.
Mr. Hoar moved to amend by inserting: “Provided that any laborer
who shall receive a certificate from the U.S. Consul at the port where
he shall embark that he is an artisan coming to this country at his
own expense and of his own will, shall not be affected by this bill.”
Lost—yeas 19, nays 24.
On motion of Mr. Miller, of California, the provision directing the
removal of any Chinese unlawfully found in a Customs Collection
district by the Collector, was amended to direct that he shall be
removed to the place from whence he came.
On motion of Mr. Brown an amendment was adopted providing
that the mark of a Chinese immigrant, duly attested by a witness,
may be taken as his signature upon the certificate of resignation or
registration issued to him.
The question then recurred on the amendment offered by Mr.
Farley that hereafter no State Court or United States Court shall
admit Chinese to citizenship.
Mr. Hawley, of Conn., on the following day spoke against what he
denounced as “a bill of iniquities.”
On the 9th of March what proved a long and interesting debate
was closed, the leading speech being made by Senator Jones (Rep.)
of Nevada, in favor of the bill. After showing the disastrous effects of
the influx of the Chinese upon the Pacific coast and answering some
of the arguments of the opponents of restriction, Mr. Jones said that
he had noticed that most of those favoring Chinese immigration were
advocates of a high tariff to protect American labor. But, judging
from indications, it is not the American laborer, but the lordly
manufacturing capitalist who is to be protected as against the
European capitalist, and who is to sell everything he has to sell in an
American market, one in which other capitalists cannot compete
with him, while he buys that which he has to buy—the labor of men—
in the most open market. He demands for the latter free trade in its
broadest sense, and would have not only free trade in bringing in
laborers of our own race, but the Chinese, the most skilful and
cunning laborers of the world. The laborer, however, is to buy from
his capitalist master in a protective market, but that which he himself
has to sell, his labor, and which he must sell every day (for he cannot
wait, like the capitalist, for better times or travel here and there to
dispose of it), he must sell in the openest market of the world. When
the artisans of this country shall be made to understand that the
market in which they sell the only thing they have to sell is an open
one they will demand, as one of the conditions of their existence, that
they shall have an open market in which to buy what they want. As
the Senator from Massachusetts (Mr. Dawes) said he wanted the
people to know that the bill was a blow struck at labor, Mr. Jones
said he reiterated the assertion with the qualification that it was not a
blow at our own, but at underpaid pauper labor. That cheap labor
produces national wealth is a fallacy, as shown by the home
condition of the 350,000,000 of Chinamen.
“Was the bringing of the little brown man a sort of counter balance
to the trades unions of this country? If he may be brought here, why
may not the products of his toil come in? Now, when the laborer is
allowed to get that share from his labor that civilization has decided
he shall have, the little brown man is introduced. He (Mr. Jones)
believed in protection, and had no prejudice against the capitalist,
but he would have capital and labor equally protected. Enlarging
upon the consideration that the intelligence or creative genius of a
country in overcoming obstacles, not its material resources,
constitutes its wealth, and that the low wages of the Chinese, while
benefiting individual employers, would ultimately impoverish the
country by removing the stimulant to create labor-saving machinery
and like inventions. Mr. Jones spoke of what he called the dearth of
intellectual activity in the South in every department but one, that of
politics.
“This was because of the presence of a servile race there. The
absence of Southern names in the Patent Office is an illustration. We
would not welcome the Africans here. Their presence was not a
blessing to us, but an impediment in our way. The relations of the
white and colored races of the South were now no nearer adjustment
than they were years ago. He would prophesy that the African race
would never be permitted to dominate any State of the South. The
experiment to that end had been a dismal failure, and a failure not
because we have not tried to make it succeed, but because laws away
above human laws have placed the one race superior to and far above
the other. The votes of the ignorant class might preponderate, but
intellect, not numbers, is the superior force in this world. We clothed
the African in the Union blue and the belief that he was one day to be
free was the candle-light in his soul, but it is one thing to aspire to be
free and another thing to have the intelligence and sterling qualities
of character that can maintain free government. Mr. Jones here
expressed his belief that, if left alone to maintain a government, the
negro would gradually retrograde and go back to the methods of his
ancestors. This, he added, may be heresy, but I believe it to be the
truth. If, when the first ship-load of African slaves came to this
country the belief had spread that they would be the cause of political
agitation, a civil war, and the future had been foreseen, would they
have been allowed to land?
“How much of this country would now be worth preserving if the
North had been covered by Africans as is South Carolina to-day, in
view of their non-assimilative character? The wisest policy would
have been to exclude them at the outset. So we say of the Chinese to-
day, he exclaimed, and for greater reason, because their skill makes
them more formidable competitors than the negro. Subtle and adept
in manipulation, the Chinaman can be put into almost any kind of a
factory. His race is as obnoxious to us and as impossible for us to
assimilate with as was the negro race. His race has outlived every
other because it is homogeneous, and for that reason alone. It has
imposed its religion and peculiarities upon its conquerors and still
lived. If the immigration is not checked now, when it is within
manageable limits, it will be too late to check it. What do we find in
the condition of the Indian or the African to induce us to admit
another race into our midst? It is because the Pacific coast favor our
own civilization, not that of another race, that they discourage the
coming of these people. They believe in the homogeneity of our race,
and that upon this depends the progress of our institutions and
everything on which we build our hopes.
Mr. Morill, (Rep.) of Vt., said he appreciated the necessity of
restricting Chinese immigration, but desired that the bill should
strictly conform to treaty requirements and be so perfected that
questions arising under it might enable it to pass the ordeal of
judicial scrutiny.
Mr. Sherman, (Rep.) of Ohio, referring to the passport system,
said the bill adopted some of the most offensive features of European
despotism. He was averse to hot haste in applying a policy foreign to
the habits of our people, and regarded the measure as too sweeping
in many of its provisions and as reversing our immigration policy.
After remarks by Messrs. Ingalls, Farley, Maxey, Brown and Teller,
the amendment of Mr. Farley, which provides that hereafter no court
shall admit Chinese to citizenship, was adopted—yeas 25, nays 22.
The following is the vote:
Yeas—Messrs. Bayard, Beck, Call, Cameron of Wisconsin, Cockrell,
Coke, Fair, Farley, Garland, George, Gorman, Harris, Jackson,
Jonas, Jones of Nevada, Maxey, Morgan, Pugh, Ransom, Slater,
Teller, Vance, Vest, Voorhees and Walker—25.
Nays—Messrs. Aldrich, Allison, Blair, Brown, Conger, Davis of
Illinois, Dawes, Edmunds, Frye, Hale, Hill of Colorado, Hoar,
Ingalls, Lapham, McDill, McMillan, Miller of New York, Mitchell,
Morrill, Plumb, Saunders and Sawyer—22.
Mr. Grover’s amendment construing the words “Chinese laborers,”
wherever used in the act, to mean both skilled and unskilled laborers
and Chinese employed in mining prevailed by the same vote—yeas
25, nays 22.
Mr. Brown, (Dem.) of Ga., moved to strike out the requirement
for the production of passports by the permitted classes whenever
demanded by the United States authorities. Carried on a viva voce
vote, the Chair (Mr. Davis, of Illinois) creating no little merriment by
announcing, “The nays are loud but there are not many of them.”
MR. INGALLS’ AMENDMENT.
Upon the bill being reported to the Senate from the Committee of
the Whole Mr. Ingalls again moved to limit the suspension of the
coming of Chinese laborers to ten years.
Mr. Jones, of Nevada, said this limit would hardly have the effect
of allaying agitation on the subject as the discussion would be
resumed in two or three years, and ten years, he feared, would not
even be a long enough period to enable Congress intelligently to base
upon it any future policy.
Mr. Miller, of California, also urged that the shorter period would
not measurably relieve the business interest of the Pacific slope,
inasmuch as the white immigrants, who were so much desired,
would not come there if they believed the Chinese were to be again
admitted in ten years. Being interrupted by Mr. Hoar, he asserted
that that Senator and other republican leaders, as also the last
republican nominee for President, had heretofore given the people of
the Pacific slope good reason to believe that they would secure to
them the relief they sought by the bill.
Mr. Hoar, (Rep.) of Mass., briefly replied.
The amendment was lost—yeas 20, nays 21.
The vote is as follows:
Yeas—Messrs. Aldrich, Allison, Blair, Brown, Conger, Davis of
Illinois, Dawes, Edmunds, Frye, Hale, Hoar, Ingalls, Lapham,
McDill, McMillan, Mahone, Morrill, Plumb, Sawyer and Teller—20.
Nays—Messrs. Bayard, Beck, Call, Cameron of Wisconsin, Coke,
Fair, Farley, Garland, George, Gorman, Jackson, Jonas, Jones of
Nevada, Miller of California, Miller of New York, Morgan, Ransom,
Slater, Yance, Voorhees and Walker—21.
Messrs. Butler, Camden, McPherson, Johnston, Davis of West
Virginia, Pendleton and Ransom were paired with Messrs. Hawley,
Anthony, Sewell, Platt, Van Wyck, Windom and Sherman.
Messrs. Hampton, Pugh, Vest, Rollins and Jones of Florida were
paired with absentees.
PASSAGE OF THE BILL.

