Solutions Manual to Accompany Intermediate Public Economics, Second Edition 0262518481, 9780262518482

Citation preview

Solutions Manual to Accompany Intermediate Public Economics, second edition

Solutions Manual to Accompany Intermediate Public Economics, second edition Nigar Hashimzade, Jean Hindriks, and Gareth D. Myles

The MIT Press Cambridge, Massachusetts London, England

© 2013 Massachusetts Institute of Technology

All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the publisher.

MIT Press books may be purchased at special quantity discounts for business or sales promotional use. For information, please email [email protected] or write to Special Sales Department, The MIT Press, 55 Hayward Street, Cambridge, MA 02142.

ISBN: 978-0-262-51848-2 (paperback: alk. paper) 10

9

8

7

6

5

4

3

2

1

Contents I PUBLIC ECONOMICS AND THE PUBLIC SECTOR 1 2 3

An Introduction to Public Economics Equilibrium and Efficiency Behavioral Economics

II

GOVERNMENT

4 5

Public Sector Statistics Theories of the Public Sector

3 17 53 69 81

III DEPARTURES FROM EFFICIENCY 6 7 8 9 10

Public Goods Club Goods and Local Public Goods Externalities Imperfect Competition Asymmetric Information

107 133 155 183 219

IV POLITICAL ECONOMY 11 Voting 12 Rent-Seeking

247 265

V EQUITY AND DISTRIBUTION 13 Optimality and Comparability 14 Inequality and Poverty VI 15 16 17 18

285 311

TAXATION Commodity Taxation Income Taxation Tax Evasion The Limits to Redistribution

345 373 411 433

VII MULTIPLE JURISDICTIONS 19 Fiscal Federalism 20 Fiscal Competition 21 Issues in International Taxation

447 477 499

VIII ISSUES OF TIME 22 Intertemporal Efficiency 23 Social Security 24 Economic Growth IX

523 537 561

APPLICATIONS

25 Cost–Benefit Analysis 26 Economics of Climate Policy

595 609

&68 

"   ! " !

-&48*6 

2 2863)9(8.32 83 9'0.( (3231.(7 EKB: 7D ;9EDEC?9 CE:;B 8; @K:=;: ED J>; 87I?I E< ?JI 7IIKCF J?EDI EH ?JI 9ED9BKI?EDI 3098.32  />?I M7I 7D EB: :;87J; ?D J>; ;9EDEC?9I B?J;H7JKH; ?D M>?9> (?B JED !H?;:C7D M>E M7I ;: J>; 7H =KC;DJ J>7J ?J M7I 9ED9BKI?EDI J>7J C7JJ;H;: />; JME I?:;I JE J>; 7H=KC;DJ 97D 8; ;NFB7?D;: 8O 9EDI?:;H?D= J>; GK;IJ?ED E< M>O M; CE:;B *D; H;7IED ?I JE I?CFB?; 7IIKCF J?ED E< 7 I?D=B; 9EDIKC;H JE H;FH;I;DJ C7HA;J :;C7D: I?CFB?T;I 8O H;CEL?D= :?IJH?8KJ?ED7B ?IIK;I $D J>; D7JKH7B I9?;D9;I );MJED?7D C;9>7D?9I ?I :;L;BEF;: KD:;H J>; 7IIKCFJ?ED J>7J 7DO E8@;9J 97D CEL; 7J 7DO IF;;: />?I ?I 7 ;EHO DE F>OI?97B E8@;9J 97D CEL; M?J> 7 IF;;: 7D J>; IF;;: E< B?=>J 8KJ :E;I DEJ ?DL7B?:7J; 7FFB?97J?ED E< J>; CE:;B JE E8@;9JI CEL?D= 7J IBEM IF;;:I 2>;D CE:;B?D= ?D J>?I M7O J>; 7IIKCFJ?EDI 7H; ?CFEHJ7DJ I?D9; J>; CE:;B ?I 97FJKH?D= 7 H;7B?JO J>7J ?I KD:;HIJEE:  I;9ED: H;7IED ; CE:;B E< 7JEC?9 IJHK9JKH; ?D M>?9> J>; ;B;9JHEDI 7H; H;FH;I;DJ;: 7I EH8?J?D= 7HEKD: 7 9;DJH7B DK9B;KI .?D9; J>; JHK; 7JEC?9 IJHK9JKH; ?I KDADEMD J>?I CE:;B 97DDEJ 8; @K:=;: ED J>; 87I?I E< ?JI 7IIKCFJ?EDI 2>7J ?J 97D 8; @K:=;: KFED ?I ?JI 9ED9BKI?EDI EH FH;:?9J?EDI #;H; J>; CE:;B E< 7JEC?9 IJHK9JKH; FHE:K9;I FH;:?9J?EDI ?D 799EH: M?J> E8I;HL;: 8;>7L?EH 7D: ?I J>;H;; ?CFEI?J?ED E< J>; IJ7D:7H: J>;D J>;H; 7H; DE ?CFB?97J?EDI .E 7IIKC; J>7J ?J ?I DEJ C;J />; THIJ ?CFB?97J?ED ?I J>7J 9ECF7D?;I IKFFBO?D= M7J;H M?BB >7L; JE 7BJ;H J>;?H FHE :K9J?ED J;9>D?GK; EH KD:;HJ7A; ?DL;IJC;DJ JE C;;J J>; IJ7D:7H: EDIKC;HI E< M7J;H C7O TD: J>7J J>;?H M;B?I :;F;D:I ED M>;J>;H J>; M7J;H FH?EH JE J>; ?CFEI?J?ED M7I 97KI?D= 7DO ?BB ;\;9JI 2>7J ?I 9B;7H ?I J>7J J>; 9EDIKC;HI M?BB ; M7J;H 9ECF7D?;I 7H; FHETJ C7N ?C?P?D= J>;O CKIJ 8; FHE:K9?D= 7J B;7IJ 9EIJ D ?D9H;7I; ?D GK7B?JO IJ7D:7H:I CKIJ J>;D H7?I; J>;?H 9EIJI ?< ?J :E;I DEJ M>O M;H;DWJ J>;O FHE:K9?D= 8;JJ;H GK7B?JO M7J;H 7DOM7O />?I 9EIJ ?D9H;7I; M?BB 8; I>7H;: 8;JM;;D 9EDIKC;HI M>E F7O ?D9H;7I;: 9>7H=;I 7D: I>7H;>EB:;HI M>E H;9;?L; 7 H;:K9;: :?L?:;D: DO 9EDIKC;H M>E ?I 7BIE 7 I>7H;>EB:;H M?BB IK\;H ;\;9JI 2>7J J>?I 7D7BOI?I ?BBKIJH7J;I ?I J>7J ?DJ;HL;DJ?ED ?D J>; ;9EDECO J>7J ?I DEJ :?H;9JBO ;9E DEC?9 97D IJ?BB >7L; ;9EDEC?9 9EDI;GK;D9;I />; ;\;9J E< =EL;HDC;DJ ED J>; ;9EDECO ?I DEJ B?C?J;: JE J>; :?H;9JBO ;9EDEC?9 JEEBI ?J ;CFBEOI IK9> 7I J7N;I

8KJ 7BIE ?D9BK:;I 7 M?:;H H7D=; E< FEB?9?;I J>7J >7L; ;9EDEC?9 H;F;H9KII?EDI

EM =EL;HD C;DJ :;9?I?EDI 7H; C7:; 3098.32  9EDEC?9I ?I 7 IK8@;9J J>7J ?I 9ED9;HD;: M?J> KD:;HIJ7D:?D= :; 9?I?EDI $DJHE:K9JEHO ;9EDEC?9I ; :;9?I?EDI E< 9EDIKC;HI JE C7A; J>; 9EDIKCFJ?ED 9>E?9; J>7J 8;IJ I7J?IT;I FH;; 9>E?9; E< FHE:K9J?ED FB7D J>7J ;7HDI J>; >?=>;IJ FHETJ />; I7C; C;J>E:EBE=O 97D 8; 7FFB?;: JE J>; =EL;HDC;DJ /E 7D7BOP; >EM :;9?I?EDI 7H; C7:; ?J ?I D;9;II7HO JE KD:;HIJ7D: E8@;9J?L;I M>7J J>; :;9?I?ED ?I ?DJ;D:;: JE 79>?;L; 7D: 9EDIJH7?DJI M>7J B?C?JI 7H; FB79;: ED J>; 9>E?9;I J>7J 97D 8; C7:; $J ?I 7BIE D;9;II7HO JE ADEM M>E ?D =EL;HDC;DJ ?I C7A?D= :;9?I?EDI ?\;H;DJ ;9EDEC?9 CE:;BI E< =EL;HDC;DJ 7H; :?IJ?D=K?I>;: 8O M>E ?I C7A?D= 9>E?9;I 7D: M>O (E:;BI E< 8;D;LEB;DJ =EL;HDC;DJ I;; 9>E?9;I 8;?D= C7:; JE 8;D;TJ IE9?;JO 7I 7 M>EB; 8O I;BU;II :;9?I?ED C7A;HI +K8B?9 9>E?9; CE:;BI I;; =EL;HDC;DJ 7I 7 9EBB;9J?ED E< I;B<I;HL?D= ?D:?L?:K7BI M>EI; :;9?I?EDI 7H; =K?:;: 8O I;B< ?DJ;H;IJ  8H?:=; 8;JM;;D J>;I; JME F;HIF;9J?L;I ?I FHEL?:;: 8O J>; =EL;HDC;DJ 8;?D= 9EDIJH7?D;: JE :;B?L;H IEC; 8;D;TJ ; IE9?;JO ?D EH:;H JE E8J7?D J>; IKFFEHJ H;GK?H;: 7J X2>;D 7 C7D I;JI EKJ KFED 7DO 9EKHI; E< ?DGK?HO J>; E8@;9J E< >?I I;7H9> C7O 8; ;?J>;H B?=>J EH ;H ADEMB;:=; ?D=I JE M>?9> ?J B;7:I Y 2>7J I>EKB: 8; J>; 87B7D9; 8;JM;;D J>;I; ?D FK8B?9 ;9EDEC?9I

 3098.32  />; 7DIM;H I>EKB: 8; 87I;: ED J>; 79>?;L?D= 7D KD:;HIJ7D:?D= E< FEB?9O O :;B?L;H?D= 8;JJ;H FEB?9O FK8B?9 ;9EDEC?9I ?I 78B; JE E8J7?D 7 =7?D ?I ?I J>; ;H; ?I 7BIE J>; FE?DJ J>7J M; :E DEJ ADEM M>;H; ?DGK?HO M?BB KBJ?C7J;BO =E .E IEC;J>?D= J>7J I;;CI @KIJ ADEMB;:=; ; FH;I;DJ C7O >7L; KD;NF;9J;: L7BK; ?D J>; ; IJ7D:7H: ;N7CFB; ?I J>; IJK:O E< J>; FH?C; DKC8;HI 7D: J>;?H 9KHH;DJ L7BK; ?D 9HOFJEBE=O

7J I>EKB: =K?:; J>; 9>E?9; E< ;9EDEC?9 FEB?9O 3098.32  $J ?I FEII?8B; JE B?IJ C7DO 7J 9EKB: =K?:; J>; 9>E?9; E< FEB?9O Z FEL;HJO Z 8KJ M>7J ?I ?CFEHJ7DJ ?I 7 9B;7H E8@;9J?L; 7 I;B;9J?ED E< J>; FEB?9O ?DIJHKC;DJI 7D: 7D 7FFH;9?7J?ED E< J>; 9EDIJH7?DJI KFED 9>E?9; />?DA?D= ?D J;HCI E< E8@;9J?L;I

?DIJHKC;DJI 7D: 9EDIJH7?DJI FHEL?:; 7 I?CFB; HEK=>EKJ J>; J;NJ D 7BJ;HD7J?L; F;HIF;9J?L; ?I JE ;NFH;II J>; 9>E?9; ?D J;HCI E< ;[9?;D9O 7D: ;GK?JO ;9?I?EDI ED FEB?9O 97D 8; KD:;HIJEE: ?D J;HCI E< J>; H;B7J?L; ?CFEH J7D9; 7JJ79>;: JE J>;I; )EJ; J>7J J>; A;O MEH: ?D J>; GK;IJ?ED ?I XI>EKB: Y IE KBJ?C7J;BO 7D 7DIM;H 97D 8; 7FJ;H 

?I ?IIK; ?I 7::H;II;: ?D :;J7?B ?D 9>7FJ;H  M>;H; M; :?I9KII J>; EH?;I E< =EL;HDC;DJ 7D: H;DJI;;A?D= />; JH7:?J?ED7B L?;M I;;I J>; 8KH;7K9H7J 7I 7 I;BU;II ?D:?L?:K7B MEHA?D= ; FK8B?9 =EE: $J ?I :?[9KBJ JE IKIJ7?D J>?I 7H=KC;DJ BJ>EK=> J>;H; C7O 8; 7D ;B;C;DJ E< I;B;9J?ED ?DJE E99KF7J?EDI J>7J H;U;9JI F;HIED7B 9>7H79J;H?IJ?9I J>;H; 7H; DE =HEKD:I 7L; 97D I7;?H I;B<?DJ;H;IJ 2>7J 97D 8; 7IIKC;: JE :?\;H 8;JM;;D J>; JME =HEKFI 7H; J>; EFFEHJKD?J?;I 7L7?B78B; M?J>?D :?\;H;DJ E99KF7 J?EDI ; ;NJ;DJ JE M>?9> J>;O 97D FKHIK; CED;J7HO H;M7H:I IE CKIJ I;;A DEDCED;J7HO 9ECF;DI7J?ED />?I ?I ; FEB?9?;I J>7J 7 =EL;HDC;DJ 97D 9>EEI; H; J>;H; 7DO 7H=KC;DJI ;H; 7H; DKC;HEKI ?IIK;I J>7J 97D 8; H7?I;: ?D 7DIM;H?D= J>?I GK;IJ?ED *D; H;IFEDI; J>7J C7O DEJ 8; E8L?EKI ?I JE ?DJHE:K9; J>; HEB; E< ?D ?I 7 FEI?J?L; IJ7J;C;DJ

?I 9B7?C 87I;: ED FEI?J?L; EH DEHC7J?L; H;7IED?D= 3098.32  />?I ?I 7 FEI?J?L; IJ7J;C;DJ 78EKJ J>; ; B78EH C7HA;J *D; ;NFB7D7J?ED ; IJ7J;C;DJ 9EKB: 8; J>7J J>;H; ?I 9EDJ?DKEKI 9>7D=; ?D J>; B78EH C7HA;J 7I IEC; THCI >?H; 7D: EJ>;HI TH;  FEEB E< KD;CFBEO;: 7BBEMI J>; >?H?D= THCI JE GK?9ABO TD: D;M MEHA;HI 7D: ;7I;I J>; 7:@KIJC;DJ E< J>; C7HA;J D 7BJ;HD7J?L; ;NFB7D7J?ED ?I J>7J MEHA;HI D7JKH7BBO M?I> JE I>?HA 7LE?: IKFFBO?D= ;\EHJ M>;D ?D I7?HA />;H; ?I 7 9EIJ JE >7L?D= KD;CFBEO;: MEHA;HI 8KJ J>;H; ?I 7BIE 7 8;D;TJ J>HEK=> B;II I>?HA?D= EI; ?D ;CFBEOC;DJ

?D9EC; ;7HD;HI I>EKB: F7O 7 >?=> H7J; E< J7N 8;97KI; J>;?H B78EH IKFFBO ?I ?D;B7IJ?9 7D: J>; H;L;DK; H7?I;: 97D 8; KI;: JE 7II?IJ J>EI; ED BEM ?D9EC;I Y ?IJ?D=K?I> 8;JM;;D J>; FEI?J?L; 7D: DEHC7J?L; 9ECFED;DJI E< J>?I IJ7J;C;DJ 3098.32  />;H; ?I 7 DEHC7J?L; IJ7J;C;DJ J>7J JH7DI >?=> ?D9EC;I JE J>EI; M?J> BEM ?D9EC;I 7H; IE9?7BBO =EE: />; 9B7?C J>7J B78EH IKFFBO ?I ?D;B7IJ?9 ?I 7 FEI?J?L; IJ7J;C;DJ />; 9B7?C J>7J H;L;DK; 97D 8; KI;: JE 7II?IJ J>EI; ED BEM ?D9EC;I ?I 7 FEI?J?L; IJ7J;C;DJ ?J MEKB: 8; DEHC7J?L; ?< ?J >7: I7?: XI>EKB:Y ?DIJ;7: E< X97DY

; 8K?BJ 7 IK99;II; ;D?=C7J?9 ; :7O I>; 9EKB: >EB: 7 8EM CC7 '?8HE M7I JH7?D;: ?D 9B7II?97B L?EB?D ; TD7BBO E8J7?D;: B;7: L?EB?D ; N;J;H +>?B>7HCED?9 7D: 7 BK9H7J?L; H;9EH:?D= 9EDJH79J IIKC; E8 7D: CC7 >7L; J>; I7C; ?D9EC; $I ?J ;GK?J78B; ;C JE F7O J>; I7C; 7CEKDJ E< J7N

 3098.32  />; J>;EHO E< ;GK?JO ?I 87I;: ED J>; E8I;HL7J?ED J>7J ?D:?L?:K7BI >7L; :?\;H;DJ 87I?9 9>7H79J;H?IJ?9I .EC; ?D:?L?:K7BI 7H; BK9AO 7D: 7H; 8EHD M?J> 7 >?=> ;D:EMC;DJ E< =EE: 9>7H79J;H?IJ?9I J>7J >7L; 7 >?=> ;9EDEC?9 L7BK; *J>;H 7H; B;II BK9AO 7D: 7H; 8EHD M?J> 7 BEM ;D:EMC;DJ E< =EE: 9>7H79J;H?IJ?9I J>7J >7L; BEM ;9EDEC?9 L7BK; GK?JO 7II;HJI J>7J I?D9; J>; ;D:EMC;DJ I?CFBO 9EC;I EI; M?J> J>; >?=> ;D:EMC;DJ I>EKB: 8; J7N;: JE IK8I?:?P; J>EI; M?J> BEM ;D:EMC;DJI Z J>KI E\I;JJ?D= J>; ;\;9J E< BK9A />; 7FFB?97J?ED JE E8 7D: CC7 ?I J>;D 7 C7JJ;H E< :;87J; D 7DIM;H ?I J>7J E8 I>EKB: 8; J7N;: CEH; >?=>BO I?D9; >; D;;:I JE C7A; DE ;\EHJ JE 8;D;TJ ?I ;D:EMC;DJ M>;H;7I CC7 CKIJ 9EC8?D; >;H ;D:EMC;DJ M?J> ;\EHJ JE 79>?;L; L7BK; ;H ;D:EMC;DJ $< I>; M7I J7N;: 7I >?=> 7I E8 J>;D >;H ;\EHJ MEKB: 8; :;J;HH;: 7D: J>; L7BK; E< J>; ;D:EMC;DJ MEKB: DEJ 8; H;7B?P;:

E:I E< :?L?:?D= 7 97A; 8;JM;;D JME F;EFB; (;J>E:  ?I JE J>HEM IEC; E< J>; 97A; 7M7O 7D: I>7H; M>7J ?I B;E:  ?I JE =?L; ED; F;HIED  F;H9;DJ E< J>; 97A; 7D: J>; EJ>;H  F;H9;DJ 2>?9> C;J>E: :E OEK FH;O 3098.32  />; 9>E?9; >;H; ?I 8;JM;;D ;GK?JO 7D: ;[9?;D9O IIKC; J>7J M; FH;;D C;J>E:  ?I FH;HEM 7 L;HO IC7BB 7CEKDJ E< J>; 97A; 7M7O $< M; M;H; JE J>HEM 7BCEIJ 7BB J>; 97A; 7M7O J>;D ?J MEKB: 8; MEHI; />?I C;7DI J>;H; CKIJ 8; IEC; 7CEKDJ M; J>HEM 7M7O J>7J C7A;I KI ?D:?\;H;DJ 8;JM;;D J>; JME C;J>E:I 2>;D J>;H; ?I DE ;DLO M; FH;;D C;J>E:  ?I FH;7D  F;H9;DJ ?I J>HEMD 7M7O ?D C;J>E:  />; L7BK; J>7J B;7:I JE ?D:?\;H;D9; :;F;D:I ED J>; H;B7J?L; L7BK;I FB79;: ED ;[9?;D9O 7D: ;GK?JO

7I JE 8; 7FFEHJ?ED;: 8;JM;;D JME F;EFB; *D; ?I M;BB DEKH?I>;: J>; EJ>;H ?I DEJ $< J>; M;BBDEKH?I>;: F;HIED H;9;?L;I 7 I>7H; L 

L  7 I>7H; M    L ?I B;;H F;HIED IEC; ?I BEIJ M>;D J>; 97A; ?I :?L?:;: +BEJ J>; FEII?8B; I>7H;I J>7J J>; JME F;EFB; 97D >7L; 2>7J 7BBE97J?ED E< I>7H;I MEKB: OEK 9>EEI; #EM MEKB: OEKH 7DIM;H 9>7D=; ?
; FEII?8B; I>7H;I =?L;I J>; EMD ?D T=KH;   !79;: M?J> J>?I I;J E< FEII?8B; I>7H;I 7D ;=7B?J7H?7D C7O IJ?BB 9>EEI; 7 ; IE9?7B ?D;[9?;D9O ?I DEJ JEE =H;7J !EH M    L J>; ; BEII =H;7J;H I?D9; J>; L7BK; E< M :;9B?D;I ?I =?L;I 7 =H;7J;H ?D9;DJ?L; JE I;B;9J 7D ?D;GK?J78B; 7BBE97J?ED



!   !"! ! " 

y

x !?=KH;   +EII?8B; I>7H;I

y

x !?=KH;   !7IJ;H H7J; E< :;9B?D;



y

1.0 0.8 0.6 0.4 0.2 0.0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

x

!?=KH;   +EII?8B; I>7H;I

; 97A; ?I IB?9;: IEC; ?I BEIJ .F;9?T97BBO ?< J>; I?P;I E< J>; JME FEHJ?EDI 7H; :;DEJ;: L 7D: M J>;D J>; I?P; E< J>; IB?9;I I7J?I; H;B7J?ED L  M    "H7F> J>; FEII?8B; :?L?I?EDI E< J>; 97A; 7D: :?I9KII >EM J>; 87B7D9; 8;JM;;D ;[9?;D9O 7D: ;GK?JO M?BB 7\;9J J>; 9>E?9; E< :?L?I?ED 3098.32  />; ; FEJ;DJ?7B :?L?I?EDI ?I 9ED97L; 8; 97KI; E< J>; 7J IEC; 97A; ?I BEIJ M>;D ?J ?I IB?9;: />?I ?I I>EMD ?D T=KH;   $< J>; 7BBE97J?ED M7I C7:; IEB;BO ED ;[9?;D9O =HEKD:I J>;D J>; 9>E?9; MEKB: 8; JE =?L; 7BB J>; 97A; JE ED; F;HIED 7D: DED; JE J>; EJ>;H $DJHE:K9?D= 9EDI?:;H7J?EDI E< ;GK?JO CE:;H7J;I J>?I EKJ9EC; 2?J> 7D ?DJ;DI; 9ED9;HD ; ;GK7B :?L?I?ED M?BB 8; 9>EI;D M?J> L  M  

7J 9ED IKC;HI IEBL; 9ECFKJ7J?ED7BBO 9ECFB;N C7N?C?P7J?ED FHE8B;CI E;I OEKH 7D IM;H ?CFBO J>7J /?=;H 2EE:I 97D :;H?L; J>; B7M E< CEJ?ED ; IEBKJ?ED E< 9ECFB;N FHE8B;CI />; 97B9KB7J?ED E< J>; ; B;D=J> E< 7 ?D 7 ; >EB; H;GK?H;I 7D KD:;HIJ7D:?D= E< J>; JH7@;9JEHO E< J>; 87BB 7I ?DUK;D9;: 8O =H7L?JO 7D: 7?H H;I?IJ7D9; $J ?I ;GK7BBO 9ECFB;N JE :;J;HC?D; J>; IF;;: 7J M>?9> J>; 9BK8 CKIJ 8; JH7L;B?D= 7J J>; FE?DJ ?J >?JI J>; 87BB ?D EH:;H JE ?CF7HJ J>; ; :;; 87BB ED ?CF79J ;IF?J; J>;I; :?[9KBJ?;I F;EFB; :E IK99;;: ?D C7A?D= IK99;IIEJI />; ;NFB7D7J?ED ?I ?I J>7J H;F;J?J?ED =?L;I 7D ?DJK?J?L; KD:;HIJ7D:?D= E< J>; IEBKJ?ED NF;H?;D9; I>EMI M>7J >7I MEHA;: ?D J>; F7IJ 7D: =?L;I 7 =K?:; JE M>7J M?BB MEHA ?D J>; FH;I;DJ />; I7C; 7H=KC;DJ 97D 8; 7FFB?;: JE C7DO ;9EDEC?9 :;9?I?EDI />EI; J>7J M; C7A; J I?D9; ;NF;H?;D9; >7I H;L;7B;: J>; IEBKJ?ED />; 7BBE97J?ED E< 7 M;;ABO 8K:=;J 79HEII J>; J>EKI7D:I E< FHE:K9JI ED E\;H ?D 7 B7H=; IJEH; ?I 7 C7N?C?P7J?ED FHE8B;C ?D 7 9>E?9; IF79; M?J> C7DO :?C;DI?EDI O I>EFF?D= ;79> M;;A 7D: E997I?ED7BBO I7CFB?D= 7BJ;HD7J?L; FHE:K9JI 7D EFJ?C7B IEBKJ?ED EH 7J B;7IJ 9BEI; JE EFJ?C7B ?I 79>?;L;: 2; 97D J>;H;;O IEBL; 9ECFB;N FHE8B;CI ; I7C; H;7IEDI M; 97D E8I;HL; /?=;H 2EE:I FB7O?D= =EB< 7I ?< >; 97D IEBL; 9ECFB;N FHE8B;CI ?D C;9>7D?9I

; ;\;9J E< 7 IK8I?:O JE H?9; FHE:K9J?ED MEKB: OEK ;CFBEO 7 F7HJ?7B ;GK?B?8H?KC EH 7 =;D;H7B ;GK?B?8H?KC CE:;B 3098.32  />; 7DIM;H CKIJ :;F;D: ED 9EDJ;NJ !EH ;N7CFB; ?< 7IA;: 8O 7 :;L;BEFC;DJ 7=;D9O JE :;J;HC?D; J>; ;\;9J E< J>; IK8I?:O ED H?9; ;D 7 F7HJ?7B ;GK?B?8H?KC CE:;B MEKB: 8; IK[9?;DJ $< ?DIJ;7: J>; GK;IJ?ED M7I J>; ;\;9J ED J>; =HEMJ> H7J; E< 7 H?9;FHE:K9?D= 9EKDJHO J>;D =;D;H7B ;GK?B?8H?KC MEKB: 8; CEH; 7FFHEFH?7J; Z J>; H;F;H9KII?EDI E< J>; IK8I?:O ED J>; C7HA;JI ;7BJ> 7D: ED JH7:; MEKB: 7BB D;;: JE 8; CE:;BB;: .K99;II; 9>E?9; E< J>; 7FFHEFH?7J; B;L;B E< :;J7?B

; KHEF;7D 0D?ED 9EDI?:;H;: H;FB79?D= J>; ?D9EC; J7N M?J> 7D ?D9H;7I; ?D 1/ MEKB: OEK CE:;B J>?I KI?D= F7HJ?7B ;GK?B?8H?KC 3098.32  />; I?=D?T97D9; E< J>;I; J7N ?DIJHKC;DJI ?CFB?;I J>7J 7 =;D;H7B ;GK?B?8H?KC 7D7BOI?I MEKB: 8; D;;:;: $D9H;7I?D= 1/ 7\;9JI ;GK?B?8H?KC ED J>; C7HA;JI 7J 7H; IK8@;9J JE J>; J7N .?C?B7HBO ?D9EC; J7N 7\;9JI B78EH IKFFBO 7D: J>; ;GK?B?8H?KC M7=; H7J; >7D=;I ?D J>; M7=; H7J; B;7: JE IK8IJ?JKJ?ED 8;JM;;D B78EH 7D: 97F?J7B ?D FHE:K9J?ED FHE9;II;I J>HEK=>EKJ J>; ;9EDECO *DBO 7 =;D;H7B ;GK?B?8H?KC CE:;B 9EKB: 97FJKH; 7BB E< J>;I; ;\;9JI

7J FHEFEHJ?ED E< J>; MEHB:WI ;9EDEC?;I 8O DKC8;H FEFK B7J?ED 7D: M;7BJ> 97D 8; :;I9H?8;: 7I XC?N;:Y 3098.32  />; 0D?J;: )7J?EDI >7I 7 C;C8;HI>?F E<  9EKDJH?;I />;H; 7H;  9EKDJH?;I KIK7BBO I;;D 7I IE9?7B?IJ 9ECCKD?IJ >?D7 K87 '7EI )EHJ> &EH;7 7D: 1?;JD7C $J ?I L;HO :;87J78B; M>;J>;H >?D7 I>EKB: IJ?BB 8; 9B7II;: 7I 7 9ECCKD?IJ 9EKDJHO $J ?I HKB;: 8O J>; ECCKD?IJ +7HJO E< >?D7 8KJ J>; FH?L7J; I;9JEH ?I B7H=; IK99;II; H;C7?D?D=  9EKDJH?;I 7 IC7BB DKC8;H 7H; :?9J7JEHI>?FI EH 7H; ?D 7 IJ7J; E< H;LEBKJ?ED M?J> DE 9B;7H ;9EDEC?9 EH=7D?P7J?ED />; L;HO B7H=; H;C7?D:;H 7H; C?N;: ;9EDEC?;I />; F?9JKH; ?I :?\;H;DJ M>;D C;7IKH;: 8O FEFKB7J?ED :K; JE J>; I?=D?T97D9; E< >?D7 $D J;HCI E< M;7BJ> J>; C?N;: ;9EDEC?;I :EC?D7J;



7J FHE8B;CI C7O 7H?I; ?D I;JJ?D= ;9EDEC?9 FEB?9O ?< 9ED IKC;HI ADEM J>; ;9EDEC?9 CE:;B 3098.32  />; IJ7D:7H: L?;M E< ;9EDEC?9 FEB?9O ?I J>7J 9EDIKC;HI H;79J ?D FH;:?9J78B; M7OI JE 9>7D=;I ?D J>; FEB?9O L7H?78B;I />; I?JK7J?ED ?I 9>7D=;: ?< J>; 9EDIKC;HI ADEM J>; ;9EDEC?9 CE:;B />; 9EDIKC;HI M?BB ADEM >EM J>; ;9EDECO ?I C;7DJ JE H;IFED: JE 9>7D=;I ?D FEB?9O L7H?78B;I 7D: J>?I M?BB 7\;9J J>;?H :;9?I?EDI I 7 9EDI;GK;D9; J>; ;9EDECO M?BB DEJ H;IFED: ?D J>; M7O ?J M7I C;7DJ JE :E />?I ?I J>; 87I?I E< J>; 'K97I 9H?J?GK; ?< M; ;IJ?C7J; 7 CE:;B E< J>; ;9EDECO 7D: C7A; J>; ?D;D J>; CE:;B ?I DE BED=;H L7B?: I?D9; M; >7L; 9>7D=;: J>; ?D; ;9EDEC?9 7=;DJI />?I FHE8B;C 97D 8; H;IEBL;: 8O ;NJ;D:?D= J>; CE:;B JE ?D9BK:; 7 :;I9H?FJ?ED E< >EM 7=;DJI M?BB H;IFED: JE D;M ?D; THIJ FE?DJ JE E8I;HL; ?I J>7J THCI 97D J7A; C7DO ; IC7BB THC M?J> 7D EMD;HC7D7=;H I>EKB: 7BM7OI 7?C JE C7N?C?P; FHETJ J>; :?\;H;D9; 8;JM;;D H;L;DK; 7D: 9EIJI FHEL?:;: J>7J 9EIJI J7A; ; ;\EHJ E< J>; EMD;H $< 7 THC ?I FK8B?9 ?J M?BB 8; ?D J>; ?DJ;H;IJI E< J>; I>7H;>EB:;HI M>E 7H; J>; EMD;HI ; THC JE C7N?C?P; FHETJ M>;D J>; C7HA;J ?I 9ECF;J?J?L; +HETJ C7N?C?P7J?ED =;D;H7J;I J>; =H;7J;IJ IKHFBKI JE 8; :?IJH?8KJ;: 7I :?L?:;D:I 7D: 97F?J7B?P;: ?DJE J>; I>7H; FH?9; $D FH79J?9; J>; FEI?J?ED ?I DEJ IE I?CFB; $< J>;H; ?I ?CF;H; I>7H;>EB:;HI M?BB 7BIE 8; 9EDIKC;HI I I>7H;>EB:;HI J>;O M?BB M?I> JE I;; FHETJ C7N?C?P;: 8KJ 7I 9EDIKC;HI M?BB 8;D;TJ ; EFJ?C7B FEI?J?ED M?BB H;U;9J 7 JH7:;E\ E< J>;I; JME ;NJH;C;I D 7::?J?ED7B ?IIK; J>7J >7I H;9;?L;: CK9> 7JJ;DJ?ED ?I J>; I;F7H7J?ED 8;JM;;D EMD;HI>?F 7D: 9EDJHEB ?D J>; CE:;HD 9EHFEH7J?ED *MD;HI M7DJ FHETJ JE 8; C7N?C?P;: 8KJ >7L; JE :;B;=7J; J>; 9EDJHEB E< :;9?I?EDC7A?D= JE C7D7=;HI />; C7D7=;HI D;;: JE 8; FHEL?:;: M?J> ?D9;DJ?L;I JE 79J ?D 7 C7DD;H 8;D;T9?7B ; EMD;HI H7J>;H J>7D FKHIK?D= J>;?H EMD ?DJ;H;IJI />; H;IKBJ?D= JH7:;E\ C7O DEJ I;; FHETJ C7N?C?P;:

7J ;NJ;DJ ?I ?J FEII?8B; JE L?;M J>; =EL;HDC;DJ 7I >7L?D= 7 I?D=B; E8@;9J?L; 3098.32  />; CE:;B?D= E< J>; =EL;HDC;DJ I;F7H7J;I :?\;H;DJ 8H7D9>;I E< FK8B?9 ;9EDEC?9I />; DEHC7J?L; 8H7D9> 7IIKC;I J>7J J>; =EL;HDC;DJ ?I 7 I?D=B; ;DJ?JO J>7J I;;AI JE C7N?C?P; J>; 9ECCED =EE: />; =EL;HDC;DJ >7I 7D E8@;9J?L; 7J ?I :;F;D:;DJ ED J>; M;B; ?D:?L?:K7B 9ED IKC;HI $J I;;AI J>; EFJ?C7B FEB?9O J>7J C7N?C?P;I J>?I M;B?I 8H7D9> E< FK8B?9 ;9EDEC?9I ?I 78EKJ M>7J J>; =EL;HDC;DJ I>EKB: :E DEJ 78EKJ ;NFB7?D?D= M>7J ?J :E;I :E />; FEI ?J?L; 8H7D9> E< FK8B?9 ;9EDEC?9I ?DL;IJ?=7J;I >EM E8I;HL;: FEB?9O :;9?I?EDI 7H; J7A;D $J ?I H;9E=D?P;: J>7J =EL;HDC;DJI 7H; 9ECFEI;: E< ?D:?L?:K7BI M?J> ;79> ;?H ?D:?L?:K7B E8@;9J?L;I />; 8;>7L?EH E< =EL;HDC;DJ ;C;H=;I ; 7==H;=7J?ED E< J>; ?D:?L?:K7BI H;9E=D?P?D= J>; FEB?J?97B FHE9;II;I J>HEK=> M>?9> :;9?I?ED 7H; C7:; *D9; J>; 8;>7L?EH ;C;H=;I J>; =EL;HDC;DJ C7O 79J 7I ?< ?J >7: 7 I?D=B; E8@;9J?L;

7FF?;H J>7D OEKH D;?=>8EH #EM C7DO J?C;I >7FF?;H EH B;II >7FFO 3098.32  $< ?J ?I FEII?8B; JE 7DIM;H J>?I GK;IJ?ED J>;D 7D ?DJ;HF;HIED7B 9ECF7H?IED E< KJ?B?JO ?I 8;?D= C7:; J ED; B;L;B ?J C7O 8; FEII?8B; JE FHEL?:; 7D 7DIM;H !EH ?DIJ7D9; ;?J>;H OEK EH OEKH D;?=>8EH C7O 8; F7HJ?9KB7HBO >7FFO EH ;IF;9?7BBO :;FH;II;: 2?J> 7D 7FF7H;DJBO B7H=; :?\;H;D9; ?D >7FF?D;II OEK C7O 8; 78B; JE C7A; 7 9ECF7H?IED />?I ?I 7 9ECF7H?IED E< B;L;BI $J ?I CEH; :?[9KBJ JE ;L7BK7J; >EM C7DO J?C;I >7FF?;H EH B;II >7FFO OEK 7H; /E :E J>?I ?J ?I D;9;II7HO JE 7II?=D IF;9?T9 DKC8;HI JE >7FF?D;II 7D: 8; M?BB?D= JE 8;B?;L; J>7J J>;H; ?I 7 C;7D?D= JE CKBJ?FB;I E< J>;I; DKC8;HI )EJ C7DO F;EFB; MEKB: IKFFEHJ J>?I F;HIF;9J?L;

7J 9EDIKC;HI 7H; H7D:ECBO 7BBE97J;: JE ;?J>;H ;7HD ?D9EC; &0 EH ?D9EC; &8 M?J> &8  &0 />; FHE878?B?JO E< 8;?D= 7BBE97J;: JE &0 ?I +H?EH JE 8;?D= 7BBE97J;: JE 7D ?D9EC; B;L;B 9EDIKC;HI M?I> JE C7N?C?P; J>;?H ;NF;9J;: ?D9EC; B;L;B $< ?J ?I FEII?8B; JE H;:?IJH?8KJ; ?D9EC; 9EIJB;IIBO I>EM J>7J FH?EH JE 7BBE97J?ED JE ?D9EC; B;L;BI DE 9EDIKC;HI MEKB: E8@;9J JE 7 JH7DI;C; )EM 7IIKC; J>;H; ?I 7 9EIJ  9EDIKC;H E< ?D9EC; &8 EC ?D9EC; ?I J7A;D !?D: J>; C7N?CKC L7BK; E< ?9> J>;H; ?I IJ?BB KD7D?CEKI 7=H;;C;DJ J>7J JH7DIEKB: J7A; FB79; 3098.32  2?J>EKJ 7DO JH7DI;C; J>; ;NF;9J;: ?D9EC; E< 7 9EDIKC;H ?I   &  &0    &8  )EM 9EDI?:;H J7A?D= 7D 7CEKDJ - 9EDIKC;H M?J> ?D9EC; &8  $< J>;H; 7H; " 9EDIKC;HI ?D JEJ7B J>;D " >7L; ?D9EC; &0 7D:    " >7L; ?D9EC; &8  K:=;J 87B7D9; H;GK?H;I

",     "-

 

M>;H; , ?I J>; 7CEKDJ H;9;?L;: 8O J>; BEM?D9EC; 9EDIKC;HI />?I ?CFB?;I ,

   -

 

 NF;9J;: ?D9EC; 7; JH7DI;C; 8;9EC;I &

 

&0 ,    &8  - 

 -    &8  -  

&0

 

$J 97D J>;D 8; I;;D J>7J

 &  &  &0 -    &8  -   &0     &8

    BB 9EDIKC;HI MEKB: J>;H;; JH7DI;C; I?D9; ?J B;7L;I J>;?H ;NF;9J;: ?D9EC; B;L;B KD9>7D=;: $< J>;H; ?I 7 9EIJ ?DLEBL;: ?D J7A?D= ?D9EC; J>; JH7DI;C; ?I

 &  &0

-      &8  -  

,

.E



-      &8  -   &0

 &0     &8        

 

 



&  &

 

/>; JH7DI;C; J>;H;; ;NF;9J;: B;L;B E< ?D9EC; />; EDBO L7BK; E< ?9> J>;H; ?I KD7D?CEKI 7=H;;C;DJ ?I   )E C7JJ;H >EM IC7BB ?I J>; FHE878?B?JO J>7J 7 9EDIKC;H M?BB 8; H?9> DED; M?BB M7DJ JE 7=H;; JE J>; JH7DI;C; />; ?DJ;HFH;J7J?ED >;H; ?I J>7J  H;FH;I;DJI J>; ;[9?;D9O BEII 97KI;: 8O J>; J7N IOIJ;C 7D: ?I 7 I?CFB; M7O E< 97FJKH?D= J>; 9EIJ E< J7N?D:K9;: :?IJEHJ?EDI $D J>?I ;NJH;C; CE:;B 7DO ;[9?;D9O BEII KD:;HC?D;I IKFFEHJ 7I J>H;; C7HA;JI =EE:I CED;O 7D: 8ED:I />; FH?9; E< =EE:I ?I TN;: 8KJ J>?I ?I DE CEH; J>7D 7 DEHC7B?P7J?ED ?D J>?I 9EDJ;NJ />; FH?9; E< CED;O 7D: J>; FH?9; E< 8ED:I ?I :;J;HC?D;: 8O J>; ?DJ;H;IJ H7J; M>?9> ?I L7H?78B; />; ;GK?B?8H?KC ?D J>?I 97I; ?I 7 =;D;H7B ;GK? B?8H?KC $D 9EDJH7IJ J>; 7==H;=7J; IKFFBO 7D: 7==H;=7J; :;C7D: CE:;B M>?9> ?D9EHFEH7J;I 7 B78EH C7HA;J ?I X=;D;H7BY 8KJ DEJ X;GK?B?8H?KC Y />; KIK7B 7I IKCFJ?ED ?I J>7J J>; H;7B M7=; ?I TN;: IE H;CEL?D= H;B7J?L; L7H?7J?EDI ?D J>; M7=; H7J; 7D: J>; EKJFKJ FH?9; M>?9> 7BBEMI J>; B78EH C7HA;J JE I;JJB; ?DJE 7 FEI?J?ED E< :?I;GK?B?8H?KC

; ;\;9J ED J>; ;9EDECO E< J>; :?I9EL;HO E< D;M E?B H;I;HL;I #EM MEKB: OEK CE:;B J>; :?I9EL;HO ?I9KII J>; DKC8;H E< =EE:I J>7J I>EKB: 8; ?D9BK:;: ?D J>; CE:;B 3098.32  />; CE:;B?D= E< 7 IJE9A E< H;IEKH9;I ?I H;FH;I;DJ;: 8O J>; ?D?J?7B ;D:EMC;DJI ?D 7 =;D;H7B ;GK?B?8H?KC CE:;B />; :?I9EL;HO E< D;M E?B H;I;HL;I I>EKB: 8; CE:;BB;: 8O 7D ?D9H;7I; ?D J>; ;D:EMC;DJ E< E?B />; I?CFB;IJ M7O JE H;FH;I;DJ J>?I ?I JE ?DJ;HFH;J J>; JME 9EDIKC;HI ?D 7D :=;MEHJ> 8EN 7I JME 9EKDJH?;I *D; E< J>;I; 9EKDJH?;I EMDI J>; E?B H;I;HL;I />; ;\;9J E< J>; D;M :?I9EL;HO ?I JE ;DB7H=; ED; 7N?I E< J>; 8EN 7D: JE I>?; ;D:EMC;DJ FE?DJ +H;7D=;: 8KJ 7 D;M ;GK?B?8H?KC ?I H;79>;: #EM J>?I 9ECF7H;I JE J>; EB: ;GK?B?8H?KC ?I :;F;D:;DJ ED J>; IJHK9JKH; E< FH;HEK=> J>; D;M :?I9EL;HO 8KJ J>;H; ?I DE =K7H7DJ;; J>7J 8EJ> M?BB $J ?I ;L;D FEII?8B; J>7J J>; 9EKDJHO EMD?D= E?B C7O 8; C7:; MEHI; E\ 2>O EJ> 9EKDJH?;I CKIJ =7?D J>HEK=> JH7:; />; 9EKDJHO J>7J :E;I DEJ EMD E?B >7I J>; I7C; ?D:?\;H;D9; 9KHL; J>HEK=> J>; ;D:EMC;DJ FE?DJ 8;; 9EKDJHO J>7J EMDI J>; E?B CEL;I EDJE 7 >?=>;H ?D:?\;H;D9; 9KHL; J>HEK=> J>; ;D:EMC;DJ KJ M>;D M; 9ECF7H; M;B; ;GK?B?8H?KC FE?DJ O IK?J78BO :H7M?D= ?D:?\;H;D9; 9KHL;I M; 97D CEL; J>?I ?D 9EKDJH?;I />; ?D9H;7I; ?D J>; ;D:EMC;DJ E< E?B CKIJ H;:K9; ?JI FH?9; ?D ;GK?B?8H?KC H;B7J?L; JE J>; EJ>;H =EE: 7D: J>?I FH?9; H;:K9J?ED C7O 8; IK[9?;DJ JE 79JK7BBO C7A; J>; E?BEMD?D= 9EKDJHO MEHI; E\

; M7=; H7J; 8; :;DEJ;: K 7D: B;J J>;H; 8; 7 I?D=B; 9EDIKCFJ?ED =EE: M?J> FH?9; D 9EDIKC;: ?D GK7DJ?JO L />; 8K:=;J 9EDIJH7?DJ ?I J>;D

EH

DL K@  K% @ %

 

DL  K4 4 %

 

2>;D J>; 8K:=;J 9EDIJH7?DJ ?I MH?JJ;D KI?D= J>; IJE9A E< J?C; J>; J;HC K% ?I ADEMD 7I X ?I 7X=EE:Y EH B78EH M>?9> ?I 7 X87:Y IE . L @  . L %  4  I L 4    M>;H; 7D:

.<  

 

I0  

 



; D;9;II7HO 9ED:?J?EDI 7H;   D

L8

  D L8

D L8 D L8





 





 



D  8 D  8 

 

?L?:?D= J>; THIJ 8O J>; I;9ED: =?L;I L8 D

  D L8

 

.K8IJ?JKJ?D= ; 8K:=;J 9EDIJH7?DJ 7D: IEBL?D= L8 

D  8 D  8  D

 

#;D9;

D  8 D  8  D 8 0I?D= J>; ;D:EMC;DJ B;L;BI J>; :;C7D: ;D L

L  

  

 

0I?D= J>; ;D:EMC;DJ B;L;BI 7D: J>; :;C7D:I J>; ;GK?B?8H?KC 9ED:?J?ED ?I D D D D    D

D

 

.;B;9J?D= =EE:  7I J>; DKC]H7?H; ?CFB?;I D   IE J>; ;GK?B?8H?KC 9ED:?J?ED   8;9EC;I D  D      D

D

M>?9> >7I IEBKJ?ED D   />; ;GK?B?8H?KC 9EDIKCFJ?ED B;L;BI 7H; J>;H;; =H7:?;DJ E< J>; ?D:?\;H;D9; 9KHL; E< 9EDIKC;H < ?I :;TD;: 8O . 8 L8

   . 8 L8      #&! L8 #&! L8 ?J 7J . 8 L89  8  & +, 

!EH J>; KJ?B?JO ; ?D:?\;H;D9; 9KHL;I >7L; J>; I7C; =H7:?;DJ J>;O CKIJ 8; J7D=;DJ?7B

7I JME =EE:I 7D: JME 9EDIKC;HI M?J> FH; J>; THCWI FHETJ 7I 7 ; FH?9; E< =EE:  3098.32  />; FHETJ B;L;B ; THC ?I

 D M D M  M D M 

 

M>;H; J>; I;9ED: ;GK7B?JO ; 7J  KD?J E< =EE:  FHE:K9;I  KD?JI E< =EE:  ?J 7J   M  M  M?J> M .K8IJ?JKJ?D= ?DJE J>; :;TD?J?ED E< FHETJ

 M  D M  M D   

 



!  ""  &

π

p2 = 1 / 2

p2

!?=KH;   +HETJ

+HETJ ?I J>;H;EEI; M  ; L7BK; E< M ; THC M?BB @KIJ 8H;7A ;L;D ?< D   DO EJ>;H FH?9; M?BB ;?J>;H B;7: JE DE EKJFKJ EH JE 7D KD8EKD:;: B;L;B E< EKJFKJ />?I FHE:K9;I J>; =H7F> E< FHETJ I>EMD ?D T=KH;   />; ?CFB?97J?ED E< J>?I 7D7BOI?I ?I J>7J M?J> 9EDIJ7DJ H;JKHDI JE I97B; J>;H; 97D EDBO 8; ED; FH?9; H7J?E M>?9> B;7:I JE P;HE FHETJ 7D: 7 FEJ;DJ?7BBO FEI?J?L; B;L;B E< EKJFKJ

; FHE:K9J?ED FHE9;II :;I9H?8;: 8O 



L  L  L   L  L  L 

 

M>;H; L ?I J>; EKJFKJ 7D: L  L 7H; J>; ?DFKJI 7 $< =EE:  ?I J>; DKC]H7?H; M>7J FH?9;I E< =EE:I  7D:  7H; 9EDI?IJ;DJ M?J> P;HE FHETJ 8 ?I9KII J>; E8I;HL7J?ED J>7J ?D 7 CE:;B M?J> 9EDIJ7DJ H;JKHDI JE I97B; ;GK?B?8H?KC FH?9;I 7H; :;J;HC?D;: 8O J;9>DEBE=O 7D: DEJ FH;; B;L;B E< FHETJ ?I =?L;D 8O

 D L D L D L  2?J> =EE:  7I DKC]H7?H; J>?I H;:K9;I JE

 L D L D L 

 0I?D= J>; FHE:K9J?ED J;9>DEBE=O 



 L  L 

D L D L 

/>; D;9;II7HO 9ED:?J?EDI ;I; O?;B:

L  

 D  

   D

L    D

.K8IJ?JKJ?D= 879A ?DJE J>; :;TD?J?ED E< FHETJ 7D: ;GK7J?D= JE P;HE =?L;I  

    D 

L   D    D  0D:;HJ7A?D= 7 I?C?B7H IK8IJ?JKJ?ED 7J L   7D: L   8EJ> J>;I; ?:;DJ?J?;I H;:K9; JE D  D       )EM J7A;



 @

 @







 D



 7D: IK8IJ?JKJ; ?I FHEL?:;I

 



D 



 





D   D  

IE D     .?C?B7HBO D   />;I; 7H; J>; EDBO FH?9;I 9EDI?IJ;DJ M?J> P;HE FHETJ 8 $D ;GK?B?8H?KC J>; THC CKIJ C7A; P;HE FHETJ EJ>;HM?I; ?J MEKB: ;?J>;H I>KJ :EMD EH >7L; DE TD?J; FHETJC7N?C?P?D= FHE:K9J?ED FB7D .?D9; FHETJ C7N?C?P7J?ED 7D: P;HE FHETJ :;J;HC?D; 7 KD?GK; I;J E< FH?9;I J>; ;GK?B?8H?KC FH?9;I ; ;9EDECO >7L; JE 8; ?D:;F;D:;DJ E< :;C7D:



!  ""  &

Output

−F

Input

!?=KH;   -;FH;I;DJ7J?ED E< TN;: 9EIJI

; ;N?IJ;D9; E< TN;: 9EIJI 8; ?D9EHFEH7J;: ?D J>; FHE:K9J?ED I;J :?7=H7C 7I 9EDIJ7DJ H;JKHDI JE I97B; 7D ?J ;7HD P;HE FHETJI ?D 7 9ECF;J?J?L; ;9EDECO 3098.32  !?N;: 9EIJI H;FH;I;DJ ?DFKJI J>7J >7L; JE 8; KI;: 8;;H;; TN;: 9EIJI >7L; 8;;D C;J />?I ?I H;FH;I;DJ;: ?D J>; FHE:K9J?ED I;J :?7=H7C 8O J>; ;[9?;DJ ; ?DFKJ >7L; JE 8; C;J 8;; THC J7A;I FH?9;I 7I =?L;D $JI FHETJ B;L;B ?I

 D M D M  D M* D M  D



 

M>;H; M* :;DEJ;I J>; ?DFKJ E< =EE:  ?D ;N9;II E< TN;: 9EIJ 2?J> 9EDIJ7DJ H;JKHDI JE I97B; J>; THC 97D JKHD =EE:  ?DJE =EE:  7J 7 9EDIJ7DJ H7J; ';J J>; FHE:K9J?ED H;B7J?ED ED9; J>; TN;: 9EIJI >7L; 8;;D C;J 8; :;I9H?8;: 8O M  M  6*

 

0I?D= J>; FHE:K9J?ED H;B7J?ED MH?J; FHETJ 7I M  D

 D M*  D 6*



 M* D  D 6  D



 

)EM ?< D  D 6 J>; THC M?BB DEJ FHE:K9; I?D9; FHETJ ?I D;=7J?L; ;H; ?I DE 9EC8?D7J?ED E< FH?9;I 7J M>?9> J>; THC 97D C7A; P;HE FHETJ

 />; ;N;H9?I; I>EMI J>7J 9ECF;J?J?L; FHETJC7N?C?P?D= 8;>7L?EH TN;: 9EIJI

7D: 9EDIJ7DJ H;JKHDI 78EL; TN;: 9EIJI 7H; ?D9EDI?IJ;DJ M?J> J>; ;N?IJ;D9; E< 7 8EKD:;: FHE:K9J?ED FB7D ; THC

7D=; ;9EDECO ';J J>; ;N9;II :;C7D: ; ;9EDECO >7I JME ;GK?B?8H?7 8 #EM C7DO ;GK?B?8H?7 7H; J>;H; ?<    $<     2>7J 97D OEK 9ED9BK:; 78EKJ J>; FEII?8?B?JO E< E8I;HL?D= 7D ;9EDECO M?J> 7D ;L;D DKC8;H E< ;GK?B?8H?7 9 ECFKJ; J>; ;N9;II :;C7D: ; ;N9;II :;C7D: ; T=KH; />?I I>EMI JME ;GK?B?8H?7

y

30 20 10 0 1

2

3

4

5

6

7

x

-10

8 2>;D    J>; ;N9;II :;C7D: ?; ;GK?B?8H?KC 7J 7FFHEN?C7J;BOD   ?I BEIJ



!  ""  &

y 3

2

1

0

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

x

2>;D     J>; ;N9;II :;C7D: ?; ;GK?B?8H?KC 7J 7FFHEN?C7J;BOD   ?I H;FB79;: 8O JME :?IJ?D9J ;GK?B?8H?7

y3 2

1

0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

x

/>; 9ED9BKI?ED >7I JE 8; J>7J 7D ;L;D DKC8;H E< ;GK?B?8H?7 ?I KDB?A;BO I?D9; 7 L;HO IC7BB 9>7D=; CEL;I 879A JE 7D E:: DKC8;H E< ;GK?B?8H?7 7D: J>; E:: DKC8;H 7H; HE8KIJ JE 9>7D=;I & 9 27BH7IW B7M IJ7J;I J>7J D9 39   #;D9; .  D     D  D   D  #&! D  D 3   .E

. D 

D    D   D      #&! D   D />; ;N9;II :;C7D: ?9> 9EKB: =;D;H7J; J>;C 3 

 KJ?B?JO FHE:K9J?ED ;H; L :;DEJ;I EKJFKJ E< 7 9ED IKCFJ?ED =EE: 7D: 4 :;DEJ;I B78EH IKFFBO IIKC; J>7J J>; 9EDIKC;H H;9;?L;I

 J>; FHETJ ; THC 7I 7 :?L?:;D: 7D: J>7J 8EJ> J>; THC 7D: 9EDIKC;H 79J 9ECF;J?J?L;BO >EEI?D= B78EH 7I J>; DKC]H7?H; TD: J>; C7N?C?P;: KJ?B?JO E< J>; 9EDIKC;H 7D: J>; C7N?C?P;: FHETJ E< J>; THC 7I ; FH?9; D

E< EKJFKJ 2>7J L7BK; E< D C7N?C?P;I KJ?B?JO 2>7J ?I IF;9?7B 78EKJ J>?I L7BK; E< D 3098.32  />; 8K:=;J 9EDIJH7?DJ ; 9EDIKC;H ?I DL  4  M>;H; ?I J>; :?L?:;D: F7OC;DJ />; KJ?B?JO C7N?C?P7J?ED FHE8B;C ?I $) #&! L #&!   DL

H

M>?9> >7I IEBKJ?ED L

  D

/>; C7N?C?P;: L7BK; E< KJ?B?JO ?I



  /  #&! #&! D    #&!    #&! D   #&!   />; FHETJ C7N?C?P7J?ED :;9?I?ED E< J>; THC ?I $) DL  4 I J L  4

H0

/>?I H;:K9;I JE





$) D4   4

0

>;D9; 4

D  



/>; C7N?C?P;: B;L;B E< FHETJ ?I D D D   

 DL  4  D     0I?D= J>; IEBKJ?ED ; C7N?C?P;: L7BK; E< KJ?B?JO ?I

D  #&! D   #&!  /   #&!   />; D;9;II7HO 9ED:?J?ED H;IF;9J JE D ?I D     D 

D IE

 D   



!  ""  &

)EJ?9; J>7J J>; C7H=?D7B 9EIJ E< FHE:K9J?ED :;DEJ;:  ?I =?L;D 8O L I?D9;  J>; THCWI 9EIJ 7J 9EDIKCFJ?ED ?I L   @  />;H;; FH?9; J>7J C7N?C?P;I KJ?B?JO ?I ;GK7B JE J>; C7H=?D7B 9EIJ E< FHE:K9J?ED Z ?BBKIJH7J?D= J>7J ;[9?;D9O H;GK?H;I C7H=?D7B 9EIJ FH?9?D=

  =EE:I " 9EDIKC;HI 7D: A THCI 79> 9EDIKC;H < >7I 7D ;D:EMC;DJ E<  KD?JI E< =EE:  7D: DED; E< =EE:

?D THC >   FH;7H; 8:     A 79> THC >7I 7 J;9>DEBE=O 9>7H79J;H?P;: 8O J>; FHE:K9J?ED E?9;I 7 9EDIKC;HWI :;C7D:I 7D: J>; 9ECF;J?J?L; ;GK?B?8H?KC E< J>; ;9EDECO 8 2>7J >7FF;DI JE @@  7I ? A ?D9H;7I;I ?? " ?D9H;7I;I 2>O 9 .KFFEI; ;79> 9EDIKC;HWI ;D:EMC;DJ E< =EE:  ?D9H;7I;I JE   NFB7?D J>; 9>7D=; ?D H;B7J?L; FH?9;I : 2>7J ?I J>; ;\;9J E< 9>7D=?D= ? />; :?IJH?8KJ?ED E< ;D:EMC;DJI 7CED= 9EDIKC;HI     ?? />; 9EDIKC;HIW FH;; FHE8B;C ; FHE:K9J?ED ?I 8;9EC;I

#;D9;

  $) :  D M : D M :  I 

 

 :   D M

 D   

 M :

 

 :

M>?9> =?L;I M : 7D:







D D

M: 

D  D



   

/>; C7N?C?P;: B;L;B E< FHETJ ?I

: 



D   D

 

 !EH J>; JOF?97B >EKI;>EB: J>; :;9?I?ED FHE8B;C ?I   ( ( $) . 8  L8 L8 I J 8 D9  89  D9 L89  H H  9

9

 

0I?D= J>; L7BK;I E< J>; ;D:EMC;DJI 7D: IEBL?D= =?L;I L8 

D 8  D

 

7D:

D 8    D GK?B?8H?KC E99KHI M>;D IKFFBO 7D: :;C7D: 7H; ;GK7B !EH =EE:  J>?I ?I M>;D L8 

 (

L8 

= (

M: 

 

:

8

7I;: ED J>; H;IKBJI 78EL; 7D: J>; 7J 7BB >EKI;>EB:I 7H; ?:;DJ?97B 7D: 7BB THCI 7H; ?:;DJ?97B ;GK?B?8H?KC H;GK?H;I " KJ 8 

= @   @

D D 8 A  D D

IE J>; ;GK?B?8H?KC FH?9; H7J?E "



@ @

  IEBL;I

D

 A D  D " A  D D " D

D

M>?9> =?L;I D  D



" A





 

 

8 ? I A ?D9H;7I;I @@  ?I ?I 8;97KI; E< J>; :;9H;7I?D= H;JKHDI JE I97B; 2>;D J>;H; 7H; CEH; THCI IKFFBO?D= J>; C7HA;J ;79> THC 97D EF;H7J; 7J 7 CEH; ; FHE:K9J?ED ;H;; ;GK?B?8H?KC FH?9; 8;9EC;I

    " D     D

A



!  ""  &

D ?D9H;7I; ?D J>; ;D:EMC;DJ E< =EE:  H7?I;I J>; H;B7J?L; FH?9; E< =EE:  : ? />; ;\;9J E< J>; 9>7D=?D= J>; :?IJH?8KJ?ED E< ;D:EMC;DJ 97D 8; I;;D 8O H;F;7J?D= J>; IJ;FI 78EL; JE H;79> J>; ;GK?B?8H?KC 9ED:?J?ED

 8 (  D 8 D

8

A

D  D

 

$< J>; FHETJ 7BBE97J?ED ?I ;GK7B 79HEII 9EDIKC;HI J>?I 8;9EC;I  D ( 8

8 D  " A  D D D

 

8

EDI;GK;DJBO ?J ?I DEJ J>; :?IJH?8KJ?ED E< J>; ;D:EMC;DJ J>7J C7JJ;HI 8KJ EDBO J>; JEJ7B ;D:EMC;DJ />?I ?I 7 H;U;9J?ED E< J>; IJHK9JKH; E< FH;; KJ?B?JO 7J ;79> >EKI;>EB: :?L?:;I ?JI ?D9EC; ?D TN;: FHEFEH J?EDI 8;JM;;D J>; JME 9ECCE:?J?;I IE 7==H;=7J; :;C7D: :E;I DEJ 9>7D=; 7I J>; ?D9EC; :?IJH?8KJ?ED 7BJ;HI : ?? />; ;\;9J E< 9>7D=?D= JE J>;I; FH;; L7BK;I E<  7D:  $<    J>; FH;;H; 97D 8; DE ;\;9J $<    J>; H;B7J?L; FH;7I H?I;D IE @@  CKIJ ; 9EDL;HI; >EB:I ?<   

; :?7=H7C ; -E8?DIED HKIE; ;9EDECO 7J >7I 9EDIJ7DJ H;JKHDI JE I97B; 0D:;H M>7J 9ED:?J?EDI M?BB ?J 8; ;[9?;DJ ; THC DEJ JE FHE:K9; 2>7J ?I J>; 9EDIKCFJ?ED B;L;B E< J>; 9EDIKC;H ?D IK9> 7 97I; +HEL?:; 7D ?DJ;HFH;J7J?ED E< J>?I FEII?8?B?JO 3098.32  $J M?BB 8; ;[9?;DJ ; THC DEJ JE FHE:K9; ?< J>; FH?9; H7J?E FH?9; E< EKJFKJ H;B7J?L; JE FH?9; E< B78EH ?I JEE BEM ;L;D ; THIJ KD?J E< EKJFKJ JE 79>?;L; 7 DEDD;=7J?L; FHETJ />; 9EDIKC;H IJ7HJI M?J> J>;?H ?D?J?7B ;D:EMC;DJ />; ?IIK; E< M>;J>;H J>; THC I>EKB: FHE:K9; 97D 8; 7DIM;H;: 8O 9EDI?:;H?D= J>; M?BB?D=D;II E< J>; 9EDIKC;H JE JH7:; 7 KD?J E< B78EH ; EKJFKJ J>; THC 97D FHE:K9; ?I $< J>; C7H=?D7B KJ?B?JO ; EKJFKJ ?I B;II J>;D J>; C7H=?D7B :?IKJ?B?JO E< B78EH IKFFBO J>;D J>; 9EDIKC;H M?BB DEJ M?I> JE ;D=7=; ?D J>; JH7:; />?I ?I I>EMD ?D T=KH;   M>;H; J>; ?D:?\;H;D9; 9KHL; J>HEK=> J>; EH?=?D H;FH;I;DJ?D= J>; ;D:EMC;DJ FE?DJ ?I IJ;;F;H J>7D J>; FHE:K9J?ED ; IKHFBKI JE J>; EMD;H 7D: 9H;M /OF?97BBO J>; EMD;H H;9;?L;I  F;H9;DJ J>; 97FJ7?D  F;H9;DJ 7D: J>; H;C7?D?D=  F;H9;DJ ?I :?IJH?8KJ;: JE 9H;M 799EH:?D= JE IJ7JKI $I J>?I :?IJH?8KJ?ED +7H;JE;[9?;DJ $I ?J ;GK?J78B;



Output Indifference curve

Production frontier Labor

!?=KH;   +EII?8?B?JO E< DEDFHE:K9J?ED

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

J>;O M?BB DE :EK8J 9EDI?:;H J>;?H  F;H9;DJ I>7H; 7I @KIJ?T;:



!  ""  &

E9EB7J;I ?I JE 8; I>7H;: 8O JME 9>?B:H;D />; 8EN 9EDJ7?DI J;D C?BA 9>E9EB7J;I 7D: J;D :7HA 9>E9EB7J;I );?J>;H 9>?B: B?A;I :7HA 9>E9EB7J;I ;I9H?8; J>; +7H;JE;[9?;DJ 7BBE97J?EDI 3098.32  IIKC; J>; :7HA 9>E9EB7J;I 97D 8; :?IFEI;: M?J>EKJ 9EIJ />;D 7 +7H;JE;[9?;DJ 7BBE97J?ED ?I :?IFEI7B E< J>; :7HA 9>E9EB7J;I 7D: 7DO 7BBE97J?ED E< J>; C?BA 9>E9EB7J;I 8;JM;;D J>; JME 9>?B:H;D I 7DO F7H;DJ ADEMI J>; ?D;GK?JO E< 7DO 7BBE97J?ED EJ>;H J>7D TL; C?BA 9>E9EB7J;I ;79> M?BB IEED 8; C7:; ADEMD $< :?IFEI7B E< J>; :7HA 9>E9EB7J;I ?I 9EIJBO ?J C7O 8; +7H;JE;[9?;DJ JE ?DI?IJ J>7J J>;O 7H; 9EDIKC;: />; 7BBE97J?ED FHE8B;C 8;9EC;I CK9> CEH; 9ECFB;N ?< J>;H; ?I 7 H7D=; E< TBB?D=I JE J>; 9>E9EB7J;I M?J> :?\;H;DJ :;=H;;I E< 7JJH79J?L;D;II BJ>EK=> +7H;JE;[9?;D9O ?I IJ?BB ;7IO JE 79>?;L; ;GK?JO C7O 8; L;HO :?[9KBJ KDB;II J>; 9>E9EB7J;I 97D 8; C7:; ?D:?L?:K7BBO :?L?I?8B;

7H;: KI; E< 7 97H O 7FFBO?D= +7H;JE;[9?;D9O M>7J 7H; OEK 78B; JE 7:L?I; J>;C 3098.32  *D; M7O JE 7FFBO +7H;JE;[9?;D9O ?I JE 7D7BOP; M>;J>;H 7 IK= =;IJ;: 7BBE97J?ED 9EKB: 8; H;FB79;: 8O ED; ?D M>?9> 8EJ> F7HJ?;I =7?D $D J>; 97I; E< 97H I>7H?D= ?D;[9?;D9O 97D EDBO 7H?I; ?< J>; 7BBE97J?ED B;7L;I J>; 97H KDKI;: M>;D 7J B;7IJ ED; E< J>; JME ;I JE KI; ?J ;OED: J>?I +7H;JE;[9?;D9O ?I I?B;DJ I?D9; 7DO EJ>;H 7BBE97J?ED ?I +7H;JE;[9?;DJ />?I ?I JHK; DE C7JJ;H >EM KD;GK7B ?I J>; 7BBE97J?ED />; ;N7CFB; >?=>B?=>JI J>; 7J +7H;JE;[9?;D9O ?I DEJ 7 =EE: 9ED9;FJ ; C7H=?D7B H7J;I E< IK8IJ?JKJ?ED ; JME 9EDIKC;HI

9>7H79J;H?P; 7 +7H;JE;[9?;DJ 7BBE97J?ED 9 0I?D= J>; IEBKJ?ED JE F7HJ 8 9EDIJHK9J J>; 9EDJH79J 9KHL;  KD?JI E< =EE:  7D:  KD?JI E< =EE:  3098.32  7 />; C7H=?D7B H7J; E< IK8IJ?JKJ?ED ?I =?L;D 8O J>; H7J?E E< J>; C7H=?D7B KJ?B?J?;I />; C7H=?D7B KJ?B?JO E< =EE:  ?I  . 8  8 L8

L

 

 7D: J>; C7H=?D7B KJ?B?JO E< =EE:  ?I  . 8  8 8 L L

 

EC8?D?D= J>;I; J>; C7H=?D7B H7J; E< IK8IJ?JKJ?ED ;D

 & +,   & +,  

 

L  L   

L

L

 

EH

#;D9; J>; ;GK?B?8H?KC ?I +7H;JE;[9?;DJ M>;D J>; JME 9EDIKC;HI >7L; J>; I7C; B;L;B E< =EE:  H;B7J?L; JE =EE:  9 $< J>;H; 7H;  KD?JI E< =EE:  J>;D

EH

L

L  

 

L    L



 

L    L  

 

.?C?B7HBO M?J>  KD?JI E< =EE: 

/>; 9EDJH79J 9KHL; ?I =?L;D 8O J>; L7BK;I E< L

7D: L  J>7J I7J?I; 9EDJH79J 9KHL; L  



L  

 

/>; 9EDJH79J 9KHL; ?I J>;H;; :=;MEHJ> 8EN =E?D= J>HEK=> J>; EH?=?D 7L?D= =H7:?;DJ  

7I 7 TN;: IKC E< CED;O JE 7BBE97J; ?D 8EDKI F7OC;DJI 8;JM;;D JME FHE FHE; EJ>;H FHE; JEJ7B IKC 7L7?B78B; ;D 7 

J>; FHE8B;C ?I J>; IJ7D:7H: 7BBE97J?ED E< 7 97A; E< TN;: I?P; 8;JM;;D X=H;;:OY 9EDIKC;HI />;H; 6 6   ?I +7H;JE;[9?;DJ 8 2>;D 7  7DO ?D9H;7I;: F7OC;DJ JE ED; E< J>; FHE; F7OE\ E< J>; EJ>;H FHE 7 F7?H 6 6 J>7J :E;I DEJ ;N>7KIJ J>; IKC 7L7?B78B; HEK=> J>; ;DLO ;\;9J $J 97DDEJ 8; 7 +7H;JE ?CFHEL;C;DJ />; I7C; 7H=KC;DJ 7FFB?;I JE 7D ?D9H;7I; ?D 6 />;H; 6 7D: 6 CKIJ 8; ?D9H;7I;: I?CKBJ7D;EKIBO />; F7?H E< KJ?B?J?;I M?BB ?D9H;7I; FHEL?:;: 7   #;D9; ?I H7D=; E< L7BK;I E< 7 J>; +7H;JE;[9?;DJ 7BBE97J?EDI 7H; 7I ?D 7 9 2>;D 7   FHEL?:?D= ;79> FHE 7 8EDKI E<  >7I DE ;\;9J ED KJ?B?JO I?D9; J>; ;DLO ;\;9J 9ECFB;J;BO E\I;JI J>; :?H;9J 8;D;TJ DO 7BBE97J?ED 6  6 ?I J>;D +7H;JE;[9?;DJ ?D9BK:?D= 7BBE97J?D= DE 8EDKI;I 6 

 6  )EM 9EDI?:;H 7   .J7HJ M?J> 7D 7BBE97J?ED M>;H; 8EJ> H;9;?L; 7 FEI?J?L; 8EDKI  +7H;JE ?CFHEL;C;DJ 97D 8; I;9KH;: 8O H;:K9?D= J>; 8EDKI E< ;79> FHE; +7H;JE;[9?;DJ 7BBE97J?EDI CKIJ J>;D >7L; 7J B;7IJ ED; E< 6 EH 6 ;GK7B JE P;HE .E J>; EDBO +7H;JE;[9?;DJ 7BBE97J?EDI 7H; JE =?L; 7 8EDKI JE EDBO ED; FHE7J =?L?D= J>; 8EDKI JE @KIJ ED; FHE; 9EDIKC;H 8 $< 7D ;9EDECO ?I 9ECFEI;: E< JME 9EDIKC;HI M?J> J>;I; FH;7J 7DO 7BBE97J?ED ?I +7H;JE;[9?;DJ 9 $< 7D ;9EDECO >7I ED; 9EDIKC;H M>E L?;MI ?JI JME =EE:I 7I F;H7J 9EDI?:;HI ;79> KD?J E< =EE:  JE 8; MEHJ>  KD?JI E< =EE:  TD: J>; +7H;JE;[9?;DJ 7BBE97J?EDI 3098.32  7 IIKC?D= J>7J F;H; ?D:?\;H;D9; 9KHL;I 7H; IJH7?=>J B?D;I M?J> 7 =H7:?;DJ E<  />;I; 9KHL;I 7H; I>EMD ?D T=KH;   8 )E C7JJ;H M>7J 7H; J>; ;D:EMC;DJI E< J>; ;9EDECO J>; ?D:?\;H;D9; 9KHL;I E< J>; 9EDIKC;HI M?BB 8; 9E?D9?:;DJ 7J ;L;HO FE?DJ ?D J>; :=;MEHJ> 8EN />?I ?I I>EMD ?D T=KH;   M>;H; J>; IEB?: B?D;I 7H; J>; ?D:?\;H;D9; 9KHL; E< 9EDIKC;H  7D: J>; :7I>;: B?D;I J>; ?D:?\;H;D9; 9KHL;I E< 9EDIKC;H 



Good 2

Good 1 !?=KH;   $D:?\;H;D9; 9KHL;I

2

1 !?=KH;  

L;HO 7BBE97J?ED ?I +7H;JE;[9?;DJ



!  ""  &

Pareto efficient 2

1 !?=KH;  

[9?;DJ 7BBE97J?EDI ED J>; 8EKD:7HO

9 ';J 9EDIKC;H  9EDI?:;H ;79> KD?J E< =EE:  JE 8; MEHJ>  KD?JI E< =EE:  />;D J>; ?D:?\;H;D9; 9KHL;I E< 9EDIKC;H  9>7D=; JE J>EI; I>EMD ?D T=KH;   />; ?D:?\;H;D9; 9KHL;I E< 9EDIKC;H  7H; DE BED=;H 9E?D9?:;DJ M?J> J>EI; E< 9EDIKC;H  />; +7H;JE;[9?;DJ 7BBE97J?EDI 7H; 7BED= J>; EKJI?:; ;:=;I E< J>; 8EN 7I I>EMD ?D 8EB: />7J J>;I; 7BBE97J?EDI 7H; +7H;JE;[9?;DJ 97D 8; 9EDTHC;: 8O I>EM?D= J>7J DE ?CFHEL?D= 7BBE97J?ED ;N?IJI

?9> FH;; ;D:EMC;DJI     7D:      9EDIJHK9J J>; I;J E< +7H;JE ;[9?;DJ 7BBE97J?EDI 7D: J>; 9EDJH79J 9KHL; 2>?9> 7BBE97J?EDI 7H; 7BIE 9ECF;J ?J?L; ;GK?B?8H?7 3098.32  />; IEBKJ?ED ?I E8J7?D;: 8O 9EDI?:;H?D= J>; I>7F; E< J>; 9ED IKC;HIW ?D:?\;H;D9; 9KHL;I !EH 9EDIKC;H  J>; ?D:?\;H;D9; 9KHL;I 7H; IJH7?=>J B?D;I M?J> 7 =H7:?;DJ E<  !EH 9EDIKC;H  J>; ?D:?\;H;D9; 9KHL;I 7H; H?=>J 7D=B;I M?J> J>; 9EHD;H 7J 9EDIKCFJ?ED 8KD:B;I M?J> ;GK7B GK7DJ?J?;I E< J>; JME =EE:I 0I?D= J>?I ?D; ;D:EMC;DJI :H7M J>; :=;MEHJ> 8EN 7I 7 H;9J7D=B; E< I?P; H;; Z I;; T=KH;   />; +7H;JE;[9?;DJ 7BBE97J?EDI 7H; 7J J>; 9EHD;HI E< 9EDIKC;H WI ?D:?\;H;D9; 9KHL;I />; EDBO ;GK?B?8H?KC CKIJ 8; ED J>; ?D:?\;H;D9; 9KHL; E< 9EDIKC;H  J>HEK=> J>; ;D:EMC;DJ FE?DJ  />?I ?I I>EMD 8O FE?DJ 9 ?D T=KH;   />; 8K:=;J B?D; CKIJ 8; 9E?D9?:;DJ M?J> J>?I

 2

1

!?=KH;   +7H;JE;[9?;DJ 7BBE97J?EDI 2

•ω

e

1

!?=KH;  

GK?B?8H?KC

?D:?\;H;D9; 9KHL; DO EJ>;H FH?9; H7J?E M?BB B;7: 9EDIKC;H  JE 9>EEI; 7 9EHD;H 7BBE97J?ED ;?J>;H 7BB =EE:  ?< D  D EH 7BB =EE:  ?< D  D $D 9EDJH7IJ

9EDIKC;H  M?BB 7BM7OI M?I> JE 9EDIKC; 7J J>; 9EHD;H E< 7D ?D:?\;H;D9; 9KHL; +E?DJ 9 J>;H;; KD?GK; ;GK?B?8H?KC

; ;9EDECO ?D J>; ;N;H9?I; 78EL; 8KJ 9>7D=; J>; FH;;H; 7 +7H;JE;[9?;DJ 7BBE97J?ED 3098.32  2?J> J>;I; H;L?I;: FH;; ?D:?\;H;D9; 9KHL;I E< 9ED IKC;H  7FF;7H 7I ?D T=KH;   EDIKC;H  DEM IJH?9JBO FH;7D 7 C?NJKH; E< J>; JME =EE:I +KJJ?D= J>; FH;;H =?L;I J>; :=;MEHJ> 8EN ?D T=KH;   /E :;J;HC?D; J>; +7H;JE;[9?;DJ 7BBE97J?EDI 9EDI?:;H IJ7HJ?D= 7J FE?DJ 5 M>;H; J>; 9EHD;H E< J>; ?D:?\;H;D9; 9KHL; E< 9EDIKC;H  C;;JI J>; IJH7?=>J B?D; ?D:?\;H;D9; 9KHL; E< 9EDIKC;H  (EL?D= 7BED= J>; ?D:?\;H;D9; 9KHL; E< 9EDIKC;H  JE J>; B;; H?=>J H7?I;I J>; M;B?I ?I 7 +7H;JE ?CFHEL;C;DJ />;I; ?CFHEL;C;DJI 9EDJ?DK; KDJ?B J>; 8EKD:7HO E< J>; :=;MEHJ> 8EN ?I C;J $< J>;H; ?I CEH; E< =EE:  J>7D =EE:  J>;D FE?DJ 7 M?BB 8; FH;;H; ?I CEH; E< =EE:  !HEC FE?DJ 7 ;H +7H;JE ?CFHEL;C;DJI 97D 8; E8J7?D;: 8O CEL?D= KF J>; L;HJ?97B 7N?I E< J>; 8EN Z J>?I A;;FI 9EDIKC;H  ED J>; I7C; ?D:?\;H;D9; 9KHL; 8KJ CEL;I 9EDIKC;H  EDJE >?=>;H 9KHL;I />?I FHE9;II 9;7I;I 7J J>; JEFB;; 8EN #;D9; J>?I ?I 7 +7H;JE;[9?;DJ 7BBE97J?ED .?C?B7H H;7IED?D= I>EMI J>7J J>;H; ?I 7 I;9ED: +7H;JE;[9?;DJ 7BBE97J?ED ?D J>; 8EJJECH?=>J 9EHD;H E< J>; 8EN

 JME 9EDIKC;HI  7D:  7D: JME ; 9EDIKCFJ?ED E< =EE: = 8O  9EDIKC;H  7IIKC; J>7J 8EJ> 9EDIKC;HI >7L; J>; KJ?B?JO 7 FEB?9O CKIJ >;BF F;EFB; >;BF J>;CI;BL;I 2>7J FK8B?9 ?DJ;HL;DJ?ED ?I D;;:;: M>;D F;EFB; 97D C?I8;>7L; ?D J>?I M7O L7H?;I ; ;9EDECO JE 7DEJ>;H !EH ?DIJ7D9; IEC; ; 8;>7L?EH CE:;B C7O =?L; J>; =EL;HDC;DJ D;M EFFEHJKD?J?;I JE IJ;F ?D 7D: ;DIKH; 9ED:?J?EDI KD:;H M>?9> 



!  # 

EKH ?HH7J?ED7B F;EFB; 97D 8; >7HD;II;: 9H;7J?L;BO M?J>EKJ >7HC?D= J>; H7J?ED7B F;EFB; JE I;HL; J>; =H;7J;H =EE:

 CE:;BI FH;:?9J?D= EFJ?C7B 9ED IKCFJ?ED FB7DI J>7J :E DEJ 9>7D=; EL;H J?C; EH EFJ?C7B 9EDIKCFJ?ED FB7DI J>7J 9>7D=; EL;H J?C; 3098.32  2?J> 7 9EDIJ7DJ F;H F;H?E: :?I9EKDJ H7J; J>; 9EDIKCFJ?ED FB7D :E;I DEJ 9>7D=; EL;H J?C; +B7DI C7:; ?D J>; F7IJ M?BB 8; J>; I7C; 7I J>; 9>E?9;I C7:; ?D J>; FH;I;DJ NFED;DJ?7B :?I9EKDJ?D= ;DIKH;I J>7J J>; JH7:;E\ ?D KJ?B?JO 8;JM;;D 9EDIKCFJ?ED JE:7O 7D: 9EDIKCFJ?ED JECEHHEM ?I J>; I7C; 7I J>; JH7:;E\ 8;JM;;D 9EDIKCFJ?ED ED :7O  7=7?DIJ 9EDIKCFJ?ED ED :7O  I 7 H;IKBJ 9>E?9;I 7H; DEJ I;DI?J?L; JE J?C?D= 7D: 7I J?C; F7II;I J>;H; ?I DE ?D9;DJ?L; JE H;L?I; ;7HB?;H FB7DI EDL;HI;BO ?< J>; F;H F;H?E: :?I9EKDJ H7J;I L7HO EL;H J?C; J>;D 9EDIKCFJ?ED FB7DI 7H; I;DI?J?L; JE J?C?D= !EH ;N7CFB; ?< F;EFB; ;N>?8?J >?=>;H F;H F;H?E: :?I9EKDJ H7J;I ?D J>; I>EHJ HKD J>7D ?D J>; BED= HKD J>;D J>;O M?BB 7D 8;JM;;D 9EDIKCFJ?ED ED :7O  7D: 9EDIKCFJ?ED ED :7O  ; = J>;O M?BB 8; ?D:?\;H;DJ 8;JM;;D  JE:7O 7D:   JECEHHEM 8KJ ?D:?\;H;DJ 8;JM;;D  ED :7O  7D:   ED :7O  I J?C; F7II;I F;EFB; M?BB >7L; ?D9;DJ?L; JE H;L?I; ;7HB?;H 9EDIKCFJ?ED FB7DI

; I;B<9EDJHEB FHE8B;C E< FHE9H7IJ?D7J?D= J>; IJ7HJ E< ;N;H9?I?D= IIKC; J>7J ;N;H9?I?D= >7I 7 9EIJ JE:7O E<  7D: 7 :;B7O;: 8;D;TJ E<  #EM MEKB: OEK CE:;B J>; 7J OEKH ;7HBO FB7D ?I J>7J JECEHHEM OEK M?BB ;N;H9?I; 8KJ DEJ JE:7O .>EM J>7J M>;D JECEHHEM 7HH?L;I OEK M?BB 7=7?D M7DJ JE FEIJFED; 79J?ED ?I9KII J>; FHE8B;C 3098.32  EDI?:;H 7 GK7I?>OF;H8EB?9 CE:;B M?J> I>EHJHKD :?I9EKDJ H7J;    JE:7O L;HIKI JECEHHEM 7D: BED=HKD :?I9EKDJ H7J;    JECEHHEM L;HIKI J>; :7O 77J ?I ?D J>; BED= HKD M; 7H; H;B7J?L;BO F7J?;DJ 9EDIKCFJ?ED JECEHHEM ?I @KIJ 7I L7BK78B; 7I 9EDIKCFJ?ED J>; :7O 7; :?I9EKDJ?D= J7A;I FB79; 8;JM;;D JE:7O 7D: JECEHHEM 0I?D= J>?I CE:;B E< :?I9EKDJ?D= M; 97D ?BBKIJH7J; J>; FHE9H7IJ?D7J?ED FHE8B;C N;H9?I?D= >7I 9EIJ JE:7O E<  7D: :;B7O;: 8;D;TJ JECEHHEM E<  3EK M?BB DEJ ;N;H9?I; JE:7O 8;97KI; J>; :?I9EKDJ;: F7OE\ ?I     KJ OEK M?BB 799;FJ ;N;H9?I?D= JECEHHEM 8;97KI; J>; :?I9EKDJ;: F7OE\     2>;D JE CEHHEM 7HH?L;I OEK M?BB 7=7?D M7DJ JE FEIJFED; ;N;H9?I?D= 8;97KI; DEM 7BB J>; :?I9EKDJ?D= J7A;I FB79; 8;JM;;D JECEHHEM 7D: J>; :7O 7; 9EDIKC;H >7L; FH;; ?DJ;HJ;CFEH7B KJ?B?JO ;H;    7D:    7 7B9KB7J; J>; EFJ?C7B B;L;B E< 9EDIKCFJ?ED ; F;HIF;9J?L; E< :7J; H 8 IIKC?D= J>7J    I>EM J>7J 7D  7D

9 IIKC?D= J>7J    I>EM J>7J 7D  7D

: !EH    M>7J ?I J>; ;\;9J E< ?D9H;7I?D= J>; I;B<9EDJHEB F7H7C;J;H ED J>; 9EDIKCFJ?ED 7D  NFB7?D OEKH TD:?D= 3098.32  7 />?I ?I 7 CE:;B E< FH; 7D ?DJ;HJ;CFEH7B 9EDIKCF J?ED ;NJ;HD7B?JO H;FH;I;DJ;: 8O J>; 9EDL;N ; EFJ?C7B 9>E?9; E< 7D 7D: 7D ; F;HIF;9J?L; E< J?C; H C7N?C?P;I . 7D  7D  7D  7D  />; EFJ?C7B B;L;B E< 9EDIKCFJ?ED ; F;HIF;9J?L; E< J?C; H IEBL;I J>; THIJEH:;H D;9;II7HO 9ED:?J?EDI I 7D  I 7D 

 

J 7D  J 7D 

8 IIKC;    J>;H; ?I DE :?\;H;D9; 8;JM;;D I>EHJHKD 7D: BED=HKD :?I9EKDJ?D=  J>;D J>; THIJEH:;H 9ED:?J?EDI ?CFBO J>7J I 7D 

 

J 7D  J 7D 

IE J>7J M?J> IJH?9JBO 9ED97L; I 7D: IJH?9JBO 9EDL;N J J>; B;L;B E< 9EDIKCFJ?ED CKIJ 8; 9EDIJ7DJ EL;H J?C; 7D  7D 9 IIKC?D=    J>;H; ?I CEH; :?I9EKDJ?D= ?D J>; I>EHJHKD J>7D ?D J>; BED=HKD /E I>EM J>7J 7D  7D THIJ DEJ; 7J 7D  7D ;D DEJ; J>7J ; THIJEH:;H 9ED:?J?EDI C7A?D=  7I DE ;\;9J ED 7D />KI M; D;;: EDBO JE I>EM J>7J H;:K9?D=  M?BB ?D9H;7I; 7D /EJ7B :?\;H;DJ?7J?ED E< J>; THIJEH:;H 9ED:?J?ED E< 7D =?L;I I 7D 87D  J 7D 87D J 7D 8 />;H;?9> ?CFB?;I J>7J 7D  7D ; 9B7?C ?9> 9EKB: 8; ICEA?D= 7D: J>; 7IIE9?7J;: D;=7J?L; ?DJ;HD7B?JO ED J>; ; D7?< >7I JE TD?I> D 7 FHE@;9J 8O :;7:B?D; - J :7J; H J>; KD:?I9EKDJ;: FHE@;9J 9EIJI  JE ?CFB;C;DJ 2>;D M?BB J>; D7?< :E J>; FHE@;9J 3098.32  !HEC J>; F;HIF;9J?L; E< :7J; H ?J ?I 7BM7OI 8;JJ;H ; D7?L; F;HIED JE FEIJFED; J>; FHE@;9J KDJ?B D;NJ :7J; H  I?D9; D D

      D

     D       #;D9; J>; D7?< M?BB DEJ KD:;HJ7A; J>; FHE@;9J KDJ?B :;7:B?D; - M?J> C7N?C7B * KD:?I9EKDJ;: 9EIJ 

; I7C; FHE@;9J 7I ?D FH;L?EKI ;N;H9?I; 8KJ DEM M?J> 7 IEF>?IJ?97J; 7 2>;D M?BB 7 IEF>?IJ?97J; :E J>; FHE@;9J ?< - ?I ;L;D 8 2>;D M?BB 7 IEF>?IJ?97J; :E J>; FHE@;9J ?< - ?I E:: 3098.32  />; IEF>?IJ?97J; >7I 9EDIJ7DJ :?I9EKDJ?D= M?J>    7D:    />; IEF>?IJ?97J; 79JI 799EH:?D= JE J>; FH;:?9J?EDI E< IK8=7C; F;HEEI; JE KD:;HJ7A; J>; FHE@;9J 8;; :;7:B?D; ?< * 

*       * * 

      *       M>?9> ?CFB?;I J>7J    +HE9;;:?D= 879AM7H: J>; IEF>?IJ?97J; M?BB 7BM7OI FH;; FHE@;9J ED; F;H?E: ;7HB?;H J>7D B7J;H 7D: IE M?BB KD:;H J7A; J>; FHE@;9J ?CC;:?7J;BO ?D F;H?E:  ?<    EDL;HI;BO J>; IEF>?IJ?97J; M?BB DEJ KD:;HJ7A; J>; FHE@;9J KDJ?B J>; :;7:B?D; - ?<   



EHI;  >EHI; (O A?D=:EC EHI;Y -?9>7H: $$$ I9;D; ?L $I J>?I 7D ;N7CFB; E< ;NJH;C; FH;I;DJ 8?7I 3098.32  3;I ?J ?I L;HO ;NJH;C; ;7LO I>EHJ J;HC :?I9EKDJ?D= 7JJ79>?D= 7BCEIJ DE L7BK; JE J>; ; 7J 7BB J>; :?I9EKDJ?D= J7A;I FB79; ?CC;:?7J;BO M; MEKB: >7L; >EHI;    A?D=:EC 7D: J>KI   >EHI; A?D=:EC M>;H;   ?I J>; 8;D;TJ ?I 7H=KC;DJ 7IIKC;I J>7J -?9>7H: $$$ MEKB: IJ?BB >7L; 7 A?D=:EC JE BEI; ?< >; :E;I DEJ =;J J>; >EHI;

 7D: FHE9H7IJ?D7J?ED 7HHEBB ;J 7B  ';J 7 D7?L; 9EDIKC;H >7L; :?I9EKDJ FH;7J    7?BO BEII ; I;7H9> 9EIJ 7D ?I IJE9>7IJ?9 7D: :H7MD ; EF J?C7B M7=; I9>;:KB; K 7D:  J>7J C7N?C?P;I ;NF;9J;: FHETJ L  K L

8 8 )EM 7IIKC; J>; MEHA;H EL;H;IJ?C7J;I J>; C7H=?D7B FHE:K9J?L?JO E< ;\EHJ IE J>7J :+ 9 G   9 2; I>EM J>7J J>; EL;H9EDT:;DJ MEHA;H C7O MEHA B;II J>7D ?< >; M7I DEJ EL;H9EDT:;DJ =?L;D J>; I7C; M7=; I9>;:KB; IIKC; J>; I7C; M7=; I9>;:KB; M?J> F?;9; H7J;  J J>; 9EHH;9J EFJ?CKC ;\EHJ M?J> DE EL;H9EDT:;D9; 7D: 9EHH;IFED:?D= EFJ?C7B M7=; H7J; J>; EL;H9EDT:;DJ MEHA;H C?IF;H9;?L;I >?CI;B< 7I MEHA?D= JEE >7H: 8;97KI; >; EL;H;IJ?C7J;I ;NF;9J;: EKJFKJ :+5 9 G  :5 9 G 8O 7 ; C7H=?D7B KJ?B?JO E< ;\EHJ I 7 H;IKBJ J>; EL;H9EDT:;DJ MEHA;H C7O 9KJ 879A ED ;\EHJ $D H;IFEDI; JE J>?I EL;H9EDT:;D9; J>; THC C7O :;9?:; JE ?D9H;7I; J>; M7=; H7J;  78EL; J>; EFJ?CKC H7J; JE ?D:K9; CEH; ;\EHJ 7D: FKI> 879A ;\EHJ JE J>; DEEL;H9EDT:;D9; B;L;B

; FH;L?EKI ;N;H9?I; M?J> : 9 G?D9H;7I?D= 7D: 9ED 6 5C  :5C  ?< 9 7D: G 7H; 97L; M?J> DEDP;HE 9HEII :;H?L7J?L;I :5C   5C 9ECFB;C;DJI 7D: :5C  ?< 9 7D: G 7H; IK8IJ?JKJ;I 7 ECFKJ; J>; EFJ?C7B ;\EHJ 9>E?9; 9ED:?J?ED7B ED J>; IA?BB B;L;B 8 )EM 7IIKC; J>; MEHA;H EL;H;IJ?C7J;I >;H IA?BB L7BK; 8O 7 7J :, 9 G  9 G  .>EM J>7J M>;J>;H 7 MEHA;H M>E ?I EL;H9EDT:;DJ ?D J>?I M7O M?BB 9KJ 879A ED MEHA EH J>; EFFEI?J; :;F;D:I ED M>;J>;H ;\EHJ 7D: IA?BB 7H; 9ECFB;C;DJ7HO 3098.32  7 !?N?D= IA?BB 7J 7DO =?L;D B;L;B J>; EFJ?C7B ;\EHJ 9>E?9; 9ED :?J?ED7B ED IA?BB ?I E8J7?D;: 7I ?D J>; FH;L?EKI ;N;H9?I; 2; M?BB DEJ H;FHE:K9; J>; IEBKJ?ED >;H; 8 )EM 7IIKC; J>7J EL;H9EDT:;DJ MEHA;HI F;H9;?L; J>7J J>;O 7H; CEH; IA?BB;: J>7D J>;O H;7BBO 7H; 2>;J>;H EL;H9EDT:;D9; B;7:I JE CEH; MEHA EH JEE B?JJB; MEHA :;F;D: ED M>;J>;H ;\EHJ 7D: IA?BB 7H; 9ECFB;C;DJ7HO $< ;\EHJ 7D: IA?BB 7H; 9ECFB;C;DJI :5C   7D: J>; 9EDJH79J F7OI 7 B7H=; 8EDKI ?=> EKJ FKJ >?=> M7=; H7J;  J>;D MEHA;HI M>E EL;H;IJ?C7J; J>;?H IA?BB G,  G 8O 7 ; C7H=?D7B H;JKHD JE ;\EHJ 7I >?=>;H J>7D ?J H;7BBO ?I EDI;GK;DJBO EL;H9EDT:;DJ MEHA;HI M?BB MEHA >7H:;H J>7D M>7J ?I EFJ?C7B />; EFFEI?J; 7FFB?;I M>;D IA?BB 7D: ;\EHJ 7H; IK8IJ?JKJ;I

?9> J>; 9ECF;J?JEHI >7L; JE F?9A EKJ J>; I?N FH;JJ?;IJ EJE=H7F>I J>; FH?P; 8;?D= 7M7H:;: JE J>; 9ECF;J?JEH M>EI; 9>E?9; CEIJ D;7HBO 9EHH;IFED:I JE J>; 7L;H7=; FH;; 9ECF;J?JEHI 7I 7 M>EB; IE J>7J ;79> 9ECF;J?JEH >7I JE F?9A DEJ J>EI; ?9> >; >?CI;B< TD:I FH;JJ?;IJ 8KJ J>EI; M>?9> >; J>?DAI B?A;B?;IJ JE 97J9> J>;

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

FEII?8BO JE  7D: IE CO 8;IJ =K;II ?D H;IFEDI; MEKB: 8; ED;>7B< E<  M>?9> ?I   9 $D J>?I =7C; J>;H; ?I DE :EC?D7DJ IJH7J;=O 8KJ J>;H; ?I 7 KD?GK; )7I> ;GK?B?8H?KC M>;D ;L;HO FB7O;H ?I H7J?ED7B 7D: ADEMI J>7J ;L;HO8E:O ;BI; ?I H7 J?ED7B IE J>7J ;79> FB7O;H ;NF;9JI ;L;HO EJ>;H JE 8;>7L; H7J?ED7BBO /E 9ECFKJ; J>; )7I> ;GK?B?8H?KC M; 97D FHE9;;: 8O IK99;II?L; ;B?C?D7J?ED E< M;7ABO :EC?D7J;: =K;II;I DO =K;II 78EL;  ?I ?HH7J?ED7B ?I 97DDEJ FEII?8BO 8; ED;>7B< E< J>; 7L;H7=; =K;II />;I; =K;II;I 97D H;7IED78BO 8; :?IH;=7H:;: 7D: ;B?C?D7J;: ;D DE FB7O;H ?I ;NF;9J;: JE =K;II 78EL;  7D: ED;>7B< E<  ?I  EDI;GK;DJBO 7DO =K;II



!  # 

78EL;  ?I 7BIE ?HH7J?ED7B 7D: I>EKB: 8; ;B?C?D7J;: />?I FHE9;II E< IK99;II?L; ;B?C?D7J?ED E< M;7ABO :EC?D7J;: =K;II;I 9EDJ?DK;I KDJ?B 7BB =K;II;I 78EL;  7H; ;B?C?D7J;:

7H; 8; JM;;D JME FB7O;HI +B7O;H  ?I J>; FHEFEI;H 7D: :;C7D:I L ?CI;B< +B7O;H  M>E ?I J>; H;IFED:;H 799;FJI EH H;@;9JI J>; :;C7D: $< J>; :;C7D: ?I 79 9;FJ;: J>; F7OE\I 7H; J  L 7D: FB7O;H WI F7OE\ ?I J  M  L  7 2>7J ?I J>; IK8=7C;F;H ;GK?B?8H?KC ?< 8EJ> FB7O;HI 7H; I;BTI> 8 2>7J MEKB: >7FF;D ?< 8EJ> FB7O;HI 7H; ; :;C7D: ?I 799;FJ;: +B7O;H  799;FJI J>; :;C7D: 7D: =;JI J  M  L EH H;@;9JI J>; :;C7D: 7D: =;JI J  J  $< 8EJ> FB7O;HI 7H; I;BTI> 8O 879AM7H: ?D:K9J?ED FB7O;H  799;FJI ;L;HO :;C7D: I?D9; H;@;9J?ED =?L;I >?C P;HE F7OE\ />;D FB7O;H  :;C7D:I L  M   M?J>   7I J>; 7H8?JH7H?BO IC7BB 7CEKDJ B; FB7O;HI 7H; ;D FB7O;H  MEKB: H;@;9J 7DO :;C7D: J>7J ?I JEE KD; F;H9;FJ?ED E< M>7J ?I 7 ;H; ?I 7BM7OI J>; FEII?8?B?JO E< 9EDU?9J?D= F;H9;FJ?ED E< WI ?D9EC;

7D: ?I 7 F7H7C;J;H H;FH;I;DJ?D= J>; EJ>;HH;=7H:?D= FH;7J L7BK;I E< ?I J>; ?D:?L?:K7B = I;BTI> 8 !EH M>7J L7BK;I E< ?I J>; ?D:?L?:K7B = 7D 7BJHK?IJ 9 !EH M>7J L7BK;I E< ?I J>; ?D:?L?:K7B = 7J L7BK;I E< ?I J>; ?D:?L?:K7B = ;DL?EKI 3098.32  7  I;BTI> F;HIED ?I ?D:?\;H;DJ 78EKJ J>; ?D9EC; E< J>; EJ>;H F;HIED IE  8 D 7BJHK?IJ?9 F;HIED ?I 8;JJ;H E\ M>;D J>; ?D9EC; E< J>; EJ>;H ?D9H;7I;I

IE  9  ; ?D9EC; E< J>; EJ>;H :;F;D:?D= ED J>; H;B7J?L; FEI?J?EDI  ?D9EC; M9 ?I 8;JJ;H E\ M>;D J>; ?D9EC; E< J>; EJ>;H F;HIED ?D9H;7I;I ?< J>?I F;HIED ?I FEEH;H IE  ;D J>; ?D9EC; E< J>; EJ>;H F;HIED :;9H;7I;I M>;D J>?I F;HIED ?I H?9>;H IE  ;D J>; ?D9EC; E< IEC;ED; ;BI; ;L;D 7 FEEH F;HIED ?D9H;7I;I IE 



 KJ?B?JO I9 M9  7D: I9 M:  .>EM J>7J 7DO :?L?I?ED E< 7D E8@;9J E< TN;: I?P; ?D M>?9> J>; H;IFED:;H =;JI DEJ>?D= M?BB 8; D;9;II7H?BO H;@;9J;: 8O J>; H;IFED:;H 3098.32  ';J J>; KJ?B?JO ; H;IFED:;H 8; I9 M9  M:  M?J> M: J>; :;C7D: 8O J>; FHEFEI;H 7D: M9 M>7J J>; H;IFED:;H E8J7?DI 7I 7 H;IKBJ DO 7BBE97J?ED ?D M>?9> J>; H;IFED:;H =;JI DEJ>?D= ?CFB?;I I9

 M:  7D: 8O J>; :;TD?J?ED E< ;DLO I9 M:  />;H;7J I9

 M:   I9

  7D: IE J>; H;IFED:;H IJH?9JBO FH;?9> I>; =;JI DEJ>?D= ;L;D ?< 7I 7 H;IKBJ 8EJ> =;J DEJ>?D= DJ?9?F7J?D= J>?I H;@;9J?ED J>; FHEFEI;H M?BB E\;H 7 CEH; ;GK7B :?L?I?ED J>7D M?J> FKH;BO I;BTI> FB7O;HI M>;H; J>; ;NF;9J;: EKJ9EC; ?I J>7J J>; FHEFEI;H =;JI 7BCEIJ ;L;HOJ>?D=