The question recurred on the final passage of the bill, and Mr.
Edmunds closed the debate. He would vote against the bill as it now
stood, because he believed it to be an infraction of good faith as
pledged by the last treaty; because he believed it injurious to the
welfare of the people of the United States, and particularly the people
on the Pacific coast, by preventing the development of our great
trade with China.
The vote was then taken and the bill was passed—yeas 29, nays 15.
The following is the vote in detail:—
Yeas—Messrs. Bayard, Beck, Call, Cameron of Wisconsin, Cockrell,
Coke, Fair, Farley, Garland, George, Gorman, Hale, Harris, Hill of
Colorado, Jackson, Jonas, Jones of Nevada, Miller of California,
Miller of New York, Morgan, Pugh, Ransom, Sawyer, Teller, Vance,
Vest, Voorhees and Walker—29.
Nays—Messrs. Aldrich, Allison, Blair, Brown, Conger, Davis of
Illinois, Dawes, Edmunds, Frye, Hoar, Ingalls, Lapham, McDill,
McMillan and Morrill—15.
Pairs were announced of Messrs. Camden, Davis of West Virginia,
Grover, Hampton, Butler, McPherson, Johnston, Jones of Florida
and Pendleton in favor of the bill, with Messrs. Anthony, Windom,
Van Wyck, Mitchell, Hawley, Sewell, Platt, Rollins and Sherman
against it.
Mr. Frye, (Rep.) of Me., in casting his vote, stated that he was
paired with Mr. Hill, of Georgia, on all political questions, but that he
did not consider this a political question, and besides, had express
permission from Senator Hill to vote upon it.
Mr. Mitchell, (Rep.) of Pa., in announcing his pair with Mr.
Hampton stated that had it not been for that fact he would vote
against the bill, regarding it as un-American and inconsistent with
the principles which had obtained in the government.
The title of the bill was amended so as to read, “An act to execute
certain treaty stipulations relating to Chinese,” though Mr. Hoar
suggested that “execute” ought to be stricken out and “violate”
inserted.
The Senate then, at twenty minutes to six, adjourned until to-
morrow.
PROVISIONS OF THE BILL.
The Chinese Immigration bill as passed provides that from and

after the expiration of ninety days after the passage of this act and
until the expiration of twenty years after its passage the coming of
Chinese laborers to the United States shall be suspended, and
prescribes a penalty of imprisonment not exceeding one year and a
fine of not more than $500 against the master of any vessel who
brings any Chinese laborer to this country during that period. It
further provides that the classes of Chinese excepted by the treaty
from such prohibition—such as merchants, teachers, students,
travelers, diplomatic agents and Chinese laborers who were in the
United States on the 17th of November, 1880—shall be required, as a
condition for their admission, to procure passports from the
government of China personally identifying them and showing that
they individually belong to one of the permitted classes, which
passports must have been indorsed by the diplomatic representative
of the United States in China or by the United States Consul at the
port of departure. It also provides elaborate machinery for carrying
out the purposes of the act, and additional sections prohibit the
admission of Chinese to citizenship by any United States or State
court and construes the words “Chinese laborers” to mean both
skilled and unskilled laborers and Chinese employed in mining.
The sentiment in favor of the passage of this bill has certainly
greatly increased since the control of the issue has passed to abler
hands than those of Kearney and Kalloch, whose conduct intensified
the opposition of the East to the measure, which in 1879 was
denounced as “violating the conscience of the nation.” Mr. Blaine’s
advocacy of the first bill limiting emigrants to fifteen on each vessel,
at the time excited much criticism in the Eastern states, and was
there a potent weapon against him in the nominating struggle for the
Presidency in 1880; but on the other hand it is believed that it gave
him strength in the Pacific States.
Chinese immigration and the attempt to restrict it presents a
question of the gravest importance, and was treated as such in the
Senate debate. The friends of the bill, under the leadership of
Senators Miller and Jones, certainly stood in a better and stronger
attitude than ever before.
The anti-Chinese bill passed the House just as it came from the
Senate, after a somewhat extended debate, on the 23d of March,
1882. Yeas 167, nays 65, (party lines not being drawn) as follows:
Yeas—Messrs. Aikin, Aldrich, Armfield, Atkins, Bayne, Belford,
Belmont, Berry, Bingham, Blackburn, Blanchard, Bliss, Blount,
Brewer, Brumm, Buckner, Burrows, of Missouri; Butterworth,
Cabell, Caldwell, Calkins, Campbell, Cannon, Casserley, Caswell,
Chalmers, Chapman, Clark, Clements, Cobb, Converse, Cook,
Cornell, Cox, of New York; Cox, of North Carolina; Covington,
Cravens, Culbertson, Curtin, Darrell, Davidson; Davis, of Illinois;
Davis, of Missouri; Demotte, Deuster, Dezendorf, Dibble, Dibrell,
Dowd, Dugro, Ermentrout, Errett, Farwell, of Illinois; Finley,
Flowers, Ford, Forney, Fulkerson, Garrison, Geddes, George, Gibson,
Guenther, Gunter, Hammond, of Georgia; Hardy, Harmer, Harris, of
New Jersey; Haseltine, Hatch, Hazelton, Heilman, Herndon, Hewitt,
of New York; Hill, Hiscock, Hoblitzell, Hoge, Hollman, Horr, Houk,
House, Hubbell, Hubbs, Hutchins, Jones, of Texas; Jones, of
Arkansas; Jorgenson, Kenna, King, Klotz, Knott, Ladd, Leedom,
Lewis, Marsh, Martin, Matson, McClure, McCook, McKenzie,
McKinley, McLane, McMillan, Miller, Mills, of Texas; Money, Morey,
Moulton, Murch, Mutchler, O’Neill, Pacheco, Page, Paul, Payson,
Pealse, Phelps, Phister, Pound, Randall, Reagan, Rice of Missouri,
Richardson, Robertson, Robinson, Rosecrans, Scranton,
Shallenberger, Sherwin, Simonton, Singleton, of Mississippi, Smith
of Pennsylvania, Smith of Illinois, Smith of New York, Sparks,
Spaulding, Spear, Springer, Stockslager, Strait, Talbott, Thomas,
Thompson of Kentucky, Tillman, Townsend of Ohio, Townsend of
Illinois, Tucker, Turner of Georgia, Turner of Kentucky, Updegraff,
of Ohio, Upson, Valentine, Vance, Van Horn, Warner, Washburne,
Webber, Welborn, Whitthorne, Williams of Alabama, Willis, Willetts,
Wilson, Wise of Pennsylvania, Wise of Virginia, and W. A. Wood of
New York—167.
The nays were Messrs. Anderson, Barr, Bragg, Briggs, Brown,
Buck, Camp, Candler, Carpenter, Chase, Crapo, Cullen, Dawes,
Deering, Dingley, Dunnell, Dwight, Farwell of Iowa, Grant, Hall,
Hammond, of New York, Hardenburgh, Harris, of Massachusetts,
Haskell, Hawk, Henderson, Hepburn, Hooker, Humphrey, Jacobs,
Jones of New Jersey, Joyce, Kasson, Ketchum, Lord, McCoid, Morse,
Norcross, Orth, Parker, Ramsey, Rice of Ohio, Rice of Massachusetts,
Rich, Richardson of New York, Ritchie, Robinson of Massachusetts,
Russel, Ryan, Shultz, Skinner, Scooner, Stone, Taylor, Thompson of
Iowa, Tyler, Updegraff of Iowa, Urner, Wadsworth, Wait, Walker,
Ward, Watson, White and Williams of Wisconsin—65.
In the House the debate was participated in by Messrs.
Richardson, of South Carolina; Wise and Brumm, of Pennsylvania;
Joyce, of Vermont; Dunnell, of Minnesota; Orth, of Indiana;
Sherwin, of Illinois; Hazelton, of Wisconsin; Pacheco, of California,
and Townsend, of Illinois, and others. An amendment offered by Mr.
Butterworth, of Ohio, reducing the period of suspension to fifteen
years, was rejected. Messrs. Robinson, of Massachusetts; Curtin, of
Pennsylvania, and Cannon, of Illinois, spoke upon the bill, the two
latter supporting it. The speech of Ex-Governor Curtin was strong
and attracted much attention. Mr. Page closed the debate in favor of
the measure. An amendment offered by Mr. Kasson, of Iowa,
reducing the time of suspension to ten years, was rejected—yeas 100,
nays 131—and the bill was passed exactly as it came from the Senate
by a vote of 167 to 65. The House then adjourned.
Our Merchant Marine.
An important current issue is the increase of the Navy and the