; KBJ?C7JKC =7C; M?J> I>H?DA ?D= 7CEKDJ JE 8; :?IJH?8KJ;: 8;JM;;D JME I;BTI> FB7O;HI />; 7CEKDJ JE 8; :?I JH?8KJ;: ?D IJ7=;  ?I  +B7O;H  :;C7D:I L 7D: FB7O;H  799;FJI EH H;@;9JI J>; :;C7D: $< FB7O;H  799;FJI >; H;9;?L;I   L  $< FB7O;H  H;@;9JI >; 97D C7A; 7 9EKDJ;H:;C7D: L 7D: FB7O;H  97D 799;FJ EH H;@;9J 8KJ J>;D J>; 7CEKDJ JE 8; :?IJH?8KJ;: ?I H;:K9;: JE   $< FB7O;H  799;FJI J>; 9EKDJ;H:;C7D: L >; H;9;?L;I  L  $< FB7O;H  H;@;9JI J>; 9EKDJ;H:;C7D: 8EJ> FB7O;HI H;9;?L; 7 ECFKJ; J>; IK8=7C;F;H ;GK?B?8H?KC 8 .>EM J>7J J>; ;GK?B?8H?KC :;C7D: 8O FB7O;H  ?I :;9H;7I?D= ?D NFB7?D 3098.32  7 +HE9;;:?D= 879AM7H: ?D IJ7=;  J>; C7N?C7B 9EKDJ;HE\;H

L  J>7J FB7O;H  97D C7A; ?D EH:;H JE C7A; FB7O;H  799;FJ ?I  L



 L   $D IJ7=;  7DJ?9?F7J?D= J>; ;GK?B?8H?KC 9EKDJ;HE\;H ?D IJ7=;  J>; C7N?C7B E\;H L  FB7O;H  97D C7A; ?D EH:;H JE C7A; FB7O;H  799;FJ ?I   L

 

L 

#;D9; J>; ;GK?B?8H?KC :;C7D: 8O FB7O;H  M>?9> ?I 799;FJ;: 8O FB7O;H  ?I L     8 />; ;GK?B?8H?KC :;C7D: 8O FB7O;H  ?I :;9H;7I?D= ?D />; H;7IED ?I J>7J J>; 9EKDJ;HE\;H J>7J FB7O;H  97D C7A; ?I ?D9H;7I?D= M?J>  M>?9> H;:K9;I J>; :;C7D: E< FB7O;H  ?D J>; THIJ IJ7=;



!  # 

; FH;L?EKI JMEIJ7=; KBJ?C7JKC =7C; M?J> I>H?DA?D= 7CEKDJ JE 8; :?IJH?8KJ;: 8KJ DEM 7IIKC; 7 B?D;7H CE:;B E< ;DLO M?J> KJ?B?JO E< FB7O;H = I9 M9  M:   M9  M: M?J> J>; ;DLO FH;; IK8=7C;F;H ;GK?B?8H?KC 8 .>EM J>7J J>; ;GK?B?8H?KC :;C7D: 8O FB7O;H  ?I :;9H;7I?D= ?D ?<    NFB7?D 9 .>EM J>7J KD7J ?I ?D ;GK?B?8H?KC L    L NFB7?D 3098.32  7 $D J>; B?D;7H CE:;B E< ;DLO J>; KJ?B?JO E< FB7O;H = ?I I9 M9  M:   M9  M:  M?J> J>; ;DLO F7H7C;J;H   2; IEBL; J>; JMEIJ7=; KBJ?C7JKC =7C; 8O FHE9;;:?D= 879AM7H: $D IJ7=;  FB7O;H  C7A;I 7 :;C7D: L C7N?C?P?D= >?I EMD KJ?B?JO I L   L  IK8@;9J JE FB7O;H  799;FJ?D= />?I ?CFB?;I I  L  L    L  L   #;D9;

   $D IJ7=;  FB7O;H  M?BB C7A; 7 :;C7D: L C7N?C?P?D= >?I EMD KJ?B?JO 7D: J>7J 97D 8; 799;FJ;: 8O FB7O;H  />; C7N?C7B :;C7D: J>7J FB7O;H  M?BB 799;FJ ?I IK9> J>7J I>; ?I ?D:?\;H;DJ JE H;@;9J?D= J>7J E\;H JE C7A; J>; 9EKDJ;HE\;H ?D IJ7=;  />?I ?CFB?;I L   L 

I   L  L 

 

  L  L

        

/>; IEBKJ?ED ?I

        #;D9; J>; IK8=7C; F;H; 9EKDJ;HE\;H J>7D M?J> J>; ?D?J?7B E\;H L    L  !HEC J>; ;GK?B?8H?KC 9ED:?J?EDI J>?I ?CFB?;I L 

 



           



    





 D KD   8;97KI; :;B7O?D= 7=H;;C;DJ JE J>; I;9ED: IJ7=; H;:K9;I J>; 7CEKDJ JE 8; :?L?:;: 8O 7 ; IJ7JKI E< 8;>7L?EH7B CE:;BI 3098.32  ;>7L?EH7B CE:;BI CE:?; H7J?ED7B 9>E?9; CE:;B JE 799EKDJ EBE=?97B FHEF;HJ?;I E< FH;7J 9H;7J; B?C?JI ED H7J?ED7B 97B9KB7J?ED J>; 97F79?JO JE 79J 799EH:?D= JE FB7DI 7D: I;BTI>D;II />; CE:?T;: J>;EHO 7?CI 7J FHEL?:?D= F7HI?CED?EKI 7D: FIO9>EBE=?97BBO IEKD: ;NFB7D7J?EDI ; FHE8B;C E< J>; 8; >7L?EH7B CE:;BI ?I J>7J J>;O E\;H C7DO 9ECF;J?D= ;NFB7D7J?EDI ; I7C; ;CF?H?97B :;L?7J?ED ; H7J?ED7B 9>E?9; FH;:?9J?ED ;F;D:?D= ED J>; CE:;B J>7J ?I 9>EI;D M; 97D =;J :?\;H;DJ FEB?9O H;9ECC;D:7J?EDI BIE J>; M;B;H M>;D 9>E?9;I F;EFB; C7A; H;L;7B J>;?H C?IJ7A;I H7J>;H J>7D J>;?H JHK; FH;; ;9EDEC?9 9EDI;GK;D9;I E< J>;I; ?D:?H;9J ;\;9JI 97D EDBO 8; 7II;II;: 8O 9EDJH7IJ?D= J>; ;9EDEC?9 EKJ9EC; ?D J>;?H FH;I;D9; JE M>7J J>; EKJ9EC; MEKB: 8; ?< J>;O M;H; 78I;DJ

7J J>; =HEMJ> E< ;NF;D:?JKH; >7I DEM 9;7I;: 3098.32  />; :7J7 IK==;IJ J>7J J>; =HEMJ> E< ;NF;D:?JKH; >7I 9;7I;: )EHJ> C;H?97D 7D: )EHJ>;HD KHEF;7D ;9EDEC?;I >7L; DEJ >7: 7DO 7FFH; 9?78B; =HEMJ> ?I ?I ?BBKIJH7J?L; E< 9EDL;H=;D9; JE 7 I?C?B7H C?N;:;9EDECO IEBKJ?ED />?I 97D 8; ;NFB7?D;: 8O FEB?J?97B FH;IIKH; FH;L;DJ?D= J7N ?D9H;7I;I 7D: J>; EB: ED ?D9H;7I;: 8EHHEM?D= +EB?J?97B F7HJ?;I J>7J FHEC?I; >?=>;H J7N;I 7H; DEJ B?A;BO JE 8; IK9 9;II J>; 0D?J;: &?D=:EC 7D: J>; 0D?J;: .J7J;I >7: =EL;HDC;DJI J>7J 7?C;: JE 9KJ ;NF;D:?JKH; 7D: H;:K9; J>; HEB; E< =EL;HDC;DJ ?: J>;O IK99;;: EKB: 7DO =EL;HDC;DJ DEM 9KJ ;NF;D:?JKH; 3098.32  />; ;L?:;D9; IK==;IJI J>7J J>;O :?: DEJ IK99;;: ?D 9KJJ?D= ;N F;D:?JKH; Z =EL;HDC;DJ ;NF;D:?JKH; 7I 7 FHEFEHJ?ED E< D7J?ED7B ?D9EC; M7I 7FFHEN?C7J;BO J>; I7C; 7J J>; ;D: E< J>; I 7I ?J M7I 7J J>; IJ7HJ />?I ?I 9B;7HBO I;;D ?D T=KH;   #EM;L;H ?J 97D 8; 7H=K;: J>7J J>;O IK99;;:;: ?D IJEFF?D= ;H ;NF;D:?JKH; =HEMJ> 2>7J :?: 9>7D=; M7I J>; 9ECFEI?J?ED E< ;NF;D:?JKH; M;B7H: ?D J>; F7IJ JE 9KJ ;NF;D:?JKH; 7D: ?J ?I KDB?A;BO J>7J 7DO =EL ;HDC;DJ 9EKB: DEM :E IE />; ?CFEHJ7D9; E< M;B; 8K:=;J



!  " ! !! !

C7A; ?J FEB?J?97BBO :?[9KBJ JE 79>?;L; 7 H;:K9J?ED M?J>EKJ 97KI?D= M?:;IFH;7: FHEJ;IJ J>?I FE?DJ 97D 8; B?DA;: JE J>; ;9EDEC?9I E< H;DJI;;A?D= 9EL;H;: ?D 9>7FJ;H  *D; TD7B FE?DJ ;NF;D:?JKH; C7O DEJ 8; H?I?D= 8KJ 7D 7H=KC;DJ 97D 8; C7:; J>7J J>; =HEMJ> ?D B;=?IB7J?ED 7D: H;=KB7J?ED 9EDJ?DK;I JE ?D9H;7I; J>; HEB; J>7J J>; =EL;HDC;DJ >7I ?D J>; ;9EDECO

; :?[9KBJO ?I J>7J J>; 9B7II?T97J?ED E< ;NF;D:?JKH;I ?DJE J>;I; JME 97J;=EH?;I ?I DEJ 9B;7H9KJ !EH ;N7CFB; KD;CFBEOC;DJ 8;D;TJ C7O 8; 7 F7OC;DJ JE 9EC87J J>; 9EDI;GK;D9;I E< C7HA;J ?I E99KHI M>;D ?DLEBKDJ7HO KD;CFBEOC;DJ ;N?IJI 8;97KI; E< ; B78EH C7HA;J BJ;HD7J?L;BO ?< KD;CFBEOC;DJ ?I :K; JE B79A E< 78?B?JO C7A?D= IEC; MEHA;HI KD;CFBEO78B; J>;D J>; 8;D;TJ ?I 7D ;NF;D:?JKH; ; EB: 0D:;H 7DEJ>;H ?DJ;HFH;J7J?ED J>; EB: H;GK?H; 7 F;DI?ED 8;97KI; C7HA;J 7I 97KI;: J>;C JE I7L; JEE B?JJB; ; = ?D 7D: ;:K97J?ED 7H; H;:?IJH?8KJ?L; $D  ?D J>; 0D?J;: .J7J;I  F;H9;DJ E< ;NF;D:?JKH; M7I ED J>;I; ?J;CI IE 799;FJ?D= J>; ?DJ;HFH;J7J?ED H;:?IJH?8KJ?L; ;NF;D:?JKH;I M;H; =H;7J;H J>7D ;NF;D:?JKH;I ED C7HA;J ; XF;DI?EDI 9H?I?IY #EM 97D J>?I 8; IEBL;: 3098.32  />; F;DI?EDI 9H?I?I H;; ?D78?B?JO E< C7DO 2;IJ;HD =EL ;HDC;DJI JE 9EDJ?DK; FHEL?:?D= IJ7J; F;DI?EDI 7J J>; 9KHH;DJ B;L;B $J ?I 97KI;: 8O J>; ?D9H;7I; ?D J>; DKC8;H E< H;J?H;: F;EFB; H;B7J?L; JE J>; DKC8;H E< MEHA;HI />?I ?D9H;7I; ?I :K; JE H?I?D= BED=;L?JO 7D: 7 H7J; />; JME I?C FB;IJ IEBKJ?EDI 7H; JE H;:K9; J>;I; IEBKJ?EDI 7H; FEB?J?97BBO KDFEFKB7H D 7BJ;HD7J?L; IEBKJ?ED ?I JE CEL; 7M7O HEK=> J>; ;D9EKH7=;C;DJ E< FH?L7J; F;DI?EDI />?I ?I DEJ M?J>EKJ 7 9EIJ I?D9; ?J ?CFEI;I 7D 7::?J?ED7B 8KH:;D ED J>; 9KHH;DJ =;D;H7J?ED M>E CKIJ TD7D9; J>; F;DI?EDI E< J>; 9KHH;DJ H;J?H;: 7D: I7L; ;?H EMD F;DI?EDI  ;H FEB?9O EFJ?ED ?I JE H7?I; J>; DKC8;HI E< MEHA;HI J>HEK=> J>; ;D9EKH7=;C;DJ E< ?CC?=H7J?ED

EMI J>7J J7N7J?ED ?I 7 IC7BB;H FHEFEHJ?ED E< =HEII :EC;IJ?9 FHE:K9J J>7D ;NF;D:?JKH; #EM 97D J>?I 8; IE

 3098.32  />; =EL;HDC;DJ 8K:=;J 9EDIJH7?DJ H;GK?H;I ;NF;D:?JKH; JE 8; ;GK7B JE =EL;HDC;DJ H;L;DK; FBKI =EL;HDC;DJ 8EHHEM?D= NF;D:?JKH; 97D ;N 9;;: H;L;DK; ?< 8EHHEM?D= ?I FEI?J?L; (EIJ =EL;HDC;DJI 7H; >?=>BO ?D:;8J;: 7D: ;H J>7D M;7BJ> 3098.32  />?I GK;IJ?ED FH;L?;MI 7 JEF?9 J>7J 7H?I;I H;F;7J;:BO ?D J>; 8EEA />; 7DIM;H H;LEBL;I 7HEKD: J>; ?IIK; E< ?D7J J>; =EL;HDC;DJ 97D E8I;HL; M?J>EKJ :?[9KBJO E< J>; FEFKB7J?ED $D F7HJ?9 KB7H J>; =EL;HDC;DJ 97D H;BO ED ;CFBEO;HI JE H;FEHJ ?D; ?D9EC;I E< J>; I;B<;CFBEO;:

8KJ 7K:?J?D= 8O J>; H;L;DK; I;HL?9; 97D FHEL?:; ?D9;DJ?L;I ?I 7 IJE9A J>7J ?I >;B: ?D 7 M?:; L7H?;JO E< :?L;HI; 7I 87DA :;FEI?JI 7D: I>7H; >EB:?D=I *J>;H 7I >EKI?D= 97D 8; L7BK;: 8KJ M?J> 7 =H;7J;H :;=H;; E< KD9;HJ7?DJO />;H; 7H; ;H 7I MEHAI E< 7HJ 7D: @;M;BHO

J>7J 7H; ;L;D CEH; :?[9KBJ JE L7BK; !KHJ>;HCEH; C7DO E< J>; DEDTD7D9?7B 97D 8; ;7I?BO >?::;D ; H;L;DK; I;HL?9; />?I ?DJHE:K9;I J>; JME ?D; J7N7J?ED E< M;7BJ> L7BK7J?ED 7D: :?I9EL ;HO L;D ?< M;7BJ> 9EKB: 8; C;7IKH;: J>;H; ?I 7 ;H FHE8B;C ?D J7N7J?ED />;H; ?I DE =K7H7DJ;; J>7J J>EI; M>E >EB: M;7BJ> >7L; B?GK?: 7II;JI M?J> M>?9> JE F7O 7 J7N 8?BB !EH ;N7CFB; 7 H;J?H;: F;HIED B?L?D= ?D 7 B7H=; >EKI; C7O >7L; IK8IJ7DJ?7B ?BB?GK?: M;7BJ> 8KJ B?JJB; B?GK?: M;7BJ> !EH9?D= J>; I7B; E< J>; >EKI; JE TD7D9; J>; J7N 8?BB MEKB: H7?I; J>; 9EIJI ?CFEI;: 8O J>; J7N

7J ;NFB7?DI J>; B?C?J;: H;L;DK; ;H; 7H; I;L;H7B H;7IEDI M>O FHEF;HJO ?I 7 =EE: J7H=;J ?F ;IJ78B?I>;: />?I C7A;I ;L7I?ED :?[9KBJ $J ?I 7BIE 9EIJBO JE 9>7D=; FHEF;HJO EMD;HI>?F IE XEMD;HI>?FY ?I ?D;B7IJ?9 M?J> H;IF;9J JE 9>7D=;I ?D J7N7J?ED  J7N ED FHEF;HJO I>EKB: B;7: JE B?C?J;: J7N?D:K9;: :?IJEHJ?EDI CED= J>; H;7IEDI M>O H;L;DK; 7J EMD;HI>?F E< FHEF;HJO 97D H;U;9J F7IJ ?D9EC; 7D: DEJ 9KHH;DJ ?D9EC; BJ>EK=> 7II;JH?9> J>; EMD;HI E< FHEF;HJO C7O >7L; B?C?J;: 78?B?JO JE F7O J7N M?J>EKJ >7L?D= JE I;BB J>; 7II;J />?I MEKB: H7?I; J>; ;9EDEC?9 9EIJ E< J>; J7N !KHJ>;HCEH; FHEF;HJO J7N;I 7H; KIK7BBO B;L?;: 8O BE97B =EL;HDC;DJI J>7J >7L; B?C?J7J?EDI FB79;: ED J>;?H H;L;DK;H7?I?D= FEM;HI 8O 9;DJH7B =EL;HDC;DJ

EKB: IE9?7B I;9KH?JO J7N;I 8; L?;M;: 7I 7 I;9ED: 9ECFED;DJ E< ?D9EC; J7N7J?ED



!  " ! !! !

3098.32  $D FH?D9?FB; IE9?7B I;9KH?JO J7N;I 7H; 9EBB;9J;: JE ;7BJ> 7D: F;DI?EDI />; IE9?7B I;9KH?JO I9>;C; 79JI B?A; 7D ?DIKH7D9; FEB?9O 0D;CFBEOC;DJ 7D: ?BB>;7BJ> 7H; ;L;DJI J>7J IJH?A; C;C8;HI E< J>; FEFKB7J?ED M?J> 7 :;=H;; E< H7D:ECD;II 7D: IE9?7B I;9KH?JO FHEL?:;I ?DIKH7D9; 9EL;H 7=7?DIJ J>; H;:K9J?ED ?D ?D9EC; J>;O 97KI; +;DI?EDI 7H; :?\;H;DJ ?D J>; ?CFEHJ7DJ H;IF;9J J>7J EB: 7=; ?I ?D;L?J78B; #EM;L;H M>7J ?I H7D:EC ?I J>; B;D=J> E< B??I EKJ9EC; />?I ?DIKH7D9; IJEHO C7O :?IJ?D=K?I> IE9?7B I;9KH?JO J7N;I ; IJ7D:7H: ?D9EC; J7N 8KJ ;H; CKIJ 8; IEC; B?DA 8;JM;;D J>; IE9?7B I;9KH?JO J7N;I F7?: 7D: J>; ?DIKH7D9; 9EL;H H;9;?L;: #?=> J7N;I I>EKB: FHEL?:; ?D9H;7I;: F7OC;DJI ?< 7 9B7?C ?I C7:; $< J>?I ?I DEJ J>; 97I; J>;D J>;H; ?I DE :?IJ?D9J?ED 8;JM;;D IE9?7B I;9KH?JO J7N;I 7D: ?D9EC; J7N;I 8EJ> H;CEL; ?D9EC; ; J7NF7O;H 7D: B;7: JE DE :?IJ?D=K?I>;: 8;D;TJI

;J>;H J>;H; ?I 7 B?C?J JE J>; I?P; E< J>; FK8B?9 I;9JEH *D; M7O JE J>?DA 78EKJ J>?I ?I JE 9EDI?:;H J>; '7\;H 9KHL; />?I 9KHL; =H7F>I J>; 7CEKDJ E< =EL;HDC;DJ H;L;DK; 7I 7 ; J7N H7J;  B?C?J JE J>; I?P; E< =EL;HDC;DJ M?BB 8; H;U;9J;: ?D J>?I 9KHL; THIJ ?D9H;7I?D= H;79>?D= 7 C7N?CKC 7D: J>;D :;9H;7I?D= />; C7N?CKC H;FH;I;DJI J>; B7H=;IJ I?P; E< =EL;HDC;DJ J>7J 97D 8; IKIJ7?D;: EDI?:;H 7 9EDIKC;H M?J> FH;;H; L ?I 9EDIKCFJ?ED 7D: 4 ?I B78EH IKFFBO ';J J>; 8K:=;J 9EDIJH7?DJ 8; L    H4 M>;H; H ?I J>; J7N H7J; 7 !?D: J>; B78EH IKFFBO E< J>; 9EDIKC;H 8O ;B?C?D7J?D= L ; KJ?B?JO ; IEBKJ?ED ; ; 7L; 7DO ;9EDEC?9 ?CFB?97J?EDI 3098.32  $D 7 I?JK7J?ED E< 9ECFB;J; ?D 8;D;LEB;DJ :;9?I?ED C7A;HI ?J MEKB: DEJ C7A; 7DO :?\;H;D9; />; I7C; :;9?I?EDI MEKB: 8; C7:; DE C7JJ;H M>7J J>; 7BBE97J?ED E< H;IFEDI?8?B?J?;I -;CEL; ;?J>;H E< J>;I; 7IIKCF J?EDI 7D: ?J M?BB C7A; 7 :?\;H;D9; #?=>;H B;L;BI E< =EL;HDC;DJ 7H; ;H ;H B;L;B ?J C7O 8; J7A;D ?D ?=DEH7D9; E< BE97B L?;MI BJ;HD7J?L;BO ?< 7 9>E?9; ?I C7:; 7J 7 BEM;H B;L;B ?J C7O DEJ J7A; ?DJE 799EKDJ J>; D7J?ED7B F;HIF;9J?L; $< :;9?I?ED C7A;HI 7H; DEJ 8;D;LEB;DJ J>;D ?J 97D 8; 7H=K;: J>7J J>EI; 7J 7 >?=>;H B;L;B 7H; ?D 7 8;JJ;H FEI?J?ED JE ;NJH79J H;DJI B;7:?D= JE =H;7J;H :?IJEHJ?ED ?D J>; :;9?I?ED FHE9;II

; 0 IJHK9JKH; ; F;HIF;9 J?L; E< J>; :?L?I?ED E< J7N 9EBB;9J?ED 3098.32  />; KHEF;7D 0D?ED ?I 9ECFEI;: E< ?D:?L?:K7B C;C8;H IJ7J;I J>7J 9EBB;9J J7N H;L;DK; 7D: 7 9;DJH7B 7KJ>EH?JO J>; ECC?II?ED J>7J B7OI 9B7?C JE 7 FHEFEHJ?ED E< J>; J7N H;L;DK;I />; 9;DJH7B 7KJ>EH?JO :E;I DEJ I;J J7N H7J;I 8KJ FB79;I B?C?JI ED J>; H7J;I E< IEC; E< J>; J7N ?DIJHKC;DJI ; =

1/ 7D: CED?JEHI 9ED:K9J ?D I;JJ?D= EJ>;H H7J;I J>; 9EHFEH7J?ED J7N $J KI;I J>; ; ECC?II?ED />; HEB; E< J>; B?C?JI ED J>; J7N H7J;I ?I JE H;:K9; J>; ;NJ;DJ E< 9ECF;J?J?ED 7CED= C;C8;H IJ7J;I ?D I;JJ?D= J7N;I 7D ?IIK; M; :?I9KII ?D 9>7FJ;H  />?I ?I D;9;II7HO 8;97KI; ;79> C;C8;H IJ7J; 97D 8;D;TJ 8O XIJ;7B?D=Y F7HJ E< J>; J7N 87I; E< 7DEJ>;H C;C8;H IJ7J; !EH ;N7CFB; J>; BEM H7J; E< :KJO ED 8;;H ?D !H7D9; ?D:K9;I 0& 9EDIKC;HI JE JH7L;B JE !H7D9; JE C7A; FKH9>7I;I />?I H7?I;I H;L;DK; ?D !H7D9; 7D: H;:K9;I ?J ?D J>; 0D?J;: &?D=:EC />?I D;;:I JE 8; 9EDJHEBB;: 8;97KI; 7==H;=7J; H;L;DK; MEKB: ; 9EBB;9J?ED E< J7N;I ED 9EDIKCFJ?ED 1/ ?D J>; K HEF;7D 0D?ED I7B;I J7N ?D J>; 0D?J;: .J7J;I 8; 9;DJH7B?P;: 3098.32  />; EH=7D?P7J?ED E< 9EBB;9J?ED ?I B;II H;B;L7DJ J>7D J>; HKB; =EL ;HD?D= J>; I;JJ?D= E< J7N;I  A;O E8@;9J?L; M>;D J7N H7J;I 7H; I;J ?I J>; 7LE?: 7D9; E< KDD;9;II7HO :?IJEHJ?EDI JE ;9EDEC?9 79J?L?JO J>7J 97KI; :;7:M;?=>J BEII *D; IEKH9; E< :?IJEHJ?EDI ?I 9EDIKCFJ?ED J7N;I J>7J :?\;H 79HEII H;=?EDI M?J>?D 7 9EKDJHO EH I?D=B; C7HA;J /7N :?\;H;DJ?7BI M?BB =?L; 9EDIKC;HI 7D ?D9;DJ?L;

 JE FKH9>7I; ?D J>; BEM J7N H;=?ED />?I 97D ?DLEBL; M7IJ;;D 9EDIKC;HI ;D=7=; ?D 9HEII8EH:;H I>EFF?D= $J 97D 7BIE :?IJEHJ J>; BE97J?ED :;9?I?EDI E< THCI J>7J C?=>J TD: ?J 7:L7DJ7=;EKI JE BE97J; 7D: IKFFBO ; BEMJ7N H;=?ED />;H; ?I 7DEJ>;H ?IIK; J>7J >7I 7H?I;D ; KHEF;7D 0D?ED />; KHEF;7D 0D?ED EF;H7J;I 7 1/ IOIJ;C 8O M>?9> ;N FEHJI 7H; J7N ;D J>;O 9HEII 8EH:;HI />?I 9H;7J;I J>; I?JK7J?ED M>;H;8O B7H=; 7CEKDJI E< 1/ 7H; F7?: JE 7 C;C8;H IJ7J; 8KJ 97D 8; H;9B7?C;: 7I J>; =EE: ?I H;;NFEHJ;: X7HEKI;B 7I 8;;D ;NFBE?J;: 8O THCI H;9B7?C?D= J>; 1/ 7; 1/ ED ?CFEHJ ;DJH7B 9EBB;9J?ED E< 1/ H;L;DK; ?D J>; KHEF;7D 0D?ED 7BED=I?:; 7 9ECCED 1/ IOIJ;C MEKB: ;B?C?D7J; J>?I ; :EMDI?:; ?I J>7J ?J MEKB: H;CEL; J>; ?D 8EKD:I J>7J C;C8;H IJ7J;I >7L; ?D 9>EEI?D= J>; H7J; E< 1/ />; 0D?J;: .J7J;I EF;H7J;I 7 I7B;I J7N IOIJ;C IE J>?I ; B78EH C7HA;J 7D: C7O >7L; H;F;H9KII?EDI ED EJ>;H C7HA;JI />; ;NJ;DJ E< J>?I ?DJ;HL;DJ?ED 97D 8; ;L7BK7J;: ?D TD7D9?7B J;HCI 7I 7J J>;H; ?I DE C?D?CKC M7=; B7M 7D: TD: J>; ;GK?B?8H?KC E< J>; ;9EDECO 7B9KB7J; >EM CK9> ?D9EC; CKIJ 8; =?L;D JE ;79> 9EDIKC;H EH J7A;D ; FEI?J?ED J>;O 7H; ?D 7J J>; ;GK?B?8H?KC M?J> J>; C?D?CKC M7=; />; JEJ7B D;J L7BK; E< J>;I; ?D9EC; JH7DI; ;GK?L7B;DJ ?D IF;D:?D= JE J>; C?D?CKC M7=; B7M

?9> ?I J>; 97I; 3098.32  />; &;OD;I?7D F;HIF;9J?L; ED C79HE;9EDEC?9I ?I J>7J FK8B?9 ;NF;D:?JKH; :;J;HC?D;I D7J?ED7B ?D9EC; />; C;9>7D?IC ?I J>7J =EL;HDC;DJ ;NF;D:?JKH; 8;9EC;I ?D9EC; 7D: ?I J>;D IF;DJ 7=7?D />?I ;\;9J CKBJ?FB?;I J>; ;\;9JI E< J>; EH?=?D7B ;NF;D:?JKH; D 7BJ;HD7J?L; L?;M IKCC7H?P;: ?D 27=D;HWI B7M ?I J>7J D7J?ED7B ?D9EC; 9H;7J;I 7 :;C7D: ;H ?JI FEFKB7J?ED :;C7D:I J>; =EE:I ; = >;7BJ> 7D: ;:K97J?ED FHEL?:;: 8O J>; =EL;HDC;DJ />;I; JME FHE9;II;I >7L; EFFEI?J; :?H;9J?EDI E< 97KI7B?JO ?IJ?D=K?I>?D= 8;JM;;D J>;C ?I 7 :?[9KBJ J7IA I?D9; ;9EDEC;JH?9 J;IJ?D= 97DDEJ ?IEB7J; 97KI7B?JO ?D J>?I I;DI; />;H; 7H; 97KI7B?JO J;IJI ?D ;9EDEC;JH?9I 8KJ J>;I; H;B7J; JE 7 IJ7J?IJ?97B :;TD?J?ED E< 97KI7B?JO

M>?9> ?I DEJ J>; I7C; 7I DEHC7B 97KI7B?JO />;I; J;IJI I>EKB: DEJ 8; 7FFB?;: JE 7::H;II J>?I GK;IJ?ED *D; FEII?8B; C;J>E: JE J;IJ 9EKB: 8; J>; KI; E< ;L;DJ IJK:?;I Z BEEA?D= 7J 7D E997I?ED M>;D D7J?ED7B ?D9EC; HEI; KD;NF;9J;:BO 7D: J;IJ?D= M>;J>;H ?J B;7:I JE 7D ?D9H;7I; ?D FK8B?9 ;NF;D:?JKH;



!  " ! !! !

; L7BK; E< =HEII :EC;IJ?9 FHE:K9J ; J78B; $< FK8B?9 ;NF;D:?JKH; ?I 8?B M>7J 7H; J>; B7H=;IJ 7D: IC7BB;IJ FHEFEHJ?ED7B C;7IKH;I E< J>; FK8B?9 I;9JEH E;I J>; :?\;H;D9; C7JJ;H (;7IKH; 17BK;8?B

!79JEH +H?9;I  

(7HA;J +H?9;I  

EC;IJ?9 +HE:K9J  

)7J?ED7B +HE:K9J  

3098.32  />; B7H=;IJ FHEFEHJ?ED ?I     

 

7D: J>; IC7BB;IJ

       2>;J>;H J>?I :?\;H;D9; C7JJ;HI :;F;D:I ED J>; KI; E< J>; :7J7 !EH 7D7BOJ?97B FKHFEI;I ; = 97B9KB7J?D= =HEMJ> ?D FHEFEHJ?ED7B ;NF;D:?JKH; ?J :E;I DEJ C7J J;H FHEL?:;: J>7J J>; I7C; :;TD?J?ED ?I KI;: 9EDI?IJ;DJBO />; EDBO B?C?J7J?ED JE J>?I 9B7?C ?I ?< J>;H; ?I 7 IJHK9JKH7B I>?; L7BK; E< ED; C;7IKH; E< D7 J?ED7B ?D9EC; H;B7J?L; JE 7DEJ>;H 2>;H; J>; :;TD?J?ED 97D C7JJ;H ?I ?D L7BK; @K:=C;DJI IK9> 7I ED M>;J>;H J>; FK8B?9 I;9JEH ?I XJEE 8?= Y KJ ?D IK9> 97I;I J>; ;DJ?H; ;L7BK7J?ED ?I IK8@;9J?L; IE FH;9?I; :7J7 7H; DEJ J>; THIJ 9EDI?:;H7J?ED

;H; ?I =EE: ;L?:;D9; J>7J CK9> ;9EDEC?9 79J?L?JO ?I KD H;9EH:;: ?D E[9?7B IJ7J?IJ?9I />?I X>?::;D ;9EDECOY ?D9BK:;I B;=7B 79J?L?J?;I J>7J 7H; DEJ H;FEHJ;: JE J>; 7KJ>EH?J?;I ?D EH:;H EKB: E[9?7B IJ7J?IJ?9I ?=DEH; J>; >?::;D ;9EDECO M>?9> ?I J>; 9KH H;DJ FH79J?9; EH C7A; 7D ;\EHJ JE ?D9EHFEH7J; 7D ;IJ?C7J;: L7BK; ?D D7J?ED7B 799EKDJI 3098.32  )7J?ED7B ?D9EC; 799EKDJI 7H; FHE:K9;: JE 7 I;J E< ?DJ;HD7J?ED 7BBO 7=H;;: 9EDL;DJ?EDI J>7J :;I9H?8; J>; ;B;C;DJI J>7J 7H; JE 8; ?D9BK:;: $< ?J ?I :;J;HC?D;: J>7J ?BB;=7B 79J?L?J?;I 7H; DEJ JE 8; C;7IKH;: J>;D J>; 7H=KC;DJ ;?H ;N9BKI?ED ?I ;7IO JE IKIJ7?D #?::;D 79J?L?JO ; 79J?L?JO M;H; :;9B7H;: ?J MEKB: 8; ?D9BK:;: 2>7J FHE878BO C7JJ;HI CEIJ 7H; J>; 9EDI;GK;D9;I E< DEJ ?D9BK:?D= 7DO ;IJ? C7J; *D; F;HIF;9J?L; ?I J>7J 7I BED= 7I J>; I7C; HKB;I 7H; C7?DJ7?D;: EL;H J?C; J>; F?9JKH; =?L;D 8O J>; 799EKDJI I>EKB: DEJ 8; JEE C?IB;7:?D= />7J ?I ?< >?::;D 79J?L?JO =HEMI 7J J>; I7C; H7J; 7I J>; E8I;HL;: ;9EDECO J>;D C;7IKH;I E< =HEMJ> ;J9 M?BB DEJ 8; :?IJEHJ;: 8O E8I;HL?D= EDBO F7HJ E< JEJ7B 79J?L?JO />?I ?I JHK; 7I BED= 7I >?::;D 79J?L?JO ?I ;GK7BBO 9ECCED ?D 7BB I;9JEHI $< ?J ?I DEJ J>;D FEB?9?;I C7O 8; ?CFB;C;DJ;: J>7J :?I9H?C?D7J; 79HEII I;9JEHI ; =

 FHEL?:?D= IKFFEHJ H?L?D= I;9JEH J>7J 7H; @KIJ?T;: ED J>; 87I?I E< FK8B?I>;: 799EKDJI 8KJ DEJ @KIJ?T;: ED J>; JHK; C;7IKH;: FBKI >?::;D 79J?L?JO

-&48*6

!-*36.*7 3+ 8-* 9'0.( *(836  DE HKB;I $I ?J ;L;H FEII?8B; JE >7L; DE HKB;I 3098.32  /H7:; 9EKB: E99KH ?< J>;H; ?I 7 87B7D9; E< 7J FH;L;DJI KDM7HH7DJ;: 7FFHEFH?7J?ED 8O ED; F7HJO />; =7?DI ; ;NF;9J;: 8;D;TJ E< J>;; ;NF;9J7J?ED E< J>; =7?D B;II J>; ;NF;9J7J?ED E< IK\;H?D= ; KI; E< ; EJ>;H F7HJO #EM;L;H ?J ?I >7H: JE ?C7=?D; J>;H; 8;?D= DE HKB;I -KB;I D;;: DEJ 8; ;NFB?9?J EH :E9KC;DJ;: 8KJ 97D 8; IE9?7B 9EDL;DJ?EDI M>?9> 7H; ?CFB?9?JBO KD:;HIJEE: 8O J>; JH7:; F7HJ?9?F7DJI

EKHI 9 +H;L;DJ ?DLEBKDJ7HO EL;HJ?C; 3098.32  7 3;I 7 C?D?C7B IJ7J; MEKB: ;DIKH; J>7J 7BB 9EDJH79JI ?D9BK:?D= J>; M7=; 7=H;;C;DJI 8;JM;;D 9EDJH79J?D= F7HJ?;I 7H; ;D;H;; DKC8;H E< MEHA?D= >EKHI M7I :;J;HC?D;: 8O 7=H;;C;DJ 8;JM;;D 7 THC 7D: ?JI MEHA;HI J>; C?D?C7B IJ7J; MEKB: DEJ ?DJ;HL;D; 9 3;I />; MEH: ?DLEBKDJ7HO ?CFB?;I J>7J J>; MEHA;H >7I DEJ M?BB?D=BO 9EDJH79J;: JE MEHA EL;HJ?C; />; THC ?CFEI?D= EL;HJ?C; :E;I IE ?D 8H;79> E< 7 9EDJH79J IE J>; C?D?C7B IJ7J; M?BB FH;L;DJ J>; EL;HJ?C;

?;L;: ?7J J>; FHETJ B;L;B E< 7 THC M?BB 8; D;NJ O;7H 8 *D; 7=;DJ :E;I ADEM M>7J J>; FHETJ B;L;B M?BB 8; 3098.32  9EDEC?9 ;[9?;D9O ?I 7JJ7?D;: ?< JH7:?D= J7A;I FB79; ED ;GK7B J;HCI $< ED; ;9EDEC?9 7=;DJ >7I 7D ?D;HI J>;D J>?I 9ED:?J?ED ?I DEJ I7J?IT;: />; 7=;DJ M?J> 8;JJ;H ?D?I ?I H;7J J>; FHETJ B;L;B M?BB 8; ?J ?I IJ?BB FEII?8B; 7L; 8;JJ;H ?CF;H;HI $D J>?I B7JJ;H 97I; J>;H; ?I 7D 7IOCC;JHO E< ?D7J 97D B;7: JE C7HA;J ; H;IJ :E DEJ J>;D J>; EKJ9EC; M?BB 8; ?D;[9?;DJ ?< J>; ?D; ?D; ?:;7B?P;: 9ECF;J?J?L; ;9EDECO 7BB ;9EDEC?9 7=;DJI 7H; IC7BB H;B7J?L; JE J>; ;9EDECO 7D: L?;M FH?9;I 7I F7H7C;JH?9 M>;D J>;O JH7:; $J ?I 7BIE 7IIKC;: J>7J J>;H; 7H; DE C7HA;J ;HI :E DEJ 7D: JH7:;I KI?D= J>?I ?D;;D 7 FHEFEHJ?ED H6 - E< J>; EJ>;H 9EDIKC;HWI EKJFKJ 97D 8; IJEB;D IIKC?D= J>7J ;79> KD?J E< EKJFKJ >7I FH?9; D 7D: 8EJ> 9EDIKC;HI 7JJ;CFJ JE C7N?C?P; J>;?H M;7BJ> M>7J ?I J>; ;GK?B?8H?KC #EM :E;I J>; ;GK?B?8H?KC :;F;D: ED J>; L7BK; E<  2>7J ?I J>; ;GK?B?8H?KC ?< J>;H; ?I DE J>;7J ?I J>; C7N?CKC J>7J MEKB: 8; F7?: JE FH;L;DJ J>;; L7BK; E< EKJFKJ E< 9EDIKC;H  ?I DM@  D #&! H @  ; 79J E< J>;?I ?I H;:K9;: JE   H6 D #&! H @   -

 

 

/>; L7BK; IJEB;D ;I; JE=;J>;H J>; JEJ7B M;7BJ> E< 9EDIKC;H  ?I   H6 H 6

0   D #&! H @  D #&! H@  -

 

 

 I?C?B7H ;NFH;II?ED 97D 8; :;H?L;: ; KI; E< J?C; ?I 9EDIJH7?D;: 8O J>; JEJ7B IJE9A 7L7?B78B; IE -  H8@ H86  <   

 

.K8IJ?JKJ?D= ; :;9?I?ED FHE8B;CI E< J>; JME 9EDIKC;HI 97D J>;D 8; :;I9H?8;: 8O       -  H@  -  H @



$) 0    D #&! H@  D #&! H@    D  7D:

     -  H @  -  H@  D #&! H@  D #&! H @   -

 

$) 0  D 

 

79> J7A;I J>; 9>E?9; E< J>; EJ>;H 7I =?L;D M>;D C7N?C?P?D= 2; D;NJ I;7H9> ; )7I> ;GK?B?8H?KC E< J>; =7C; !EH 9EDIKC;H  J>; D;9;II7HO 9ED:?J?ED ?I     -  H@ D    D #&! H@      H @ -

 />; 9EDIKC;HI 7H; ?:;DJ?97B IE J>;H; M?BB 8; 7 IOCC;JH?9 ;GK?B?8H?KC M?J> H @  H@  H>  CFBEO?D= IOCC;JHO M; MH?J;   7I

   - H>   #&! H>   

 

/>?I ;NFH;II?ED ?CFB?9?JBO 9>7H79J;H?P;I J>; ;GK?B?8H?KC L7BK; E< J?C; ?D FHE:K9 J?ED /EJ7BBO :?\;H;DJ?7J?D=   M?J> H;IF;9J JE H> 7D:  I>EMI J>7J 8H> -  H>   #&! H>    8  #&! H> 

 

0I?D=   JE IK8IJ?JKJ;  =?L;I 8H>    8  #&! H> 

 

+HEL?:;: J>7J J>; ?D?J?7B IEBKJ?ED >7I H>   IE #&! H>   J>?I ?CFB?;I 8H> 8  IE J?C; ?D FHE:K9J?ED ?I H;:K9;: 7I  J>; IK99;II E< J>;;H; ?I DE J>;;D H  - />; C7N?CKC / J>7J MEKB: 8; F7?: JE 7LE?: J>;; F7OE\ M?J>EKJ J>;; F7OE\ M?J> J>;?I ?I

 -  H>   -  H>  /  D #&! -     D #&! H>   D #&! H>   D #&! -   #&! H>     D #&!  H> )EJ; />;I; 97B9KB7J?EDI >7L; 7IIKC;: J>7J J>; F7H7C;J;H L7BK;I 7H; IK9> J>7J 7 IOCC;JH?9 ?DJ;H?EH ;GK?B?8H?KC ;N?IJI  CEH; :;J7?B;: 7D7BOI?I MEKB: J7A; 799EKDJ E< J>; FEII?8?B?JO E< 9EHD;H IEBKJ?EDI 7D: 7IOCC;JH?9 ;GK?B?8H?7

; ;NF;D:?JKH;I 7J ;79> IJ7=; E< J>; :;L;BEFC;DJ FHE9;II ?D J;HCI E< ;[9?;D9O 7D: ;GK?JO 3098.32  />; ;7HBO IJ7=; E< :;L;BEFC;DJ ?I J>; F;H?E: E< ?D:KIJH?7B?P7 J?ED :KH?D= M>?9> J>; FEFKB7J?ED CEL;I ; 9EKDJHOI?:; JE KH87D 7H;7I /E C;;J J>; D;;:I E< J>; KH87D FEFKB7J?ED J>;H; ?I 7 H;GK?H;C;DJ ;NF;H?;D9;: 7J J>?I IJ7=; E< :; L;BEFC;DJ H;IKBJI ?D 7 I?=D?T97DJ ?D9H;7I; ?D ;NF;D:?JKH; 7D: J>; D;;: ?I ?I FH?C7H?BO ;NF;D:?JKH; ; C?::B; IJ7=;I E< :;L;BEFC;DJ J>; ?D; FK8B?9 I;9JEH 8;9EC;I ?D9H;7I?D=BO 9ECFB;C;DJ7HO M?J> ;NF;D:?JKH; 8O J>; FH? L7J; I;9JEH !EH ;N7CFB; ; 8K?B: ?D= E< 9EDD;9J?D= HE7:I I KH87D?P7J?ED FHE9;;:I FEFKB7J?ED :;DI?JO ?D9H;7I;I



!  !  ! " !

Private good

G0

G1

Public good

!?=KH;   $D9EC; ;B7IJ?9?JO ?D ;N9;II E< ED;

M>?9> FHE:K9;I 7 H7D=; E< ;NJ;HD7B?J?;I IK9> 7I FEBBKJ?ED 7D: 9H?C; D ?D 9H;7I?D= FHEFEHJ?ED E< FK8B?9 ;NF;D:?JKH; ?I J>;D :?L;HJ;: JEM7H: J>; 9EDJHEB E< J>;I; ;NJ;HD7B?J?;I />?I ;NF;D:?JKH; ?I 7=7?D :?H;9J;: JE J>; H;:K9J?ED E< C7HA;J 7I; E< J>; ;9EDECO ;NF;D:?JKH; ?I :H?L;D 8O J>; :;I?H; JE H;79J JE ;GK?JO ?IIK;I I 7 H;IKBJ JH7DI 7I IE9?7B I;9KH?JO

>;7BJ> 7D: ;:K97J?ED 8;9EC; J>; C7?D ?J;CI E< ;NF;D:?JKH;

?97B JME9ECCE:?JO ED; FH?L7J; =EE: 7D: ED; FK8B?9 =EE: ;N7CFB; E< 7 FH;; :;C7D: 7J ?I =H;7J;H J>7D ED; 8 .>EM J>7J ?D J>?I 97I; J>; ; 8K:=;J IF;DJ ED J>; FK8B?9 =EE: ?D9H;7I;I 7I ?D9EC; ?D9H;7I;I NFB7?D M>O J>; ?D:?\;H;D9; 9KHL; ?D J>?I JME9ECCE:?JO IF79; ?I D;=7J?L;BO IBEF;: 7D: 9EDL;N FH;; B?D; I;=C;DJ 8;JM;;D J>;C ?I ?D J>; XM;7ABO FH;?9> ?I :;TD;: 7I J>; I;J E< 9ECCE:?JO 8KD:B;I 4M;7ABO5 FH;7J B?;I ED J>; ?D:?\;H;D9; 9KHL; 3098.32  7 />; ?CFB?97J?ED E< 7D ?D9EC; ;B7IJ?9?JO =H;7J;H J>7D ED; ?I J>7J FK8B?9 =EE: :;C7D: M?BB CEH; J>7D :EK8B; M>;D ?D9EC; :EK8B;I !?=KH;   I>EM 7 :EK8B?D= E< ?D9EC; 7D: J>; :;C7D: ; FK8B?9 =EE: ?D9H;7I?D= !  ! 

 8 IIKC; J>; FK8B?9 =EE: >7I 7 KD?J FH?9; E<  />; FHEFEHJ?ED E< J>; 8K:=;J & IF;DJ ED J>; FK8B?9 =EE: ?I :;TD;: 8O !& />; ;\;9J E< 7D ?D9H;7I; ?D ?D9EC; ED J>?I ?I  !&  &

  

 ! !   & & &

& ! !  &  ! &  !  4 #     &

 

M>;H; 4# ?I J>; ?D9EC; ;B7IJ?9?JO E< :;C7D: $< 4#   J>; I>7H; E< J>; 8K:=;J ?D9H;7I;I 7I ?D9EC; ?D9H;7I;I />; D;=7J?L; IBEF; C;7DI J>7J 7D ?D9H;7I; ?D J>; FK8B?9 =EE: M?BB 9ECF;D I7J; J>; 9EDIKC;H ; FH?L7J; =EE: EDL;N?JO C;7DI J>7J C?NJKH;I 7H; FH;; :;L;BEFC;DJ CE:;B E< FK8B?9 I;9JEH ;NF;D:?JKH; =HEMJ> ?I F;HIF;9J?L; 3098.32  />; :;L;BEFC;DJ CE:;B FHEL?:;I 7D ;NFB7D7J?ED ; C7@EH 7IF;9JI E< FK8B?9 ;NF;D:?JKH; =HEMJ> EL;H J>; F7IJ 9;DJKHO $J MEKB: 8; 7 IKH FH?I; ?< ?J :?: DEJ :E J>?I I?D9; J>; CE:;B M7I 9EDIJHK9J;: 7; ;L;DJ JE :;I9H?8; 7 I;J E< >?IJEH?97B E8I;HL7J?EDI I 7 >?IJEH?97B D7HH7J?L; ?J >7I IEC; L7BK; /E 8; L7BK78B; ;9EDEC?9 J>;EHO I>EKB: ;D78B; KI JE :;H?L; FH;:?9J?EDI ; CE:;B $J ?I DEJ 9B;7H M>7J FH;:?9J?EDI J>; :;L;BEFC;DJ CE:;B C7A;I

?< 7DO J 8;IJ ?J FHEL?:;I J>; JHK?IC J>7J FK8B?9 I;9JEH ;NF;D:?JKH; M?BB 8; :; J;HC?D;: 8O J>; IJ7=; E< :;L;BEFC;DJ E< J>; ;9EDECO  >7HI> @K:=C;DJ MEKB: 8; J>7J J>; CE:;B 97DDEJ ;NFB7?D M>7J >7I >7FF;D;: JE FK8B?9 ;NF;D:?JKH; I?D9; ?JI FK8B?97J?ED J>; 7FF7H;DJ 9;II7J?ED E< =HEMJ> ?D FK8B?9 ;NF;D:?JKH; ?D C7DO :;L;BEF;: 9EKDJH?;I D;L;H C?D: FH;:?9J M>7J M?BB >7FF;D />; L;HO 8;IJ E< ;9EDEC?9 CE:;BI >7L; FH;:?9J?L; FEM;H EKJI?:; E< J>; ;N?IJ?D= H7D=; E< E8I;HL7J?EDI

; I7C; JME9ECCE:?JO ;9EDECO 7I ?D ;N;H9?I;   A;;F ?D= 9EDIJ7DJ J>; FH?9; E< J>; FH?L7J; =EE: 7 "?L; 7 =H7F>?97B ?BBKIJH7J?ED E< 7 FH;7D ED; ?D 78IEBKJ; L7BK; 8 .>EM J>7J ?D J>?I 97I; J>; ; 8K:=;J IF;DJ ED J>; FK8B?9 =EE: ?D9H;7I;I 7I J>; H;B7J?L; FH?9; E< FK8B?9 =EE: ?D9H;7I;I 3098.32  7 />; 9EDI;GK;D9; E< 7 FH?9; ;B7IJ?9?JO E< :;C7D: J>7J ?I B;II J>7D ED; ?I J>7J ?< J>; FH?9; D E< J>; FK8B?9 =EE: :EK8B;I J>; GK7DJ?JO



!  !  ! " !