improvement of the Merchant Marine, and to these questions the
National Administration has latterly given attention. The New York
Herald has given much editorial ability and research to the advocacy
of an immediate change for the better in these respects, and in its
issue of March 10th, 1882, gave the proceedings of an important
meeting of the members of the United States Naval Institute held at
Annapolis the day before, on which occasion a prize essay on the
subject—“Our Merchant Marine; the Cause of its Decline and the
Means to be Taken for its Revival,” was read. The subject was chosen
nearly a year ago, because it was the belief of the members of the
institute that a navy cannot exist without a merchant marine. The
naval institute was organized in 1873 for the advancement of
professional and scientific knowledge in the navy. It has on its roll
500 members, principally naval officers, and its proceedings are
published quarterly. Rear Admiral C. R. P. Rodgers is president;
Captain J. M. Ramsay, vice president; Lieutenant Commander C. M.
Thomas, secretary; Lieutenant Murdock, corresponding secretary,
and Paymaster R. W. Allen, treasurer. There were eleven competitors
for the prize, which is of $100, and a gold medal valued at $50. The
judges were Messrs. Hamilton Fish, A. A. Low and J. D. Jones. They
awarded the prize to Lieutenant J. D. J. Kelley, U. S. N., whose motto
was “Nil Clarius Æquore,” and designated Master C. T. Calkins, U. S.
N., whose motto was “Mais il faut cultiver notre jardin” as next in the
order of merit, and further mentioned the essays of Lieutenant R.
Wainwright, United States Navy, whose motto was “Causa latet, vis
est notissima,” and Lieutenant Commander J. E. Chadwick, United
States Navy, whose motto was “Spes Meliora,” as worthy of
honorable mention, without being entirely agreed as to their
comparative merits.
STRIKING PASSAGES FROM THE PRIZE ESSAY.
From Lieut. Kelley’s prize essay many valuable facts can be

gathered, and such of these as contain information of permanent
value we quote:
“So far as commerce influences this country has a vital interest in
the carrying trade, let theorists befog the cool air as they may. Every
dollar paid for freight imported or exported in American vessels
accrues to American labor and capital, and the enterprise is as much
a productive industry as the raising of wheat, the spinning of fibre or
the smelting of ore. Had the acquired, the ‘full’ trade of 1860 been
maintained without increase $80,000,000 would have been added
last year to the national wealth, and the loss from diverted
shipbuilding would have swelled the sum to a total of $100,000,000.
“Our surplus products must find foreign markets, and to retain
them ships controlled by and employed in exclusively American
interests are essential instrumentalities. Whatever tends to stimulate
competition and to prevent combination benefits the producer, and
as the prices abroad establish values here, the barter we obtain for
the despised one tenth of exports—$665,000,000 in 1880—
determines the profit or loss of the remainder in the home market.
During the last fiscal year 11,500,000 gross tons of grain, oil, cotton,
tobacco, precious metals, &c., were exported from the United States,
and this exportation increases at the rate of 1,500,000 tons annually;
3,800,000 tons of goods are imported, or in all about 15,000,000
tons constitute the existing commerce of this country.
“If only one-half of the business of carrying our enormous wealth
of surplus products could be secured for American ships, our
tonnage would be instantly doubled, and we would have a greater
fleet engaged in a foreign trade, legitimately our own, than Great
Britain has to-day. The United States makes to the ocean carrying
trade its most valuable contribution, no other nation giving to
commerce so many bulky tons of commodities to be transported
those long voyages which in every age have been so eagerly coveted
by marine peoples. Of the 17,000 ships which enter and clear at
American ports every year, 4,600 seek a cargo empty and but 2,000
sail without obtaining it.
“Ships are profitable abroad and can be made profitable here, and
in truth during the last thirty years no other branch of industry has
made such progress as the carrying trade. To establish this there are
four points of comparison—commerce, railways, shipping tonnage
and carrying power of the world, limited to the years between 1850
and 1880:—
Increase Per
1850. 1880. Cent.
Commerce of all
nations $4,280,000,000 $14,405,000,000 240
Railways (miles
open) 44,400 222,600 398
Shipping tonnage 6,905,000 18,720,000 171
Carrying tonnage 8,464,000 34,280,060 304
“In 1850, therefore, for every $5,000,000 of international