Private good

G0

G1

Public good

!?=KH;   +H?9; ;B7IJ?9?JO B;II J>7D ED;

:;C7D:;: M?BB 8; H;:K9;: 8O B;II J>7D 7 >7B< $D T=KH;   J>?I ?CFB?;I J>7J !  ! 8 />; FHEFEHJ?ED E< J>; 8K:=;J & IF;DJ ED J>; FK8B?9 =EE: ?I :;TD;: 8O D !& />; ;\;9J E< 7D ?D9H;7I; ?D ?D9EC; ED J>?I ?I  D !&  D

  

! & ! & ! &

D !  & D

D !  ! D     4@ 

 

M>;H; 4@ ?I J>; FH?9; ;B7IJ?9?JO E< :;C7D: $< 4@   J>; I>7H; E< J>; 8K:=;J ?D9H;7I;I 7I J>; FH?9; E< J>; FK8B?9 =EE: ?D9H;7I;I

7J J>; :;C7D: ; :;C7D: ;H; 2D ?I D7J?ED7B ?D9EC; 7J J?C; H 7 2>7J ?I J>; ?D9EC; ;B7IJ?9?JO E< :;C7D: 8 !EH M>7J L7BK;I E<  :E;I 27=D;HWI B7M >EB: .>EM J>7J ;NF;D:?JKH; ED FK8B?9 EKJFKJ H?I;I 7I 7 7J D7J?ED7B ?D9EC; =HEMJ> ?I :;J;HC?D;: 8O 2D  2D   9 IIKC;   !D 2?BB 7D ?D9H;7I; ?D !D H7?I; 2D ?D J>; 97I;I ?9> 27=D;HWI B7M ! 7FFB?;I NFB7?D OEKH 7DIM;H

 3098.32  7 />; ?D9EC; ;B7IJ?9?JO E< :;C7D: ?I =?L;D 8O = 4 

2D !D 2D 

  2D    !D 2D !D

 

8 27=D;HWI B7M H;GK?H;I J>; :;C7D: ?I E99KHI M>;D    +K8B?9 EKJFKJ 7I 7 ;H;?I ?I FEI?J?L; ?<    9 .K8IJ?JKJ?D= ; :;H?L7J?L; E< 2D M?J> H;IF;9J JE !D ?I 2D

    !D   !D 

 

L;D M?J> J>; H;IJH?9J?ED    J>?I ;NFH;II?ED ?I DEJ I?=D;: *D; ?DJ;HFH;J7J?ED ?I J>7J J>;H; ?I 7 &;OD;I?7D IJEHO B?DA?D= EKJFKJ JE ;NF;D:?JKH; 8KJ J>;H; ?I 7D EKJFKJ 9EIJ JE TD7D9?D= J>; ;NF;D:?JKH;

; 7D IM;H H;B7J?L; JE J>; 7H=KC;DJI E< J>; :;L;BEFC;DJ CE:;B E J>; :7J7 :;I9H?8; 7 H;B7J?ED E< :;C7D: JE ?D9EC; J>7J IKFFEHJI 27=D;HWI B7M 3098.32  !?=KH;   =H7F>I 0. =EL;HDC;DJ ;NF;D:?JKH; 7I 7 FHEFEHJ?ED E< ?D9EC; ; :7J7 IEKH9; ?I J>; 0. KH;7K E< 9EDEC?9 D7BOI?I />; JH;D: B?D; ?D:?97J;I J>7J J>?I FHEFEHJ?ED >7I ; F;H?E: />; :;L;BEFC;DJ CE:;B 7H=K;I J>7J ;NF;D:?JKH; ?9> ?D9H;7I;I :KH?D= 7D ;9EDEC?9 :EMDJKHD />?I ?I E8I;HL;: ?D J>; T=KH; M>;H; ;NF;D:?JKH; H?I;I :KH?D= J>; :EMDJKHD E< J>; B7J; I 7D: ; 8EEC E< J>; I 27=D;HWI B7M ?I 87I;: ED J>; :;C7D: ?I B7M ?I JE H;=H;II J>; BE=7H?J>C E< =EL;HDC;DJ ;NF;D:?JKH; ED J>; BE=7H?J>C E< "+ />; TJJ;: 9E;[9?;DJ ED "+ ?I J>; ?D9EC; ;B7IJ?9?JO E< :;C7D: />; H;IKBJ E< J>?I H;=H;II?ED ; 0. :7J7 ?I   #&! !    

 #&! 2    

  



!  !  ! " ! 0.25 0.23

!?=KH;   "EL;HDC;DJ 9EDIKCFJ?ED ;NF;D:?JKH; 7D: ?DL;IJ;C;DJ 7I 7 F;H9;DJ E< "+

M>;H; J>; IJ7D:7H: ;HHEHI 7H; ?D F7H;DJ>;I;I />; H;=H;II?ED ;GK7J?ED I>EMI J>7J J>;H; ?I 7 FEI?J?L; ?D9EC; ;B7IJ?9?JO E< :;C7D: J>7J ?I @KIJ 78EL;  8KJ ?I DEJ I?=D?T97DJBO :?\;H;DJ J>7D  27=D;HWI B7M H;GK?H;I J>; 9E;[9?;DJ ED #&! 2    />; :7J7 7H; ?D9ED9BKI?L; )EJ; />; ;9EDEC;JH?9I ?I ?DJ;DJ?ED7BBO I?CFB; >;H; .?D9; M; 7H; :;7B?D= M?J> J?C; I;H?;I M; MEKB: 9B;7HBO D;;: JE J7A; IJ7J?ED7H?JO ?IIK;I ?DJE 799EKDJ

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

; H;DJ7B H7J; ; FH?L7J;

 I;9JEH >7I 7 FHE:K9J?ED 7J >7FF;DI JE J>; M7=; H7J; 7I J;9>D?97B FHE=H;II ?D9H;7I;I H 2>7J MEKB: >7FF;D ?< F M;H; DEJ TN;: -;B7J; OEKH 7DIM;H JE 7KCEBWI B7M

 3098.32  />; FHETJC7N?C?P?D= THC 9>EEI;I 97F?J7B 7D: B78EH JE C7N? C?P; FHETJ



$)  DM  F$  K%  D$  H%

!"

 F$  K%

 

/>; THIJEH:;H 9ED:?J?EDI 7H;



 $  H% D  $ 7D:

F 



 $  H% D  K    % -;7HH7D=?D= 7D: :?L?:?D= J>; THIJ 8O J>; I;9ED: ;GK7J?ED E8J7?DI % F   $ K

 

 

 

/>; 7J J>; EKJFKJ FH?9; ?I L?;M;: 7I TN;: ?CFB?;I J>7J J>; FH?L7J; I;9JEH ?I 9ECF;J?J?L; IE FHETJ ?I P;HE #;D9; D$  H%   F$  K% 

DH  $  %   F$  K%

K    K%  K%  DH  % F  

/>;H;?I I>EMI J>7J 7D ?D9H;7I; ?D H H7?I;I K $< F M;H; DEJ TN;: F7HJ E< J>; ?D9H;7I; ?D H MEKB: 8; 78IEH8;: ?D 7D ?D9H;7I; ?D F H7J>;H J>7D K IE J>; ?D9H;7I; ?D K MEKB: 8; H;:K9;: $D J>?I ;N7CFB; 7KCEBWI B7M 7FFB?;I 7D: 7D ?D9H;7I; ?D B78EH FHE:K9J?L?JO H7?I;I J>; M7=; H7J;

7J J>; FHE:K9J?ED 7J >7FF;DI JE B78EH :;C7D: 2>7J M?BB >7FF;D JE J>; M7=; H7J; ?< J>; ;9EDECO >7I C7DO THCI ?D J>?I FEI?J?ED E;I J>?I 7D7BOI?I IKFFEHJ 7KCEBWI B7M 3098.32  />; THC M?BB C?D?C?P; 9EIJI ; THC M?BB IEBL; $"% K% F$ I J M  #&! $ #&! H%

!"

 



!  !  ! " !

2?J> :;DEJ?D= J>; '7=H7D=; CKBJ?FB?;H ED J>; 9EDIJH7?DJ J>; D;9;II7HO 9ED :?J?EDI 7H;    K    % 7D: F />;I; ?CFBO J>7J

   $

K $   F %

.K8IJ?JKJ?ED ?DJE J>; 9EDIJH7?DJ =?L;I

K  % #&! H% M  #&! F   #&! % #&! H #&! K  #&! F

 

 

 

$J 97D 8; I;;D J>7J ?< B78EH FHE:K9J?L?JO :EK8B;I H H J>; :;C7D: ?I FEI?J?ED J>;D 7==H;=7J; B78EH :;C7D: M?BB 7D=;: J>?I CKIJ B;7: JE 7 BEM;H ;GK?B?8H?KC M7=; #;D9; 7D ?D9H;7I; ?D B78EH FHE:K9J?L?JO M?BB B;7: JE 7 BEM;H M7=; H7J; />?I 7D7BOI?I :E;I DEJ IKFFEHJ 7KCEBWI B7M J>7J H?I?D= FHE:K9J?L?JO ?D J>; FH?L7J; I;9JEH M?BB ?D9H;7I; J>; M7=; H7J;

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





 8 $< J>; DEDF;9KD?7HO 8;D;TJI 7H; E< L7BK; & J>;D 6 CKIJ IEBL; &  & 6  IE 6   />; 9EIJ ?I J>;H;?I 97I; J>; 9EIJ ?I K JE =;D;H7J; 7D ?D9H;7I; ?D KJ?B?JO ;GK?L7B;DJ JE 7D ?D9EC; ?D9H;7I; E< & />; DEDF;9KD?7HO 8;D;TJI 7H; 9EIJ ;\;9J?L; FHEL?:;: J>7J &  K

7D=;I ?D =EL;HDC;DJ 7II?IJ EH >?D:;H 8KH;7K9H7JI ?D ;NF7D:?D= J>;?H 8KH;7KI 3098.32  -;=KB7H 9>7D=;I ?D =EL;HDC;DJ EH 7J B;7IJ J>; FEB?J?9?7DI >EB: ?D= =EL;HDC;DJ FEIJI FHE878BO 7II?IJ 8KH;7K9H7JI ?D ;NF7D:?D= J>;?H 8KH;7KI D ;NFB7D7J?ED ?I 9B7?C ?I J>7J ?J J7A;I J?C; EM J>; 8KH;7K 7 FE?DJ ?I H;79>;: J>; FEB?J?9?7D H;B?;I KFED J>; 8KH;7K9H7JI ; 8KH;7K9H7J 97D ;NFBE?J J>?I B79A E< ?D ; 8KH;7K 8;97KI; J>; 8;D;TJI 7D: 9EIJI 7H; >?::;D ; :;9?I?ED C7A;H

O C?=>J ?J 8; 8;JJ;H JE JEB;H7J; 8KH;7KI E< ;N9;II?L; I?P; H7J>;H J>7D F;HC?J 8KH;7K9H7JI JE I;;A H;M7H:I ?D 97I> 3098.32  BBEM?D= H;M7H:I ?D 97I> EF;DI J>; F7J> ; FEB?J?97B FHE9;II KH;7K9H7J?9 FEI?J?EDI M?BB 8; IEK=>J ; 97I> H;M7H:I J>7J J>;O 97D E\;H $D:?L?:K7BI I;;A?D= J>; FEI?J?EDI M?BB 8; M?BB?D= JE F7O 8H?8;I JE E8J7?D J>;C IE 8EJ> J>; 7FFE?DJC;DJI FHE9;II 7D: J>; EF;H7J?ED E< =EL;HDC;DJ ?I 9EHHKFJ;: />?I 7\;9JI FH?L7J; ?D:?L?:K7BI M>E TD: J>7J 8H?8;I CKIJ 8; F7?: JE I;9KH; J>; KD:;HJ7A?D= E< IJ7D:7H: 8KH;7K9H7J?9 J7IAI />?I 9EBB;9J?ED E< 79J?L?J?;I ?I J;HC;: H;DJI;;A?D= />; 9EIJ E< B?L?D= M?J> 7D ;N9;II?L; 8KH;7K I?P; C7O J>;H;; 9EIJ E< ?DIJ?JKJ?ED7B?P?D= H;DJI;;A?D=

; CE:;B E< 8KH;7K9H79O B;J  M  M  7D:  M  M  7B9KB7J; J>; L7BK; M  J>7J C7N?C?P;I  M   M !EH M>7J L7BK;I E< M :E;I  M   M 0I; J>?I JE TD: M 2 .>EM J>7J M 2  M  8 )EM B;J J>; 8KH;7K9H7JWI ?D9EC; 8; =?L;D 8O &  5 6M 7D: B;J >?I KJ?B?JO 8; =?L;D 8O .   M & E;I J>?I 7BJ;H J>; 9>EI;D L7BK; E< M 2  9 $I J>;H; 7DO F7O I97B; H;B7J?D= M JE & J>7J 97D B;7: J>; 8KH;7K9H7J JE 9>EEI; M  



!  !  ! " !

3098.32  7 0I?D= J>; ;H;;D  M   M ?J CKIJ 8; J>; 97I; J>7J M   M  />?I >7I IEBKJ?ED M 2   #;D9; M 2    M    8 />; L7BK; E< M ?I DEM 9>EI;D JE IEBL; $) .   M   M &   M  M  5 6M  M  

I

 

/>; D;9;II7HO 9ED:?J?ED ?I   M 6  M   

 

/>; 9>EI;D L7BK; M 2 ?I ?D9H;7I;: ?< 6 ?I FEI?J?L; 9 />; ;7I?;IJ M7O JE I>EM J>?I ?I JE I;J M   ?D   7D: IEBL; ?I =?L;I  6        EH    6   DO ?D9;DJ?L; I9>;C; M?J>  & 5 M    M?BB ;DIKH; J>7J J>; 8KH;7K9H7J 9>EEI;I M  

JM?D= 7D: B;; 8K:=;JI;JJ?D= ; HEB; E< 7 CE:;B ?I JE 7BBEM J>; 9EDJH7IJ 8;JM;;D :?\;H;DJ I9;D7H?EI JE 8; 79>?;L;: 8O 7BJ;H?D= 7 IC7BB DKC8;H E< F7H7C;J;HI />; H;B;L7DJ F7H7C;J;HI JM?D= 7D: B;; 8K:=;J I;JJ?D= CE:;B 7H;  J>; H7J; E< ?D9H;7I; ?D 8K:=;J 9B7?CI 8O :;F7HJC;DJI 7D:  J>; H7J; 7J M>?9> 9B7?CI 7H; :;U7J;:  H?=>JM?D= =EL;HDC;DJ MEKB: 8; H;FH;I;DJ;: 8O 7 BEM L7BK; E<  7D: 7 >?=> L7BK; E<  EDL;HI;BO 7 B;7L; 7 >?=>  7D: 7 BEM 



7J L7BK; E< B C7N?C?P;I JEJ7B H;L;DK; 2>7J L7BK; C7N ?C?P;I H;L;DK; F;H C;C8;H E< J>; FHE; 8;D;TJ ; FHE7J ?I J>; ;[9?;DJ C;C8;HI>?F EDJH7IJ J>;I; J>H;; C;C8;HI>?F B;L;BI 3098.32  />; L7BK; E< B J>7J C7N?C?P;I JEJ7B H;L;DK; ?I :;TD;: 8O     $) F  6B  B    

> />; D;9;II7HO 9ED:?J?ED ?I

6  B  

 

B  6

 

IE J>; C7N?C?P?D= L7BK; ?I

-;L;DK; F;H C;C8;H E< J>; FHE?I ?I C7N?C?P;: 7J B  IE J>; FHE JE 8; 7I IC7BB 7I FEII?8B; />; ;[9?;DJ C;C8;HI>?F 97D 8; :;TD;: 7I C7N?C?P?D= J>; :?\;H;D9; 8; JM;;D 8;D;TJ 7D: H;L;DK; />?I :?\;H;D9; ?I =?L;D 8O     0  JB  6B B     />; ;[9?;DJ B;L;B E< B I7J?IT;I J>; D;9;II7HO 9ED:?J?ED

IE

80  J  6 B 8B

 

B  J  6

 

+HEL?:;: J>7J J  6 J>; H;L;DK;C7N?C?P?D= 7D: J>; ;[9?;DJ B;L;BI E< C;C 8;HI>?F M?BB 8EJ> ;N9;;: J>; C;C8;HI>?F J>7J C7N?C?P;I H;L;DK; F;H C;C8;H />; H;L;DK;C7N?C?P?D= C;C8;HI>?F M?BB ;N9;;: J>; ;[9?;DJ C;C8;HI>?F ?< J  6

 

.?D9; J>;H; ?I DE D;9;II?JO J>7J J>?I 9ED:?J?ED 8; I7J?IT;: ?J ?I DEJ 7BM7OI J>; 97I; J>7J 7 H;L;DK;C7N?C?P?D= FHE; ;[9?;DJ B;L;B



!  !  ! " !

; ?DL;HI; :;C7D: E?9;I E< 7 FHETJC7N?C?P?D= CEDEFEB?IJ 7D EKJFKJC7N?C?P?D= CEDEFEB?IJ 7D: 7 H;L;DK;C7N?C?P?D= CEDEFEB?IJ 2>?9> ?I J>; 8;IJ :;I9H?FJ?ED E< J>; FK8B?9 I;9JEH 8 )EM B;J J>; DKC8;H E< C;C8;HI ?D 7 FHE; BKCFIKC =H7DJ ; 7I 7 ?9> ?I 7D ?D9H;7I?D= 7D: 9ED97L; ; BKCF IKC =H7DJ M?J> H;IF;9J JE J7N H7J; =?L;I J>; D;9;II7HO 7D: IK[9?;DJ THIJEH:;H 9ED:?J?ED

  H 5  

 

M>?9> ?CFB?;I H    8 />; 7 78?B?JO 59 ?I ;GK7B JE L9  ;   HM9   H   M; =;J M   M9     H 5     IE J>; FEEH;IJ ?D:?L?:K7B M?J> M9  H;9;?L;I 7; ?D:?L?:K7B MEKB: 8; 8;JJ;H E\ M?J> 7 BEM;H J7N H7J; H   M>?9> =?L;I ?D9EC; 5   L9  M   H

 M  HM  H   H

 

$D ; 7; FEEH;IJ ?D:?L?:K7B ?I C7N?C?P;: M?J> H   9  IK[9?;DJ 9ED:?J?ED ; C;:?7D LEJ;H J>;EH;C JE 7FFBO ?I J>; I?D=B; 9HEII?D= E< ?D:?\;H;D9; 9KHL;I ?D J>; J7N FEB?9O IF79; H ; />7J ?I J>; C7H =?D7B H7J;I E< IK8IJ?JKJ?ED 8;JM;;D H 7D: ; 7CED= ?D:?L?:K7BI 97D 8; H7DA;: ?D:;F;D:;DJBO E< J>; J7N FEB?9O 7:EFJ;: ';J G9 H ; :;DEJ; J>; C7H=?D7B H7J; E< IK8IJ?JKJ?ED E< ?D:?L?:K7B = O JEJ7BBO :?\;H;DJ?7J?D= FH;; C7H=?D7B H7J; E< IK8IJ?JKJ?ED ?I CEDEJED?97BBO ?D9H;7I?D= ?D 59 ;H;; I?D=B; 9HEII?D= FHEF;HJO ?I I7J?IT;: 7D: J>;H; ;N?IJI 7 C7@EH?JOM?DD?D= J7N H7J; 9>7H79J;H?P;: 8O J>; C;:?7D LEJ;H J>; EH;C .E J>; C7@EH?JO M?DD;H C7N?C?P;I J>; KJ?B?JO ; C;:?7D JOF; .K8IJ?JKJ?D= J>; =EL;HDC;DJ 8K:=;J 9EDIJH7?DJ ?DJE J>; KJ?B?JO ; C;:?7D LEJ;H 59  5= M; =;J  5   H 5=  J=  H   H 

 

(7N?C?P?D= J>; C;:?7D LEJ;HWI KJ?B?JO M?J> H;IF;9J JE H J>; IEBKJ?ED E8J7?DI H= 

5   5= 

   5  5=

 

B;7HBO J>; FH;; C;:?7D LEJ;H ?I ?D9H;7I?D= ?D J>; :?\;H;D9; 8;JM;;D C;7D 7D: C;:?7D 78?B?JO B;L;BI .E ?D9H;7I?D= ?D;GK7B?JO ?D9H;7I;I J>; C7@EH?JO9>EI;D J7N H7J; 7D: >;D9; =EL;HDC;DJ I?P;



; =EL;HDC;DJ EH:;HI J>7J 7BB 9EDIKC;HI CKIJ ;7J 7J B;7IJ  KD?JI E< L;=;J78B;I F;H :7O ';J 7 9EDIKC;H >7L; J>; KJ?B?JO ;H; J :;DEJ;I KD?JI E< L;=;J78B;I F;H :7O 7D: L EJ>;H 9EDIKCFJ?ED 7 !?D: J>; EFJ?C7B 9EDIKCFJ?ED FB7D 8;; =EL;HDC;DJ EH:;H M>;D J>; FH?9; E< L;=;J78B;I ?I  F;H KD?J 7D: J>; FH?9; E< EJ>;H 9EDIKCFJ?ED ?I  F;H KD?J 7D: J>; 9EDIKC;H >7I ?D9EC; E< &   8 2>7J ?I J>; 9EDIKCFJ?ED FB7D 7; =EL;HDC;DJ >7I EH:;H;: J>7J 7J B;7IJ  KD?JI E< L;=;J78B;I CKIJ 8; 9EDIKC;: 9 .>EM J>7J J>; 9EDIKCFJ?ED FB7D ?D 8 97D 8; E8J7?D;: 8O 7 IK8I?:O JE L;=;J78B;I 7D: 7 J7N ED EJ>;H 9EDIKCFJ?ED : !?D: J>; 9EIJ ; =EL;HDC;DJ E< J>; IK8I?:O 7D: J7N 97B9KB7J;: ?D 9 3098.32  7 />; EFJ?C?P7J?ED ; 9EDIKC;H ?I $) J  L  I J &  J L

FH

/>?I >7I IEBKJ?ED J  & 7D: L  & #;D9; ?< &    J>;D J   7D: L   8 $< 7J B;7IJ TL; KD?JI E< L;=;J78B;I CKIJ 8; 9EDIKC;: J>;D J>; 9EDIKC;H M?BB I;J J   7D: L   9 $< L;=;J78B;I 7H; IK8I?:?P;: J>;?H FH?9; 8;9EC;I   G M>;H; G ?I J>; L7BK; E< J>; IK8I?:O $< EJ>;H 9EDIKCFJ?ED ?I J7N;: 7D 7CEKDJ H F;H KD?J J>;D J>; FH?9; 8;9EC;I  H />; 9EDIKC;HWI EFJ?C?P7J?ED ?I $) J  L  I J &    G J  H L

FH

 #  M>?9> >7I IEBKJ?ED J  #

C  C 7D: L  D  D /E E8J7?D J>; 9EDIKCFJ?ED FB7D J   L   IEBL; ; L7BK;I E< G 7D: H



     G  H

#;D9; G   7D: H    : />; 9EIJ E< J>; IK8I?:O ?I      7D: J>; H;L;DK; ; J7N ?I      />; FEB?9O ?I J>;H;; I?=D7B 7D: H;GK?H?D= 7 :;9E:;H 8KJ J>?I ?I DEJ :ED; />;H;; 9EKDJHO >7L; IEC; ;7F 8O 8BE9A?D= J>; HE7: 8KJ J>;D ?J MEKB: DE BED=;H 8; 7 =EE: />;I; 7H; 7BIE DEDH?L7BHEKI FHEL?:;: J>7J J>; DKC8;H E< KI;HI ?I BEM H;B7J?L; JE 97F79?JO *D9; KI; 8;9EC;I 9BEI; JE 97F79?JO J>; HE7:I 8;9EC; 9ED=;IJ;: = />; 9EBB;9J?ED E< M7IJ; ?I F7HJBO 7 FH?L7J; =EE: J>; H;CEL7B E< 7 F;H IEDWI M7IJ; 7D: F7HJBO 7 FK8B?9 =EE: J>; H;CEL7B E< KDI?=>JBO M7IJ; 7D: J>; FH;L;DJ?ED E< J>; FK8B?9 >;7BJ> FHE8B;CI J>7J 97D ; 9EBB;9J?ED ;N>?8?JI H?L7BHO 7D: ;N9BKI?ED J>; FH;L;DJ?ED E< FK8B?9 >;7BJ> FHE8B;CI 7H; DEDH?L7BHEKI 7D: DED;N9BK:78B; > +K8B?9 I9>EEBI C;7D?D= I9>EEBI FHEL?:;: 8O J>; IJ7J; FHEL?:; FH?L7J; 8;D;TJI JE J>; FKF?BI =EE: =H7:;I B;7: JE 8;JJ;H ;CFBEOC;DJ M>?9> O?;B:I 7 FH?L7J; 8;D;TJ 7D: J>; B;II J7D=?8B; FK8B?9 =EE: J>7J 7H?I;I 7L?D= 7 8;JJ;H;:K97J;: FEFKB7J?ED

; H;I9K; I;HL?9;I ;H 9EKDJH?;I 3098.32  D 7FFB?97J?ED E< ;9EDEC?9 H7J?ED7B?JO ?CFB?;I J>7J :ED7J?EDI M?BB EDBO 8; C7:; 8O J>EI; M>E ;NF;9J JE 8;D;TJ ; I;HL?9; 2>?B; J>; 0D?J;: &?D=:EC :E;I >7L; 7 DKC8;H E< FHE;H; 7H; DEJ ;DEK=> JE ;NFB7?D J>; B;L;B E< 9EDJH?8KJ?ED (EH;EL;H J>;H; ?I 7D;9:EJ7B ;L?:;D9; J>7J CK9> E< J>; ; FK8B?9 M>E B?L; 7I J>?I 97KI; GK;IJ?EDI JE 8; H7?I;: 78EKJ J>; D7HHEM 7FFB?97J?ED E< ;9EDEC?9 H7J?ED7B?JO 2>;D ?J 9EC;I JE 9>7H?JO J>;H; 7H; 7BCEIJ 9;HJ7?DBO IE9?7B ?9> 97KI; :ED7J?EDI JE 8; C7:; ;L;D M>;D DE :?H;9J 8;D;TJ ?I ;NF;9J;: ?D H;JKHD $D 7D7:7 7 9>7H?J78B; EH=7D?P7J?ED J>; 7D7:?7D '?; 0& -EO7B )7 J?ED7B '?7I 7 LEBKDJ;;H 9E7IJ=K7H: J>7J MEHAI 7BED=I?:; J>; H;I9K; I;HL?9;I FHEL?:;: 8O J>; ?D:?L?:K7B IJ7J;I />; I?JK7J?ED

 ?I :?\;H;DJ ?D J>; 0D?J;: .J7J;I M>;H; J>; 0. 9E7IJ=K7H: ?I DEBE=O 97D JKHD 7 FK8B?9 =EE: ?DJE 7 FH?L7J; =EE: 3098.32  /;B;L?I?ED >7I JH7:?J?ED7BBO 8;;D 8HE7:97IJ 7I 7D 7D7BE= I?=D7B I?=D7BI 7H; 799;II?8B; JE 7DOED; ?D H7D=; E< J>; JH7DIC?JJ;H M>E >7I 7 IK?J78B; 7;H?7B $J ?I DEJ FEII?8B; JE ;N9BK:; 9EDIKCF J?ED ;N9;FJ 8O :;J;9J?D= H;9;FJ?ED .K9> :;J;9J?ED ?I 7 9EIJBO 79J?L?JO D7BE= J;B;L?I?ED ?I J>;H; 9EIJBO ;N9BKI?ED ?I FEII?8B; />; ?DJHE:K9J?ED E< JH7DIC?II?ED J>HEK=> :?=?J7B I?=D7BI >7I C7:; ?J CK9> I?CFB;H JE 9EDJHEB 799;II JE J>; J;B;L?I?ED I?=D7B .K8I9H?FJ?ED I;HL?9;I H;GK?H; J>; KI; E< 7 97H: EH 7D 799;II DKC8;H JE :;9E:; J>; I9H7C8B;: I?=D7BI J>7J 7H; JH7DIC?JJ;: />?I >7I JKHD;: J>; J;B;L?I?ED I?=D7B ?DJE 7 FH?L7J; =EE: ?9> ;N9BKI?ED ?I FEII?8B; 7J BEM 9EIJ >7D=;I ?D J>; J;9>DEBE=O ;J>;H ?J ?I FK8B?9 EH FH?L7J; />; FHEF;HJO E< 8;?D= XFK8B?9Y D;;: DEJ 8; 7D ?DJH?DI?9 ED;

7J ?I 7 FK8B?9 =EE: #EM 97D ED; :;J;HC?D; J>; ;[9?;DJ B;L;B E< FHEL?I?ED E< 7 FK8B?9 =EE: 3098.32   FK8B?9 =EE: >7I JME :;TD?D= FHEF;HJ?;I ?J ?I DEDH?L7B 7D: DED;N9BK:78B; *D; M7O JE :;J;HC?D; J>; ;[9?;DJ B;L;B E< FHEL?I?ED ?I JE ;GK7J; J>; C7H=?D7B IE9?7B 8;D;TJ E< J>; FK8B?9 =EE: JE ?JI C7H=?D7B IE9?7B 9EIJ $J CKIJ 8; H;9E=D?P;: J>7J 7D 7::?J?ED7B KD?J E< FK8B?9 =EE: 8;D;TJI 7BB 9EDIKC;HI 7J J>; I7C; J?C; J>?I ?I 8;97KI; 7 FK8B?9 =EE: ?I DEDH?L7B />; C7H=?D7B IE9?7B 8;D;TJ ?I J>;H;; IKC E< C7H=?D7B FH?L7J; 8;D;TJI />; C7H=?D7B 8;D;TJ E< ;79> 9EDIKC;H 97D 8; C;7IKH;: 8O J>;?H C7H=?D7B H7J; E< IK8IJ?JKJ?ED 8;JM;;D J>; FK8B?9 =EE: 7D: 7D 7BJ;HD7J?L; FH?L7J; =EE: />; C7H=?D7B IE9?7B 9EIJ 97D 8; C;7IKH;: 8O J>; C7H=?D7B H7J; E< JH7DI; FK8B?9 =EE: 7D: J>; FH?L7J; =EE: +KJJ?D= J>?I H;7IED?D= JE=;J>;H =?L;I J>; .7CK;BIED HKB; ;[9?;DJ FHEL?I?ED ;GK7J;I J>; IKC EL;H 9EDIKC;HI E< C7H=?D7B H7J;I E< IK8IJ?JKJ?ED JE J>; C7H=?D7B H7J; E< JH7DI 9EDIKC;H >7L; 7D ?D9EC; E< & />; FH?9;I E< FK8B?9 7D: FH?L7J; =EE: 7H; 8EJ>  ';J J>; 9EDIKC;HI >7L; KJ?B?JO ; ;[9?;DJ B;L;B E< FHEL?I?ED M?BB >7L; J>; 9EIJ ;GK7BBO 7BBE97J;: 8;JM;;D J>; 9EDIKC;HI $J J>;H;; D;9;II7HO 9ED:?J?ED ?I  />?I >7I IEBKJ?ED

  & 

 



   !

!  &

 

 

 I>EMI J>7J FHEL?I?ED 7J J>; )7I> ;GK?B?8H?KC ?I 8;BEM EDJH7IJ?D= ! M?J> ! M>7J ?I EFJ?C7B

;D & &  #  EH & 

 # 

 &

.?C?B7HBO ;   M>;D &





# 

 ; !EH #  &  8EJ> ; 7D: ; 7H; FEI?J?L; />; JEJ7B B;L;B E<   #  # # #  FHEL?I?ED ?I !   $< & J>;D ;  7D: J>; B;L;B E< FK8B?9  =EE:I ?I ?D9EC; A M>;H; A  & BB 9EDIKC;HI >7L; FH;;H; L8 ?I 9EDIKCFJ?ED E< 7 FH?L7J; =EE: 7D: !  8 ; 8 ?I JEJ7B 9EDJH?8K J?ED JE 7 FK8B?9 =EE: 7 !?D: J>; 9ED:?J?ED ; 9EDIKC;HI M?J> ?D9EC; A DEJ JE 9EDJH?8KJ; 8 ;H?L; J>; 9ED:?J?ED ; 9EDIKC;H M?J> ?D9EC; & JE H7?I; M;BEM 7 +7H;JE ?CFHEL;C;DJ 97D 7H?I; M>;D " 9EDIKC;HI >7L; J>;?H ?D9EC;I H;:K9;: 3098.32  7 />; 9EDIKC;H M?J> ?D9EC; & IEBL;I J>; EFJ?C?P7J?ED ( ;=  $) #&! &  ;#  #&! ;#

7 

/>?I >7I J>; IEBKJ?ED

;#  & 

(

;= 

 79> 9EDIKC;H M?J> ?D9EC; A IEBL;I $) #&! A  ;=  #&! ;#

7 

(

;= 

M?J> D;9;II7HO 9ED:?J?ED   &   A  ;= ;# ;= & NFBE?J?D= J>; IOCC;JHO ;=  ";=  IE 

;= 

A  ;#  " 

#;D9; J>; 9EDJH?8KJ?ED B;L;BI 97D 8; IEBL;: 7I ;= 

A  &

"  &  "A  ;#   "  " 

/>; 9EDIKC;HI M?J> ?D9EC; A :E DEJ 9EDJH?8KJ; ?< & A 8 $< ;=  J>; J>; 9EDIKC;H M?J> ?D9EC; & IEBL;I $) #&! &  ;#  #&! ;# 

7 

IE ;#  #   $< ;79> 9EDIKC;H E< ?D9EC; A JH7DI; JEJ7B JH7DI; 9EDIKC;HI M?J> ?D9EC; A :E DEJ 9EDJH?8KJ; 7D: 7 JH7DI; 9EDIKC;H M?J> ?D9EC; & H7?I;I J>; M;B7J F7HJ 8 >7I I>EMD ?I J>7J 7 JH7DI; H?9> 97D 9H;7J; 7 +7H;JE ?CFHEL;C;DJ />; H;7IED ?I ?I J>; ;79> 



!  " 

FEEH 9EDIKC;H BEI;I IEC; FH?L7J; 9EDIKCFJ?ED 8KJ 8;D;TJI 7 =H;7J;H 7CEKDJ ; 7::?J?ED7B 9EDJH?8KJ?ED E< J>; H?9> 9EDIKC;H JE J>; FK8B?9 =EE: )EJ?9; J>7J J>; ?D9EC; JH7DI7L; JE 8; 9EEH:?D7J;: )E FEEH 9EDIKC;H 97D =7?D 8O 79J?D= 7BED; -; ?D9EC; & JE 7BBE97J; 8;JM;;D JME =EE:I "EE:  FHEL?:;I  KD?J E< 9EDIKCFJ?ED JE ?JI FKH9>7I;H 7D:    KD?JI E< 9EDIKCFJ?ED JE J>; 9EDIKC;H 79> 9EDIKC;H =  EJ>;H  =    >7I J>; KJ?B?JO ;H; L9 ?I 9EDIKCFJ?ED E< =EE:  7D: L9 ?I 9EDIKCFJ?ED E< =EE:  7 +HEL?:; 7D ?DJ;HFH;J7J?ED E<  8 IIKC; J>7J =EE:  ?I 7 FH?L7J; =EE: !?D: J>; )7I> ;GK?B?8H?KC B;L;BI E< 9EDIKCFJ?ED M>;D 8EJ> =EE:I >7L; 7 FH?9; E<  9 O C7N?C?P?D= J>; IKC E< KJ?B?J?;I I>EM J>7J J>; ;GK?B?8H?KC ?I +7H;JE ;[9?;DJ ?<   8KJ ?D;[9?;DJ ;H L7BK;I E<  : )EM 7IIKC; J>7J =EE:  7BIE FHEL?:;I  KD?J E< 9EDIKCFJ?ED JE ?JI FKH9>7I;H 7D:    KD?JI E< 9EDIKCFJ?ED JE J>; EJ>;H 9EDIKC;H !EH J>; I7C; FH;; )7I> ;GK?B?8H?KC 7D: I>EM ?J ?I ;[9?;DJ ; 9ED9BKI?ED ?D F7HJ : 3098.32  7  C;7IKH;I J>; :;=H;; E< FK8B?9D;II E< J>; =EE:  8 .  #&! M

M  L  M>;H; M 9 ?I J>; FKH9>7I; E< =EE:  8O = 0I?D= J>; 8K:=;J 9EDIJH7?DJ E8J7?DI     .  #&! M

M  &  M

 />; 9>E?9; E< M

I7J?IT;I

     M

M 

/>; =7C; ?I IOCC;JH?9 IE J>; IEBKJ?ED ?I M

 M   M  9EDIKCFJ?ED B;L;B ?D ;GK?B?8H?KC ?I

 

 

L

 L  L    M   9 />; B;L;B E< IE9?7B M;B7J

#;D9; J>;  

 

0   #&!   M   &  M  

 

0       M

M

 

 #;D9; M   7D: L    />; JME EKJ9EC;I 7H; J>; I7C; ?<   : 0J?B?JO DEM 8;9EC;I       .  #&! M

M  &  M

 &  M 

 2?J> IOCC;JHO J>; B;L;B />; )7I> ;GK?B?8H?KC H;C7?DI 7J M

 M   M   E< M;B; JME EKJ9EC;I 7H; ?:;DJ?97B ;H; ?I ED; FH?L7J; =EE: 7D: ED; FK8B?9 =EE: M>;D    .E ;D    2?J>   J>;H; 7H; JME FH?L7J; =EE:I IE J>; EKJ9EC; ?I ;[9?;DJ $D F7HJ : 8EJ> =EE:I >7L; 7D ?:;DJ?97B :;=H;; E< FK8B?9D;II IE J>; 9EDIKCFJ?ED ;NJ;HD7B?J?;I 7H; 87B7D9;: $J ?I DEJ FEII?8B; JE =EE:I IE ;[9?;D9O H;IKBJI

E: ; '?D:7>B ;GK?B?8H?KC JE :;J;HC?D; >EM CK9> ;79> I>EKB: F7O 3098.32  />; '?D:7>B ;GK?B?8H?KC ?I :;I9H?8;: 8O 7 I>7H; E< J>; 9EIJ IJK:;DJ M?J> J>; I>7H;I 7::?D= KF JE  />; :?[9KBJO ?I JE TD: J>;I; I>7H;I ?D 7 B?C?J;: DKC8;H E< IJ;FI Z J>;O 97D 8; ;H; ?I DE =K7H7DJ;; J>7J J>; ;GK?B?8H?KC M?BB 8; ;H; 7H; JME M7OI JE I>EHJ;D J>; FHE9;II *D; M7O ?I JE I;J 7D 799;FJ78B; C7H=?D E< ;HHEH F;H>7FI 7BBEM?D= J>; FHE9;II JE IJEF ?< J>; IKC E< I>7H;I ;D 8; H;:?IJH?8KJ;:  I;9ED: M7O MEKB: 8; JE H;IJH?9J J>; I>7H;I J>7J 97D 8; 7DDEKD9;: JE CKBJ?FB;I E<   EH E<   )EJ; J>7J J>;H; ?I 7DEJ>;H 7IF;9J JE J>?I GK;IJ?ED />; IJ7D:7H: 7D7BOI?I E< J>; '?D:7>B ;GK?B?8H?KC :;J;HC?D;I 8EJ> J>; GK7DJ?JO E< J>; FK8B?9 =EE: 7D: J>; I>7H;I E< J>; 9EIJ $D J>?I GK;IJ?ED J>; GK7DJ?JO ?I TN;: 7J ED; KD?J E< J>; FK8B?9 =EE: $J C7O 8; 7J J>; JEJ7B M?BB?D=D;II JE F7O E< J>; JE FKH9>7I; J>; 8EEA EH J>7J J>; M?BB?D=D;II JE F7O C7O ;N9;;: J>; L7BK; $D J>; B7JJ;H 97I; J>; '?D:7>B ;GK?B?8H?KC C7O DEJ 8; KD?GK;

B ;GK?B?8H?KC 0I; J>?I H;IKBJ JE 7H=K; J>7J J>;H; CKIJ 8; 7 IK8I?:O JE J>; FH?9; E< J>; FK8B?9 =EE: J>7J C7A;I J>; FH?L7J; FKH9>7I; ;GK?B?8H?KC ;[9?;DJ 3098.32  $< J>; JME 9EDIKC;HI 7H; ?:;DJ?97B J>;D J>; '?D:7>B ;GK?B?8H?KC M?BB >7L; ;79> F7O?D= 7 I>7H; E<   $< J>; FK8B?9 =EE: >7I FH?9; D F;H KD?J



!  " 

J>;D M?J> 7 I>7H; E<   ;79> 9EDIKC;HI F7OI 7 FH?9; E<  D 7J J>; '?D:7>B ;GK?B?8H?KC )EM 9EDI?:;H J>; FH?L7J; FHEL?I?ED ;GK?B?8H?KC 2?J>EKJ 7DO ?DJ;HL;DJ?ED J>?I ;GK?B?8H?KC ?I ?D;[9?;DJ I?D9; ;79> 9EDIKC;H ?=DEH;I J>; ;\;9J J>7J J>;?H FHEL?I?ED >7I ED J>; EJ>;H 9EDIKC;H />; 9>E?9; E< 7 9EDIKC;H ;GK7J;I J>;?H FH?L7J; C7H=?D7B 8;D;TJ ) &  JE J>; FH?L7J; C7H=?D7B 9EIJ

) &  [9?;D9O H;GK?H;I J>7J J>;O I>EKB: ;GK7J; J>; IE9?7B C7H=?D7B 8;D;TJ

,&  JE J>; ) &  )EM M?J> JME ?:;DJ?97B 9EDIKC;HI J>; ,&  ?I JM?9; J>; ) &  ';J J>; ) &  8; ;GK7B JE D 2?J>EKJ ?DJ;HL;DJ?ED J>; FH?L7J; FKH9>7I; ;GK?B?8H?KC I7J?IT;I   ) &   D  [9?;D9O H;GK?H;I J>7J EH

,&   D 

 

) &   D 

 

$< J>; FK8B?9 =EE: ?I IK8I?:?P;: IE J>7J ?JI FH?9; 8;9EC;I  D J>; FH?L7J; FKH 9>7I; ;GK?B?8H?KC I7J?IT;I    ) &   D   />?I ?I 7BIE ;[9?;DJ

;H; 7H; JME 9EDIKC;H M?J> FH; 9EDIKC;HI >7L; ?D9EC; & />; =EL;HDC;DJ 7IAI ;79> 9EDIKC;H JE 7DDEKD9; J>;?H :;C7D: ; FK8B?9 =EE: 7I 7 ; I>7H; E< J>; 9EIJ J>;O F7O />; 9EIJ I>7H;I 7H; 9>EI;D IE J>7J 8EJ> 9EDIKC;HI :;C7D: J>; I7C; GK7DJ?JO E< FK8B?9 =EE: ?D ;GK?B?8H?KC EDIKC;H  F7OI I>7H;  7D: 9EDIKC;H  F7OI I>7H;    M?J>      />; =EL;HDC;DJ ?DI?IJI J>; :;C7D: ; ?DJ;H9;FJ J>;O J>?DA ?I 8;IJ #;D9; 9EDIKC;H  7DDEKD9;I J>; L7BK; E< 5 ?D J>; :;C7D: 9EDIKC;HI JH?;: JE C7D?FKB7J; J>; '?D:7>B ;GK?B?8H?KC 3098.32  />; '?D:7>B ;GK?B?8H?KC M?BB ;DIKH; J>; ;[9?;DJ B;L;B E< FK8B?9 =EE: ?< J>;H; ?I DE C7D?FKB7J?ED (7D?FKB7J?ED 7BM7OI J7A;I J>; ;?H I>7H; E< J>; 9EIJ E< J>; FK8B?9 =EE: $< EDBO ED; 9EDIKC;H C7D?FKB7J;I J>7D J>; ;GK?B?8H?KC GK7DJ?JO E< FK8B?9 =EE: M?BB 8; B;II J>7D J>; ;[9?;DJ B;L;B $< 8EJ> C7D?FKB7J; J>;D J>;O M?BB I?CKBJ7D;EKIBO JHO JE H;:K9; J>;?H I>7H; E< J>; 9EIJ />?I CKIJ KBJ?C7J;BO B;7: JE 7D ;L;D BEM;H B;L;B E< J>; FK8B?9 =EE: #;D9; C7D?FKB7J?ED 8O 8EJ> 9EDIKC;HI H;:K9;I J>; ;GK?B?8H?KC B;L;B E< J>; FK8B?9 =EE: 8;BEM J>; ;[9?;DJ B;L;B

; ;\;9J J>7J 7D ?D9H;7I; ?D J>; DKC8;H E< 9EDIKC;HI ?DLEBL;: ?D 7 C;9>7D?IC >7I ED J>; 9EDI;GK;D9;I E< C7D?FKB7J?ED 3098.32   9EDIKC;H M>E C7D?FKB7J;I ?I ;II;DJ?7BBO H;BO?D= KFED EJ>;H 9EDIKC;HI JE TD7D9; J>; FK8B?9 =EE: 2>;D J>;H; 7H; EDBO JME 9EDIKC;HI 7 H;:K9J?ED ?D J>; 9EDJH?8KJ?ED E< ED; E< J>;I; >7I 7 L;HO I?=D?T97DJ ;\;9J ED J>; GK7DJ?JO E< FK8B?9 =EE: (7D?FKB7J?ED ?DLEBL;I 7 JH7:;E\ 8;JM;;D H;:K9?D= J>; 9EDJH?8KJ?ED JE J>; FK8B?9 =EE: 7D: H;:K9?D= J>; GK7DJ?JO E< J>; FK8B?9 =EE: .?D9; J>; H;:K9J?ED ?D FK8B?9 =EE: ?I I?=D?T97DJ M>;D J>;H; 7H; EDBO JME 9EDIKC;HI J>; ;NJ;DJ E< C7D?FKB7J?ED ?I CE:;H7J;: 2>;D J>;H; 7H; C7DO 9EDIKC;HI J>; ;\;9J E< C7D?FKB7J?ED 8O 7 I?D=B; ?D:?L?:K7B ?I CK9> H;:K9;: />; H;IJH7?DJ KFED C7D?FKB7J?ED ?I J>;D CK9> H;:K9;: 7D: =H;7J;H C7D?FKB7J?ED J7A;I FB79; />; 7==H;=7J; H;IKBJ ?I J>7J 7D ?D9H;7I; ?D J>; DKC8;H E< 9EDIKC;HI ?D9H;7I;I J>; 7CEKDJ E< C7D?FKB7J?ED

EM J>7J J>; C7@EH?JO LEJ?D= EKJ9EC; ?I +7H;JE;[9?;DJ ?< J>; C;:?7D C7H=?D7B H7J; E< IK8IJ?JKJ?ED ?I ;GK7B JE J>; 7L;H7=; C7H=?D7B H7J; E< IK8IJ?JKJ?ED 3098.32  />; ?D:?L?:K7BI >7L; I?D=B;F;7A;: FH;; (;:?7D 1EJ;H />;EH;C M?BB 7FFBO />; C7@EH?JO LEJ?D= EKJ9EC; M?BB J>;H; J>; CEIJ FH;E?9; E< J>; C;:?7D LEJ;H 2?J> J>; 9EIJ I>7H;: ;GK7BBO

J>?I 9>E?9; I7J?IT;I    =54 =54  !=54 =54 =54 =54     (! $) . L ! L I J & ! " M>;H; & =54 ?I J>; ?D9EC; E< J>; C;:?7D LEJ;H />; D;9;II7HO 9ED:?J?ED EEI?D= !=54 ?I . =54 =54 .      H " EH . =54  =54 & +,H       .H=54 " />; .7CK;BIED HKB; ?I =?L;D 8O  (

8 & +,H  

 

8

?L?:?D= 8EJ> I?:;I 8O " =?L;I  8 ( & +,H   & +, H   " "

 

8

=54  & +, H  />; LEJ?D= EKJ9EC; ?I J>;H;?9> 9EIJI  .KFFEI; J>7J ?< J>; FK8B?9 =EE: ?I FHE:K9;: J>; 9EIJ ?I ;GK7BBO I>7H;: 8;JM;;D J>; J>H;; ?D:?L?:K7BI D7C;BO  ;79> IIKC; J>7J J>; =HEII 8;D;TJI ; FK8B?9 =EE: :?\;H 8;JM;;D ?D:?L?:K7BI 7D: 7H; H;IF;9J?L;BO   7D:  ?D:?L?:K7B ?I 7IA;: JE 7DDEKD9; >?I EMD 8;D;TJ ; FK8B?9 =EE: 7D: J>; FK8B?9 =EE: ?I FHE:K9;: EDBO ?< J>; IKC E< H;FEHJ;: 8;D;TJI ;N9;;:I J>; JEJ7B 9EIJ 7 .>EM J>7J J>; "HEL;IB7HA; C;9>7D?IC ?D:K9;I JHKJ>J;BB?D= 7I 7 :EC? D7DJ IJH7J;=O ?< ;79> ?D:?L?:K7B H;FEHJI ?D:;F;D:;DJBO J>;?H EMD 8;D;TJ 8 .>EM J>7J J>; H;IKBJ?D= FHEL?I?ED E< FK8B?9 =EE: ?I EFJ?C7B 9 .>EM J>7J J>; "HEL;IB7HA; C;9>7D?IC ?I DEJ HE8KIJ JE 9EBBKI?ED ?D J>; I;DI; J>7J JME ?D:?L?:K7BI 9EKB: 8; 8;JJ;H E\ 8O @E?DJBO C?IH;FEHJ?D= J>;?H 8;D;TJ ; =HEII 8;D;TJI 7D: J>; ;GK7B :?L?I?ED E< J>; 9EIJ J>; D;J 8;D;TJI 7H; J    J    7D: J    />; IE9?7BBO;[9?;DJ :;9?I?ED ?I JE FHEL?:; J>; FK8B?9 =EE: I?D9; J>; IKC E< D;J 8;D;TJI ?I FEI?J?L; J J  J    7 $D J>; B7HA;"HEL;I C;9>7D?IC J>; F7OE\ E< FB7O;H  ?I 

J F F ?< F F F 

 



?< F F F   M>;H; F F ?I J>; I?:;F7OC;DJ C7:; JE FB7O;H  )EM 7IIKC; J>7J FB7O;HI  7D:  JHKJ>;?H L7BK7J?EDI />;D J>; F7OE\ E< FB7O;H  ?I 

J J  J   ?< F  

 



?< F    #;D9; ?J ?I M;7ABO :EC?D7DJ ; I7C; 7H=KC;DJ 7FFB?;I JE J>; EJ>;H JME FB7O;HI 8 /E I>EM J>7J ?< JME FB7O;HI 9EBBK:; ED C7A?D= ;O 97D 8EJ> =7?D 7IIKC; J>7J FB7O;H  H;FEHJI F   7D: FB7O;H  H;FEHJI F   />;D J>; IKC E< H;FEHJI ?I      

 

IE J>; FK8B?9 =EE: ?I IJ?BB FHEL?:;: />; F7OE\ E< FB7O;H  ?I      

 

     

 

7D: J>; F7OE\ E< FB7O;H  ?I

/>;I; F7OE\I 7H; 8EJ> 78EL; J>; L7BK; E<  E8J7?D;: M?J> JHKJ>; H;7IED J>?I 7H=KC;DJ MEHAI ?I J>7J J>; ;?H EMD F7OE\ 8KJ :E;I H7?I; J>; F7OE\ E< J>; EJ>;H FB7O;H J>HEK=> J>; I?:;F7OC;DJ 9J?D= ?D:?L?:K7BBO DE FB7O;H 97D =7?D 8O EMD ?D F7HJ 7 8KJ J>;O 97D =7?D 8O 9EBBK:?D= />; JEJ7B L7BK; E< I?:; F7OC;DJI H?I;I M?J> 9EBBKI?ED M>?9> ?I M>;H; J>; =7?D 7H?I;I 9 2?J> C7@EH?JO LEJ?D= 8EJ> FB7O;HI  7D:  MEKB: LEJ; 7=7?DIJ FHEL?I?ED E< J>; FK8B?9 =EE: $J MEKB: J>;H;E 97H; 78EKJ J>;?H 9EDIKCFJ?ED E< 7 FH?L7J; =EE: 7D: J>;?H 9EDIKCFJ?ED E< 7 FK8B?9 =EE: />;?H

 KJ?B?JO ;H; L9 ?I 9EDIKC;H =WI 9EDIKCFJ?ED E< FH?L7J; =EE: 7D: ! ?I J>; 7CEKDJ E< FK8B?9 =EE: @E?DJBO 9EDIKC;: 8O 7BB E< J>;C />; KD?J 9EIJ E< J>; FH?L7J; =EE: ?I  7D: J>; KD?J 9EIJ E< J>; FK8B?9 =EE: ?I  $D:?L?:K7B M;7BJ> B;L;BI ?D  7H; K    K    7D: K   2>7J ?I J>; ;[9?;DJ 7CEKDJ E< FK8B?9 =EE: ;C JE 9EDIKC; 3098.32  />;H; 7H; JME M7OI JE IEBL; J>?I />; THIJ ?I JE MEHA :?H;9JBO M?J> J>; .7CK;BIED HKB; !HEC J>; KJ?B?JO ; C7H=?D7B H7J; E< IK8 IJ?JKJ?ED ; H;B7J?L; 9EIJI E< J>; FK8B?9 7D: FH?L7J; =EE: I>EM J>7J & +-H   

 

+KJJ?D= J>;I; JE=;J>;H J>; .7CK;BIED HKB; ?I (

8 & +,H 

8

L L L

   & +-H  ! ! !