commerce there were fifty-four miles of railway and a maritime
carrying power of 9,900 tons; and in 1880 the respective ratios had
risen to seventy-seven miles and 12,000 tons; this has saved one-
fourth freight and brought producer and consumers into such
contact that we no longer hear “of the earth’s products being wasted,
of wheat rotting in La Mancha, wool being used to mend wads and
sheep being burned for fuel in the Argentine Republic.” England has
mainly profited by this enormous development, the shipping of the
United Kingdom earning $300,000,000 yearly, and employing
200,000 seamen, whose industry is therefore equivalent to £300 per
man, as compared with £190 for each of the factory operatives. The
freight earned by all flags for sea-borne merchandise is
$500,000,000, or about 8 per cent. of the value transported. Hence
the toll which all nations pay to England for the carrying trade is
equal to 4 per cent. (nearly) of the exported values of the earth’s
products and manufactures; and pessimists who declare that ship
owners are losing money or making small profits must be wrong, for
the merchant marine is expanding every year.
“The maximum tonnage of this country at any time registered in
the foreign trade was in 1861, and then amounted to 5,539,813 tons;
Great Britain in the same year owning 5,895,369 tons, and all the

PDF Mathematical Analysis and Applications 1St Edition Themistocles M Rassias Ebook Full Chapter

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PDF Mathematical Analysis and Applications 1St Edition Themistocles M Rassias Ebook Full Chapter

Uploaded by

Copyright:

Available Formats

Mathematical Analysis and

Applications 1st Edition Themistocles

Mathematical Analysis and Applications Selected Topics

Optimal Mean Reversion Trading Mathematical Analysis

Current Trends in Mathematical Analysis and Its

Mathematical Statistics With Applications in R (Third

Nonlinear Differential Problems with Smooth and

Mathematical Analysis and the Mathematics of

Mathematical Analysis of Continuum Mechanics and

Real Mathematical Analysis Charles Chapman Pugh

Aims and Scope

More information about this series at http://www.springer.com/series/7393

ISSN 1931-6828 ISSN 1931-6836 (electronic)

Mathematics Subject Classification: 26-XX, 28-XX, 30-XX, 32-XX, 35-XX, 91-XX

© Springer Nature Switzerland AG 2019

Mathematical Analysis and Applications is devoted to the presentation of high-

Athens, Greece Themistocles M. Rassias

Exact Solution to Systems of Linear First-Order

On the Stability of the Triangular Equilibrium Points in the Elliptic

Equivalent Properties of Parameterized Hilbert-Type Integral

M. M. Baiburin and E. Providas

Abstract This paper is devoted to the study of nonhomogeneous systems of linear

Mathematical modeling in the theory of automatic control, the theory of oscillation,

© Springer Nature Switzerland AG 2019 1

y (x) − Ay(x) = f (x),

2 Definitions and Preliminary Results

Let X, Y be complex Banach spaces. Let P : X → Y denote a linear operator and

We say that the problem P u = f , f ∈ Y, is correct if the operator P is correct.

Lf Cn ≤ l0 nf Cn , (4)

The lemma is proved. 

Let the operator P associated with problem (1) be defined as

Moreover, we may write the operator P compactly as

P y = y (x) − Ay(x) − Gz(y),

where the composite matrices

the compound column vectors

z(y) = col (z0 (y), z1 (y), . . . , zm (y)) ,

and the n × 1 vectors

P y = f (x), f (x) ∈ Cn [0, 1]. (13)

where i, k = 0, . . . , m, j = 0, . . . , s, and the compound matrices

L = col [L0 L1 · · · Lm ] , Λ = col [Λ0 Λ1 · · · Λs ] ,

Theorem 1 The problem (13) is uniquely solvable on Cn [0, 1] if

y (x) − Ay(x) − Gz(y) = 0, (16)

and the boundary conditions

Ay(x) + Bψ(y) = 0. (17)

Let the auxiliary integro-functional equation

where exA is a fundamental n × n matrix to the homogeneous differential equa-

for i = 0, . . . , m, j = 0, . . . , s. By integrating (21) and (22), we get

We rewrite (20), (23), (24) in the compact matrix form

y(x) = exA d + ΔG z(y), (25)

where the matrices exA , L, Λ, ΔG , VG , WG are defined in (14). By utilizing (25)

From (26) and (28) we obtain the system

The assumption that det T = 0 implies z(y) = 0, d = 0. Substituting these values

for i = 0, . . . , m, j = 0, . . . , s, and the combined vectors

φ f = col(φ 0 (f ), φ 1 (f ), . . . , φ m (f )), ν f = col(ν 0 (f ), . . . , ν m (f )),

y (x) − Ay(x) − Gz(y) = f (x), (34)

and the boundary conditions

Ay(x) + Bψ(y) = 0. (35)

Take the auxiliary integro-functional equation

or in the compact matrix form

for i = 0, . . . , m, j = 0, . . . , s. By integrating (39), (40), we obtain

for i = 0, . . . , m, j = 0, . . . , s. We rewrite (38), (41), (42) in the compact matrix

y(x) = exA d + ΔG z(y) + φ f , (43)

From (44) and (46), we obtain the system

Lf Cn ≤ l0 nf Cn , (4)

The lemma is proved.

Aφ f + Bωf Cn ≤ Aφ f Cn + Bωf Cn

≤l nAφ f + Bωf Cn

exA Π 11 (Aφ f + Bωf )Cn ≤ l (4) nAφ f + BωF Cn

|ui (t, x, y)| ≤ α i (t)xy, ∀x, y ∈ Rn , (1)