 

/>?I 97D 8; H;7HH7D=;: ?DJE L L L   !

 

/>; ;9EDECO ?I 7BIE IK8@;9J JE J>; 7==H;=7J; H;IEKH9; 9EDIJH7?DJ

EH

L L L  !  K K K 

 

L L L  !  



 

.EBL?D= J>?I F7?H E< ;GK7J?EDI =?L;I !  

 

2>7J J>?I L7BK; I>EMI ?I J>; ;[9?;DJ B;L;B E< J>; FK8B?9 =EE: ?I ?D:;F;D:;DJ E< J>; :?IJH?8KJ?ED E< 9EDIKCFJ?ED 8;JM;;D J>; J>H;; 9EDIKC;HI C;7D?D= ?J :E;I DEJ :;F;D: ED >EM J>; 9EIJ ?I :?IJH?8KJ;: />; I;9ED: C;J>E: E< IEBKJ?ED ?I JE E8I;HL; J>7J IE9?7B M;B; H;IEKH9; 9EDIJH7?DJ 0  

  !!

 

(7N?C?P?D= J>?I 8O 9>E?9; E< ! =?L;I J>; D;9;II7HO 9ED:?J?ED 

  !   !   M?J> IEBKJ?ED !  

 



!  " 

 7H; J>?DA?D= E< 8KO?D= 7 IE;O :EDWJ =;J J>; IE;O :E 7D: A1 7D: A2 7H; J>; 7CEKDJI E< CED;O J>;O >7L; H;IF;9J?L;BO JE IF;D: ED FH?L7J; 9EDIKCFJ?ED 79> E< J>;C >7I 7 JEJ7B E< K  

?D  JE IF;D: 2>7J ?I J>; C7N?CKC 7CEKDJ J>7J J>;O 9EKB: F7O ; IE 8; 8;JJ;H E\ J>7D M?J>EKJ ?J 3098.32  />; C7N?CKC 7CEKDJ J>;O M?BB 8; M?BB?D= JE F7O ?I :;TD;: 7I J>; 9>7H=; J>7J B;7L;I J>;C ?D:?\;H;DJ 8;JM;;D >7L?D= 7D: DEJ >7L?D= J>; IE; KJ?B?J?;I M?J>EKJ J>; IE J>; IE; KJ?B?J?;I 7; F7OC;DJ 78  <  5 6 7H; I1 I2

 

  

 71   

 71 

  

 72   

 72 

   

B8;HJ M?BB 8; FH;F7H;: JE F7O 7DO 7CEKDJ J>7J I7J?IT;I 

 71 



 

M>?9> =?L;I 7 C7N?CKC M?BB?D=D;II JE F7O E< 71   ;J> M?BB 8; FH;F7H;: JE F7O 7I BED= 7I   

 72 

 =?L?D= 7 C7N?CKC L7BK; E< 72    />; C7N?CKC J>7J J>;O 97D 7\EH: JE F7O ?I 71 72   />?I C7N?CKC M?BB EDBO 8; 79>?;L;: ?< J>;O 97D :;I?=D 7 C;9>7D?IC J>7J ;DIKH;I ;79> H;L;7BI J>;?H JHK; L7BK;

; ; IKFFBO E< FK8B?9 =EE: ?I :;J;HC?D;: 8O C7@EH?JO LEJ; J>;D J>; EKJ9EC; CKIJ 8; +7H;JE;[9?;DJ 8 $< FH;;D ;L;HOED; M?BB 7=H;; 78EKJ J>; H?=>J 7CEKDJ E< FK8B?9 =EE:I JE 8; IKFFB?;: 9 +K8B?9 =EE:I 7H; J>EI; =EE:I J>7J 7H; IKFFB?;: 8O J>; =EL;HDC;DJ : />; IEKH9; E< J>; ; 78I;D9; E< H?L7BHO ?D J>; 9EDIKCFJ?ED E< FK8B?9 =EE:I ; />; IEKH9; E< J>; FH;; DED;N9BK:78?B?JO E< FK8B?9 =EE:I < $< 7 FK8B?9 =EE: ?I FHEL?:;: 8O LEBKDJ7HO 9EDJH?8KJ?EDI JEE B?JJB; M?BB 8; IKFFB?;: H;B7J?L; JE J>; ;[9?;DJ B;L;B

 3098.32  7 />; IJ7J;C;DJ ?I ; C;:?7D LEJ;H J>;EH;C JE C7@EH?JO LEJ?D= />?I J;BBI KI J>7J J>; M?J> C7@EH?JO LEJ?D= J>; B;L;B E< J>; FK8B?9 =EE: M?BB 8; J>; GK7DJ?JO J>7J ?I CEIJ FH;; C;:?7D LEJ;H />?I GK7DJ?JO 97D 8; 78EL; EH 8;BEM J>; ;[9?;DJ B;L;B 8 />; IJ7J;C;DJ ?I ; 7IIKCFJ?ED E< I?D=B;F;7A;: FH;7J ;79> ?D:?L?:K7B >7I 7 I?D=B; CEIJFH;;I; GK7DJ? J?;I 97D :?\;H 8;JM;;D ?D:?L?:K7BI 9 />; IJ7J;C;DJ ?I ;O 7H; E; =EL;HDC;DJ : />; IJ7J;C;DJ ?I JHK; DEDH?L7BHO B;7:I ;79> 9EDIKC;H JE 8;D;TJ ; 9EDJH?8KJ?EDI E< 7BB EJ>;H 9EDIKC;HI $J ?I J>?I FEII?8?B?JO JE 8;D;TJ ;HI J>7J =?L;I J>; ?D9;DJ?L; 9EDIKC;H ?I FH;F7H;: JE C7A; 7 ;O 7DDEKD9; J>;O FB79; 7 D;=7J?L; L7BK; KFED ?J < />; IJ7J;C;DJ ?I JHK; />; ;GK?B?8H?KC B;L;B E< FHEL?I?ED ?I :;J;HC?D;: 8O FH?L7J; 9>E?9;I M>?9> ?=DEH; J>; IE9?7B 8;D;TJI E< 7::?J?ED7B FHEL?I?ED />?I ?CFB?;I J>7J J>; ;GK?B?8H?KC ?I +7H;JE?D;[9?;DJ 7D: 7 I?CKBJ7D;EKI ?D9H;7I; ?D 9EDJH?8KJ?EDI M?BB B;7: JE 7 +7H;JE?CFHEL;C;DJ

O :E;I J>; HEK=> 9EDIKC;HI ;NFH;II?D= J>;?H FH;; FKH9>7I; E< 9ECCE:?J?;I 2>;D =EE:I 7H; FH?L7J; DE 9EDIKC;H >7I 7DO ?D9;DJ?L; JE C7A; 7 7J ?D:?L?:K7B 9EDIKC;HI :E DEJ ?DJ;H79J M?J> ;79> EJ>;H 8KJ H;79J EDBO JE J>; FH?9; IOIJ;C $D 7 9ECF;J?J?L; C7HA;J J>;I; FH?9;I 7H; F7H7C;JH?9  ; 9EDIKC;H C7A?D= J>; IJ7J;C;DJ 8KJ >7I DE 9EDI;GK;D9; ;H 9EDIKC;H $J ?I DEJ J>;H;; FH; J>; ?DJ;DJ?ED E< I>?; 8KH:;D E< F7OC;DJ EDJE EJ>;H 9EDIKC;HI 2?J> FK8B?9 =EE:I J>;H; ?I 7 :?H;9J ?DJ;H79J?ED 8;JM;;D :?\;H;DJ 9EDIKC;HI L?7 J>; GK7DJ?JO E< FK8B?9 =EE: FHEL?:;: />; IJH7J;=?9 ?D9;DJ?L; J>?I ?DJHE:K9;I C7A;I ?J ?D:?L?:K7BBO H7J?ED7B JE C7A; 7 ; ;NF;9J7J?ED J>7J EJ>;H 9EDIKC;HI M?BB C7?DJ7?D J>; B;L;B E< FK8B?9 =EE: FHEL?I?ED ;97KI; E< J>;I; ?D9;DJ?L;I ?J 8;9EC;I :?[9KBJ ; C7HA;J C;9>7D?IC :E;I DEJ >7L; J>; FHEF;HJ?;I H;GK?H;: JE 79>?;L; ;[ 9?;D9O



!  " 

;J>;H JE >?H; 7 8E7J 7J M?BB ;B?9?J EL;H 7D: KD:;HL7BK7J?EDI E< J>; 8E7J >?H; 3098.32  />; L7BK7J?ED J>7J ?I =?L;D ?D H;IFEDI; JE 7 GK;IJ?ED M?BB :;F;D: ED J>; B?DA 8;JM;;D 7DDEKD9;C;DJ 7D: 9>7H=; !EH ?DIJ7D9; ?< J>; 9>7H=; ?I ?D:;F;D:;DJ E< J>; 7DDEKD9;C;DJ J>;D 7DOED; M>EI; L7BK7J?EDI ;N9;;:I J>; 9>7H=; M?BB >7L; 7D ?D9;DJ?L; JE C7A; 7D ;N9;FJ?ED7BBO >?=> 7DDEKD9;C;DJ /ME FEJ;DJ?7B GK;IJ?EDI 87I;: ED J>?I H;7IED?D= 7H; 7 2>7J FH?9; 7H; OEK M?BB?D= JE F7O JE >?H; J>; 8E7J $< J>; IKC E< 7DDEKD9;C;DJI ;N9;;:I J>; >?H; 9EIJ J>;D M; M?BB >?H; J>; 8E7J 8KJ F7O  ;79> 8 2>7J FH?9; 7H; OEK M?BB?D= JE F7O JE >?H; J>; 8E7J $< J>; IKC E< 7DDEKD9;C;DJI ;N9;;:I J>; >?H; 9EIJ J>;D M; M?BB >?H; J>; 8E7J 7D: F7O 7 I>7H; E< J>; >?H; 9EIJ ?D FHEFEHJ?ED JE J>; 7DDEKD9;C;DJ

?I ;?H L7BK7J?ED E< J>; 9EKDJHOI?:; 3098.32  />?I GK;IJ?ED ?I 7::H;II?D= J>; C;J>E: E< 9EDJ?D=;DJ L7BK7J?ED M>?9> C;7DI E8I;HL?D= 79J?EDI ?D EH:;H JE ?D; L7BK; E< 7 FK8B?9 =EE: IIKC; J>7J J>; 7H;7 E< I9;D?9 9EKDJHOI?:; ?I 7 FK8B?9 =EE: 2>7J M; :E DEJ ADEM ?I J>; L7BK; J>7J 7 9EDIKC;H FB79;I KFED J>; 9EKDJHOI?:; $< M; M;H; JE 7IA J>;C :?H;9JBO ; ?IIK;I IKHHEKD:?D= H;L;B7J?ED C;9>7D?ICI MEKB: 8; H7?I;: $DIJ;7: J>; ; 9EKDJHOI?:; C7DO 9EDIKC;HI CKIJ JH7L;B ;?H >EC; BE97J?ED JE J>; 9EKDJHOI?:; .K9> JH7L;B ?I 9EIJBO !EH ;N7CFB; M; 97D J>?DA E< J>; 9EIJ E< ; @EKHD;O J>; :;FH;9?7J?ED E< J>; 97H 7D: J>; L7BK; E< J>; J?C; KI;: JH7L;B?D= ';J J>;I; 9EIJI IKC JE  ; 9EKDJHOI?:; $< J>; 9EDIKC;H ?I C7A?D= 7 H7J?ED7B ;9EDEC?9 :;9?I?ED J>;D J>; 8;D;TJI  J>;O ;NF;9J JE ;D@EO ; 9EKDJHOI?:; CKIJ ;N9;;: J>; 9EIJI F7?: JE JH7L;B J>;H; />;H;; 8;D;TJ C;7IKH;I J>;?H L7BK7J?ED E< J>; 9EKDJHOI?:; M; 97D 9ED9BK:; J>7J JH7L;B 9EIJI FB79; 7 BEM;H 8EKD: ED J>; L7BK7J?ED E< J>; 9EKDJHOI?:;

-&48*6

09' 33)7 &2) 3(&0 9'0.( 33)7 ?F M>7J M?BB 8; J>; 9EDI;GK;D9; 3098.32  />; 7DIM;H >7I JE 8; F>H7I;: H;B7J?L; JE J>; :;C7D: ; 9BK8 IIKC; J>; 9BK8 I>7H;I J>; 9EIJ 8;JM;;D C;C8;HI $J C7O 8; J>7J J>; 9BK8 97DDEJ I;9KH; IK[9?;DJ C;C8;HI JE 8H;7A ;L;D ?< J>; 9BK8 9>7H=;I 7L;H7=; 9EIJ >

J>; :;C7D: ?F ?I 7BM7OI B;II J>7D B />; > 9BK8 CKIJ ;?J>;H 9BEI; EH ;CFBEO 7D 7BJ;HD7J?L; 9>7H=?D= I9>;C; DEDC7H=?D7B C;C8;HI C7O 8; M?BB?D= JE F7O CEH; J>7D 7L;H7=; 9EIJ H7J>;H J>7D >7L; DE 9BK8 BJ;HD7J?L;BO 7IIKC; J>; 9BK8 ;IJ?C7J;I J>7J :;C7D: ?F   M?BB 8; B M>;D J>; 8KJ J>7J :;C7D: ?I 79JK7BBO B  B />; > 9EDI;GK;D9; M?BB 8; KJ?B?P7J?ED E< J>; 9BK8WI 7J ?I ?D ;N9;II E< J>; ;[9?;DJ B;L;B !EH 7 J;DD?I 9BK8 J>?I 9EKB: ?DLEBL; GK;K;?D= JE KI; 9EKHJI EH >7L?D= JE FB7O 7J KDFEFKB7H J?C;I />; TD7D9?7B EKJ9EC; ?I DEJ 9B;7H />; 9BK8 FHEL?:;I ?F > C;C8;HI>?F ?I 78EL; M>7J M7I ;NF;9J;: J>; 9BK8 M?BB C7A; 7 BEII ?<  ! B   B

 ! B   B

 

?D 7 H; IJH?9J;: =;E=H7F>?97B 7H;7 :K97J?ED ?I DEJ 7 FKH; FK8B?9 =EE: I?D9; ?J >7I 8EJ> FK8B?9 7D: FH?L7J; 8;D;TJI KJ IEC; E< ?JI 8;D;TJI 7H; DEDH?L7B 7D: DED;N9BK: 78B; #EM;L;H ?J ?I DEJ 9B;7H J>7J J>;I; 8;D;TJI 7H; BE97B ?D D7JKH; I?D9; >7L?D= 



!  "    " 

7 8;JJ;H;:K97J;: FEFKB7J?ED 97D 8; 7 =7?D JE J>; ;9EDECO 7I 7 M>EB; />?I ?I ;IF;9?7BBO JHK; ?< J>;H; ?I CE8?B?JO E< FEFKB7J?ED  I9>EEB ?D J>; I;DI; E< 7 F>OI?97B 8K?B:?D= ?I CEH; E< 7 BE97B FK8B?9 =EE: J>7D ;:K97J?ED ?D J>; 8HE7:;H I;DI;

;EHO 8; 7FFB?;: JE 7D7BOP; ?CC?=H7J?ED FEB?9O 3098.32  BK8 J>;EHO 97D 8; 7FFB?;: 8O 9EDI?:;H?D= 7 9EKDJHO JE 8; 7 9BK8 />; F;HIF;9J?L; E< 9BK8 J>;EHO ;CF>7I?P;I J>; 9EDJHEB E< C;C8;HI>?F I?P; FEFK B7J?ED 97D 8; ?DJ;HFH;J;: 7I C;C8;HI>?F JE 79>?;L; ;[9?;D9O #;D9; 7 9EKDJHO CKIJ I;J 7D ;[9?;DJ C;C8;HI>?F B;L;B 7D: ;DIKH; J>7J J>?I ?I DEJ ;N9;;:;: />?I FHEL?:;I 7D 7H=KC;DJ ; 7:EFJ?ED E< 7D ?CC?=H7J?ED FEB?9O J>7J 9ED JHEBI J>; DKC8;H E< D;M ;DJH7DJI !KHJ>;HCEH; 9BK8 J>;EHO :;CEDIJH7J;I J>7J J>; KDH;IJH?9J;: ;DJHO E< C;C8;HI M?BB B;7: JE 7D ;N9;II?L; C;C8;HI>?F );M C;C8;HI M?BB ;DJ;H KDJ?B J>; FH?L7J; C7H=?D7B 8;D;TJ ?I J7A;I C;C8;HI>?F F7IJ J>; FE?DJ 7J M>?9> J>; 8;D;TJ E< ;N?IJ?D= C;C8;HI ?I C7N?C?P;:

EEI?D= J>; B;L;B E< FHEL?I?ED EDIKC;HI 7H; ?F B;L;BI CKIJ ;GK7B?P; J>; KJ?B?JO B;L;BI E\;H;: 8O J>; JME 9BK8I IIKC; J>7J J>;H; ?I 7 TN;: FEFKB7J?ED E< I?P; ' J>7J J>; FK8B?9 =EE: >7I KD?J 9EIJ 7D: J>7J 9BK8I I>7H; J>; 9EIJ ;GK7BBO EL;H C;C8;HI .>EM J>7J 7 9BK8 M>?9> C7N?C?P;I J>; KJ?B?JO E< 7 H;FH;I;DJ7J?L; C;C8;H M?BB DEJ 8; ;[9?;DJ 3098.32  />; C;C8;HI>?F E< 9BK8  ?I :;DEJ;: B 7D: J>; C;C8;HI>?F E< 9BK8  8O B 2?J> J>; TN;: FEFKB7J?ED E< I?P; ' ?J 7J B  '  B  />; ;GK7B?P7J?ED E< KJ?B?JO 8;JM;;D J>; JME 9BK8I ?CFB?;I



!

! . &  !  . &   !  B

'  B

M>;H; & ?I J>; ?D9EC; E< 7 9EDIKC;H !HEC J>?I ?J ?I FEII?8B; JE :;:K9; J>7J B  B !  !   />; IJHK9JKH; E< J>; ; KJ?B?JO E< 7 H;FH;I;DJ7J?L; C;C8;H #;D9; ?J IEBL;I

!

$) . &   !

I J B  B !  !   B

 

 />?I EFJ?C?P7J?ED >7I D;9;II7HO 9ED:?J?ED    ! B

  .   .H B

B !

> +HEL?:;:   J>?I ?I DEJ J>; ;[9?;D9O 9ED:?J?ED #;D9; J>; 9BK8I M?BB DEJ  8; ;[9?;DJ />; ;NFB7D7J?ED ?I H;IKBJ ?I J>7J J>; 9BK8I >7L; 8;;D CE:;B;: >;H; 7I B;JJ?D= C;C8;HI>?F 7:@KIJ ?D H;IFEDI; JE J>; GK7DJ?JO E< FK8B?9 =EE: $D J>; C7?D J;NJ J>; C;C8;HI>?F B;L;B M7I 7 I;9ED: 9>E?9; L7H?78B; 7D: J>; 9BK8 M7I DEJ ;D=7=;: ?D 7 9ECF;J?J?ED 7L?D= B C;C8;HI J>;O E8J7?D KJ?B?JO ! B .  &  #&! !   B ? M>;H; ? ?I 7 FEI?J?L; 9EDIJ7DJ 7D:  ?I J>; 9>7H=; ?F > 7 ;H?L; J>; EFJ?C7B C;C8;HI>?F ; 9BK8 ?< ?J C7N?C?P;I J>; KJ?B?JO E< ;79> C;C8;H 8 IIKC?D= J>; 9BK8 9>EEI;I ! EFJ?C7BBO =?L;D ?JI C;C8;HI>?F 97B9KB7J; J>; BEII :K; JE C;C8;HI>?F E< 7 9BK8 M?J> IK8EFJ?C7B I?P; 9 IIKC; J>7J J>; JEJ7B FEFKB7J?ED ?I E< I?P; A M?J> ?  A  ? .>EM J>7J J>;H; ?I 7 9EDJ?DKKC E< +7H;JE;[9?;DJ 7BBE97J?EDI E< FEFKB7J?ED JE 9BK8I : 2>7J 9BK8 I?P; C7N?C?P;I JEJ7B KJ?B?JO FHE:K9;: 8O J>; 9BK8 EDJH7IJ JE J>; 7DIM;H ; THIJEH:;H 9ED:?J?EDI ; EFJ?C?P7J?ED 7H; .      ! B !

 

7D:

. !         B B ? .EBL?D= J>;I; =?L;I !  B 7D: B  ? />?I =?L;I 7D EFJ?C?P;: L7BK; E< KJ?B?JO . B   &   #&! ? 

 

8 !EH 7 9BK8 M?J> A C;C8;HI ?J 7J J>; EFJ?C7B L7BK; E< ! ?I !  A #;D9; J>; KJ?B?JO E8J7?D;: ?I . A  &   #&! A  />; BEII ?F ?I . B   . A 

A   #&! ?

A  ?



? A

 



 



!  "    " 

9 "?L;D J>?I FEFKB7J?ED I?P; J>;H; 7H; J>H;; M7OI J>; FEFKB7J?ED 97D 8; :?L?:;: 8;JM;;D JME 9BK8I ? EJ> 9BK8I 97D >7L; C;C8;HI>?F B;II J>7D EH ;GK7B JE J>; EFJ?C7B I?P; ?? *D; 9BK8 >7I CEH; J>7D J>; EFJ?C7B 9BK8 I?P; ??? *D; 9BK8 >7I J>; EFJ?C7B 9BK8 I?P; )EM 9EDI?:;H J>; KJ?B?JO . A />?I 7I 7 C7N?CKC 7J A  ? 7D: ?I IJH?9JBO 9ED97L; /7A; 7DO FEI?J?ED M>;H; 8EJ> 9BK8I 7H; IC7BB;H J>7D J>; EFJ?CKC />; IJH?9J 9ED97L?JO I>EMI J>7J 7DO H;7BBE97J?ED E< C;C8;HI CKIJ C7A; ED; E< J>; 9BK8I IC7BB;H M>?9> H;:K9;I J>; KJ?B?JO E< ?JI H;C7?D?D= C;C8;HI #;D9; J>; ?D?J?7B FEI?J?ED M7I +7H;JE ;[9?;DJ />?I =?L;I J>; 9EDJ?DKKC E< +7H;JE;[9?;DJ 7BBE97J?EDI EDL;HI;BO

?< ED; 9BK8 ?I IJH?9JBO B7H=;H J>7D J>; EFJ?CKC J>;D JH7DI; IC7BB;H 9BK8 H7?I;I M;B />KI J>; ?D?J?7B :?L?I?ED ?I DEJ +7H;JE ;[9?;DJ .?C?B7HBO ?< ED; 9BK8 ?I EFJ?C7B 7DO 9>7D=; ?D :?L?I?ED CKIJ BEM;H M;B7J 9BK8 : />; JEJ7B KJ?B?JO FHE:K9;: 8O 7 9BK8 ?I   B !    0  B &  #&! !  B ? #;D9; 7D:

0 B     ! !

 

0 B  & #&! !    B ?

 

/>?I =?L;I !  B 7D: B :;TD;: ?CFB?9?JBO 8O & #&! B  > ;  EDJH7IJ?D= JE J>; 7DIM;H JE F7HJ 7 DEJ; J>7J ? />; EFJ?C7B C;C8;HI>?F DEM :;F;D:I ED ?D9EC; &  7D: ?< & #&! ?   ?? ! ?I >?=>;H ??? B ?I >?=>;H />?I H;IKBJ ?I E8J7?D;: 8O ;L7BK7J?D= > 7J !  B 7D: B  ? />; 7DIM;H ?I FEI?J?L;

I>EM?D= J>7J ? ?I IC7BB;H J>7D J>; EFJ?C7B L7BK; />; KJ?B?JO 79>?;L;: 8O 7 C;C8;H ?D J>?I EKJ9EC; CKIJ 8; B;II J>7D J>7J 79>?;L;: ; 9BK8 ?D F7HJ 7 ?I ?I JHK; 8O :;TD?J?ED $J 97D 7BIE 8; I>EMD 8O IEBL?D= ?9> ?I :;I9H?8;: 8O 7 '7C8;HJ ;D FBEJJ?D= C7N?C?P;: KJ?B?JO

; 7DIM;H :;F;D:I ED J>; B;L;B E< :;C7D: ?F M>;D 7L;H7=; 9EIJ ?I 9>7H=;: ; ;[9?;DJ C;C8;HI>?F $< :;C7D: ;N9;;:I J>; ;[9?;DJ C;C8;HI>?F B;L;B J>; 9BK8 CKIJ ;N;H9?I; ;N9BKI?ED EJ>;HM?I; JEE C7DO C;C8;HI M?BB @E?D J>; 9BK8 *DBO ?D J>; 97I; E< :;C7D: FH;9?I;BO ;GK7B JE J>; ;[9?;DJ C;C8;HI>?F M?BB J>; 9BK8 DEJ D;;: JE ;N;H9?I; ;N9BKI?ED

7J M?BB 8; J>; ;[9?;DJ C;C8;HI>?F B;L;B E< 7 9BK8 ?< J>;H; ?I DE 9ED=;IJ?ED $I ?J IJ?BB 7FFHEFH?7J; JE 97BB ?J 7 9BK8 =EE: ?< J>;H; ?I DE 9ED=;IJ?ED

 3098.32  $< J>;H; ?I DE 9ED=;IJ?ED J>;D J>; EFJ?C7B C;C8;HI>?F CKIJ 8; ?DTD?J; 79> D;M C;C8;H J>7J ?I 7::;: JE J>; C;C8;HI>?F M?BB 8;D;TJ ; =EE: 8O ;N79JBO J>; I7C; 7CEKDJ 7I J>; THIJ 7D: M?BB DEJ H;:K9; J>; 8;D;TJ E< ;N?IJ?D= C;C8;HI  ;H C;C8;H M?BB 7BIE H;:K9; J>; 7L;H7=; 9EIJ ; D;J 8;D;TJ E< ;N?IJ?D= C;C8;HI M?BB H?I; 7I D;M C;C8;HI @E?D />?I FHE9;II >7I DE B?C?J  9BK8 =EE: ?I :;TD;: 8O J>; 78?B?JO JE ;N9BK:; FEFKB7J?ED $J ?I IJ?BB FEII?8B; JE >7L; J>; 78?B?JO JE ;N9BK:; ;L;D ?< J>; 9BK8 :E;I DEJ M?I> JE KI; ?J #;D9; ?J 97D IJ?BB 8; 7 9BK8 ?< J>;H; ?I DE 9ED=;IJ?ED 8KJ J>; ;9EDEC?9 7D7BOI?I ?I DEJ L;HO ?DJ;H;IJ?D=

 J>; 9BK8WI 9>E?9;I 2>7J 78EKJ DEDC;C8;HI 3098.32  $D J>; I?CFB;IJ CE:;B E< 7 9BK8 7BB C;C8;HI 7H; >ECE=;D;EKI />;H; 97D 8; DE 9EDU?9J E< ?DJ;H;IJ 8;JM;;D J>; C;C8;HI IE 7BB M?BB 7=H;; M?J> J>; 9BK8WI 9>E?9;I FHEL?:;: J>7J J>;O 7H; ;[9?;DJ  CEH; 9ECFB;N CE:;B MEKB: >7L; >;J;HE=;D;EKI C;C8;HI DO :;9?I?ED CKIJ J>;D H;FH;I;DJ J>; H;IEBKJ?ED E< 9EDU?9J?D= ?DJ;H;IJI  C;C8;H C?=>J DEJ 7=H;; M?J> J>; ;N79J 9>E?9;I E< J>; 9BK8 8KJ MEKB: H7J>;H 8; 7 C;C8;H J>7D 7 DEDC;C8;H $< J>; FEFKB7J?ED ?I >ECE=;D;EKI J>;D DEDC;C8;HI MEKB: 7BIE 7=H;; M?J> J>; 9>E?9;I E< J>; 9BK8 />;O C7O FH;; 9BK8 H7J>;H J>7D EKJI?:; ?J 8KJ J>;O MEKB: C7A; J>; I7C; 9>E?9;I 7I J>; 9BK8 />; I?JK7J?ED ?I :?\;H;DJ M?J> >;J;HE=;D;?JO )EDC;C8;HI C7O 7J J>; 9BK8 >7I C7:; IEC; L;HO MHED= :;9?I?EDI

7J 7 9EDIKC;H H;9;?L;I 7 KJ?B?JO E< 5 6!  B &  D M>;D J>;O F7O 7 FH?9; D JE 8; ?D 7 9BK8 M?J> B C;C8;HI 7D: FHEL?I?ED ! E< J>; FK8B?9 =EE: 7D: 7 KJ?B?JO E< & ?< J>;O 7H; DEJ ?D 7 9BK8 5 6 7D:  7H; FEI?J?L; 9EDIJ7DJI 7 .>EM J>7J J>; M?BB?D=D;IIJEF7O E< 7 9EDIKC;H ?F I7J?IT;I D 5 6!  B  8 IIKC; J>7J J>; 9BK8 ?I FHEL?:;: 8O 7 CEDEFEB?IJ M>E 9>EEI;I C;C8;H I>?F 7D: FHEL?I?ED JE C7N?C?P; FHETJ $< J>; 9EIJ E< HKDD?D= J>; 9BK8 ?I ! B M>7J 7H; J>; FHETJC7N?C?P?D= 9>E?9;I ! 7D: B 9 2>7J 9>E?9; E< ! 7D: B C7N?C?P;I J>; M;B; 9BK8 7H; I>7H;: ;GK7BBO : ECF7H; J>; CEDEFEB?IJ?9 7D: M;B; 9EDJH7IJI 3098.32  7 />; 9EDIKC;H M?BB @E?D J>; 9BK8 ?< KJ?B?JO 7I 7 C;C8;H ?I =H;7J;H J>7D KJ?B?JO 7I 7 DEDC;C8;H />?I ?I JHK; ?< 5 6!  B &  D &

 



!  "    " 

/>; C7N?CKC FH?9; J>;O M?BB F7O ?I J>;D D  5 6!  B

 

8 2?J> 9EIJ ! B J>; CEDEFEB?IJ C7N?C?P;I

 DB  ! B  B 5 6!  B  ! B 

 

?\;H;DJ?7J?D= =?L;I  !  B



6B    

 



5 6!  B   

 

.E B  2 7D: !  2 1 2 9 />; 9BK8 9>7H=;I ;79> C;C8;H 7 C;C8;HI>?F ?I . ! . B

 

   B !     B 6

> > 

IE ?JI 9>E?9;I  

   

.EBL?D= =?L;I B  2 7D: !  2 : EDJH7IJ?D= J>; IEBKJ?EDI JE F7HJI 8 7D: 9 ?J 97D 8; I;;D J>7J B ?I J>; I7C; ?D 8EJ> 97I;I 8KJ J>7J ! ?I >?=>;H M?J> CEDEFEBO ?<   5   6

;C; F7HAI :E DEJ KI; JMEF7HJ J7H?\I 2>7J ?I J>; 9EDI; GK;D9; 2>O :E J>;O 9>EEI; DEJ JE KI; JMEF7HJ J7H?\I 3098.32   JMEF7HJ J7H?\ ?I 7D ;DJHO 7H=; ; ; 9BK8 !EH 7 J>;C; F7HA J>; 9>7H=; MEKB: 8; B;L?;: H?:; />; FKHFEI; E< J>; I;9ED: F7HJ E< J>; J7H?\ ?I JE FH;L;DJ 9ED=;IJ?ED />; 9EDI;GK;D9;I E< DEJ KI?D= 7 JMEF7HJ J7H?\ 7H; 9B;7H 7J CEIJ FEFKB7H J>;C; F7HAI J>;H; ?I 9ED=;IJ?ED 7D: 799;II JE H?:;I ?I 9EDJHEBB;: 8O GK;K;?D= $J ?I FEII?8B; J>7J J>;C; F7HAI 8;B?;L; 9EDIKC;HI FH;?I 8;B?;< ?I ;C; F7HA JH?;I 7 :?\;H;DJ IJH7J;=O BJ;HD7J?L;BO

9EDIKC;HI C7O FH;; I?D=B; ; GK;K; 7BB 9EDIKC;HI 9EKB: >EB: J>; ?HH7J?ED7B 8;B?;< J>7J J>;O 7H; 9ECFB;J?D= 7 >?=>;HJ>7D7L;H7=; DKC8;H E< H?:;I



p

a

c

b

x !?=KH;   /MEF7HJ J7H?\

; EKJ9EC; ;[9?;DJ 3098.32  EDI?:;H T=KH;   J>7J I>EMI 7 :;C7D: 9KHL; 7D: 7 9EDIJ7DJ C7H=?D7B 9EIJ 9KHL; $< J>; FHE:K9J M;H; IEB: 7J C7H=?D7B 9EIJ J>;D 9EDIKC;H IKHFBKI MEKB: 8; 7H;7 567 $< J>; CEDEFEB?IJ KI;: 7 I?D=B; FH?9; IEC; :;7:M;?=>J BEII MEKB: 8; 9H;7J;: 7D: ?J MEKB: 97FJKH; EDBO 7 ; JEJ7B 9EDIKC;H IKHFBKI />; EFJ?C7B JMEF7HJ J7H?\ MEKB: 8; 7 ; 9EDIKC;H MEKB: 8; ?D:?\;H;DJ JE F7HJ?9?F7J?D= ?D J>; C;9>7D?IC I?D9; J>;O E8J7?D DE IKHFBKI />; EKJ9EC; ?I ;[9?;DJ 8;97KI; FH?9; ?I ;GK7B JE C7H=?D7B 9EIJ 7D: 9EDIKCFJ?ED 79>?;L;I J>; ;[9?;DJ B;L;B />; 9EDJH7IJ M?J> J>; 9ECF;J?J?L; EKJ9EC; ?I ?D J>; 7BBE97J?ED E< IKHFBKI Z J>; JMEF7HJ J7H?\ JH7DI; CEDEFEB?IJ

; :;I?=D E< JMEF7HJ J7H?\I >7L; JE 8; CE:?T;: M>;D 9EDIKC;HI 7H; >;J;HE=;D;EKI 3098.32  />; 7H=KC;DJ :;L;BEF;: ?D J>; FH;L?EKI 7DIM;H JH;7J;: J>; 9EDIKCFJ?ED I;9JEH 7I ?< ?J M7I 7 I?D=B; ?D:?L?:K7B IIKC; ?D:?L?:K7BI 7H; >;J;HE=;D;EKI ?D J>; I;DI; J>7J J>;O E8J7?D :?\;H;DJ B;L;BI E< IKHFBKI ; C7HA;J $D J>?I 9?H9KCIJ7D9; 7 I?D=B; ; 9EDIKC;H IKHFBKI  >?=> ?B; 7 BEM 7KIJ J>; 9EDIKC;H IKHFBKI E< IEC; 9EDIKC;HI />; CEDEFEB?IJ M?BB >7L; JE JH7:; J>; B;L;B E< J>; ; FHETJC7N?C?P?D= 9>7H=?D= I9>;C;



!  "    " 

G

5

5

6

11

n

!?=KH;   0J?B?JO 7D: C;C8;HI>?F

  ?:;DJ?97B 9EDIKC;HI IIKC; J>7J ?< 7 9EDIKC;H 8;BED=I JE 7 9BK8 M?J> B C;C8;HI 7D: J>; 9EIJ E< J>; 9BK8 ?I I>7H;: ;GK7BBO J>;O MEKB: E8J7?D KJ?B?JO .

" B  !

  B

EM J>7J 7 FEFKB7J?ED E< I?P;  97DDEJ 8; 7BBE97J;: 8;JM;;D EFJ?C7B C;C8;HI>?F 9BK8I ;OED: M>7J FEFKB7J?ED I?P; ?I ?J FEII?8B; JE =K7H7DJ;; EFJ?C7B?JO 9 #EM MEKB: OEKH 7DIM;HI 9>7D=; ?< J>; KJ?B?JO ; JME IF;9?T97J?EDI OEK TD: CEIJ 9ECF;BB?D= E;I J>?I B;7: OEK JE 8;B?;L; 9BK8I M?BB 7JJ7?D ;[9?;D9O ; ;9EDECO 3098.32  7 />; KJ?B?JO ;: ?D T=KH;   />; EFJ?C7B 9BK8 I?P; ?I 8;JM;;D  7D:  C;C8;HI 8 D EFJ?C7B 9BK8 CKIJ >7L;  EH  C;C8;HI />;H; ?I DE 9EC8?D7J?ED E<  7D:  J>7J 97D 7==H;=7J; JE  I ;H FEFKB7J?EDI I?P;I    7D:  97DDEJ 8; 7BBE97J;: JE EFJ?C7B 9BK8I  7D:  97D   7D:  97DDEJ  

7D:  97D  7D:  97DDEJ    7D:  97D  97DDEJ  7D: 78EL; 97D />;H;; FEFKB7J?ED I?P; 8;OED: M>?9> ?J ?I FEII?8B; JE =K7H7DJ;; EFJ?C7B?JO ?I  />; FEFKB7J?ED E<  97D 8; :?L?:;: ?DJE  9BK8I ;79> M?J>  C;C8;HI



G

5.5

5

6

11

n

!?=KH;   0D?GK; EFJ?C7B 9BK8 C;C8;HI>?F

9 />?I KJ?B?JO 7I 7 KD?GK; C7N?CKC 7J 7 C;C8;HI>?F E<   />?I ?I =H7F>;: ?D T=KH;   />; 9EDI;GK;D9; E< J>?I KJ?B?JO 7J J>; FEFKB7J?ED 97D D;L;H 8; 7BBE97J;: JE 79>?;L; J>; C7N?CKC KJ?B?JO E<   C;C8;H 8;97KI; E< ?DJ;=;H H;IJH?9J?EDI BBE97J?D= J>; FEFKB7J?ED E<  ?DJE  9BK8I M?J>  C;C8;HI ;79> M?BB 79>?;L; J>; I7C; KJ?B?JO B;L;B 7I ?D F7HJ 8 : />; ?DJ;=;H FHE8B;C 97DDEJ 8; EL;H9EC; ?D J>; 7BBE97J?ED 8;JM;;D 9BK8I I 7 9EDI;GK;D9; J>; JME KJ?B?JO ; I7C; 7BBE97J?EDI M?BB ;C;H=; />; 7IIKCFJ?ED E< 7D EFJ?C7B C;C8;HI>?F E<   ?I DEJ 7 C;7D?D=; 8;IJ EKJ9EC; ;H; 9BK8I M?BB 79>?;L; ;[9?;D9O Y NFB7?D 7D: 9H?J?97BBO 7FFH7?I; J>?I IJ7J;C;DJ 3098.32  />; ;9EDEC?9 7D7BOI?I E< 9BK8I FH;IKC;I J>7J J>; 9BK8 M?BB C7N ?C?P; J>; KJ?B?JO E< 7 JOF?97B C;C8;H 2>;D J>; FEFKB7J?ED ?I >ECE=;D;EKI

J>?I E8@;9J?L; ?I 9B;7HBO :;TD;: 7D: J>; 9BK8 :E;I 79>?;L; J>; 8;IJ EKJ9EC; ; I?JK7J?ED ?I :?\;H;DJ M?J> 7 >;J;HE=;DEKI FEFKB7J?ED $J C7O 8; FEII?8B; J>7J 7D ;GK?B?8H?KC ?DLEBL;I C;C8;HI>?F E< JME EH CEH; JOF;I E< ?D:?L?:K7B ?D 7 9BK8 $< ?J :E;I J>;D J>; 9BK8 >7I JE JH7:;E\ J>; 9ECF;J?D= ?DJ;H;IJI E< :?\;H;DJ C;C8;HI />?I JH7:;E\ :;J;HC?D;I J>; E8@;9J?L; ; 9BK8 7D: ?CFB?9?JBO M>7J ?I C;7DJ 8O J>; 8;IJ EKJ9EC; BJ;HD7J?L;BO J>; ;GK?B?8H?KC C7O ?DLEBL; IEHJ?D= E< :?\;H;DJ JOF;I ?DJE :?\;H;DJ 9BK8I />; >;J ;HE=;D;?JO 7J J>; ?D:?L?:K7B B;L;B J>;D 8;9EC;I >ECE=;D;?JO M?J>?D 7 9BK8 7D: J>; 9BK8 79>?;L;I J>; 8;IJ EKJ9EC; />; ?CFEHJ7DJ FE?DJ ?I J>7J J>?I ;[9?;D9O



!  "    " 

M?J>?D ;79> 9BK8 D;;: DEJ JH7DIB7J; ?DJE ;[9?;D9O ; ;9EDECO />; JEJ7B FEFKB7J?ED C7O DEJ 8; 7D ?DJ;=;H CKBJ?FB; E< J>; EFJ?C7B 9BK8 C;C8;HI>?F 7D: J>; FH?9?D= IOIJ;C ?F C7O DEJ ;DIKH; 7D ;[9?;DJ ;GK?B?8H?KC

;H; J>; KJ?B?JO ; 9>7H=; E< 7 C;C8;H ?I .  5 6B  7B !?D: J>; EFJ?C7B C;C8;HI>?F E< J>; 9BK8 2>7J ?I J>; C;C8;HI>?F B;L;B J>7J C7N?C?P;I J>; JEJ7B KJ?B?JO E< J>; 9BK8 EDJH7IJ J>; JME B;L;BI 7D: ;NFB7?D J>; :?\;H;D9; 3098.32  />; EFJ?C7B L7BK; E< B C7N?C?P;I J>; KJ?B?JO E< ;79> C;C8;H />; D;9;II7HO 9ED:?J?ED ?I EFJ?C?P7J?ED ?I

IE

8.  6  7B   8B 6  7 />; C;C8;HI>?F J>7J C7N?C?P;I J>; JEJ7B KJ?B?JO E< J>; 9BK8 IEBL;I   $) B.  B 5 6B  7B  B? 

>

     

/>; D;9;II7HO IEBKJ?ED ?I 8 B.   5 6B  7B    8B IE  6 6 57    BD  7 2 2 $J ?I 9B;7H J>7J BD  B? I?D9; BD  3  3  B? />; C;C8;HI>?F J>7J C7N?C?P;I JEJ7B KJ?B?JO ?I B7H=;H I?D9; ?J ?I 79>?;L;: 7J J>; FE?DJ M>;H; J>; C7H=?D7B C;C8;H 7::I DE KJ?B?JO JE J>; JEJ7B *8I;HL; J>7J J>; ;\;9J E< 7::?D= 7 D;M C;C8;H ;L7BK7J;: 7J J>; EFJ?C7B C;C8;HI>?F ?I 8 B.  6 >  5   8B 7

 

O J>; ;9EDECO M?BB 8; 9BEI;H JE 7D ;[9?;DJ ;GK?B?8 H?KC M>;D 9ED=;IJ?ED E99KHI M?J> 7 IC7BB C;C8;HI>?F B;L;B 3098.32  ED=;IJ?ED 8;?D= XMEHI;Y ?I J7A;D 7I C;7D?D= J>7J ?J E99KHI ?F E< J>; 9BK8 />; ;\;9J E< MEHI; 9ED=;IJ?ED ?I JE C7A; J>; EFJ?C7B I?P; E< J>; 9BK8 IC7BB;H !EH 7 =?L;D FEFKB7J?ED J>; :;L?7J?ED ; B7H=;H J>; DKC8;H E< 9BK8I ?DJE M>?9> J>; FEFKB7J?ED ?I 7BBE97J;: $D J>; B?C?J J>; EFJ?C7B 9BK8 I?P; H;:K9;I JE 7 I?D=B; 9EDIKC;H 7D: ;[9?;D9O M?BB 7BM7OI 8; 79>?;L;: J>?I ?I J>; 97I; E< 7 FH?L7J; =EE:



; EFJ?C7B 9BK8 I?P; ?I 8;JM;;D  7D:  M>7J ?I J>; IC7BB;IJ FEFKB7J?ED 8;OED: M>?9> ;[9?;D9O ?I 7BM7OI 79>?;L;: 2>7J ?< EFJ?C7B I?P; ?I 8;JM;;D  7D:  3098.32  $< EFJ?C7B 9BK8 I?P; ?I 8;JM;;D  7D:  J>; 8H;7A:EMD ?I 7I ; IC7BB;IJ FEFKB7J?ED 8;OED: M>?9> ;[9?;D9O ?I 79>?;L;: ?I  2>;D EFJ?C7B 9BK8 I?P; ?I 8;JM;;D  7D:  J>; IC7BB;IJ FEFKB7J?ED ?I 

;D J>; FEFKB7J?ED ?I :?L?:;: 8;JM;;D 7  9BK8 8  9BK8I 9  9BK8I 3098.32  2?J> J>; KJ?B?JO ; EFJ?C7B L7BK; E< C;C8;HI>?F IEBL;I   B     IE B   0J?B?JO 7I 7 ;: ?D T=KH;   2>;D J>;H; 7H; 7 9BK8I KJ?B?JO ?I  ' ' .        7 7 />; EFJ?C7B C;C8;HI>?F  B 7D: J>; C7N?C7B KJ?B?JO  $J 97D 8; I;;D ?D T=KH;   J>7J 7I J>; DKC8;H E< 9BK8I ?D9H;7I;I J>; H7D=; E< JEJ7B FEFKB7J?ED ?9> KJ?B?JO ?I 9BEI; JE J>; EFJ?CKC ?D9H;7I;I />?I ?I J>; 87I?I E< J>; 9B7?C J>7J ?D 7 B7H=; FEFKB7J?ED J>; 7BBE97J?ED JE 9BK8I ?I 7FFHEN?C7J;BO ;[9?;DJ

7J :E;I J>; /?;8EKJ #OFEJ>;I?I IK==;IJ ; EH=7D?P7J?ED E< 7 9?JOWI IJHK9JKH; 3098.32  />; /?;8EKJ #OFEJ>;I?I 9B7?CI J>7J ;[9?;D9O M?BB 8; 79>?;L;: ?D J>; FHEL?I?ED E< BE97B FK8B?9 =EE:I ?< J>;H; ?I F;H 9ED IKC;H ?I 78B; JE CEL; JE 7 @KH?I:?9J?ED J>7J :;B?L;HI J>;?H FH;; FEFKB7J?ED ?I >;J;HE=;D;EKI M?J> H;IF;9J JE J7IJ;I J>; #OFEJ>;I?I H;GK?H;I J>;H; JE 8; 7 H7D=; E< :?\;H;DJ @KH?I:?9J?EDI E\;H?D= :?< ;I;



!  "    " 

2 clubs 3 clubs

4 clubs

!?=KH;   0J?B?JO 7D: J>; DKC8;H E< 9BK8I

?:;7I D;;: 97H;;D 7FFB?;: JE J>; EH=7D?P7J?ED E< 7 9?JOWI IJHK9 JKH; *D; ?CFEHJ7DJ 9EDI?:;H7J?ED ?I J>7J 7 9?JO FHEL?:;I I;L;H7B FK8B?9 =EE:I J>7J :?\;H ?D J>; I?P; E< H;=?ED J>;O I;HL; !EH ;N7CFB; 7 TH; I;HL?9; ?I 9ED IJH7?D;: 8O J>; :?IJ7D9; 8;JM;;D J>; IJ7J?ED 7D: J>; 7L;H7=; TH; />; ;[9?;DJ 97J9>C;DJ 7H;7 EEB C7O 8; ;L;D IC7BB;H $D 9EDJH7IJ ?J C7O 8; ;[ 9?;DJ JE >7L; 7 BE97B H7:?E I;HL?9; 9EL;H J>; ;DJ?H; 9?JO !HEC J>;I; E8I;HL7J?EDI ; 9B7?C J>7J ?J ?I DEJ IK[9?;DJ JE >7L; 7 I?D=B; @KH?I:?9J?ED ; 9?JO DEH JE 8H;7A J>; 9?JO :EMD ?DJE 7 DKC8;H E< I;B<=EL;HD?D= @KH?I:?9J?EDI $DIJ;7: ;[9?;D9O H;GK?H;I I;L;H7B B;L;BI E< =EL;HD7D9; M?J> ;79> FHEL?:?D= J>; FK8B?9 =EE:I J>7J I;HL?9; J>7J 7H;7 />; BE97J?ED 9>E?9; ;D 8;9EC;I ED; E< I;B;9J?D= 7 9?JO 7D: J>;D 7D 7H;7 M?J>?D J>7J 9?JO $D FH79J?9;

J>; 8;D;TJI 7JJ7?D;: 8O J>?I B;L;B E< :;9;DJH7B?P7J?ED >7L; JE 8; I;J 7=7?DIJ J>; 9EIJI E< C7?DJ7?D?D= J>; DKC8;H E< B;L;BI E< :;9?I?EDC7A?D= />;I; ?IIK;I 7H; :?I9KII;: ;H ?D 9>7FJ;H 

EKB: BE97B 9ECCKD?J?;I 8; H;IJH?9J;: ?D J7N FEM;HI 3098.32  $D J>; MEHB: ;DL?I7=;: 8O J>; /?;8EKJ #OFEJ>;I?I J>;H; MEKB: 8; DE D;;: JE H;IJH?9J J>; J7N7J?ED FEM;HI E< BE97B 9ECCKD?J?;I +;H7J 7DO 9ECCKD?JO M>?9> B;L?;: ;N9;II?L; J7N;I MEKB: BEI; FEFKB7J?ED EDL;HI;BO IEC; 9EDIKC;HI C7O M?I> JE B?L; ?D 7 @K H?I:?9J?ED J>7J I;JI 7 >?=> J7N H7J; 7D: ;[9?;D9O H;GK?H;I J>7J J>;O 7H; DEJ FH;L;DJ;: ; /?;8EKJ ;DL?HEDC;DJ ?CF;H?9> IK==;IJ J>7J H;IJH?9J?EDI 7H; D;9;II7HO !?HIJ CE8?B?JO ?I DEJ F;H?F ?I ?DLEBL;: />; 9EIJ E< CEL?D= C7A;I H;I?:;DJI M?BB?D= JE 8;7H 7 B;II J>7D EFJ?C7B FEI?J?ED .;9ED: ?CF;H ?D; 9ED9;FJ E< FEB?J?97B 7=;D9O FHE8B;CI

  9EDIKC;HI 7D:  FEJ;D J?7B @KH?I:?9J?EDI 79> E< J>; 9EDIKC;HI >7I ED; KD?J E< B78EH JE IKFFBO 7D: FH;;H; !9 ?I J>; GK7DJ?JO E< FK8B?9 =EE: FHEL?:;: ?D J>; @KH?I:?9J?ED = E< H;I?:;D9; ;DEJ?D= B78EH IKFFBO ?D @KH?I:?9J?ED = 8O %9 J>; FK8B?9 =EE: ?I FHE:K9;: FHE:K9J?ED H;=?EDI B;LO 7 J7N ED B78EH ?D9EC; JE TD7D9; FHEL?I?ED E< J>;?H FK8B?9 =EE: IKFFBO 7 IIKC?D= J>7J 9EDIKC;HI J7A; J7N;I 7D: FK8B?9 =EE: FHEL?I?ED 7I =?L;D M>;D 9>EEI?D= J>;?H BE97J?ED 9EDIJHK9J 7D ?D;[9?;DJ ;GK?B?8H?KC ?I ;9ED ECO 8 ?I9KII J>; ?D9EDI?IJ;D9O E< 9EDIKC;H 8;B?;?I ;GK?B?8H?KC 9 #EM ?I J>; ;GK?B?8H?KC CE:?T;: ?< J>;H; ?I 7 9EDJ?DKKC E< 9EDIKC;HI ;79> E< M>?9> ?I XIC7BBY H;B7J?L; JE J>; ;9EDECO 3098.32  7 'E97J; ED; 9EDIKC;H ?D ;79> H;=?ED I;J J>; FH?9; E< B78EH JE ED; 7D: 7IIKC; 7  F;H9;DJ ?D9EC; J7N 79> H;=?ED 97D J>;D TD7D9; J>; FHEL?I?ED E< ED; KD?J E< FK8B?9 =EE: "?L;D 9EDIKC;H BE97J?EDI J>?I ?I J>; EFJ?C7B FEB?9O @KH?I:?9J?ED I?D9; 9EDIKC;HI :E DEJ L7BK; B78EKH IKFFBO $J ?I 7BIE 7D ;GK?B?8H?KC I?D9; IKFFB?;I ;GK7B :;C7D:I 7D: D;?J>;H 9EDIKC;H >7I 7D ?D9;DJ?L; JE CEL; =?L;D J>;?H 8;B?;7J FEB?9?;I M?BB 8; >;B: 9EDIJ7DJ />?I ;GK?B?8H?KC ?I ?D;[9?;DJ ?< 8EJ> 9EDIKC;HI BE97J;: ?D 7 I?D=B; @KH?I:?9J?ED

?J MEKB: 8; 78B; JE IKFFBO JME KD?JI E< FK8B?9 =EE: M>?9> MEKB: H7?I; M;B ED; 9EDIKC;H ?D ;79> H;=?ED $< ;?J>;H M;H; JE CEL; J>;D J>; H;L;DK; E< J>; @KH?I:?9J?ED JE M>?9> J>;O CEL;: MEKB: :EK8B; 7D: IE MEKB: ?JI FK8B?9 =EE: IKFFBO $D J>?I 97I; 8;97KI; J>;H; 7H; EDBO JME 9EDIKC;HI

J>;O 7H; B7H=; H;B7J?L; JE J>; ;9EDECO 7D: J>; 8;B?;< J>7J FEB?9O ?I 9EDIJ7DJ ?I ?D9EDI?IJ;DJ 9 />; ?D9EDI?IJ;D9O ?D F7HJ 8 :E;I DEJ C7JJ;H ?< J>; ;GK?B?8H?KC :; I9H?8;: IJ?BB 7FFB?;I M>;D 9EDIKC;HI 7H; IC7BB H;B7J?L; JE J>; ;9EDECO $< J>?I M;H; JHK; ?J MEKB: I?CFBO 8; 7 9EDL;D?;DJ CE:;B?D= :;L?9; EDI?:;H DEM J>; 9EDJ?DKKC FEFKB7J?ED EJ> H;=?EDI CKIJ B;LO  F;H9;DJ J7N;I ?< J>;O :?: DEJ 7D ?D9H;7I; MEKB: H7?I; J>; M;B;?H H;I?:;DJI )EM 7IIKC;



!  "    " 

J>; FEFKB7J?EDI E< J>; JME @KH?I:?9J?EDI 7H; DEJ ;GK7B />;D J>; B7H=;H @KH?I :?9J?ED FHEL?:;I CEH; FK8B?9 =EE: >;D9; 7BB 9EDIKC;HI MEKB: M?I> JE BE97J; J>;H; EDI;GK;DJBO J>;H; CKIJ JME JOF;I E< ;GK?B?8H?7 ? />; FEFKB7J?EDI ?I ;L;DBO :?L?:;: 8;JM;;D @KH?I:?9J?EDI ?? BB J>; FEFKB7J?ED ?I BE97J;: ?D ED; @KH?I:?9J?ED I 7BM7OI J>;H; CKIJ 8; 7D E:: DKC8;H E< ;GK?B?8H?7 />;H; 7H; JME E< JOF; ??  7BB ?D @KH?I:?9J?ED  7D: 7BB ?D @KH?I:?9J?ED  7D: ED; E< JOF; ? />; THIJ ;GK?B?8H?KC H;U;9JI J>7J ?D F7HJ 7 8KJ DEJ; J>7J M?J> J>; D7JKH7B 7:@KIJC;DJ FHE9;II J>7J 9EDIKC;HI H;BE97J; JE J>; FH;;: 7J M?J> 7D ;GK7B :?L?I?ED />;H;; ;GK?B?8H?KC ?:;DJ?T;: ?D F7HJ 7 ?I DEJ H;FH;I;DJ7J?L; E< J>; EKJ9EC; M>;D 9EDIKC;HI 7H; IC7BB $J ;N?IJI 7D: ?I ?D;[9?;DJ 8KJ M?BB 8; 79>?;L;: EDBO M?J> FHE878?B?JO P;HE ; 7:@KIJC;DJ FHE9;II :;I9H?8;: I IK9> J>; ;GK?B?8H?KC ?D F7HJ 7 ?I KDH;FH;I;DJ7J?L; E< M>7J E99KHI M?J> J>; 9EDJ?DKKC -;;EHO E< BE97B FK8B?9 ;NF;D:?JKH;I *)*(!/-%  Z

C;H  .KFFEI; J>7J 9EDIKC;HI >7L; ?D9EC; &

FH;; FK8B?9 =EE: ?I FHE:K9;: M?J> 9EIJ EM J>7J J>; KJ?B?JO C7N?C?P?D= C;C8;HI>?F ?I B   M?J> FHEL?I?ED B;L;B !   8 +HEL; J>7J ?< ! ?I 9>EI;D EFJ?C7BBO =?L;D B KJ?B?JO 7I 7 ;?H FEII?8BO DED?DJ;=;H C;C8;HI>?F B;L;B 2>7J FH?9; ?F M?BB =?L; P;HE FHETJ M?J> J>;I; L7BK;I E< B 7D: ! 9 "?L;D J>; KJ?B?JO 79>?;L;: 7J J>; IEBKJ?ED JE F7HJ 8 I>EM J>7J J>; M?BB?D=D;II JE F7O ?I =?L;D 8O D     #&!   #&! !  B !HEC J>?I TD: J>; FHETJ C7N?C?P?D= 9>E?9; E< ! 7D: B 7D: I>EM J>7J FHETJ ?I FEI?J?L; ECC;DJ ED J>; FEII?8?B?JO E< 7D ;[9?;DJ P;HEFHETJ ;GK?B?8H?KC : ?I9KII J>; ?DJ;=;H ?IIK;I ?D J>?I 7D7BOI?I

 3098.32  7 2?J> ?D9EC; & ;79> 9EDIKC;H 9EDJH?8KJ;I  > JEM7H:I J>; ED J>; 9EDIKCFJ?ED E< J>; FHEL?I?ED E< J>; FK8B?9 =EE: 7D: IF;D:I &   > FH?L7J; =EE: L />; KJ?B?JOC7N?C?P?D= L7BK;I E< ! 7D: B IEBL; $) .  & 

>

!  #&! !  B B

 

/>?I =?L;I

  .      ! B ! . !         B B />; THIJ 9ED:?J?ED =?L;I !  B 7D: J>; I;9ED: !  B  #;D9; B   7D: !   8 .K8IJ?JKJ?D= !  B ?DJE J>; ;NFH;II?ED ; KJ?B?JO ;D J>H;; FEII?8?B?J?;I MEHJ> 9EDI?:;H?D=  9BK8I M?J> B    9BK8I M?J> B   7D:  9BK8I M?J> B     />; 9EHH;IFED:?D= KJ?B?J?;I ;I; 7H; &  #&!     &  &  #&!     &        &   &  #&!  

     

.E >7L?D=  9BK8I M?J> 7 C;C8;HI>?F E<   ?I ;[9?;DJ />; 9EHH;IFED:?D= B;L;B E< FHEL?I?ED ?I !  B   />; FHETJ B;L;B 7J J>;I; L7BK;I ?I

 D   />?I =?L;I J>; P;HEFHETJ FH?9; D   9 !HEC  

L  .   #&! ! B

 

 

J J>; 7BBE97J?ED M?J>  9BK8I B   7D: !   .  &   #&!   />?I =?L;I J>; M?BB?D=D;II JE F7O D   

& L &  &    #&!   #&! !  B    #&!   #&! !  B

 

/>; FHETJ ; THIJEH:;H 9ED:?J?ED ?I H;:K9;I J>; THIJEH:;H 9ED :?J?ED ?9> >7I IEBKJ?ED B    />;H;;I; =?L; FHETJ B;L;B  

         #;D9; EJ>;H 9BK8I 9>EEI?D= B   7D: ;7HD?D= P;HE FHETJ 7D 7BJ;HD7J?L; IJH7J;=O ;N?IJI M>?9> O?;B:I =H;7J;H FHETJ />; EKJ9EC; M?J>  9BK8I 97DDEJ 8; 7D ;GK?B?8H?KC : $D J>;I; 9EDIJHK9J?EDI J>; I;J E< 9EDIKC;HI ?I JH;7J;: 7I ?< ?J M;H; 7 9EDJ?DKKC IE J>7J 9BK8I 9EKB: >7L; 7 DED?DJ;=;H C;C8;HI>?F $D 9EDJH7IJ J>; DKC8;H E< 9BK8I M7I H;IJH?9J;: JE 8; 7D ?DJ;=;H />?I I;;CI JE 8; 7 CE:;B M?J> C7DO 9EDIKC;HI 8KJ 7 ;H;; YKJ?B?JO J7A?D=Y 8;>7L?EH ED J>;I; THCI $J ?I J>?I ?D9EDI?IJ;D9O M>?9> H;IKBJI ?D J>;H; 8;?D= DE ;GK?B?8H?KC $< J>; DKC8;H E< 9EDIKC;HI M7I B7H=; 7D: J>; DKC8;H E< THCI 7BIE B7H=; J>; FEI?J?L; FHETJ MEKB: 8; ;B?C?D7J;: ?D J>; B?C?J -;C;H .  +HETJC7N?C?P?D= 9BK8I *0-)' *" 0'% *)*(%.  Z

; H;7IEDI M>O 7 9EDIKC;H M?BB H;BE97J; ;H 2>7J 9ED:?J?ED CKIJ 8; I7J?IT;: 7L; FEI?J?L; FEFKB7J?EDI ?D ;GK?B?8H?KC 2EKB: IK9> 7D ;GK?B?8H?KC 7BM7OI 8; IJ78B; $< J>; ;DJ?H; FEFKB7J?ED 9>EEI;I JE BE97J; ?D 7 I?D=B; @KH?I:?9J?ED CKIJ J>; ;GK?B?8H?KC 8; ;[9?;DJ 3098.32   9EDIKC;H M?BB H;BE97J; ;H ?< J>; B;L;B E< KJ?B?JO ?I >?=>;H ?D J>; D;M @KH?I:?9J?ED J>7D ?D J>; EB: />; H;7IEDI ?=> KJ?B?JO 9EKB: 8; >?=>;H D;J ?D9EC; ?D9EC; C?DKI J7N BEM;H J7N ?D 9BKI?L; FH?9;I EH 7 FH; 7I 9HEM:?D= Z JE 8; H;B;L7DJ ; 9>E?9; />; 9ED:?J?ED 7L; FEI?J?L; FEFKB7J?ED ?D ;GK?B?8H?KC :;F;D:I ED J>; FH;9?I; I?JK7J?ED $D 7 MEHB: M?J> ?:;DJ?97B ?D:?L?: K7BI J>; 9ED:?J?ED CKIJ 8; J>7J . 8 = . 8 > 7BB = > .?D9; J>?I CKIJ >EB: J>;D 7J . 8 =  . 8 > 7BB = > 7BB ?I ;GK?B?8H?KC D;;: DEJ 8; IJ78B; $J ?I FEII?8B; ; KJ?B?JO E\;H;: 8O 7 H;=?ED JE 8; ?D9H;7I?D= ?D FEFKB7J?ED ; = J>;H; 7H; H;JKHDI JE I97B; ?D FK8B?9 =EE: FHEL?I?ED IE 7 CEL;C;DJ E< FEFKB7J?ED C7O =?L; H;I?:;DJI E< > KJ?B?JO 78EL; H;I?:;DJI E< = M>?9> ;D9EKH7=;I ;H FEFKB7J?ED JE UEM JE > D ;GK?B?8H?KC M?J> 7BB FEFKB7J?ED ?D ED; H;=?ED D;;: DEJ 8; ;[9?;DJ $J 97D 8; BE97BBO IJ78B; 8KJ J>;H; C7O 8; 7DEJ>;H ;GK?B?8H?KC ?D M>?9> ;L;HOED; >7I >?=>;H KJ?B?JO



 FH;;H; - 9 ?I J>; J7N B;L?;: ?D @KH?I:?9J?ED = 7D: !9 ?I FK8B?9 =EE: FHEL?I?ED IIKC;     />; B;L;B E< FK8B?9 =EE: ?D ;79> H;=?ED ?I :;9?:;: 8O C7@EH?JO LEJ?D= E< ?JI H;I?:;DJI $< J>;H; 7H; JME H;I?:;DJI 7IIKC; J>; IKFFBO ?I J>; 7L;H7=; E< J>; FH;; H;I?:;DJI 7 .>EM J>7J J>; FH;;H; B9 ?I J>; @KH?I:?9J?ED FEFKB7J?ED 8 IIKC?D= 9EDIKC;HI 9EHH;9JBO FH;:?9J J>; 9EDI;GK;D9;I E< BE97J?ED 9>E?9;

I>EM J>7J J>;H; ?I DE ;GK?B?8H?KC ?<       #&!    9 .>EM J>7J J>;H; ?I 7D ;GK?B?8H?KC ?< 9EDIKC;H J7A; FHEL?I?ED B;L;BI 7I =?L;D 3098.32  7 2?J> B9 H;I?:;DJI J>; J7N B;L?;: ?D @KH?I:?9J?ED = ?< < 9>EEI;I  !8 ?I > />; FH;;D IEBL;I 8 ! !8    $)   9 8 #&! B B9

  $J 7J !8  B9 8 8 />;H; 7H; JME JOF;I E< ;GK?B?8H?KC ? ED; 9EDIKC;H ?D ;79> @KH?I:?9J?ED ?? 8EJ> 9EDIKC;HI ?D J>; I7C; @KH?I:?9J?ED $D9EHFEH7J?D= J>; LEJ?D= J>; KJ?B?J?;I 79>?;L;: ?D J>;I; 7D: ?D J>; 7BJ;HD7J?L; ?< J>; 9EDIKC;H IM?J9>;I 7H; =?L;D ?D J>; ;H; M?BB 8; DE ;GK?B?8H?KC ?< 7J B;7IJ ED; E< J>; 9EDIKC;HI M?I>;I JE IM?J9> ?D 8EJ> JOF;I E< ;GK?B?8H?KC !?HIJ DEJ; J>7J ?J ?I DEJ FEII?8B; JE >7L; 8EJ>        #&!        #&!     

 



!  "    " 

7D:

       #&!        #&!    I?D9; J>; I;9ED: ?CFB?;I 

 

       

  #&!   #&!    

 

          #&!      #&!    

 

.;9ED: DEJ; J>7J

7D:

       #&!        #&!      8EJ> >EB: ?<     #&!    J>; I;9ED: 7BM7OI >EB:I H;7HH7D=?D= J>; THIJ =?L;I J>; ?D;GK7B?JO #;D9; ?<     #&!    9EDIKC;H  MEKB: M?I> JE IM?J9> 7M7O ; JME JOF;I E< ;GK?B?8H?7 7H; /OF; ? 

,H5M   .      #&!   .       #&! 

,K=H7<   .      #&!   .       #&! 

/OF; ?? .    .   

,H5M    #&!      #&!  

     

,K=H7< .   .   

/>;  DE C;C8;HI FHE L?:;I DE FK8B?9 =EE: B;7HBO DE IM?J9> M?BB J7A; FB79; 7M7O EK=> ?J C7O H;=?ED =  ' J>;H; ?I 7 BE97B FK8B?9 =EE: ;9 JE 8; FHE:K9;: EH DEJ IE ;9     $< ;9   J>; 9EIJ ?I 79 KD?JI E< FH?L7J; =EE: J>; 8;D;TJ ; ;NJ;HD7B 8;D;TJ E< FHE@;9J =  = ?I 9:9 M>?9> 97D 8; ;?J>;H FEI?J?L; EH D;=7J?L; 7D: 999  -;=?EDI 7H; H7DA;: 8O ?D9H;7I?D= FHE@;9J 9EIJ 7  7  7 !EH ;9  J>;H; ?I DE 9EIJ 8;D;TJ EH ;NJ;HD7B?JO ?DLEBL;: ;TD; J>; I;J E< ?CFB;C;DJ;: FHE@;9JI !  =  '  ;9   />; FH;;H; L9 ?I FH?L7J; 9EDIKCFJ?ED  H;I?:;DJ ?D = ?I ;D:EM;: M?J> ED; KD?J E< J>; FH?L7J; =EE: 7D: F7OI ?D9EC; J7N H9 IE FH?L7J; 9EDIKCFJ?ED ?I L9    H9  7 ;TD; J>; ;[9?;DJ FHE:K9J?ED E< BE97B FK8B?9 =EE:I 2>7J ?I J>; I;J E< FK8B?9 =EE:I J>7J ?I FHE:K9;: 8 2?J> :;9;DJH7B?P7J?ED J>; H;=?ED7B FHE@;9JI 7H; ; H;=?ED7B 8K:=;J 9EDIJH7?DJ ?I H9  79 ;9 2>7J ?I J>; FHE:K9J?ED EKJ9EC; KD:;H :;9;DJH7B?P7J?ED  =EE:I J>7J ?I FHE:K9;: KD:;H :;9;DJH7B 9 2>7J ?I J>;  I;J !  E< FK8B?9   ?P7J?ED !  =  '  ;9   M>;H; ;9 ?I J>; BE97B FHE:K9J?ED :;9?I?ED ECF7H; M?J> ;[9?;DJ EKJ9EC; ?D 7 9 ?I9KII M>O J>; :;9;DJH7B?P7J?ED EKJ9EC; ?I KDB?A;BO JE 8; ;[9?;DJ 3098.32  7 />; JEJ7B M;B;H; ;9      />?I 97D 8; H;7HH7D=;: JE =?L; 0



 ; 6  7 9 9   ; 6  7 9  9    ; 6  7 9 9  

& B;7HBO ;9  ?< 69  79 :9 9:9  ;BI; ;9   8 2?J> :;9;DJH7B?P7J?ED J>; FK8B?9 =EE: M?BB EDBO 8; FHEL?:;: ?< ?J H7?I;I BE97B M;BEKJ J7A?D= J>; ;NJ;HD7B?JO ?DJE 799EKDJ />; KJ?B?JO ?D H;=?ED = ?I & I9   69 ;9  79 ;9 :9 99: ;:  IE J>; FK8B?9 =EE: M?BB 8; FHEL?:;: ?< 69  79   9 />; :?\;H;D9; ?D J>; :;9?I?ED KD:;H & 9;DJH7B?P7J?ED 7D: :;9;DJH7B?P7J?ED M?BB :;F;D: ED J>; ;NJ;HD7B?JO ;\;9J $< :9 9:9  J>;D J>; FK8B?9 =EE: ?D H;=?ED = ?I CEH; B?A;BO JE 8; FHE:K9;: KD:;H 9;DJH7B?P7J?ED J>7D :;9;DJH7B?P7J?ED : />; :?\;H;D9; ?D FHEL?I?ED 7H?I;I ; 7D ;NJ;HD7B?JO M>?9> ?I J7A;D ?DJE 799EKDJ ?D 7 9;DJH7B?P;: :;9?I?ED 8KJ DEJ ?D 7 :;9;DJH7B?P;: :;9?I?ED -;;H; ;9 ?I J>; 7J ?I J>; F7OE\ JE 7DO H;I?:;DJ ?D H;=?ED = ; I;J E< 7J FHE@;9J ;NJ;HD7B?J?;I 7H; KD?7J 7J ;H H;=?ED 2>7J ?I J>; C7@EH?JO LEJ?D= EKJ9EC; : ECF7H; J>; C7@EH?JO LEJ?D= EKJ9EC; M?J> J>; ;[9?;DJ EKJ9EC; ?I9KII J>; H;7IEDI M>O J>; 9;DJH7B?P;: EKJ9EC; M?BB DEJ 8; ;[9?;DJ ?D =;D;H7B 3098.32  7 2?J> 9;DJH7B?P7J?ED J>; J7N F7?: M?BB 8; =?L;D 8O H9 

7 ;  7 ; 7 ;   

8 />; F7OE\ JE 7 H;I?:;DJ ?D H;=?ED = ?I I9   

& 7 ;  7 ; 7 ;  69 ;9 :9 99: ;:  

9 $< J>; ;NJ;HD7B?J?;I 7H; KD?;D I9   

& 7 ; 7 ; 7 ; 69 ;9 :9 9;:  

/E 8; IKFFEHJ;: 8O C7@EH?JO LEJ?D= ?J CKIJ 8; J>; 97I; J>7J 7J B;7IJ ED; EJ>;H H;=?ED E\;HI IKFFEHJ IE J>; ;NJ;HD7B?JO CKIJ ;N9;;: J>; I>7H; E< J>; 9EIJ #;D9; LEJ?D= M?BB I;B;9J ;9  ?< 79 9   .E J>; C7@EH?JO LEJ?D= EKJ9EC; ?I H7DA;: 8O 9EIJ : 0D:;H J>; 7IIKCFJ?ED E< KD?; FK8B?9 =EE: M?BB 8; FHEL?:;: ?D J>; ;[9?;DJ ;GK?B?8H?KC ?< 69  79 9   EH 9  79  69  $D 9EDJH7IJ M?J> 9;DJH7B?P;: FHEL?I?ED M?J> C7@EH?JO LEJ?D= J>; FK8B?9 =EE: M?BB 8; FHEL?:;: ?< 9  79  />; JME M?BB :?\;H M>;D;L;H 69  9 $< 69  9 J>;H; M?BB 8; 97I;I M>;H; ?J ?I FHEL?:;: M?J> LEJ?D= M>;D ?J ?I DEJ ;[9?;DJ JE FHEL?:; $< 69  9 J>;H; M?BB 8; 97I;I M>;H; ?J ?I ;[9?;DJ JE FHEL?:; 8KJ ?J ?I DEJ FHEL?:;: M?J> LEJ?D=

;H; 7H; J>H;; JOF;I E< 9EDIKC;H M?J> FH;;H; ?I 7D ;GK7B DKC8;H E< ;79> JOF; 7D: 7BB 9EDIKC;HI >7L; J>; I7C; ?D9EC; B;L;B $< J>;H; 7H; JME @KH?I:?9J?EDI J>7J B;LO 7 J7N 7D: FHEL?:; J>; FK8B?9 =EE: M>7J ?I J>; ;GK?B?8H?KC 7BBE97J?ED 2>7J ?I J>; ;[9?;DJ 7BBE97J?ED 3098.32  IIKC; J>7J      7D: J>7J J>;H; 7H; ' 9EDIKC;HI E< ;79> JOF; D ;GK?B?8H?KC ?I 7 J7N H7J; @KH?I:?9J?ED 7D: 7D 7BBE97J?ED E< 9EDIKC;HI JE @KH?I:?9J?EDI IK9> J>7J DE 9EDIKC;H MEKB: FH;7D=;

 @KH?I:?9J?ED 7BB J>; @KH?I:?9J?EDI 5 7D: 6 B;J J>;?H J7N H7J;I 8; H1 7D: H2 7D: FEFKB7J?EDI '1 7D: '2 />; 8K:=;J 9EDIJH7?DJ ?I H: ':  !: 

 

M>;H; !: ?I FK8B?9 =EE: FHEL?I?ED D 7BBE97J?ED ?I 7D ;GK?B?8H?KC ?< ;I; ;GK7B?J?;I J>; 9EDIKC;H 9ECF7H;I J>; KJ?B?JO E< J>; 9KHH;DJ 7BBE 97J?ED JE J>; KJ?B?JO E< J>; 7BBE97J?ED 7;O CEL; />;H; 7H; ; @KH?I:?9J?EDI />; B;L;B E< FK8B?9 =EE: ?I P;HE ?D 8EJ> @KH?I:?9J?EDI )E 9EDIKC;H >7I 7DO ?D9;DJ?L; JE CEL; @KH?I:?9J?ED !EHC  EJ> @KH?I:?9J?EDI B;LO J>; I7C; FEI?J?L; J7N BB 9EDIKC;HI 7H; BE97J;: ?D J>; I7C; @KH?I:?9J?ED 7D: IJH?9JBO FH;;H; $< 7 9EDIKC;H CEL;: @KH?I:?9J?ED J>;?H J7N F7OC;DJ MEKB: H;C7?D J>; I7C; 8KJ J>; GK7DJ?JO E< FK8B?9 =EE: MEKB: JOF;  9EDIKC;HI :?L?:;: 8;JM;;D J>; @KH?I:?9J?EDI 97D 8; HKB;: EKJ 7I 97D JOF;  7D: JOF;  8;?D= ?D ED; @KH?I:?9J?ED 7D: JOF;  ?D 7DEJ>;H D ;GK?B?8H?KC ?I +7H;JE;[9?;DJ M>;D DE 9>7D=; ?D J7N H7J;I EH BE97J?ED E< FEFKB7J?ED 97D ?D9H;7I; J>; M;BEKJ H;:K9?D= J>7J E< 7DO EJ>;H />; J;IJ ;?H F7OE\ >EB:?D= J7N H7J;I TN;: +7H;JE;[9?;D9O >7I JE 8; J;IJ;: 7=7?DIJ 7DO H;7BBE97J?ED E< FEFKB7J?ED 7D: 7DO L7H?7J?ED E< J7N H7J;I />; D7JKH; E< J>; +7H;JE;[9?;DJ 7BBE97J?EDI 97D 8; KD:;HIJEE: 8O 9EDI?:;H?D= J>; 9ECF;J?D= ; ED; >7D: 7D 7==BEC;H7J?ED E< J>; FEFKB7J?ED ?D 7 I?D=B; @KH?I:?9J?ED H7?I;I J>; GK7DJ?JO E< FK8B?9 =EE: ; EJ>;H >7D: >7L?D= 7BB J>; FEFKB7J?ED ?D ED; @KH?I:?9J?ED ;J;HE=;D;EKI FEFKB7J?ED />; IJHK9JKH; E< J>; +7H;JE;[9?;DJ 7BBE97J?EDI ?I :;J;HC?D;: 8O M>?9> E< J>;I; ; 7==BEC;H7J?ED 7L; J>; ;DJ?H; FEFKB7J?ED ?D ED; @KH?I:?9J?ED M?J> J>; J7N H7J; I;J 7J J>; B;L;B J>7J C7N?C?P;I KJ?B?JO O 9EDJ?DK?JO J>; I7C; 9ED9BKI?ED 7FFB?;I M>;D  ?I 9BEI; JE   J>; FEFKB7J?ED ?I BE97J;: ?D ED; @KH?I:?9J?ED 7D: J>; J7N



!  "    " 

H7J; ?I 7DOM>;H; 8;JM;;D J>; H7J; FH;; JOF;  9EDIKC;HI 7D: H7J; FH;; JOF;  9EDIKC;HI 2>;D  ?I IK[9?;DJBO :?L;H=;DJ ; >;J;HE=;D;?JO ; FEFKB7J?ED I>EKB: 8; I;F7H7J;: ?DJE JME @KH?I:?9J?EDI $<  ?I 9BEI; JE  J>;D JOF;I  7D:  I>EKB: 8; BE97J;: JE=;J>;H

M?J> 7 J7N H7J; 7DOM>;H; 8;JM;;D J>;?H FH;; JOF; I I>EKB: ;?H FH;;D ?J ?I J>; JOF; I J>7J I>EKB: 8; BE97J;: 7BED;

-&48*6

?I IJ7J;C;DJ 3098.32  />;H; 7H; JME ;NJ;HD7B?J?;I ?D J>; IJ7J;C;DJ />; ICEA; :?HJO?D= J>; BE97B >EKI?D= ?I 7 D;=7J?L; 9EDIKCFJ?ED ;NJ;HD7B?JO />; ICEA; J>7J FE?IEDI J>; 9HEFI ?I 7 D;=7J?L; FHE:K9J?ED ;NJ;HD7B?JO

; FHE:K9J?ED ; EKJFKJ E< J>; B7KD:HO M?BB 8; H;:K9;: ; B7KD:HO KI;I JME ?DFKJI ?D GK7DJ?J?;I N

7D: N  ;DEJ; J>; EKJFKJ E< J>; ; EKJFKJ E< J>; B7KD:HO 8O M0  />; =;D;H7B ;H;       7D:   





; IKC E< J>; 9>E?9;I E< J>; IJK:;DJI EJ>;H J>7D > 8; =?L;D 8O " />;D <  >  



<9  

 

/>; THIJEH:;H 9ED:?J?ED ; 9>E?9; E< ; +7H;JE;[9?;DJ B;L;B E< ;\EHJ C7N?C?P;I J>; IKC E< KJ?B?JO B;L;BI $DLEA?D= IOCC;JHO I>EM J>7J J>; +7H;JE;[9?;DJ ;\EHJ B;L;B IEBL;I

<    $) B.  B I   

8 />; :;H?L7J?L; E< B. M?J> H;IF;9J JE < ?I  B.   <   
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

N 9  

$D ;GK?B?8H?KC

      />7J ?I ?D J>; DED9EEF;H7J?L; ;GK?B?8H?KC J>; IJK:;DJI M?BB DEJ 79>?;L; J>; F7II?D= =H7:; : />; EKJ9EC; ?I DEJ +7H;JE;[9?;DJ 7BB IJK:;DJI 7H; 8;JJ;H E\ 9>EEI?D= N 9  M>?9> =?L;I !9   !9    

; THIJEH:;H 9ED:?J?EDI 7H; DEM  4.

 4/





 

  . " 

4      4   

4    L   4   H  . / . .

 H   !   

4.  4.  .  H  "  

 

4/  

4.   L  4.         ! 

4    4  H /

.



$D ;GK?B?8H?KC J>; B78EKH :;C7D: I7J?IT;I J>; ;I; ;NFH;II?EDI M?J> J>; ED;I 7I 7D ?D9;DJ?L; JE H;7BBE97J; IEC; B78EH ; H;7IED ?I J>7J J>; D;M THC ?DJ;HD7B?P;I J>; D;=7J?L; ;NJ;HD7B?JO 7D: IE H;:K9;I J>; B78EH ?DFKJ 7D: J>; EKJFKJ E< F7F;H ?9> C7A;I ?J FHETJ78B; JE ?D9H;7I; J>; B78EH ?DFKJ 7D: J>; EKJFKJ E< F7F;H E :;9?:; JE KI; ;?J>;H J>;?H 97H EH J>; JH7?D ECCKJ?D= 8O JH7?D J7A;I  C?DKJ;I M>7J;L;H J>; DKC 8;H E< 9ECCKJ;HI J7A?D= J>; JH7?D ECCKJ?D= 8O 97H J7A;I  L    L C?DKJ;I M>;H; L ?I J>; FHEFEHJ?ED E< 9ECCKJ;HI J7A?D= J>;?H 97H L  7 +BEJ J>; 9KHL;I E< J>; 9ECCKJ?D= J?C; 8O 97H 7D: J>; 9ECCKJ?D= J?C; 8O JH7?D 7I 7 ; FHEFEHJ?ED E< 97H KI;HI 8 2>7J ?I J>; FHEFEHJ?ED E< 9ECCKJ;HI M>E M?BB J7A; J>;?H 97H ?< ;L;HO ED; ?I J7A?D= >;H :;9?I?ED ;H EMD 9ECCKJ?D= J?C; 9 2>7J ?I J>; FHEFEHJ?ED E< 97H KI;HI J>7J C?D?C?P;I J>; JEJ7B 9ECCKJ?D= J?C; : ECF7H; J>?I M?J> OEKH 7DIM;H =?L;D ?D F7HJ 8 $DJ;HFH;J J>; :?\;H;D9; #EM B7H=; ?I J>; :;7:M;?=>J BEII ; ;NJ;HD7B?JO ; NFB7?D >EM 7 JEBB 9EKB: 79>?;L; J>; ;[9?;DJ 7BBE97J?ED E< 9ECCKJ;HI 8;JM;;D JH7?D 7D: 97H 7D: 8; 8;D;T9?7B ; 9ECCKJ?D= J?C;I 7H; I>EMD ?D T=KH;   />; J?C; 8O JK8; ?I 9EDIJ7DJ 8KJ J>; J?C; J7A;D 8O 97H ?D9H;7I;I 7I 97H KI; ?D9H;7I;I 8 />; FHEFEHJ?ED E< 97H KI;HI ?< ?D:;F;D:;DJ 9>E?9;I 7H; C7:; M?BB 8; IK9> J>7J J>; J?C;I E< JH7L;B 8O JK8; 7D: 8O 97H 7H; ;GK7J;:     L=  .EBL?D= ?I IEBKJ?ED 9EHH;IFED:I JE J>; ?DJ;HI;9J?ED FE?DJ E< J>; JME 9ECCKJ?D= J?C; 9KHL;I 9 />; JEJ7B 9ECCKJ?D= J?C; ?I   L L    L M>;H; L ?I J>; FHEFEHJ?ED E< 97H KI;HI .;JJ?D= J>; :;H?L7J?L; M?J> H;IF;9J JE L ;GK7B JE P;HE =?L;I  L?       .EBL?D= ; J?C;C?D?C?P?D= 97H KI; ?I L? 

  

 

: />; 7D J>; IE9?7BBO EFJ?C7B EKJ9EC; 8;97KI; J>; ?D:?L?:K7B 9ECCKJ;HI :E DEJ J7A; ?DJE 799EKDJ J>; D;=7J?L; ;NJ;HD7B?JO =;D;H7J;: 8O 97H JH7L;B J>7J ?I J>; JH7[9 9ED=;IJ?ED />; :;7:M;?=>J BEII ; ;NJ;HD7B?JO ?I J>; :?\;H;D9; 8;JM;;D



!  %!!

J>; JEJ7B 9ECCKJ?D= J?C;I 0I?D= J>; ;7HB?;H H;IKBJI E8J7?DI     -=         7D: -?   

    G     

 

 

/>; :?\;H;D9; ?I

     ; $< J>; 9ECCKJ;HI 7JJ79> CED;J7HO L7BK; JE J>;?H JH7L;B J?C; J>;D 7 JEBB C7O ?D:K9; J>;C JE IM?J9> ; 7CEKDJ E< J>; JEBB ;N9;;:I J>; 8;D;TJI E< I>EHJ;H JH7L;B J?C; "?L;D ?D; CED;J7HO L7BK; E< JH7L;B J?C; J>; 7CEKDJ E< J>; JEBB 97D 8; 9ECFKJ;: IE J>7J J>; FHEFEHJ?ED E< 9ECCKJ;HI J>7J IJ?BB TD: ?J 8;D;T9?7B JE JH7L;B 8O 97H ?I ;N79JBO ;GK7B JE J>; IE9?7BBO EFJ?C7B B;L;B - =  - 

; FH;L?EKI FHE8B;C 8O H;FB79?D= J>; JH7?D 8O 7 8KI 7D: 7IIKC?D= J>7J 9ECCKJ?D= J?C; 8O 8KI ?I ?D9H;7I?D= M?J> J>; FHEFEHJ?ED E< 9ECCKJ;HI KI?D= 97H JH7[9 9ED=;IJ?ED ';J J>; 9ECCKJ?D= J?C; 8O 8KI 8;  L    L 7D: J>; 9ECCKJ?D= J?C; 8O 97H 8;  L    L M>;H; L ?I J>; FHEFEHJ?ED E< 9ECCKJ;HI J7A?D= J>;?H 97H L  3098.32  7 />; 9ECCKJ?D= J?C;I 7H; I>EMD ?D T=KH;   />; J?C; 8O 8KI ?I ?D9H;7I?D= 7I 97H KI; ?D9H;7I;I 8 />; FHEFEHJ?ED M?BB 8; IK9> J>7J ?J ;GK7J;I J>; J?C;I E< JH7L;B 8O 8KI 7D: 8O 97H

  L=    L=    IE

     />?I IEBKJ?ED 9EHH;IFED:I JE J>; FE?DJ M>;H; J>; JME 9KHL;I E< 9ECCKJ?D= J?C; ?DJ;HI;9J 9 />; JEJ7B 9ECCKJ?D= J?C; ?I   L L   L   L M>;H; L ?I J>; FHEFEHJ?ED E< 97H KI;HI .;JJ?D= J>; :;H?L7J?L; M?J> H;IF;9J JE L ;GK7B JE P;HE =?L;I  L?       L= 

.EBL?D=

     : />; 7D J>; IE9?7BBO EFJ?C7B EKJ9EC; 8;97KI; J>; ?D:?L?:K7B 9ECCKJ;HI :E DEJ J7A; ?DJE 799EKDJ J>; D;=7J?L; ;NJ;HD7B?JO =;D;H7J;: 8O 97H JH7L;B J>7J ?I J>; JH7[9 L? 



Commuting time

Proportion of car users !?=KH;   ECCKJ?D= 8O 97H 7D: 8KI

9ED=;IJ?ED />; :;7:M;?=>J BEII ; ;NJ;HD7B?JO ?I J>; :?\;H;D9; 8;JM;;D J>; JEJ7B 9ECCKJ?D= J?C;I

7D: />; :?\;H;D9; ?I

  -=       

  

 

  -?          

 

-=  -   

 

; $< J>; 9ECCKJ;HI 7JJ79> CED;J7HO L7BK; JE J>;?H JH7L;B J?C; J>;D 7 JEBB C7O ?D:K9; J>;C JE IM?J9> ; 7CEKDJ E< J>; JEBB ;N9;;:I J>; 8;D;TJ E< I>EHJ;H JH7L;B J?C; "?L;D J>; ?D; CED;J7HO L7BK; E< JH7L;B J?C; J>; 7CEKDJ E< JEBB 97D 8; 9ECFKJ;: IE J>7J J>; FHEFEHJ?ED E< 9ECCKJ;HI J>7J IJ?BB TD: ?J 8;D;T9?7B JE JH7L;B 8O 97H ?I ;N79JBO ;GK7B JE J>; IE9?7BBO EFJ?C7B B;L;B

E?9; M>;J>;H EH DEJ JE 7BBEM J>; ;C?II?ED E< FEBBKJ7DJI />; 9EIJ JE 9EDIKC;HI E< 7BBEM?D= J>; FEBBKJ?ED ?I   

8KJ J>?I 9EIJ ?I EDBO E8I;HL78B; JE J>; 9EDIKC;HI />; 8;D;TJ ; FEBBKJ;H E< 7BBEM?D= J>; ;NJ;HD7B?JO ?I    

7D: EDBO J>; FEBBKJ;H ADEMI J>?I 8;D;TJ B;7HBO EFJ?C7B?JO H;GK?H;I J>?I ;NJ;HD7B?JO ?I 7BBEM;: I?D9;    #EM;L;H

J>; TD7B :;9?I?ED CKIJ 8; 87I;: ED M>7J ;79> F7HJO 9>EEI;I JE H;L;7B



!  %!!

7 EDIJHK9J 7 J7NIK8I?:O H;L;B7J?ED I9>;C; IK9> J>7J ?J ?I 7 :EC?D7DJ IJH7J;=O F7HJO JE H;FEHJ JHKJ>;?H FH?L7J; ?DEM J>7J J>?I H;L;B7J?ED I9>;C; ?D:K9;I J>; EFJ?C7B FHE:K9J?ED E< J>; ;NJ;HD7B?JO 9 .>EM J>7J J>?I H;L;B7J?ED I9>;C; ?I KD87B7D9;: ?D J>; I;DI; J>7J =?L;D J>; ;GK?B?8H?KC H;FEHJI J>; J7N JE 8; F7?: 8O J>; FEBBKJ;H ?I B;II J>7D J>; IK8I?:O F7?: JE J>; FEBBKJ;; 3098.32  7 />; I9>;C; I>EKB: 8; 7I ; FEBBKJ?ED ?< J>; 9EIJ 7DDEKD9;: 8O J>; 9EDIKC;HI ?I 8;BEM EH ;GK7B JE J>; 8;D;TJI 7DDEKD9;: 8O J>; FHE:K9;H :E DEJ 7BBEM EJ>;HM?I; ?? ?< J>; FEBBKJ?ED ?I 7BBEM;: F7O ;79> F7HJO J>; 7CEKDJ 7DDEKD9;: 8O J>; EJ>;H F7HJO ?< J>; FEBBKJ?ED ?I DEJ 7BBEM;: F7O DEJ>?D= "?L;D 7DDEKD9;C;DJ 1 E< J>; FHE:K9;H J>; D;J F7OE\ E< J>; 9EDIKC;HI ?I .3  ?< J>; ;NJ;HD7B?JO ?I DEJ 7BBEM;: 7D: .3  1   ?< J>; ;NJ;HD7B?JO ?I 7BBEM;: $< 1   J>; 9EDIKC;HI H;9;?L; .3  ; 9EDIKC;HI H;9;?L; .3  ; D;J F7OE\ E< J>; FHE:K9;H ?I .@  ?< J>; ;NJ;HD7B?JO ?I DEJ 7BBEM;: 7D: .@    1 ?< J>; ;NJ;HD7B?JO ?I 7BBEM;: $< 1   J>; FHE:K9;H H;9;?L;I .@  ; FHE:K9;H H;9;?L;I .@  ; ;GK?B?8H?KC J>; ;NJ;HD7B?JO M?BB 8; FHE:K9;: M>?9> ?I J>; IE9?7BBO EFJ?C7B EKJ9EC; 9 O 9EDIJHK9J?ED J>?I I9>;C; H;GK?H;I F7OC;DJ JE ;79> F7HJO ;GK7B JE J>; 7CEKDJ 7DDEKD9;: 8O J>; EJ>;H F7HJO ;97KI; ;79> F7HJO M?BB C7A; JHKJ>; IK8I?:O JE J>; FEBBKJ;; J>; 9EDIKC;HI ;GK7BI J>; 8;D;TJ H;9;?L;: 8O J>; FHE:K9;H    

7D: ?D J>?I FHE8B;C ?J ?I =H;7J;H J>7D J>; 9EIJ JE J>; 9EDIKC;HI   

M>?9> ?I J>; J7N JE 8; F7?: 8O J>; FEBBKJ;H J>; FHE:K9;H

; JH7=;:O E< J>; 9ECCEDI 3098.32  />; JH7=;:O E< J>; 9ECCEDI ?I 7D ;N7CFB; E< 7 D;=7J?L; ;NJ;H D7B?JO  =HEKF E< 7=;DJI >7L; 7 9ECCED H?=>J E< 799;II JE 7 H;IEKH9; 7D: ?D J>; C7HA;J ;GK?B?8H?KC J>; 7==H;=7J; GK7DJ?JO E< J>; H;IEKH9; KI;: 8O J>; 7=;DJI ;N9;;:I J>; EFJ?C7B B;L;B />; =EL;HDC;DJ 97D H;=KB7J; J>; GK7DJ?JO 8O ?IIK?D=

 B?9;DI;I J>7J F;HC?J KI7=; E< J>; H;IEKH9; KF JE 7 9;HJ7?D B?C?J />; =EL;HDC;DJ 97D J>;D I;J J>; B?9;DI;: 7CEKDJ IE J>7J J>; 7==H;=7J; KI7=; ;GK7BI J>; EFJ?C7B B;L;B $D J>; ;N7CFB; M?J> TI>?D= 8E7JI J>; =EL;HDC;DJ 97D 97B9KB7J; J>; EFJ? C7B DKC8;H E< TI>?D= 8E7JI  ? 7D: ?IIK; ;N79JBO  ? B?9;DI;I ?D= />?I FEB?9O CKIJ 8; ;D?D= 8E7JI J>7J EF;H7J; M?J>EKJ B?9;DI;I

?9> E< J7N7J?ED EH B?9;DI;I ?I FH; 7 B?9;DI; I9>;C; J>; B;L;B E< FEBBKJ?ED 787J;C;DJ M?BB 8; IKH; Z J>;H; ?I DE KD9;HJ7?DJO 78EKJ J>; EKJ9EC; 2?J> 7 J7N J>; B;L;B E< 787J;C;DJ M?BB :;F;D: ED J>; H;7B?P;: B;L;B E< 9EIJ I?D9; J>; THC 9>EEI;I 7?I ?I ADEMD />;H;; 9EIJ JKHDI EKJ JE 8; BEM J>; THC M?BB 9>EEI; 7 >?=> 787J;C;DJ B;L;B $< J>; 9EIJ ?I >?=> 7 BEM 787J;C;DJ B;L;B ?I 9>EI;D /ME E8I;HL7J?EDI ;D J>;H; ?I KD9;HJ7?DJO .;9ED: M>;D J>; 9EIJ E< 787J;C;DJ ?I H;7B?P;: JE 8; BEM J7N7J?ED B;7:I JE ;N9;II?L; 787J;C;DJ />; 9EDL;HI; >EB:I M>;D 9EIJ ?I >?=> 7D: J>;H; ?I ?DIK[9?;DJ 787J;C;DJ />;H;;D ?DIK[9?;DJ 787J;C;DJ ?I L;HO 9EIJBO B?9;DI;I M?BB 8; FH;; 9;HJ7?DJO E< J>; EKJ9EC;

; OEK ?=DEH; J>;D OEK 7H; 9EDIKC?D= CEH; 9?=7H;JJ;I J>7D ?I +7H;JE;[9?;DJ 8 $J ?I =;D;H7BBO ;[9?;DJ JE I;J 7D ;C?II?ED IJ7D:7H: 7BBEM?D= P;HE FEBBKJ?ED 9  J7N ED 9?=7H;JJ;I ?D:K9;I J>; C7HA;J 7D ?I ;[9?;DJ <  IDE8 ;\;9J ?I 7 D;=7J?L; D;JMEHA ;NJ;HD7B?JO D;=7J?L; ;NJ;HD7B?J?;I J>; C7HA;J ;GK?B?8H?KC GK7DJ?JO ?D =;D;H7B ;N9;;:I J>; +7H;JE;[9?;DJ B;L;B 8 !7BI; $< IEC; FHE:K9J?ED FHE9;II =;D;H7J;I 7 DEDP;HE B;L;B E< FEBBKJ?ED 8KJ J>; 8;D;TJI ;N9;;: J>; 9EIJ J>;D J>?I FHE:K9J?ED ?I IE9?7BBO EFJ?C7B 7D: I>EKB: 8; 7BBEM;: #;D9; J>; ;C?II?ED IJ7D:7H:I I>EKB: 7BBEM ; C7HA;J EKJ9EC; ?I ?D;[9?;DJ : !7BI;  87D ED ICEA?D= H;:K9;I J>; KJ?B?JO E< J>; ICEA;HI 7D: J>; FHETJI E< J>; 9?=7H;JJ;C7A;HI BJ>EK=> J>; KJ?B?JO E< DEDICEA;HI 7D: J>; FHETJI E
; FHE:K9;HI E< IK8IJ?JKJ; =EE:I ; = 9>;M?D= JE8799E MEKB: ?D9H;7I; J>; 7==H;=7J; M;B;H M7O ; /HK;  IDE8 ;\;9J ?I 7 D;=7J?L; D;JMEHA ;NJ;HD7B?JO />; IDE8 ;\;9J H;; :;I?H; JE EMD ;N9BKI?L; EH KD?GK; =EE:I />; ; F;EFB; M>E EMD 7 XIDE8Y =EE: J>; >?=>;H ?I J>; GK7DJ?JO :;C7D:;: E< J>?I =EE:

;C?97B 7J ?I IEB: 7J J>; FH?9; E<  F;H JED />; 9EIJ E< FHE:K9J?ED ?I   M  M  M>;H; M ?I J>; DKC8;H E< JEDI E< FHE:K9J?ED !EH ;79> JED E< FHE:K9J?ED J>; 7J 7H; ;?J>;H :?IF;HI;: ?DJE J>; 7JCEIF>;H; 7J 7 9EIJ E<  JE J>; C?D; EH 97FJKH;: 7D: IJEH;: 7J 7 9EIJ E<  A= E< FEBBKJ7DJ />; 7CEKDJ E< :?IF;HI7DJ FEBBKJ7DJ ?I :;DEJ;: 9 />; FEBBKJ?ED 97KI;I 7 D;7H8O J;NJ?B; THC JE >7L; JE M7I> ?JI FHE:K9JI JM?9; M?J> 7D 7::?J?ED7B 9EIJ E<  5  9 M>?9> :E;I DEJ :;F;D: ED J>; 7CEKDJ E< EKJFKJ A FHE:K9;: />; KD?J FH?9; E< J>; EKJFKJ E< J>; J;NJ?B; THC ?I  7D: J>; 9EIJ E< FHE:K9J?ED  *   A 7 ;J;HC?D; J>; L7BK;I E< M A 7D: 9 ?D J>; 9ECF;J?J?L; ;GK?B?8H?KC #EM CK9> :E;I J>; 9E7B C?D; IF;D: ED 97FJKH?D= J>; FEBBKJ7DJ 2>7J B;L;B E< ;DL?HEDC;DJ7B 9EIJ :E;I J>; 9>;C?97B ; J;NJ?B; THC 8 2>O ?I J>; 9ECF;J?J?L; ;GK?B?8H?KC ?D;[9?;DJ 7J ?I J>; IE9?7BBO EFJ?C7B B;L;B E< M : IIKC; J>7J J>; ;NJ;HD7B?JO ?I ?DJ;HD7B?P;: ;J;HC?D; J>; L7BK;I E< M A 7D: 9 J>; ;NF;D:?JKH; ED 97FJKH; 7D: J>; 7::?J?ED7B 9EIJ ; J;NJ?B; THC 97KI;: 8O J>; ;DL?HEDC;DJ7B FEBBKJ?ED 3098.32  ';J G 8; J>; 7CEKDJ E< 97FJKH;: FEBBKJ7DJ ?D A= IE J>7J 9  M  G />; FHETJ E< J>; 9>;C?97B ; FHETJ E< J>; J;NJ?B; THC ?I

*  D= A   * A   5 9 

 

#;H; DI   D=   7D:  C G  G 7 $D J>; 9ECF;J?J?L; ;GK?B?8H?KC ;79> THC C7N?C?P;I ?JI FHETJ />; 9>;C ?97B EEI;I J>; 7CEKDJ E< EKJFKJ M 7D: J>; 7CEKDJ E< 97FJKH;: FEB BKJ7DJ G />; THIJEH:;H 9ED:?J?EDI 7H;   M   G



DI  M  

 



  

 

7D: J>; IEBKJ?ED ?I M   DI   G 

 />; J;NJ?B; EEI;I J>; 7CEKDJ E< EKJFKJ A JE C7N?C?P; ?JI FHETJ />; THIJEH:;H 9ED:?J?ED ?I  *  D=  A   A

 

7D: J>; IEBKJ?ED ?I A  D=   .?D9; 9  M   G   J>; ;DL?HEDC;DJ7B 9EIJ ?DU?9J;: 8O J>; 9>;C?97B ; J;NJ?B; THC ?I  5 9    8 />; 9ECF;J?J?L; ;GK?B?8H?KC ?I ?D;[9?;DJ 8;97KI; E< J>; FHE:K9J?ED ;N J;HD7B?JO J>; 79J?L?JO E< J>; 9>;C?97B ; FHETJ E< J>; J;NJ?B; THC />; ;NJ;HD7B?JO ?I D;=7J?L; IE J>; B;L;B E< 79J?L?JO 9>EI;D 8O J>; 9>;C?97B ?=> J>7J ?I J>; B;L;B E< EKJFKJ E< J>; 9>;C?97B ; 9ECF;J?J?L; ;GK?B?8H?KC ?I >?=>;H J>7D J>; IE9?7BBO EFJ?C7B B;L;B 9 /E TD: J>; IE9?7BBO EFJ?C7B B;L;B E< EKJFKJ M; D;;: JE C7N?C?P; J>; IKC E< J>; FHETJI E< J>; 9>;C?97B ; J;NJ?B; THC $)   * 

I=C

 

M>;H;

 *  DI M    M   C G D= A   * A   5 M  G 

 

/>; THIJEH:;H 9ED:?J?EDI 7H; DEM  M  G  A



DI  M  M  G  

 



 M  G  

 



D=  A  

 

/>; IEBKJ?ED ?I M ?   A?   G?   7D: 9?   />; IE9?7BBO EFJ?C7B B;L;B E< M  JEDI ?I BEM;H J>7D J>; 9ECF;J?J?L; ;GK?B?8H?KC B;L;B  JEDI : 2>;D ;NJ;HD7B?JO ?I ?DJ;HD7B?P;: 7 IE9?7BBO EFJ?C7B EKJ9EC; ?I 79>?;L;: />; 9>;C?97B ; FEBBKJ?ED 9EIJ ; J;NJ?B; THC ?I  5 9?   

 KJ?B?JO 9EDIKC;HI >7L; ?D9EC; & 7D: J>; FH;J7N FH?9; E< 8EJ> =EE:I ?I  7 7B9KB7J; J>; C7HA;J ;GK?B?8H?KC 8 7B9KB7J; J>; IE9?7B EFJ?CKC ; EFJ?CKC 97D 8; IKIJ7?D;: 8O 7 J7N FB79;: ED =EE:  IE J>; FEIJJ7N FH?9; 8;9EC;I  H M?J> J>; H;L;DK; H;JKHD;: ;GK7BBO JE J>; 9EDIKC;HI ?D 7 BKCFIKC C7DD;H



!  %!! : IIKC; DEM J>7J FH;; J7N;I D;9;II7HO JE :;9;DJH7B?P; J>; EFJ?CKC ; !EH FH;; EKJ9EC; M>;D J7N;I 97D 7D: 97DDEJ 8; :?\;H;DJ?7J;: 8;JM;;D 9EDIKC;HI 3098.32  7 EDIKC;H  IEBL;I  $) .  I J L

L  &

H H

 

 

/>; '7=H7D=?7D ?I EFJ?C?P7J?ED FHE8B;C ?I           #&! L &  L   #&! L

L 



 L  

 

7D: ; THIJEH:;H 9ED:?J?EDI  L

 L   



    L

 



    

 



 &  L

 L  

 

M; TD: >?I EFJ?C7B 9EDIKCFJ?ED

.?C?B7HBO

L

 

L   &  

 

L

 

L   &  

 

8  KJ?B?J7H?7D M;B; ?D:?L?:K7B KJ?B?JO ?D:?L?:K7B M;?=>JI #;H; M; 7IIKC; 7 IOCC;JH?9 KJ?B?J7H?7D M;B; IE9?7BBO EFJ?C7B 9EDIKCFJ?ED ?D J>?I 97I; IEBL;I .  .  I J L $) L  &



  H

 H H H 

 

/>; '7=H7D=?7D ; IE9?7B FB7DD;HWI FHE8B;C ?I 



        #&! L #&! L



L L           &  L &  L

 L

 L 

 

 !HEC J>; THIJEH:;H 9ED:?J?EDI M; TD: J>; IE9?7BBO EFJ?C7B 9EDIKCFJ?ED FHETB; L



L



     

 L  &      L  &   

   

9 2?J> J7N H FB79;: ED =EE:  7D: M?J> BKCFIKC JH7DI; '7=H7D=?7D ?I EFJ?C?P7J?ED FHE8B;C ?I             #&! L & -    H L   #&! L

L 



 L     7D: ; THIJEH:;H 9ED:?J?EDI  L

 L   



      H   L

 



    

 



   & -    H L

 L  

 

M; TD: >?I EFJ?C7B 9EDIKCFJ?ED L



   H

 L  & - 

   H

 

.?C?B7HBO M; TD: J>; EFJ?C7B 9EDIKCFJ?ED E< 9EDIKC;H  M>E F7OI J7N H ED =EE:  7D: H;9;?L;I -  7I 7 BKCFIKC JH7DI; EFJ?CKC 9EDIKCFJ?ED B;L;BI M?J> J>; C7HA;J EKJ9EC; M; TD: J>; I;J E< J7N;I 7D: JH7DI7J :;9;DJH7B?P;I J>; IE9?7BBO EFJ?C7B EKJ9EC; H



- 



   

   

: 2?J> J7N H FB79;: ED =EE:  7D: M?J> BKCFIKC JH7DI; '7=H7D=?7D ?I EFJ?C?P7J?ED FHE8B;C ?I             & -    H L    #&! L

L  #&! L

 L    



!  %!!

7D: ; THIJEH:;H 9ED:?J?EDI  L

 L   



      H    L

 



    

 



   & -    H L

 L  

 

M; TD: >?I EFJ?C7B 9EDIKCFJ?ED L



   H

 L  & - 

   H

 

.?C?B7HBO M; TD: J>; EFJ?C7B 9EDIKCFJ?ED E< 9EDIKC;H  M>E F7OI J7N H ED =EE:  7D: H;9;?L;I -  7I 7 BKCFIKC JH7DI; IE9?7BBO EFJ?C7B 9EDIKCFJ?ED ; EKHDEJ ;GK?B?8H?KC ?D J>?I ?D:KIJHO





!  ! !!

3098.32  />; ';HD;H ?D:;N ;H;  ?I J>; FH?9; ;B7IJ?9?JO E< :;C7D: />KI M?J> A   7D:    J>;

';HD;H ?D:;N ;GK7BI     2?J> C7H=?D7B 9EIJ E< 7   F;H KD?J J>; 3=   EB?=EFEBO FH?9; M?BB 8; D  =     

; KD:;H=HEKD: ?D KHEF7 9?JO M?J> 7 JEJ7B 9EIJ 9KHL; =?L;D 8O 7 L   L />; CEDEFEB?IJ I;JI JME FH?9;I 7 >?=> FH?9; D8 7D: 7 BEM FH?9; D< L;HOED; ?I ;B?=?8B; JE J>; >?=> FH?9; 8KJ EDBO 8O J7A?D= J>; JK8; EKJI?:; J>; F;7A >EKHI 7H; OEK ;B?=?8B; ; :?I9EKDJ FH?9; .KFFEI; J>; EDBO E\F;7A JH7L;B;HI 7H; J>EI; M>E MEKB: DEJ >7L; 8;;D M?BB?D= JE 8KO J>; J?9A;J 7J D8 7 $< J>; CEDEFEB?IJ ; ?DL;HI; :;C7D: 9KHL; =?L;D 8O D L    L

M>7J 7H; J>; FHETJC7N?C?P?D= L7BK;I E< D8 7D: D<  4%)/ ';J L8 7D: L< :;DEJ; J>; >?=>FH?9; 7D: BEMFH?9; GK7DJ?J?;I H;IF;9J?L;BO />;D FHETJ ; FH?9; :?I9H?C?D7J?D= CEDEFEB?IJ ?I D  D L8 L8 D L8 L< L<  7 L8 L< 5 8 #EM CK9> ;9EDEC?9 FHETJ :E;I J>; CEDEFEB?IJ C7A; 9 #EM CK9> FHETJ MEKB: 8; C7:; ?< J>; I7C; FH?9; M;H; 9>7H=;: JE 7BB 8KO;HI DE FH?9; :?I9H?C?D7J?ED  ?I9KII J>; :?\;H;D9; ; CEDEFEB?IJ 9>EEI;I L8 7D: L< JE C7N?C?P; FHETJ

 

D L8  L8 D L8 L<  L<  7 L8 L< 

  L8  L8   L8  L<  L<    L8  L< 

 

!HEC J>; THIJEH:;H D;9;II7HO 9ED:?J?EDI

 L8  L< M; TD:



   L8  L<    

 



  L8   L<    

 

L8  L<  

D8  

D<   

 

8 0FED IK8IJ?JKJ?ED E< J>; FH?9;I 7D: GK7DJ?J?;I M; E8J7?D  9 2?J>EKJ FH?9; :?I9H?C?D7J?ED J>; CEDEFEB?IJ 9>EEI;I L JE C7N?C?P;

 D L L  7 L    L L    L

 

.;JJ?D=  L  M; TD: L   D   7D:   #;D9; M?J>EKJ FH?9; :?I9H?C?D7J?ED J>; CEDEFEB?IJ ?D9KHI BEII;I $D J>?I 97I; 87DD?D= FH?9; :?I9H?C?D7J?ED MEKB: :H?L; J>; THC EKJ E< 8KI?D;II



7J CEDEFEBO ?I +7H;JE?D;[9?;DJ (KIJ ?J 7BM7OI B;7: JE 7 BEM;H B;L;B E< IE9?7B M;B7D 9ECF;J?J?ED 3098.32  />; ;[9?;D9O H;GK?H;C;DJ ?I J>7J FH?9; ;GK7BI C7H=?D7B 9EIJ 7I ?J H;IKBJI ; FHETJC7N?C?P?D= 8;>7L?EH E< 9ECF;J?J?L; THCI  FHETJ C7N?C?P?D= CEDEFEBO I;JI FH?9; 78EL; C7H=?D7B 9EIJ 8;97KI; J>; CEDEFEB?IJ F;H9;?L;I J>7J ?JI EKJFKJ 9>E?9; 7\;9JI FH?9; #;D9; ?D =;D;H7B CEDEFEBO ?I +7H;JE?D;[9?;DJ />; ED; ;N9;FJ?ED JE J>?I E99KHI M>;D 7 CEDEFEBO ?I F;H ;D +7H;JE;[9?;DJ 8KJ 7BB J>; =7?DI ; CEDEFEBO />; ;\;9J ED IE9?7B M;B; 7BBE97J?ED E< J>; =7?DI ;D IE9?7B M;B CEDEFEBO M?BB 8; >?=>;H J>7D M?J> 9ECF;J?J?ED ?< FHETJ >7I 7 IK[9?;DJBO >?=> M;?=>J ?D J>; IE9?7B M;B; ?DDEL7J?EDI H;IKBJ ?D 7D ?D9H;7I; ?D FHE:K9J?L?JO EKJFKJ 7D: 7==H;=7J; M;B; :OD7C?9 =7?DI C7O CEH; J>7D E\I;J J>; IJ7J?9 BEII;I

 ED; =EE: 7D: 7 B?D;7H ?DL;HI; :;C7D: D L  5  6L .KFFEI; J>7J J>;H; ?I 7 I?D=B; THC EF;H7J?D= ?D J>?I C7HA;J 7D: J>7J J>?I THC EM J>7J J>; FHETJC7N?C?P?D= EKJFKJ M?J> CEDEFEBO ?I L=  13 2 7D: J>; H;IKBJ?D= FH?9; ?I D=  13   = 8 .>EM J>7J J>; ;[9?;DJ 9ECF;J?J?L; EKJFKJ B;L;B ?I L3  13 2  L 9 7B9KB7J; J>; CEDEFEBO FHETJ 7D: J>; CEDEFEBO :;7:M;?=>J BEII 7D:    I>EM J>7J J>;I; 7H; H;IF;9J?L;BO =  2 13 7D: =    : EDI?:;H 7 GK7DJ?JO IK8I?:O G JE J>; CEDEFEB?IJ IE J>7J ?JI 9EIJ EM J>7J 7 IK8I?:O H7J; E< G  5  7 ?D:K9;I J>; CEDEFEB?IJ JE FHE:K9; J>; ;[9?;DJ 7CEKDJ E< EKJFKJ ; 2>7J ?I J>; CEDEFEB?IJWI FHETJ H;IKBJ?D= ; CEDEFEB?IJ 9>EEI;I L JE C7N?C?P; FHETJ

 D L L   L  5  6L L  7L

 

.;JJ?D=  L  M; E8J7?D 6L= 5  7  

 



!  ! !!

.EBL?D= ;GK?B?8H?KC FH?9; D=  5  6L=  5  6

5 7 57   6 

 

8 $D J>; 9ECF;J?J?L; ;GK?B?8H?KC FH?9; ;GK7BI C7H=?D7B 9EIJ D3   L3   7 #;D9;

L3 

57  L=  6

 

9 />; CEDEFEBO FHETJ ?I

=

= =

=

 D L  7L



5 7 7 

57   6 6



57 

 

2?J> B?D;7H :;C7D: J>; :;7:M;?=>J BEII J>; IK8I?:O J>; CEDEFEB?IJ C7N?C?P;I

=C  5  6L L  7  G L

 

.;JJ?D=  L  M; E8J7?D 57 G  6

 

57 5  7 5  7   L3  6 6

 

L=C  7D: M?J> G  5  7 J>; EKJFKJ B;L;B ?I L=C 

; $< J>; =EL;HDC;DJ ?CFEI;I C7H=?D7B 9EIJ FH?9?D= J>;D D=  7 />; B;L;B E< FHETJ ; CEDEFEB?IJ M?BB 8; P;HE

; ?DL;HI; :;C7D: ; ?D:KIJHO ?I CEDEFEB?P;: !EH M>7J L7BK; E< 97D J>; CEDEFEBO 8; FHETJ78B; 8 IIKC; J>; ?D:KIJHO ?I 7 EKHDEJ :KEFEBO !EH M>7J L7BK;I E< 97D 8EJ> :KEFEB?IJI 8; FHETJ78B;

 9 0I; J>; IEBKJ?EDI JE 7 7D: 8 JE :;J;HC?D; 7 H7D=; E< ?9> J>; ?D:KIJHO ?I 7 D7JKH7B CEDEFEBO : IIKC; J>; JME :KEFEB?IJI :;9?:; JE 79J 9EBBKI?L;BO ;J;HC?D; J>; L7BK;I E< ?9> 8EJ> 97D 8; FHETJ78B; E;I J>?I =?L; >?=>;H EH BEM;H IE9?7B M;B7D CEDEFEBO ; />; =EL;HDC;DJ 97D ;?J>;H FHEL?:; 7 FHE:K9J?ED IK8I?:O JE J>; CEDEFEB?IJ 7D 7CEKDJ G F;H KD?J E< EKJFKJ EH IK8I?:?P; J>; TN;: 9EIJI E< J>; EKHDEJ :KEFEB?IJI 2>?9> FEB?9O ?I J>; CEIJ 9EIJ;\;9J?L; 3098.32  7 />; CEDEFEB?IJ 9>EEI;I L JE C7N?C?P; FHETJ

 D L L   L  5  6L L 

 7L

 

.;JJ?D=  L  M; E8J7?D 6L= 5  7   .EBL?D= ;GK?B?8H?KC FH?9; D=  5  6L=  5  6

5 7 57   6 

 

/>; CEDEFEBO FHETJ ?I

=

= =

D L 

=

 7L

 57 5 7 7    6 

   57    6 

/>;H;; CEDEFEBO ?I FHETJ78B; ?<    57   6 

 

 

8 ';J L9  =    8; J>; EKJFKJ E< THC = ?D 7 EKHDEJ :KEFEBO !?HC  9>EEI;I L JE C7N?C?P; FHETJ

 D L L  L   L   5  6 L L  L 

 7L 

 

J7A?D= L 7I =?L;D .;JJ?D=  L  M; E8J7?D

.?C?B7HBO

6L

5  6L  7  

 

6L  5  6L  7  

 

.EBL?D= J>; JME ;GK7J?EDI I?CKBJ7D;EKIBO M; E8J7?D ; )7I> ;GK?B?8H?KC EKJFKJI 57  L   

 L  6



!  ! !!

M?J> ;GK?B?8H?KC FH?9;   5 7   D  5  6 L

L  

 

79> :KEFEB?IJWI FHETJ ?I 



  

   57   6 

/>;H; :KEFEB?IJI 7H; FHETJ78B; ?<    57   6 

 

 

9  D7JKH7B CEDEFEBO ;N?IJI M>;D EDBO ED; THC ?D 7D ?D:KIJHO 97D 8; FHETJ78B; !HEC   7D:   J>?I ?D:KIJHO ?I 7 D7JKH7B CEDEFEBO M>;D J>; EB:I      57  57      6  6  : />; 9EBBK:?D= :KEFEB?IJI C7N?C?P; J>;?H @E?DJ FHETJ



 D L L  L   L  D L L  L   L   5  6 L L  L L     7 L L   5  6L L    7L

 

/>; IEBKJ?ED ; JEJ7B GK7DJ?JO L 7D: ; ;GK?B?8H?KC FH?9; D ?I J>; I7C; 7I ?D 7 8KJ J>; @E?DJ FHETJ ?I BEM;H J>7D J>; CEDEFEB?IJWI FHETJ    57

      6  .K9> 7 9EBBKI?ED ?I FHETJ78B; ?<    57   6 

 

/>; B;L;B E< IE9?7B M;B; IKC E< 9EDIKC;H IKHFBKI 7D: FHE:K9;H FHETJ 0D:;H 9EBBKI?ED 9EDIKC;H IKHFBKI ?I J>; I7C; 7I KD:;H J>; CEDEFEBO

8;97KI; J>; ;GK?B?8H?KC FH?9;I 7D: GK7DJ?J?;I 7H; J>; I7C; #EM;L;H FHE:K9;H FHETJ ?I BEM;H KD:;H 9EBBKI?ED />;H;7J   >EB:I />;   .

13  2 JE ;79> =EL;HDC;DJ 97D ?IIK; 7 U7J IK8I?:O E< ,  ,  :KEFEB?IJ IE J>7J 8EJ> THCI IJ7O ?D J>; ?D:KIJHO 7D: @KIJ 8H;7A ;L;D />; JEJ7B 9EIJ E< J>?I FEB?9O M?BB 8;     5  7   ,   , ,      6 

 BJ;HD7J?L;BO J>; =EL;HDC;DJ 97D FHEL?:; 7 FHE:K9J?ED IK8I?:O JE J>; CEDEFEBO ?D EH:;H JE ?D9H;7I; J>; EKJFKJ  IK8I?:O G F;H KD?J E< EKJFKJ :;9H;7I;I J>; L7H?78B; 9EIJ 8O G />;H;; CEDEFEB?IJWI FHETJC7N?C?P?D= EKJFKJ M?J> IK8I?:O ?I 5  7  G    L=C  6 M?J> ;GK?B?8H?KC FH?9; D=C  5  6L=C  5  6

5 7G 5  7  G   6 

 

2; D;;: JE 9ECF7H; J>; IKC E< 9EDIKC;H IKHFBKI 7D: FHE:K9;H FHETJ KD:;H J>; JME FEB?9?;I 2?J> B?D;7H :;C7D: 9EDIKC;H IKHFBKI ?I , 

6   5  D  L  L    

 

0D:;H J>; THIJ FEB?9O J>; :KEFEB?IJIW FHETJI 7H; P;HE 7D: J>;H; IK8I?:O ?I    57 G    

=C  D=C L=C   7L=C  6  0D:;H J>; I;9ED: FEB?9O JEJ7B M;B; :?\;H;D9; ?I 0

C

0

=3



 5  7   6

   57 G   6 

 

 

/>; JEJ7B 9EIJ E< IK8I?:O ?I , =  GL=C  G

5  7  G  6

 

GK7J?D= J>; 9EIJI E< J>; JME FEB?9?;I M; E8J7?D J>; ; FEI?J?L; IEBKJ?EDI ?I 57  G 

3 6



  5  7  

7D: KFED IK8IJ?JKJ?ED ?DJE   M; E8J7?D    2    57  0 C  0 =3  5  7   6  6   6 />?I ;NFH;II?ED ?I D;=7J?L; ?<      5  7      6



  

 



  5  7

   5  7  6

   





  





 7D: FEI?J?L; ?< ?I EKJI?:; J>?I ?DJ;HL7B .?D9;        

J>; M;B;D   >EB:I 7D: J>;H;; CEDEFEB?IJ ?I CEH; 9EIJ;\;9J?L;

; :;C7D: 7J ?I J>; B;L;B E< 9EDIKC;H IKHFBKI ?D ;79> C7HA;J $< J>; CEDEFEB?IJ ?I 7H=; 7 I?D=B; FH?9; M>7J M?BB J>?I FH?9; 8; EDJH7IJ J>; B;L;B E< 9EDIKC;H IKHFBKI M?J> 7D: M?J>EKJ FH?9; :?I9H?C?D7J?ED 3098.32  !79?D= J>; :;C7D: ; JME C7HA;JI J>; CEDEFEB?IJ 9>EEI;I D 7D: D JE C7N?C?P; FHETJ

 D L D L   L L  

 

IIKC?D= J>7J C7H=?D7B 9EIJ ?I P;HE J>; THIJEH:;H 9ED:?J?EDI ; 9>E?9; E< FH?9;I 7H; 8L9   L9 D9   =    D9 8D9 L7BK7J?D= J>;I; 9ED:?J?EDI KI?D= J>; :;C7D: D   7D: D   />; B;L;BI E< EKJFKJ ?D J>; JME C7HA;JI 7H; L   L   />; 9EDIKC;H IKHFBKI ?D C7HA;J  97D 8; ;L7BK7J;: 7I , 



  D  L   

 

 7D: ?D C7HA;J 



  D  L  

  2?J> KD?; CEDEFEB?IJ C7N?C?P;I , 

 D L D L D   L L   IIKC?D= P;HE C7H=?D7B 9EIJ ; THIJEH:;H 9ED:?J?ED

8L

 8L  L D L D D   D 8D 8D M; E8J7?D

   D  

 

 

 

 

IE J>7J D   J J>?I FH?9; J>; B;L;BI E< EKJFKJ 7H; L   ?D J>; THIJ C7HA;J 7D: L   ?D J>; I;9ED: C7HA;J EDIKC;H IKHFBKI ?D J>; JME C7HA;JI ?I ,



,





  D  L    

  D  L   

   

2; I;; J>7J M?J> KD?; THIJ C7HA;J 7H; 8;JJ;H E\

M>?B; 9EDIKC;HI ?D J>; I;9ED: C7HA;J 7H; MEHI; E\ #EM;L;H JEJ7B 9EDIKC;H IKHFBKI M?J> KD??=>;H , ,   J>7D M?J> FH?9; :?I9H?C?D7J?ED , ,  

 ?:;DJ?97B 7D: 9EDIJ7DJ C7H=?D7B 9EIJ H; J>; ; CEDEFE B?IJ J>7J M?BB >7L; J>; >?=>;H C7HAKF ?I J>; ED; M>EI; :;C7D: 9KHL; ?I ;H ; EH?=?D 8 $< 8EJ> ?:;DJ?97B L;HJ?97B ?DJ;H9;FJI 8KJ :?\;H;DJ IBEF;I J>; CEDEFEB?IJ M?J> J>; >?=>;H C7HAKF ?I J>; ED; M?J> J>; IJ;;F;H :;C7D: 9KHL; 9 $< 8EJ> ?:;DJ?97B >EH?PEDJ7B ?DJ;H9;FJI 8KJ :?\;H;DJ IBEF;I J>; CEDEFEB?IJ M?J> J>; >?=>;H C7HAKF ?I J>; ED; M?J> J>; IJ;;F;H :;C7D: 9KHL; 3098.32  />; C7HAKF ?I J>; H7J?E E< J>; CEDEFEBO FH?9; JE C7H=?D7B 9EIJ 2?J> J>; ?:;DJ?97B 7D: 9EDIJ7DJ C7H=?D7B 9EIJ J>; C7HAKF ?I >?=>;H M>;D J>; FH?9; ?I >?=>;H />; =;D;H7B IEBKJ?ED JE J>?I ;N;H9?I; EM;: J>7J M?J> B?D;7H :;C7D: D  5  6L 7D: 9EDIJ7DJ C7H=?D7B 9EIJ  L  7L J>; CEDEFEBO FH?9; :;F;D:I EDBO ED J>; L;HJ?97B



!  ! !!

P

c

X !?=KH;   +7H7BB;B :;C7D:I

57 ?DJ;H9;FJ E< J>; ?DL;HI; :;C7D: ; >?=>;H J>;  ?DJ;H9;FJ 5 J>; >?=>;H ?I J>; CEDEFEBO C7HAKF />; C7HAKF ?I ?D:;F;D:;DJ E< J>; =H7:?;DJ 6 E< J>; :;C7D: ?I 97D 8; E8I;HL;: :?H;9JBO ?D T=KH;   8 !7BI; />?I 97D 8; E8I;HL;: :?H;9JBO ?D T=KH;   9 /HK; />?I 97D 8; E8I;HL;: :?H;9JBO ?D T=KH;  

EM 8H7D: FHECEJ?ED 97D ?D9H;7I; ?D;[9?;D9O $I 8H7D: FHEB?; HEB; E< 8H7D: FHECEJ?ED ?I JE ?D9H;7I; :?\;H;DJ?7J?ED 8;JM;;D FHE:K9JI 7D: JE ; FHECEJ?ED ?I IK99;II?;L?D= J>;I; 7?CI J>; 8H7D: M?BB >7L; ?D9H;7I;: ?JI BE97B CEDEFEBO FEM;H />?I M?BB J7A; J>; ;9EDECO ;H >ECE=; D;EKI FHE:K9JI />; THC M>E ;D=7=;: ?D J>; FHECEJ?ED M?BB 8; 78B; JE ;NFBE?J J>; ?D9H;7I; ?D CEDEFEBO FEM;H 8O H7?I?D= J>; FH?9; ?J 9>7H=;I ?I H;:K9;I 9EDIKC;H IKHFBKI 7D: ?D9H;7I;I :;7:M;?=>J BEII !KHJ>;HCEH; ?< J>; 7:L;HJ?I?D= ?I DEJ ?D;D J>; 7:L;HJ?I?D= ;NF;D:?JKH; ?I ?JI;B< 7 9EDJH?8KJ?ED JE :;7:M;?=>J BEII



P

c

X !?=KH;   $:;DJ?97B L;HJ?97B ?DJ;H9;FJ

P

c

X !?=KH;   $:;DJ?97B >EH?PEDJ7B ?DJ;H9;FJ



!  ! !!

;H; 7H; A  THCI EF;H7J?D= ?D J>?I C7HA;J M?J> 9EDIJ7DJ C7H=?D7B 9EIJ B;L;BI 7 7  7= />;O ;D=7=; ?D EKHDEJ 9ECF;J?J?ED  7 .>EM J>7J J>; ;GK?B?8H?KC FH?9; ?CFB?;I ';HD;H ?D:;N;I @3  G9 M>;H; @ G9 ?I J>; C7HA;J I>7H; E< THC = 8 0I?D= J>; ;GK?B?8H?KC FH?9; I>EM J>7J J>; FHETJ E< THC = ?I ;GK7B JE 

G9   J>7J J>; ?D:KIJHO FHETJ ?I ;GK7B JE J>; #;HTD:7>B ?D:;N "  & 9 .>EM 

G  9 9 : 2>7J ?I J>; ;\;9J E< 7 IF;9?T9 J7N H ED ;GK?B?8H?KC FH?9; #EM :E;I J>?I J7N 7\;9J J>; ?D:KIJHO FHETJ 7D: J>; #;HTD:7>B ?D:;N 3098.32  7 ';J L9 8; J>; EKJFKJ E< THC = $JI FHETJ ?I   

9  D  79  L9  &=  79 L9  : L: 7D: J>; FHETJ C7N?C?P7J?ED 9ED:?J?ED

       9  &=  79  L9 &=   L9 : L: : L: =?L;I L9 

= (

  = ( L:  79 $ L: % 

:

 

 

 

:

*8I;HL; J>7J J>; C7HA;J I>7H; E< THC = ?I ;GK7B JE L9 G9  &=

: L:

   79

= (

L:   

:

D  79 79   D D

 

7D: >;D9; ?I ;GK7B JE J>; ';HD;H ?D:;N E< THC = 8 /E E8J7?D J>; ;GK?B?8H?KC FHETJ E< THC = M; KI; J>; H;IKBJ E< F7HJ 7 JE MH?J; = ( 

9  D  79  L9  D  79  G9 L:  D  79  G9  G9    D :

9 />; ?D:KIJHO FHETJ ?I J>; IKC E< J>; FHETJI E< ?D:?L?:K7B THCI



= ( 9

9 

= (

G9

 

9

7D: ?I J>;H;; #;HTD:7>B ?D:;N : 2?J> J>; IF;9?T9 J7N H THC =WI FHETJ 8;9EC;I

9  D  79  H L9 

 

 7D: ; FHETJ C7N?C?P7J?ED 9ED:?J?ED L9 

= (

  = ( L: %  L:  79 H $

:

 

:

/7A?D= J>; IKC 79HEII J>; THCI M; E8J7?D = (

L9  A

9

= (

L: 

= (

:

  = ( 79 AH $ L: % 

9

 

:

/>?I 97D 8; I?CFB?T;: JE = (

A L:  &=  9 79 AH :

#;D9;

 D  &=

: L:

EH

A D H  A



&=

9 79

A

 

&=

9 79

AH  A

H



 

A

7 H  A

 

M>;H; 7 ?I J>; 7L;H7=; C7H=?D7B 9EIJ 79HEII J>; THCI #;D9; J>; IF;9?T9 J7N =   /E TD: J>; H;IKBJI ?D 7D ?D9H;7I; E< J>; ;GK?B?8H?KC FH?9; 7J H7J; =

;\;9J E< J>; IF;9?T9 J7N ED J>; ?D:KIJHOWI FHETJ E8I;HL; J>7J J>; C7HA;J I>7H; E< THC = M?J> J>; J7N 8;9EC;I   = ( A   79 H L9 79 H         79 H $ L: %    G9  &= D A 7 H L : :

:

7D: J>; ?D:KIJHOWI FHETJ ?I



= ( 9

9 

= (

D  79  H L9 

9

= (

L9 G9 &=

: L:

9



= (

G9 

 

9

?\;H;DJ?7J?ED M?J> H;IF;9J JE H =?L;I    H 7D:

&=

 9 G9

H



= (

G9

9

G9 A   79  7   H A 7 H

G9  H

 

 



!  ! !!

#;D9; ?DJHE:K9J?ED E< J>; IF;9?T9 J7N M?BB ?D9H;7I; C7HA;J I>7H; E< J>; THCI M?J> C7H=?D7B 9EIJ 78EL; 7L;H7=; 7D: :;9H;7I; C7HA;J I>7H; E< J>; THCI M?J> C7H=?D7B 9EIJ 8;BEM 7L;H7=; !EH J>; ?D:KIJHOWI FHETJ M; >7L;

= (  A  A   79 H 

79  7    H A 7 H 9

A 7 H

 

7D: J>; I?=D E< J>; ;\;9J :;F;D:I ED J>; :?IJH?8KJ?ED E< J>; C7H=?D7B 9EIJ !?D7BBO 8;97KI; J>; #;HTD:7>B ?D:;N ?D J>?I CE:;B ?I ;GK7B JE J>; ?D:KIJHOWI FHETJ J>; ;\;9J E< J>; IF;9?T9 J7N ED J>; #;HTD:7>B ?D:;N M?BB 8; J>; I7C;

 B  ? ?:;DJ?97B THCI M?J> ?  7D ?DL;HI; :;C7D: ) 1 7D: 7 9EIJ DE TN;: 9EIJI EDI?:;H EDBO JME FEII?8B; 97I;I  L 9EDL;N 7D:  L 9ED97L; IIKC; J>;H; ?I 7BM7OI 7 KD?GK; IOCC;JH?9 ;GK?B?8H?KC M?J> F;H THC EKJFKJ L; 7D: FHETJ ; IIKC; J>;H; 7H; ? JMETHC C;H=;HI 7 '?IJ 7BB 9ED:?J?EDI ED J>; FH?C?J?L;I E< J>; CE:;B IK9> J>7J ;79> THC ?I 8;JJ;H E\ 7;I; C;H=;HI NFB7?D OEKH 7DIM;H DE FHEE< D;;:;: 8 7D IK9> 7 I;J E< C;H=;HI 8; ;NF;9J;: JE J7A; FB79; M?J>EKJ H;=KB7JEHO ?DJ;HL;DJ?ED NFB7?D 9 0D:;H M>7J 9ED:?J?EDI 97D IK9> 7 I;J E< C;H=;HI ?D9H;7I; IE9?7B M;B;D THCI C;H=; J>;O M?BB BEI; C7HA;J I>7H; H;B7J?L; JE J>;?H H?L7BI />7J ?I J>; EKJFKJ E< J>; C;H=;: THC 7; C;H=;H ?I B;II J>7D J>; IKC E< EKJFKJ B;L;BI 8;; C;H=;H />; C;H=;H 97D EDBO 8; FHETJ78B; ; C;H=?D= THCI ?< ;GK?B?8H?KC FH?9; H?I;I IK[9?;DJBO JE CEH; J>7D E\I;J J>;?H H;:K9J?ED ?D EKJFKJ EH ;9EDEC?;I E< I97B; 97D 8; ;NFBE?J;: JE E8J7?D 7 H;:K9J?ED ?D 9EIJ  C;H=;H ?I CEIJ B?A;BO JE 8; FHETJ78B; ?< J>; ?DL;HI; :;C7D: 7J B;7:I FH?9; JE H?I; 7J 7D ?D9H;7I?D= H7J; 7I EKJFKJ ?I H;:K9;: EH J>; 9EIJ 7J 7BBEMI ;9EDEC?;I E< I97B; !EH J>?I ;N;H9?I; J>;H; 7H; ? JMETHC C;H=;HI />; 7H=KC;DJI 78EL; DEM >7L; JE CE:?T;: I?D9; J>; C;H=;: THCI H;J7?D J>;?H H;B7J?L; C7HA;JI I>7H;I ; C;H=;H J>; EB?=EFEBO >7I ;N79JBO >7B< J>; DKC8;H E< THCI ?J >7: 8;; 9ED97L?JO E< 9EIJ 7D: J>; 9EDL;N?JO E< ?DL;HI; :;C7D: IJ?BB 7II?IJ M?J> J>; 79>?;L;C;DJ E< 7D ?D9H;7I; ?D FHETJ 8 .K9> 7 I;J E< C;H=;HI 97DDEJ 8; ;NF;9J;: JE 7H?I; M?J>EKJ H;=KB7JEHO ?DJ;HL;DJ?ED $J C7O 8;D;TJ 7BB THCI ?< J>;O I?CKBJ7D;EKIBO ; JMETHC C;H=;HI 8KJ 7 I?D=B; F7?H E< THCI C;H=?D= C7O TD: J>;?H @E?DJ FHETJ ;H; ?I 7 9EEH:?D7J?ED FHE8B;C J>7J 97DDEJ 8; H;IEBL;: 8O FH?L7J; 79J?EDI 9 />; C;H=;HI 97D ?D9H;7I; IE9?7B M;BHEK=> FHETJ >7L?D= 7 >?=> M;?=>J H;B7J?L; JE 9EDIKC;H IKHFBKI EH J>HEK=> J>; ;NFBE?J7J?ED E< ;9EDEC?;I E< I97B;



 B  ?:;DJ?97B THCI ) N  5  61 1 7D:  L  7L 7 !?D: J>; EKHDEJ ;GK?B?8H?KC EKJFKJ 7D: FHETJ 8 $< A THCI M?I> JE C;H=; M>7J MEKB: 8; J>;?H 9EIJ ;O 97D KI; 7BB J>;?H A FHE:K9J?ED FB7DJI 8KJ J>7J J>;O EJ>;HM?I; :E DEJ >7L; 7DO ;[9?;D9O =7?DI 7I 7 H;IKBJ E< J>; C;H=;H 9 "?L;D J>; 9EIJ ; C;H=;: ;DJ?JO /E J>; DEDC;H=?D= THCI : "?L; 7 FH;9?I; ;9EDEC?9 ?DJK?J?ED ;NFB7?D?D= OEKH 7DIM;H H;B7J?L; JE J>; KIK7B B?D;7H 9EIJ 97I; 3098.32  7 !?HC = 9>EEI;I ?JI EKJFKJ L9 JE C7N?C?P; ?JI FHETJ     >  > ( (

9  ) L9 L9  7L9  5  6 $L9 L: % L9  7L9  9

 

:9

=?L;D J>; 9>E?9; E< EKJFKJ ;H THCI !HEC J>; THIJEH:;H 9ED:?J?ED >

(  9  5  6L9  6 L:  7L9   L9

 

:9

M; TD: J>; 8;IJH;IFEDI; ; THC = &> 5  6 :9 L:  L9   6 7

 

$D J>; IOCC;JH?9 EKHDEJ ;GK?B?8H?KC L9  L ; 8;IJH;IFEDI; ?9> ?CFB?;I L

5 

B  6 7

 

/>?I ;GK?B?8H?KC FH?9; 7D: B;L;B E< FHETJ 97D J>;D 8; EEI?D= ?JI EKJFKJ B;L;B L9 =?L;D J>; EKJFKJ B;L;BI E< EJ>;H THCI !HEC J>; THIJEH:;H 9ED:?J?ED

  > (  9    L9  )' $L9  L: %     L9 :9

M; E8J7?D THC =WI 8;IJH;IFEDI;

#;D9; J>; EKHDEJ ;GK?B?8H?KC EKJFKJ ?I 1  9 L9  B J>; ;GK?B?8H?KC FH?9; ?I )  )' B 7D: J>; ;GK?B?8H?KC FHETJ E< ;79> THC ?I 9  )' B />?I KD?GK; ;GK?B?8H?KC ?I IOCC;JH?9 8 7L; C;H=;: J>; DKC8;H E< THCI H;C7?D?D= ?D J>; ?D:KIJHO ?I B  A  0I?D= J>; H;IKBJI E< F7HJ 7 7D: H;FB79?D= B 8O B  A  M; E8J7?D  

9  )'  B  A   B;7HBO J>; C;H=;H 8;D;TJI J>; DEDC;H=?D= THCI J>; ;GK?B?8H?KC EKJFKJ ?I J>; I7C; 8KJ J>; FH?9; ?D9H;7I;I I?D9; J>; DKC8;H E< J>; 9ECF;J?D= THCI

 :;9H;7I;: !EH J>; C;H=;: ;DJ?JO J>; C;H=;H ?I FHETJ78B; ?< J>; FHETJ 7; C;H=;H ;N9;;:I J>; JEJ7B FHETJ E< J>; C;H=;: THCI 8;; C;H=;H J>7J ?I ?< )'  B  A   A )' B 

 

)' A    A

 

EH

/>?I ?D;GK7B?JO >EB:I 7D  #;D9; J>; C;H=;H ?I 7BM7OI FHETJ78B; 9 />; ;\;9J E< >7L?D= FEI?J?L; TN;: 9EIJI ?I J>7J 7 C;H=;H 7BBEMI EKJFKJ JE 8; ;NF7D:;: 7D: J>; TN;: 9EIJ IFH;7: EL;H 7 B7H=;H EKJFKJ />; C;H=;: THC 8;D;TJI ;I; H;JKHDI JE I97B; 7D: ?J ?I J>?I J>7J C7A;I C;H=;H FHETJ78B;

 B ?:;DJ?97B THCI .KFFEI; J>; ?DL;HI; :;C7D: ) 1  5  61 M>;H; 1 ?I JEJ7B ?D:KIJHO EKJFKJ 5 6  79> THC >7I 7 B?D;7H 9EIJ ; ;H; L IJ7D:I 7J 5  7 7 J J>; IOCC;JH?9 ;GK?B?8H?KC M>7J 7H; J>; ?D:KIJHO EKJFKJ 7D: FH?9; B;L;BI 2>7J 7H; J>; ;GK?B?8H?KC F;H THC EKJFKJ 7D: FHETJ B;L;BI 2>7J ?I J>; ;GK?B?8H?KC IE9?7B M;B; :?\;H;D9; 8;JM;;D J>; 7H;7 KD:;H J>; :;C7D: EM J>7J J>; C;H=;H ?I FHETJ78B; ; A C;H=;: THCI ?< 7D: EDBO ?< ?J ?DLEBL;I 7 FH;C;H=;H C7HA;J I>7H; E<  F;H9;DJ 9 .>EM J>7J ;79> E< J>; B  A DEDC;H=;: THCI ?I 8;JJ;H E\ 7; C;H=;H : .>EM J>7J J>; ATHC C;H=;H ?D9H;7I;I ?D:KIJHO FH?9; 7D: 7BIE BEM;HI 9EDIKC;H M;B; IOCC;JH?9 ;GK?B?8H?KC M?J> B THCI M; >7L; L> 

57

5  7B 5 7B

5  7  1>   )>   >   6 B  6 B 

B  6 B 

 

M>;H; L> ?I F;H THC ;GK?B?8H?KC EKJFKJ 1> ;GK?B?8H?KC ?D:KIJHO EKJFKJ )> ;GK?B?8H?KC C7HA;J FH?9; 7D: > F;H THC ;GK?B?8H?KC FHETJ />; B;L;B E< IE9?7B M;B B THCI 0>  ?I :;TD;: 8O ) 0> 

.



5  61 81  71> 

 

7B9KB7J?D= J>; ?DJ;=H7B 7D: IK8IJ?JKJ?D= E8J7?DI 0> 



B B  5  7 

6 B 



 



!  ! !!

8 )EM B;J A EKJ E< B THCI C;H=; />; THIJ GK;IJ?ED ?I M>;J>;H J>; ATHC C;H=;H ?I FHETJ78B; ; A C;H=;: THCI $J ?I ?< 7D: EDBO ?< J>; FHETJ 7; C;H=;H >= I7J?IT;I >= A >  

5  7

B  A 



A



5  7



 



 

B 



?L?:?D= 8EJ> I?:;I 8O 5  7  =?L;I 

B  A 





A

B 



/>?I 97D 8; ; ?D;GK7B?JO ?I I7J?IT;: ?
?I 97D 8; MH?JJ;D 7I

/>; :;DEC?D7JEH ?I FEI?J?L; IE M; H;GK?H;  B   A B  A  

 

/>; 7H=KC;DJ ?I 9ECFB;J;: 8O IEBL?D= IBEF;   ; ?D;GK7B?JO 78EL; >7I 8;;D 97BB;: J>;  F;H9;DJ HKB;

 C;7D?D= J>7J 7 C;H=;H ?I FHETJ78B; ?< 7D: EDBO ?< ?J ?DLEBL;I 7 FH;C;H=;H C7HA;J I>7H; E<  F;H9;DJ .7B7DJ .M?JP;H 7D: -;ODEB:I  9 79> E< J>; DEDC;H=;: THCI ?I 8;JJ;H E\ 7; C;H=;H 7I >= 

> 7BM7OI I?D9; > ?I 7BM7OI :;9H;7I?D= ?D B : I J>; ;GK?B?8H?KC FH?9; ?I :;9H;7I?D= ?D B J>; ATHC C;H=;H 9B;7HBO ?D9H;7I;I J>; ;GK?B?8H?KC FH?9; .?C?B7HBO ;GK?B?8H?KC IE9?7B M;B= 0>  I?D9; 0> ?I 7BM7OI ?D9H;7I?D= ?D B />; A;O 9ED9BKI?ED ?I ?I J>7J C;H=;HI M?J>EKJ ;[9?;D9O =7?DI >;H; 7 :;9H;7I; ?D 7 ; C;H=;: THCI L?7 J>; ;NFBE?J7J?ED E< FHE:K9J?ED IOD;H=?;I 97DDEJ 8; M;B7D9?D= 7D: 97D 8; FHETJ78B; EDBO M>;D J>;O ?DLEBL; JEE C7DO THCI JE 8; 7BBEM;: 8O 7DJ?JHKIJ 7KJ>EH?J?;I -;EEI; EKJFKJ 7I J>; IJH7J;=?9 L7H?78B; 7 7B9KB7J; J>; 8;IJH;IFEDI; ; FK8B?9 7D: J>; FH?L7J; THCI 0I; 7 =H7F> E< J>; 8;IJH;IFEDI; 7J MEKB: >7FF;D ?<  9>7D=;: ; ;GK?B?8H?KC GK7DJ?J?;I ; FH?L7J; 7D: FK8B?9 THCI ;H?L; J>; 7==H;=7J; EKJFKJ ?D ;GK?B?8H?KC 7I 7 ; IE9?7BBO EFJ?C7B EKJFKJ B;L;B 8O KI?D= J>; C7H=?D7B 9EIJ FH?9?D= HKB; 7D: 9ECF7H; M?J> J>; ;GK?B?8H?KC EKJ9EC; : .>EM J>7J 7D ?D9H;7I; ?D  CKIJ ?D9H;7I; J>; ;GK?B?8H?KC ?D:KIJHO EKJ FKJ 7D: IE ;GK?B?8H?KC FH?9; CKIJ ; IE9?7BBO EFJ?C7B EKJ9EC; M>;D    ; EDI?:;H    7D: 97B9KB7J; J>; GK7DJ?JO IK8I?:O G M?J> C7H=?D7B 9EIJ 7 J>7J J>; THCI M?BB FHE:K9; J>; IE9?7BBO EFJ?C7B EKJFKJ B;L;B .>EM J>7J J>; EFJ?C7B IK8I?:O ?I J>; I7C; ; FK8B?9 7D: FH?L7J; THCI 2>7J ?CF79J :E;I 7 9>7D=; ?D  >7L; ED J>; EFJ?C7B IK8I?:O 2>O 3098.32  7 />; FH?L7J; THC C7N?C?P;I

 5  6 L L  L  7L 

 

8O 9>EEI?D= L =?L;D J>; B;L;B E< EKJFKJ L E< J>; FK8B?9 THC !HEC J>; THIJ EH:;H 9ED:?J?ED M; TD: J>; 8;IJH;IFEDI; ; FH?L7J; THC L 

5  7 L   6 

 

/>; FK8B?9 THC C7N?C?P;I





   5  6 L L  L  7L  ) H H  

5  6L 8L  7 L L  

 

8O 9>EEI?D= L =?L;D J>; B;L;B E< EKJFKJ L E< J>; FH?L7J; THC !HEC J>; THIJEH:;H 9ED:?J?ED      5  6L  7  6L   5  6 L L   7   L

 

M; TD: J>; 8;IJH;IFEDI; ; FK8B?9 THC L 

L 57       6      

 

2>;D  9>7D=;I ; 8;IJH;IFEDI; ; FK8B?9 THC F?LEJI 78EKJ ?JI ?DJ;H9;FJ ED J>; L;HJ?97B 7N?I J   ?J ?I IOCC;JH?9 JE J>; 8;IJH;IFEDI; ; FH?L7J; THC J>; FK8B?9 THC 8;>7L;I ;N79JBO 7I



!  ! !!

x1 Public firm

Private firm

θ =0

θ = 0.5

θ =1 x0

!?=KH;   ;IJH;IFEDI; ; FH?L7J; THC 7D: J>; ;GK?B?8H?KC ?I IOCC;JH?9 I  ?D9H;7I;I J>; IBEF; J>; 8;IJH;IFEDI; ; FK8B?9 THC F?LEJI EKJM7H: 7D: ;GK?B?8H?KC EKJFKJ ?D J>; C7HA;J H?I;I J    J>; FH?L7J; THC :E;I DEJ FHE:K9; 7J J>; ;GK?B?8H?KC !?=KH;   FBEJI J>; 8;IJH;IFEDI; ; IOIJ;C E< JME ;GK7J?EDI L L

 L

L     />; IEBKJ?ED ?I L 

 

57  6 57  6   

 57  57  L      6    6

   

 

7D: J>; 7==H;=7J; EKJFKJ 7I 7 7J ; EKJ9EC; ?I J>; I7C; 7I ; EKHDEJ :KEFEBO

7D: ; FK8B?9 THC FHE:K9;I J>; 9ECF;J?J?L; EKJ9EC; 7D: J>; FH?L7J; THC FHE:K9;I DEJ>?D= 9 />; IE9?7BBO EFJ?C7B EKJFKJ B;L;B 9EHH;IFED:I JE ) 1  7 M>?9> ?CFB?;I 57 />; ;GK?B?8H?KC EKJFKJ E< J>; C?N;: :KEFEBO ?I 8;BEM J>; IE9?7BBO 1 6 EFJ?C7B B;L;B ?I B;L;B 7J   

 : .;; F7HJ 9 ?\;H;DJ?7J?ED M?J> H;IF;9J JE  =?L;I 57  81      8 6

  

 

#;D9; 7D ?D9H;7I; ?D  H;IKBJI ?D 7D ?D9H;7I; ?D EKJFKJ 7 :;9H;7I; ?D FH?9; 7D: 7D ?D9H;7I; ?D IE9?7B M;B; 7IIKCFJ?ED J>7J 8EJ> THCI H;9;?L; ;GK7B IK8I?:?;I J>; IEBKJ?ED ?I E8J7?D;: 8O H;FB79?D= C7H=?D7B 9EIJ 7 8O 7  G GK7J?D= J>; JEJ7B EKJFKJ M?J> IK8I?:?;I JE J>; IE9?7BBO EFJ?C7B EKJFKJ B;L;B

 57 G 57      6 6

 

M; :;H?L; ; IK8I?:O

     !EH   IJ7D:7H: :KEFEBO J>; H;GK?H;: IK8I?:O ?I G  5  7  THC !EH    IE9?7B EFJ?CKC DE IK8I?:O ?I D;;:;: 7I ED; I>EKB: ;NF;9J ?\;H;DJ?7J?ED M?J> H;IF;9J JE  =?L;I G  5  7

8G 57   8

  

 

/>; CEH; M;?=>J J>; FK8B?9 THC FKJI ED IE9?7B M;B; B;II IK8I?:O JE ;79> THC ?I H;GK?H;: JE 7JJ7?D J>; IE9?7B EFJ?CKC

; :;C7D: C7H=?D7B H;L;DK;

C7H=?D7B 9EIJ 7D: 7L;H7=; 9EIJ 9KHL;I 7J :E;I J>; I?P; E< 7 C7HA;J >7L; JE :E M?J> M>;J>;H 7D ?D:KIJHO ?I 7 D7JKH7B CEDEFEBO 8 2>7J 7H; J>; JME FHE8B;CI J>7J 7H?I; M>;D J>; =EL;HDC;DJ H;=KB7J;I 7 D7JKH7B CEDEFEBO 8O B?C?J?D= FH?9; JE 8; ;GK7B JE C7H=?D7B 9EIJ 9 .KFFEI; 7 D7JKH7B CEDEFEBO M7I H;GK?H;: JE 9>7H=; 7L;H7=; JEJ7B 9EIJ *D OEKH :?7=H7C B78;B J>; FH?9; 9>7H=;: 7D: J>; :;7:M;?=>J BEII JE IE9?;JO H;B7J?L; JE C7H=?D7B 9EIJ FH?9?D= 3098.32   D7JKH7B CEDEFEBO ;N?IJI M>;D J>; C7HA;J 97D IKFFEHJ ED; FHETJ78B; THC 8KJ 97DDEJ IKFFEHJ JME )7JKH7B CEDEFEBO ?I 7 9EDI;GK;D9; E< ?D9H;7I?D= H;JKHDI JE I97B;  I?D=B; THC ?I 78B; JE ;NFBE?J J>; H;JKHDI JE I97B; 7D: E8J7?D 7 FH?9; 78EL; 7L;H7=; 9EIJ 2>;D J>;H; 7H; JME EH CEH; THCI J>; H;JKHDI JE I97B; 97DDEJ 8; ;NFBE?J;: JE J>; I7C; ;NJ;DJ 7D: ;GK?B?8H?KC FH?9; ?I 8;BEM 7L;H7=; 9EIJ !?=KH;   :;F?9JI J>; :;C7D: 7D: 9EIJ 9KHL;I EMD JE 8; EKJFKJ M?J> H;U;9JI J>; ?D9H;7I?D= H;JKHDI JE I97B; />; FH?9; 7D: EKJFKJ M?J> D7JKH7B CEDEFEBO 7H; :;DEJ;: D> 7D: L> H;IF;9J?L;BO



!  ! !!

Price/ cost

pn

pa pm

AC MC MR xn

AR xa x m

Output

!?=KH;   )7JKH7B CEDEFEBO

7 />; I?P; E< J>; C7HA;J ?I 7 9H?J?97B ; B?C?J;: I?P; E< J>; C7HA;J J>7J FH;L;DJI JME EH CEH; THCI ; H;JKHDI JE I97B; 7D: 97KI;I 7 D7JKH7B CEDEFEBO 8 />; THIJ FHE8B;C M?J> B?C?J?D= FH?9; JE C7H=?D7B 9EIJ ?I J>7J J>; THC M?BB C7A; 7 BEII )7JKH7B CEDEFEBO E99KHI 8;97KI; E< :;9H;7I?D= 7L;H7=; 9EIJ 2>;D 7L;H7=; 9EIJ ?I :;9H;7I?D= ?J 7J C7H=?D7B 9EIJ ?I 8;BEM 7L;H7=; 9EIJ IE C7H=?D7B 9EIJ FH?9?D= M?BB B;7: JE 7 BEII />?I 97D 8; I;;D ?D T=KH;   $< J>; THC ?I ; FE?DJ M>;H; &   + J>;D J>; FH?9; M?BB IJ?BB 8; 8;BEM 7L;H7=; 9EIJ />; I;9ED: FHE8B;C J>7J 7H?I;I 7H; J>; :?IJEHJ?EDI J>7J ; BEII J>HEK=> J7N H;L;DK;I 9 />; FH?9; 7D: GK7DJ?JO M?J> 7L;H7=; 9EIJ FH?9?D= 7H; D1 7D: L1 7D: M?J> C7H=?D7B 9EIJ FH?9?D= 7H; D= 7D: L= />; :;7:M;?=>J BEII E< KI?D= 7L;H7=; 9EIJ FH?9?D= H7J>;H J>7D C7H=?D7B 9EIJ FH?9?D= ?I ?BBKIJH7J;: ?D T=KH;   2?J> C7H=?D7B 9EIJ FH?9?D= J>; B;L;B E< 9EDIKC;H IKHFBKI ?I 567 8KJ J>; THC C7A;I 7 BEII E<  IE IE9?7B IKHFBKI ?I 0=  567  2?J> 7L;H7=; 9EIJ FH?9?D= J>; B;L;B E< 9EDIKC;H IKHFBKI ?I H;:K9;: JE 589 8KJ J>; THC 8H;7AI ;L;D /EJ7B M;B; :;7:M;?=>J BEII E< 7L;H7=; 9EIJ FH?9?D= ?I 0 %  0=  01  567   589

7J =?L;I J>; =EL;HDC;DJ J>; FEM;H JE H;=KB7J; C;H=;HI 8; JM;;D THCI !HEC J>; L?;M FE?DJ E< J>; M;BO JME THCI C?=>J M7DJ JE C;H=;



Price/ cost a

pa e pm c

d

−π

AC b

MR

MC

AR xa x m

Output

!?=KH;   ;7:M;?=>J BEII

3098.32  />; =EL;HDC;DJ H;=KB7J;I C;H=;HI 8;JM;;D THCI ED J>; 87I?I J>7J C;H=;HI C7O H;:K9; 9ECF;J?J?ED 7D: B;7: JE 7 H;:K9J?ED ?D IE9?7B M;B; H;=KB7J?ED E< C;H=;HI ?I J>;H;7D9?D= 2>7J =?L;I J>; =EL;HDC;DJ J>; FEM;H JE :E IE ?I J>; I7C; C7D:7J; J>7J =?L;I 7DO A?D: E< 7KJ>EH?JO JE =EL;HDC;DJ />;H; 7H; 7BJ;HD7J?L; F;HIF;9J?L;I ED M>;H; J>?I FEM;H 7H?I;I *D; F;HIF;9J?L; ?I J>7J J>; =EL;HDC;DJ HKB;I 7I 7 H;FH;I;DJ7J?L; E< J>; F;EFB; M?J> J>; 9EDI;DJ E< J>; F;EFB; />; 7BJ;HD7J?L; F;HIF;9J?L; ?I J>7J 7BB =EL;HDC;DJI E8J7?D J>;?H FEM;H 8O >7L?D= KI;: 7FI ?D J>; :?IJ7DJ F7IJ JE I;9KH; 7 CEDEFEBO E< JE C;H=; ; THIJ H;7IED ?I JE ?D9H;7I; J>;?H C7HA;J FEM;H 7D: KI; J>?I JE I;9KH; 7D ?D9H;7I; ?D FH?9; />?I ?I 87: ; F;HIF;9J?L; E< IE9?;JO />; I;9ED: H;7IED ?D= JE C;H=; ?I JE ;NFBE?J ;9EDEC?;I E< I97B; 7D: H;:K9; J>; 7L;H7=; 9EIJ E< FHE:K9J?ED />?I ?I =EE: ; ; CEDEFEB?IJ EF;H7J;I ED J>; ?D;B7IJ?9 F7HJ E< J>; :;C7D: 9KHL;

?J 97D ?D9H;7I; FHETJ 8O FHE:K9?D= B;II 8 2>;D J>; CEDEFEB?IJ EF;H7J;I ED J>; ?D;B7IJ?9 F7HJ E< J>; :;C7D: 9KHL;

?J 97D ?D9H;7I; FHETJ 8O FHE:K9?D= CEH; 9 />; CEDEFEB?IJWI C7H=?D7B H;L;DK; 97D 8; D;=7J?L; 1 ε =1 ε ; :HK= 9ECF7DO C7A;I 7 FHETJ ED 7::?J?ED7B I7B;I KJ ?< J>; :HK= M;H; IEB: 7J  JE ;L;HOED; FHETJI MEKB: :;9B?D; +H?9; :?I9H?C?D7J?ED ?I DEJ FEFKB7H M?J> 9EDIKC;HI ;IF;9?7BBO J>EI; F7O?D= J>; >?=>;H FH?9; /E ;L7BK7J; M>;J>;H :?\;H;DJ?7B FH?9?D= ?I =EE: EH 87: J>; 9H?J?97B GK;IJ?ED ; L?;M FE?DJ E< ;9EDEC?9I ?I M>;J>;H KD?; :HK= $D =;D;H7B J>;H; ?I DE ;7IO 7DIM;H $C7=?D; J>7J J>;H; 7H; EDBO JME 9EKDJH?;I ?DLEBL;: J>; 0D?J;: .J7J;I 7D: 0=7D:7 7 $C7=?D; J>; 0. C7HA;J ; +' :HK= ?I CEH; J>7D TL; J?C;I J>; 0=7D:7D C7HA;J 7D: J>; :HK= I;BBI H;IF;9J?L;BO 7J FH?9; ?I

 B?A;BO JE FH;L7?B ?< EDBO ED; FH?9; 9EKB: 8; 9>7H=;: 2>7J MEKB: 8; J>; ;\;9J ED JEJ7B 9EDIKCFJ?ED 7D: ;IF;9?7BBO 7J MEKB: 8; J>; ;\;9J ED 0. :HK= 9EDIKC;HI 8 $C7=?D; 7D 7DJ?C7B7H?7B :HK= J>7J C7DO F;EFB; ?D 0=7D:7 MEKB: 8KO 7J  7 :EI; 7D: ; 0D?J;: .J7J;I MEKB: 8KO 7J  $< J>; 0=7D:7D C7HA;J ?I CEH; J>7D J;D J?C;I J>; 0. C7HA;J M>7J FH?9; ?I B?A;BO JE FH;L7?B ?< :HK= 9ECF7DO 9EKB: I;J EDBO ED; FH?9; 2>7J MEKB: 8; J>; ;\;9J ED JEJ7B 9EDIKCFJ?ED 7D: ?I ;N7CFB; :?I9KII M>;D FH?9; :?I9H?C?D7J?ED ?I B?A;BO JE 8; IE9?7BBO KI;;D ?J :E;I DEJ >7L; CK9> JE H;9ECC;D: ?J 3098.32  7 />; FH?9; J>7J ?I CEIJ B?A;BO JE FH;L7?B ?I  />; :HK= 9ECF7DO MEKB: 8; 9ED9;HD;: EDBO M?J> IKFFBO?D= J>; 0. C7HA;J I?D9; J>?I ?I 8EJ> B7H=;H 7D: CEH; FHETJ78B; $J MEKB: 8; 799;FJ J>; BEII E< 7BB I7B;I ?D 0=7D:7 ?D EH:;H JE I;9KH; J>; I?D=B; >?=>;H FH?9; /EJ7B 9EDIKCFJ?ED MEKB: ; I?JK7J?ED M?J> FH?9; :?I9H?C?D7J?ED />; BEII E< 9EDIKCFJ?ED MEKB: 8; ;DJ?H;BO ?D 0=7D:7 IE :HK= 9EDIKC;HI ?D 0=7D:7 MEKB: IK\;H 87:BO />;H; MEKB: 8; DE ;\;9J ED 0. :HK= 9EDIKC;HI 8 />?I ?I CEH; :?[9KBJ JE :;J;HC?D; L;D J>EK=> J>; 0=7D:7D C7HA;J ?I CEH; J>7D J;D J?C;I J>; 0. C7HA;J ?J ?I DEJ E8L?EKI J>7J J>; :HK= MEKB: 8; FHETJ78B; M>;D IEB: 7J  7 :EI; L;D CEH; ?J ?I DEJ 9B;7H ?J MEKB: 8; CEH; FHETJ78B; JE IKFFBO 8EJ> C7HA;JI 7J  H7J>;H J>7D @KIJ J>; 0. C7HA;J 7J  />;H; 7H; C7DO 7IIKCFJ?EDI J>7J 9EKB: 8; FB79;: ED 9EIJI IK9> 7I C7H=?D7B 9EIJ ?I  J>7J MEKB: C7A; ?J CEH; FHETJ78B; ; 9ECF7DO JE IKFFBO EDBO J>; IC7BB;H 0. C7HA;J 7J  =7?D J>; 0=7D:7D :HK= 9EDIKC;HI MEKB: IK\;H $D J>EI; 97I;I ?D M>?9> ?J ?I CEH; FHETJ78B; JE IKFFBO 8EJ> C7HA;JI 7J  J>; 0. 9KIJEC;HI M?BB =7?D ; ?CFEI?J?ED E< 7 I?D=B; FH?9; BJ;HD7J?L;BO J>; 0. 9KIJEC;HI BEI; M>;D J>;H; ?I FH?9; :?I9H?C?D7J?ED I?D9; J>;O 97D 8; 9>7H=;: 7 >?=>;H FH?9; 9 +H?9; :?I9H?C?D7J?ED ?I IE9?7BBO KI;;D ?J 7BBEMI 9ECF7D?;I JE 799;II C7HA;JI M>;H; J>; M?BB?D=D;II EH 78?B?JO JE F7O ?I BEM 2?J> 7 I?D=B; FH?9; IEC; 9EDIKC;HI C7O 8; FH?9;: EKJ E< J>; C7HA;J $< J>;O 97D 8; J7H=;J;: M?J> 7 BEM;H FH?9; J>;D IE9?7B 8;D;TJI 97D 8; E8J7?D;: +H?9; :?I9H?C?D7J?ED ?I 87: M>;D 7 =HEKF E< 9EDIKC;HI ; = J>; 0. 9EDIKC;HI ?D F7HJ 8 97D 8; J7H=;J;: M?J> 7 >?=>;H FH?9; 7D: J>;?H M?BB?D=D;II JE F7O ;NFBE?J;: -;; 7DJ?9?F7J;: :;C7D: EL;H J>; B?; 8H?:=; ?I L  

 

D M>;H; L ?I J>; DKC8;H E< 9HEII?D=I ?D J>EKI7D:I =?L;D J>; FH?9; F;H 9HEII?D= D



!  ! !!

7 $< J>; 9ECF7DO 8K?BJ J>; 8H?:=; M>7J MEKB: 8; J>; FHETJC7N?C?P?D= FH?9; 8 2EKB: J>7J FH?9; B;7: JE J>; ;[9?;DJ DKC8;H E< 9HEII?D=I 2>O EH M>O DEJ 9 2>7J MEKB: 8; J>; 9ECF7DOWI FHETJ EH BEII .>EKB: ?J 8K?B: J>; 8H?:=; : $< J>; =EL;HDC;DJ M;H; JE 8K?B: J>; 8H?:=; M>7J FH?9; I>EKB: ?J 9>7H=; ; .>EKB: J>; =EL;HDC;DJ 8K?B: J>; 8H?:=; 2>O EH M>O DEJ 3098.32  7 />; 9ECF7DOWI FHETJ ?I

 

 

D D  



 

9EIJ ?I ;NFH;II;: ?D J>EKI7D: :EBB7HI .;JJ?D= J>; :;H?L7J?L; M?J> H;IF;9J JE D ;GK7B JE P;HE M; E8J7?D J>; FHETJC7N?C?P?D= FH?9; D   8 />; 7DIM;H ?I DE />; DKC8;H E< 9HEII?D=I 7J J>?I FH?9; ?I L  

/>; ;[9?;DJ DKC8;H E< 9HEII?D=I 9EHH;IFED:I JE D  7  P;HE 9EIJ E< C7?DJ;D7D9; ?CFB?;I P;HE C7H=?D7B 9EIJ 7D: ?I ;GK7B JE 

9 />; 9ECF7DO ?D9KHI BEII;I ;L;D M?J> FHETJC7N?C?P?D= FH?9;  

/>;H;; 8H?:=; : />; =EL;HDC;DJ I>EKB: DEJ 9>7H=; 7J 7BB ?< ?JI E8@;9J?L; ?I JE C7N?C?P; IE9?7B M;B; C7H=?D7B 9EIJ ?I P;HE ; />; =EL;HDC;DJ I>EKB: 8K?B: J>; 8H?:=; ?< J>; =7?DI ?D IE9?7B M;B; ;N?IJ;D9; E< J>; 8H?:=; ; = FEI?J?L; ;NJ;HD7B?J?;I =;D;H7J;: 8O FK8B?9 ?D; BEII;I ?D IE9?7B M;B7I CEDEFEBO FEM;H EL;H 7 I97H9; H;IEKH9; >;HI;B< ED IJ7=; .>; ?I J>; EDBO F;HIED M>E 97D F;H?I 7J J>; =EL;HDC;DJ I>EKB: H;=KB7J; J?9A;J FH?9;I ;H 9ED9;HJI NFB7?D 3098.32  />; 7DIM;H ?I DE L;D J>EK=> )EH7 %ED;I ?I 7 CEDEFEB?IJ ?D J>; IKFFBO E< )EH7 %ED;I J>;H; ?I 7 B7H=; DKC8;H E< L;HO 9BEI; IK8IJ?JKJ;I ?D J>; C7HA;J DEJ>;H 7H=KC;DJ 7J )EH7 %ED;I 9ED9;HJI 7H; 7 C;H?J =EE: Z 7 =EE: IK9> 7I ;:K97J?ED J>7J J>; =EL;HDC;DJ 8;B?;L;I F;EFB; I>EKB: 8; ;D9EKH7=;: JE 9EDIKC; )EH7 %ED;I C7O 8; 7 J7B;DJ;: @7PP I?D=;H 8KJ ?I KDB?A;BO JE 8; @K:=;: 7 C;H?J =EE:

-&48*6 

7=11*86.( 2+361&8.32 7J ?I O M?BB 7 H?IA7L;HI; 9EDIKC;H 7BM7OI 8KO ;D ?J ?I J>; ?DIKH7D9; FH;C?KC ?I ;GK7B JE J>; ;NF;9J;: L7BK; E< J>; FHEC?I;: ?DIKH7D9; F7OC;DJ />;H; ?I ;D J>; FEB?9O O 7 H?IA7L;HI; 9EDIKC;H MEKB: :;C7D: ;D ; 7I;: 7 97H 7D: ?< 7BB =E;I M;BB 7D: ?< OEK :E DEJ >7L; 7D 799?:;DJ OEK M?BB >7L;   E< ?D9EC; 7L7?B78B; ; O;7H $< >EM;L;H OEK >7L; 7D 79 9?:;DJ 7D: OEK 7H; KD?DIKH;: OEK M?BB ;NF;9J JE F7O   ?D H;F7?HI M>?9> MEKB: B;7L; @KIJ   7L7?B78B; ; FHE878?B?JO E< DEJ >7L?D= 7D 799?:;DJ ?I   2?J>EKJ ?DIKH7D9; OEK J>KI 7  F;H9;DJ 9>7D9; E<   ?D :?IFEI78B; ?D9EC; 7D: 7  F;H9;DJ 9>7D9; E<   ?D :?IFEI78B; ?D9EC; .KF FEI; DEM OEK >7L; J>; EFFEHJKD?JO JE 8KO E< 7DDK7B ?DIKH7D9; 9EL;H7=; 7J 7 FH?9; FH; C?KC E<  F;H O;7H />; ?DIKH7D9; 9ECF7DO 7=H;;I JE F7O ;   MEHJ> E< H;F7?HI ?D J>; ;L;DJ E< 7D 799?:;DJ 2; DEM I>EM J>7J 7 H?IA7L;HI; ?D:?L?:K7B M?BB 7BM7OI FH; E< =EE:I $< OEK :E DEJ 8KO J>; ?DIKH7D9; OEK =;J   :?IFEI78B; ?D9EC; ?< OEK :E DEJ >7L; 7D 799?:;DJ 7D:   ?< OEK >7L; 7D 799?:;DJ />; ;NF;9J;: L7BK; E< OEKH :?IFEI78B; ?D9EC; ?D J>?I 97I; ?I

   

    

  

/>KI J>; ;NF;9J;: L7BK; E< OEKH 9EDIKCFJ?ED ?< OEK :E DEJ 8KO ?DIKH7D9; ?I ;GK7B JE J>; 9;HJ7?D L7BK; E< OEKH 9EDIKCFJ?ED ?< OEK 8KO ?DIKH7D9; ;97KI; 7 H?IA7L;HI; 9EDIKC;H FH;?D= JE 7 BEJJ;HO M?J> J>; I7C; ;NF;9J;: L7BK; 7 H?IA 7L;HI; 9EDIKC;H M?BB 7B M7OI FH;; >;7BJ> IJ7JKI E< J>;?H 7FFB?97DJI 2EKB: J>?I =;D;J?9 J;IJ?D= >;BF EH >KHJ J>EI; M>E 7H; ?D 87: >;7BJ> 2EKB: ?J ;N79;H87J; EH C?J?=7J; J>; FHE8B;C E< 7:L;HI; I;B;9J?ED ?D J>; >;7BJ> ?DIKH7D9; C7HA;J 2EKB: ?J ?D9H;7I; EH :;9H;7I; J>; DKC8;H E< F;EFB; M?J>EKJ >;7BJ> ?DIKH7D9; 2EKB: ?J 8; 7 =EE: J>?D= 3098.32  />?I ?I 7 97I; E< 7:L;HI; I;B;9J?ED 7D: J>; 7DIM;H :;F;D:I ED J>; IJHK9JKH; E< J>; ?DIKH7D9; C7HA;J ;GK?B?8H?KC 2?J> 7 I;F7H7J?D= ;GK?B?8 H?KC J>;H; ?I KD:;HFHEL?I?ED E< ?DIKH7D9; JE J>; BEMH?IA ?D:?L?:K7BI :K; JE J>; FEII?8?B?JO ; >?=>H?IA ?D:?L?:K7BI JE ?C?J7J; J>; BEM H?IA />; BEMH?IA ?D:?L?:K7BI ?D J>?I 97I; 7H; J>EI; ?D =EE: >;7BJ> 7D: J>;O 97DDEJ E8J7?D 7I CK9> ?DIKH7D9; 7I J>;O MEKB: B?A; *D J>; EJ>;H >7D: J>; >?=>H?IA ?D:?L?:K 7BI 7H; J>EI; ?D 87: >;7BJ> 7D: J>;O 97D 8KO 7J FHEL?:;I ;?H >;7BJ> IJ7JKI J>EI; ?D =EE: >;7BJ> >7L; JE ?D9KH J>; 9EIJ E< F7HJ?7B 9EL;H7=; BBEM?D= =;D;J?9 J;IJ?D= MEKB: H;CEL; IK9> I?= D7B?D= 9EIJI JE J>; 8;D;TJ E< J>EI; ?D =EE: >;7BJ> 7D: M?J>EKJ 9EIJ EI; ?D 87: >;7BJ> />KI J;IJ?D= M?BB C?J?=7J; 7D: FEII?8BO H;CEL; J>; FHE8B;C E< 7:L;HI; I;B;9J?ED ?D J>; >;7BJ> ?DIKH7D9; C7HA;J 0D:;H 7 FEEB?D= ;GK?B?8H?KC J>EI; ?D =EE: >;7BJ> F7O CEH; J>7D J>; EI; ?D 87: >;7BJ> F7O B;II J>7D J>; KI J>EI; ?D =EE: >;7BJ> IK8I?:?P; ?CFB?9?JBO J>EI; ?D 87: >;7BJ> ";D;J?9 J;IJ?D= ?D J>?I 97I; M?BB ;B?C?D7J; J>?I 9HEIIIK8I?:?P7J?ED 8O ?D9H;7I?D= J>; FH?9; E< ?DIKH7D9; EI; ?D 87: >;7BJ> 7D: H;:K9?D= J>; FH?9; EI; ?D =EE: >;7BJ> />EI; ?D 87: >;7BJ> C7O TD: J>; FH?9; E< ?DIKH7D9; FHE>?8?J?L; 7D: :HEF EKJ E< J>; C7HA;J I 7 H;IKBJ :;F;D:?D= ED J>; ?D?J?7B I?JK7J?ED ED J>; ?DIKH7D9; C7HA;J ?D J>; FH;I;D9; E< FEEB?D= ?DIKH7D9; =;D;J?9 J;IJ?D= MEKB: ?D9H;7I; J>; DKC8;H E< F;EFB; M?J>EKJ ?DIKH7D9; M>;H;7I M?J> I;F7H7J?D= ?DIKH7D9; ?J MEKB: >7L; DE ;\;9J ED F7HJ?9?F7J?ED H7J;I

; 7J IEC;ED; M?BB 8KO TH; ?DIKH7D9; ED 7 8K?B:?D= 7D: J>;D I;J TH; JE ?J />?I ?I 7D ;N7CFB; E< CEH7B >7P7H: 8  B?; FEII?8?B?JO J>7J J>; F;EFB; M>E 8KO B?;7BJ>O J>7D J>EI; M>E :E DEJ />?I ?I 7D ;N7CFB; E< 7:L;HI; I;B;9J?ED 9 $D 7 C7HA;J M>;H; J>;H; ?I I;F7H7J?D= ;GK?B?8H?KC :?\;H;DJ JOF;I E< 7=;DJI C7A; :?\;H;DJ 9>E?9;I E< 79J?EDI : (EH7B >7P7H: H;; ;\;9J E< 7D ?DIKH7D9; FEB?9O ED J>; ?D9;DJ?L;I E< ?D:?L?:K7BI JE ;N;H9?I; 97H; ; :L;HI; I;B;9J?ED H;EM J>; C7=D?JK:; E< J>; ?DIKH7D9; FH;C?KC 7\;9JI J>; JOF;I E< ?D:?L?:K7BI J>7J 8KO ?DIKH7D9;

 3098.32  7 /HK; CEH7B >7P7H: 7H?I;I M>;D J>; ?DIKH;: F7HJO 97D J7A; 79J?EDI DEJ E8I;HL78B; 8O J>; ?DIKH;H >?::;D 79J?ED J>7J 7\;9J J>; FHE878?B?JO E< 7D 799?:;DJ EH BEII $D J>?I 97I; J>; >?::;D 79J?ED ?I J>; 7J OEK 7H; KI CEH7B >7P7H: H;; ;\;9J E< 7D ?DIKH7D9; FEB?9O ED J>; ?D9;DJ?L;I ; ?DIKH7D9; 9ECF7DO I>EKB: MEHHO J>7J ?D FHEL?:?D= 8;JJ;H 9EL;H7=; ?J H;:K9;I J>; ?D9;DJ?L; JE ;N;H9?I; 97H; 7D: ?D9H;7I;I J>; EL;H7BB B?A;B?>EE: E< 7D 799?:;DJ EH BEII 8 /HK; 7:L;HI; I;B;9J?ED 7H?I;I M>;D J>; ?DIKH;: F7HJO >7I >?::;D ?D?I 97I; J>EI; M>E 8KO B?;7BJ> J>7D J>; ?DIKH7D9; 9ECF7DO />;O >7L; =H;7J;H FH;;7BJ> .E J>; ?DIKH7D9; 9ECF7DO I>EKB: MEHHO 78EKJ >EM J>; ?DIKH7D9; FH;C?KC 7\;9JI J>; JOF;I E< ?D:?L?:K7BI J>7J 8KO ?DIKH7D9; $D F7HJ?9KB7H ?D9H;7I?D= J>; ?DIKH 7D9; FH;C?KC :H?L;I EKJ J>; BEMH?IA ?D:?L?:K7BI 7D: J>KI ?D9H;7I;I J>; EL;H7BB H?IA?D;II E< J>; I;J E< ?D:?L?:K7BI M>E 8KO ?DIKH7D9; 9 /HK; :?\;H;DJ JOF;I E< 7=;DJI I;F7H7J; EJ>;H 8O 79J?D= :?\;H ;DJBO $D 9EDJH7IJ KD:;H 7 FEEB?D= ;GK?B?8H?KC ?J ?I ?CFEII?8B; JE :?IJ?D=K?I> :?\;H;DJ JOF;I E< 7=;DJI 8;97KI; J>;O 79J J>; I7C; !EH ?DIJ7D9; ?D J>; ?D IKH7D9; C7HA;J BEMH?IA ?D:?L?:K7BI 97D I;F7H7J; ?=>H?IA ?D:?L?:K7BI 8O 8KO?D= B;II ?DIKH7D9; : /HK; I;; F7HJ7 ; /HK; I;; F7HJ 8

 E< J>; 7P 7H: $D ;79> 97I; ?:;DJ?; FH?D9?F7B KD?D; 7=;DJ ?D O J>;H; ?I 7IOCC;JH?9 ?D; 79J?ED :;I9H?8;: I?JK7J?ED C?J?=7J; J>; CEH7B >7P7H: FHE8B;C 7 7H ?DIKH7D9; 9ECF7D?;I E\;H :?I9EKDJI JE 9KIJEC;HI M>E ?DIJ7BB 7DJ?J>;;?H 97HI 8 />; $DJ;HD7J?ED7B (ED;J7HO !KD: 9ED:?J?EDI B;D:?D= JE :;L;BEF?D= 9EKD JH?;I KFED J>; 7:EFJ?ED E< 7 IJHK9JKH7B 7:@KIJC;DJ FB7D 9 !?HCI 9ECF;DI7J; JEF ;N;9KJ?L;I M?J> EFJ?EDI JE 8KO 9ECF7DO IJE9A 7J 7 =?L;D FH?9; ?D J>; ; ?D9EC; BEII ; FHEFEHJ?ED E< JOF; % ?D J>; FEFKB7J?ED />; 8H;7A;L;D FH;C?KC ?I

   



     

 

 9 $J ?I FEII?8B; JE E\;H 7 FHETJ78B; 9EDJH79J M?J> F7HJ?7B 9EL;H7=; J>7J M?BB 8; 7JJH79J?L; JE JOF; % ';J L , L 8; J>; 9EL;H7=; />; ?DIKH7D9; THCI ;7HD , *DBO J>; ?D:?L?:K7BI E< JOF; % M?BB FEI?J?L; ;NF;9J;: FHETJ E< P;HE ?<  D" L 8KO J>?I 9EDJH79J ?<   ,     D" . M   . M    D" . M  L L   D . M  L L ,     D . M    . M    />; 9EDJH79J 97D 8; IJH?9JBO FHETJ78B; ?<

 

" D . M  L "    D" . M    . M    D

 ; 7H=KC;DJ J>7J F7O?D= KC7D 8BEE: >7I J>; ;\;9J E< BEM;H?D= ?JI 7L;H7=; GK7B?JO 8;97KI; F;EFB; M>E 7H; :H?L;D 8O J>; FHETJ CEJ?L; JE FHEL?:; 8BEE: 7H; CEH; B?A;BO JE 8; :HK= 7::?9JI 7B9E>EB?9I 7D: J>EI; M?J> I;H?EKI ?D7D 7H; LEBKDJ7HO :EDEHI 3098.32  />; ?IIK; KD:;HBO?D= J>; ;N;H9?I; ?I J>; CEJ?L; ; JOF; J>7J M?BB 8; I;B;9J;: =?L;D 7D ?D9;DJ?L; I9>;C; +HEL?:?D= F7OC;DJ C7A;I :ED7J?D= 8BEE: 7JJH79J?L; JE J>EI; M>E H;GK?H; CED;O 8KJ 7H; B?C?J;: ?D J>;?H ;CFBEOC;DJ EFJ?EDI +H;L7B;DJ 7CED= J>?I =HEKF C7O M;BB 8; J>EI; M?J> J>; 9>7H79J;H?IJ?9I J>7J 7H; KDM;B9EC; ?D 8BEE: :EDEHI EDL;HI;BO ?< DE F7O C;DJ ?I E\;H;: J>; EDBO CEJ?L; ;BF;H; ?I DE H;7IED ?I 9>7H79J;H?IJ?9 JE 8; 9EHH;B7J;: M?J> KDM;B9EC; 9>7H79J;H?IJ?9I

7J F7HJ E< J>; 9?JO OEK B?L; ?D />;?H H7J?ED7B; ?I J>7J H?IA ;;H />; H;IKBJ ?I J>7J F;EFB; M>E B?L; D;7H ;79> EJ>;H 8KJ ?D 7:@79;DJ FEIJ7B 9E:;I C7O ;D: KF F7O?D= L;HO :?\;H;DJ ?DIKH7D9; FH;C?7 7 2>7J MEKB: >7FF;D JE 7D ?DIKH7D9; 9ECF7DO J>7J :;9?:;I JE I;BB ?DIKH 7D9; 7J J>; I7C; FH?9; JE 7BB :H?L;HI M?J> J>; I7C; :H?L?D= H;9EH:I DE C7JJ;H M>7J F7HJ E< J>; 9?JO J>;O B?L; ?D 8 2>7J MEKB: >7FF;D ?< J>; =EL;HDC;DJ :;9?:;I JE EKJB7M =;E=H7F>?9 H7J; :?\;H;DJ?7BI =?L;D J>7J J>; =EL;HDC;DJ 97DDEJ ;?H M?BB 3098.32  7 />; 9ECF7DO MEKB: DE BED=;H 8; E\;H?D= ?DIKH7D9; H7J;I 87I;: ED 79JK7H?7B :?\;H;D9;I ?D L7D:7B?IC 7D: J>;EI; B?L?D= ?D FB79;I M?J> CEH; J>;; B;II H?IAO FB79;I M?BB 9>EEI; JE =E M?J> 7 :?\;H;DJ ?DIKH7D9; 9ECF7DO 8;97KI; J>; FH?9; 9>7H=;: ?I B?A;BO JE 8; BEM;H J>;?H 9>7H79J;H?IJ?9I .E J>; DED:?I9H?C?D7J?D= ?DIKH7D9; 9EC F7DO M?BB 7JJH79J 9KIJEC;HI ; CEH; H?IAO FB79;I ?D9H;7I?D= J>; ?DIKH7D9; FH;C?KC JE 7 B;L;B J>7J ?I ;GK?L7B;DJ JE J>; EH?=?D7B =;E=H7F>?9 H7J; :?\;H;D9;I 8 />?I ?I 7DEJ>;H M7O 7:L;HI; I;B;9 J?ED O 87DD?D= =;E=H7F>?97B :?I9H?C?D7J?ED ;79> 9ECF7DO 97D 7JJH79J 7 C?N E< >?=>7D: BEMH?IA ?D:?L?:K7BI #7: 7 I?D=B; ?DIKH7D9; 9ECF7DO 8;;D E\;H ?D= =;E=H7F>?97BBO :?\;H;DJ?7J;: H7J;I J>; BEMH?IA C?=>J EFJ EKJ JE FKH9>7I; ?DIKH7D9; ?I 9ECF7DO J>KI 7:L;HI;BO 7\;9J?D= J>; C?N E< ?D:?L?:K7BI 9EL;H;: 8O J>; ?DIKH7D9; FEB?9O ?D EJ>;H 9ECF7D?;I  L;HO I?C?B7H 7H=KC;DJ 7FFB?;I ; ?:;7 ?I J>7J ?DIKH7D9; 9ECF7D?;I 97D :;7B M?J> 7:L;HI; I;B;9J?ED 8O E\;H?D= ?DIKH7D9; JE 7 =HEKF E< ?D:?L?:K7BI ?D J>; I7C; MEHAFB79; />;H; 7H; C7DO C7D:7JEHO 9ECF7DOM?:; =HEKF >;7BJ> 7D: F;DI?ED



!   &! !

?DIKH7D9; FB7DI M>;H; J>; F7HJ?9?F7J?ED E< 7BB ;CFBEO;;I ;DIKH;I 7 C?N E< >?=> 7D: BEMH?IA ?D:?L?:K7BI

7I; ?DIKH7D9; 9EDJH79J JE 9EL;H J>; BEII E< ?D9EC; ?< I>; >7I 7D 799?:;DJ 7 2>7J ?I J>; 79JK7H?7BBO 7J B;L;B E< 9EL;H7=; M?BB ";EH=?; 8KO ";EH=?; BEL;I ;NJH;C; IFEHJI 7D: ; M?BB :H?L; ?I ?D9H;7I;I >;H H?IA E< 799?:;DJ ';J J>; "  M>;H; % ?I J>; KD?DIKH;: ?D9EC; BEII H?IA 8; =?L;D 8O D     8 2?BB J>; 9EDJH79J ?D 7 8H;7A ;L;D $< J>; ?DIKH7D9; 9ECF7DO ADEMI " M>7J 9EDJH79J M?BB ?J E\;H $< J>; ";EH=?;WI 8;>7L?EH J>; ;H 8;>7L?EH M>7J 9EDJH79J M?BB 8H;7A ;L;D 3098.32  7 />; 79JK7H?7BBO ; ;NF;9J;: 7CEKDJ E< BEII       ";EH=?; M?BB 8KO ; FHE878?B?JO E< 799?:;DJ ?I D   7D: J>; ?DIKH7D9; 9ECF7DO M?BB C7A; 7 BEII      $< J>; ?DIKH7D9; 9ECF7DO ADEMI ";EH=?;WI 8;>7L?EH ?J 97D E\;H 7 9EDJH79J J>7J J7A;I ?DJE 799EKDJ J>; ;\;9J E< 9EL;H7=; ED J>; FHE878?B?JO E< 799?:;DJ 2?J> 9EL;H7=; L J>; FHE878?B?JO E< 799?:;DJ ?I D

 L   L    

DO 9EDJH79J M?J> FH;C?KC 7D: 9EL;H7=; L L  M?BB 8H;7A ;L;D ?
; FHE@;9J 7I 7 ; ;\EHJ 9>E?9; ?I =?L;D 8O

9  D 9    D 9 " 

 

M?J>

   

    

 />; H?IA D;KJH7B 7=;DJWI KJ?B?JO 7I 7 E?9; 9 7D: J>; H;CKD;H7J?ED I9>;:KB; K

 ?I J K

 9  D 9K

    D 9 K

"   9   



 

.E KD:;H 7 TN;: M7=; K

   

J>; 7=;DJWI KJ?B?JO ?I J K

 9   

 9   



 

7D: J>; 7=;DJ M?BB 9>EEI; 9  0D:;H F;H; 7=;DJWI KJ?B?JO ?I J K

 9  D 9   

  D 9   9   



 

7D: IE J K

      

    

  

7D: J K

   />KI J K

   J K

  IE J>; 7=;DJ M?BB ;N;HJ ;\EHJ KD:;H F;H7J J>; F7HJ?9?F7J?ED 9EDIJH7?DJ ?I I7J?IT;: 7I J K

 

 

M>?9> ?I J>; EKJI?:; EFJ?ED ; 7=;DJ />; =EL;HDC;DJ M?I>;I JE C7N?C?P; ;NF;9J;: 8;D;TJ D;J E< J>; H;CKD;H7J?ED 9EIJ  9  D 9    D 9 "  D 9K

    D 9 K

" 

 

0D:;H 7 TN;: M7=; 9  7D: 

 

   

  

7D: M?J> F;HKI ?J ?I EFJ?C7B ; =EL;HDC;DJ JE KI; F;H; H?IA D;KJH7B ;CFBEO;; M?BB 799;FJ J>; E\;H 8 />; H?IAD;KJH7B 7=;DJ ?I @KIJ ?D:?\;H;DJ 8;JM;;D J>; F;H ;NF;9J;: L7BK; E< J K

      

    

  

=?L;D J>; 9EIJ E< MEHA?D= 7D: J>; H;CKD;H7J?ED E<  

I>; 97D =;J ;H @E8 M>;H; I>; MEKB: I>?HA />; H?IA FH;C?KC ?I J>; C?D?CKC H;M7H: J>7J J>; 7=;DJ M?BB H;GK?H; JE =?L; KF J>; I;9KH?JO E< IKH; F7O 7D: JE 8;7H J>; H?IA 7J J>; H;M7H: 7 H?IA7L;HI; ?D:?L?:K7B H;GK?H;I ; CEH; H?IA J>; ?D:?L?:K7B 8;7HI $D J>?I 97I; M?J> F;H; 7=;DJ  ;7HD?D=I >7B< E< J>; J?C; ?< J>; FHE@;9J 7B< E< J>; J?C; ?< ?J IK99;;:I />; ;NF;9J;: I7B7HO ?I   ';J I K :;DEJ; J>; KJ?B?JO E< ?D9EC; K 2?J> H?IA 7L;HI?ED J>; KJ?B?JO ; H?IA FH;C?KC + ?I ; ;GK7J?ED

   I  

 I

  I  

 +       D ?CFEHJ7DJ :;J;HC?D7DJ E< J>?I FH;C?KC ?I J>; L7H?7D9; E< ?D9EC; />?I ?CFB?;I J>7J J>; =EL;HDC;DJ M?BB >7L; JE F7O 7D ;NF;9J;: I7B7HO >?=>;H J>7D   7D: FEII?8BO H;:K9; J>; L7H?7D9; E< ?D9EC; 8O E\;H?D= 7 I7B7HO >?=>;H J>7D P;HE M>;D J>; FHE@;9J ; H?IA 97DDEJ 8; ;B?C?D7J;: ;HM?I;

J>; 7=;DJ M?BB DEJ ;N;HJ ;\EHJ />?I ?I J>; 9B7II?97B JH7:;E\ 8;JM;;D H?IA I>7H?D= 7D: ;[9?;D9O



VA

w

Vh w* (e )

θh E (θ )

θA

e* (θ A )

e* (θ h )

e

!?=KH;   (?D?CKC M7=;

; I?=D7B?D= CE:;B FH;I;DJ;: ?D I;9J?ED   JE 9EDIJHK9J 7D ;N7CFB; ?D M>?9> 7 =EL;HDC;DJ KD7M7H; E< MEHA;HIW FHE:K9J?L?J?;I 97D ?C FHEL; J>; M;B; 8;IJ I;F7H7J?D= ;GK?B?8H?KC 8O C;7DI E< 7 9HEIIIK8I?:?P7J?ED FEB?9O 8KJ DEJ 8O 87DD?D= I?=D7B?D= 3098.32  />?I ?I ?BBKIJH7J;: ?D T=KH;   O 87DD?D= I?=D7B?D= J>; >?=> IA?BB M?BB ;7HD B;II 8O J>; 7CEKDJ E< 8   8KJ >; M?BB I7L; ED I?=D7B?D= 9EIJI  J>; 7CEKDJ E< 5   M>;H; ?D J>?I CE:;B 9 8   0 8  0  ?I J>; C?D?C7B B;L;B E< I?=D7B?D= H;GK?H;: JE 79>?;L; I;F7H7J?ED />; >?=>IA?BB MEHA;H ?I MEHI; E\ 8O 87DD?D= I?=D7B?D= ?< J>; M7=; BEII ;N9;;:I J>; 9EIJ I7L?D= 7J ?I ?< 8     5       />?I ?I 7BM7OI FEII?8B; 8O J7A?D=   9BEI; ;DEK=> JE 0 J>7J ?I ?< J>;H; 7H; DKC;HEKI BEMIA?BB MEHA;HI 7D: ?=> IA?BB MEHA;HI ?D J>; FEFKB7J?ED BJ;HD7J?L;BO J>; =EL;HDC;DJ 9EKB: ?CFHEL; J>; M;B?=>IA?BB JE J>; BEMIA?BB MEHA;HI />?I 97D J7A; J>; ;?H FHE:K9J?L?JO K<  <  TD7D9;: 8O M7=; B?C?J ; >?=>IA?BB MEHA;HI M>?9> ?I 8;BEM J>;?H FHE:K9J?L?JO K8  8  7I ?BBKIJH7J;: ?D T=KH;   />; ;\;9J E< J>?I 9HEIIIK8I?:?P7J?ED H;:K9?D= J>; M7=; =7F ?I JE H;:K9; J>; 7CEKDJ E< I?=D7B?D= H;GK?H;: ; >?=>IA?BB JE I;F7H7J; ; BEMIA?BB 7I J>; ?D9;DJ?L; E< J>; BEMIA?BB JE ?C?J7J; J>; >?=>IA?BB ?I H;:K9;: I 7 H;IKBJ >?=>IA?BB MEHA;HI M?BB =7?D ?< J>; 9EIJ I7L?D= ED I?=D7B?D= ?I 7J B;7IJ 7I >?=> 7I J>; M7=; 9KJ ?D J>; T=KH; J>;O 7H; @KIJ J>; I7C; />; BEMIA?BB M?BB 8;D;TJ I?D9; J>;O =;J >?=>;H M7=; M?J> DE I?=D7B?D= 9EIJ



!   &! !

?H;I JME A?D:I E< MEHA;HI 7BF>7I 7D: 8;J7I *D; 97DWJ J;BB 7 8;J7 7 8O BEEA?D= 7J >;H 8KJ 7D 7BF>7 M?BB FHE:K9;   MEHJ> E< EKJFKJ F;H CEDJ> 7D: 7 8;J7 M?BB FHE:K9;   MEHJ> E< EKJFKJ ?D 7 CEDJ> />; THC :;9?:;I JE :?IJ?D=K?I> 7BF>7I ;C F7II 7D ;N7C?D7J?ED !EH ;79> GK;IJ?ED J>7J J>;O =;J H?=>J ED J>; ;N7C 7BF>7I >7L; JE IF;D: >7B< 7D >EKH IJK:O?D= 7D: 8;J7I >7L; JE IF;D: ED; >EKH  MEHA;H M?BB 8; F7?:   ?< I>; =;JI 7J B;7IJ  7DIM;HI H?=>J 7D:   EJ>;HM?I; !EH ;?J>;H JOF; 7D >EKH E< IJK:O?D= ?I 7I 87: 7I =?L?D= KF  ?D9EC; 2>7J ?I J>; ;GK?B?8H?KC E< J>?I I9>;C; 3098.32  ';J G :;DEJ; J>; DKC8;H E< 9EHH;9J GK;IJ?ED ED J>; ;N7C !EH 7BF>7I J>; 9EIJ E< I?=D7B?D= ?I 7 G   G   G 7I J>;O >7L; JE IF;D:  >EKH IJK:O?D= GK;IJ?ED J>;O =;J H?=>J 7D: J>; EFFEHJKD?JO 9EIJ E< 7D >EKHWI IJK:O?D= ?I  !EH 8;J7I J>; 9EIJ E< I?=D7B?D= ?I 7 G   G 7I J>;O >7L; JE IF;D:  >EKH IJK:O?D= GK;IJ?ED J>;O =;J H?=>J 7D: J>; EFFEHJKD?JO 9EIJ E< 7D >EKHWI IJK:O?D= ?I  />; M7=; I9>;:KB; ?I   

G    K G    

G   !EH 7BF>7I J>; F7OE\ ; IEBKJ?ED ?I ;?J>;H G   EH G  M?J> /

 

 

  

 .?D9; /

  /   7BF>7I M?BB J>; F7OE\ ;H G  EH G   M?J> /

   

7D: /    

 

  

 .?D9; /

  /   8;J7I M?BB FH;?9> ?I 7BIE J>; 9ECF;J?J?L; ;GK?B?8H?KC EKJ9EC; />KI 7DO FH?9; D     ?I 7D ;GK?B?8H?KC M?J> EDBO 97HI E< GK7B?JO  D JH7:;: IE J>7J J>; 7L;H7=;

 GK7B?JO ?I @KIJ ;GK7B JE J>; FH?9; !EH FH?9; D   7BB 97HI 7H; 7L;H7=; GK7B?JO    D   D    7D: IE J>; ;GK?B?8H?KC 9ED:?J?ED :E;I DEJ >EB:  9 2>;D IC D   D   7BB I;BB;HI M?J> GK7B?JO  D M?BB FH;;?H 97H JE DEJ I;BB?D= IC D   7D: 7BB J>EI; M?J> GK7B?JO   D M?BB FH;;?H 97HI IC D    />KI J>; GK7B?JO J>H;I>EB: ?I   D M>?9> O?;B:I J>; 9ED:?J?ED7B 7L;H7=; GK7B?JO E< 97HI    D        D  $"%   0I?D= J>; C7HA;J 9B;7H?D=   D  D M; IEBL;    D    D  $"%   D   ; ;GK?B?8H?KC FH?9; )EJ; J>7J

@ 

@ 





 

?< D  7D: IE ;

 D M?J> JME FEII?8B; IEBKJ?EDI D     E< M>?9> ;GK?B?8H?KC FH?9; IEBL;I EDBO D  ?I FEII?8B; D: ; C7HA;J 9B;7H?D=   D  D M; IEBL;    D  $"%

D     



  D

 

; ;GK?B?8H?KC FH?9; )EJ; J>7J @   ?< D  7D: IE ; ;GK?B?8H?KC FH?9; IEBL;I D    D M?J> EDBO ED; FEII?8B; IEBKJ?ED D  D: 7L;    D        D $"%    IE J>; ;GK?B?8H?KC 9ED:?J?ED :E;I DEJ >EB:



!   &! !

; KO;HI H;9;?L; KJ?B?JO   D ?< J>;O 8KO 7 97H E< GK7B?JO  7J FH?9; D 7D: I;BB;HI H;9;?L; KJ?B?JO IC D  />; =7?D ;H;           7D:      H;IF;9J?L;BO ?D F7HJI 8 9 7D: : />KI ?D 7BB 97I;I   ;H; 7H; =7?DI ; ;GK?B?8H?KC E< F7HJ 9 7D: : J>; FH?9; ?I P;HE 7D: DE 97H ?I JH7:;: 7J 7BB />?I ?I 7D ;NJH;C; 97I; E< ?D;[9?;D9O ?D M>?9> J>; C7HA;J KDH7L;BI $D J>; ;GK?B?8H?KC E< F7HJ 8 J>;H; ?I 7 9EDJ?DKKC E< FH?9; ;GK?B?8H?7  D  #EM;L;H EDBO D   ?I +7H;JE;[9?;DJ I?D9; 7BB 97HI 7H; J>;D JH7:;: !EH 7BB ;GK?B?8H?KC FH?9;I D   J>;H; ;N?IJI 7 +7H;JE?CFHEL?D= C7HA;J ?DJ;HL;DJ?ED 8O ;C 79> 9EDIKC;H ?I H?IA D;KJH7B 7D: L7BK;I 7 DED:; KI; M>7J ?I J>; FHEFEHJ?ED 8 E< :;; C7HA;J ;GK?B?8H?KC J>; FH?9; E< D;M 97HI ;GK7BI J>; ;NF;9J;: L7BK; E< D;M 97HI M>?9> ?I J>; 7L;H7=; E< J>; L7BK; E< DED:; FHE878?B?JO   8 7D: J>; L7BK; E< :; FHE878?B?JO 8 M?J>  J>; BEII E< L7BK; E< 7 :;OI?97BBO J>; 9EDIKC;HI 7H; ?D:?\;H;DJ 8;JM;;D KI;: 97HI 7D: :;;O L7BK; :; J>;?H ;NF;9J;: L7BK;   8  

8  

 



 

.EBL?D= ; FHEFEHJ?ED E< :; :E J>; 9EDIKC;HI L7BK; 7 DED:;; L7BK; E< 7DDK?J?;I 8EK=>J 8O ?D:?L?:K7B = 7D: E9 J>; H;JKHD ED 7DDK?J?;I (EH;EL;H J>; ?DJ;H;IJ H7J; F I7J?IT;I F  J>;H; ?I DE :?I9EKDJ?D= 7D: J>; ?D9EC; E< J>; THIJ F;H?E: ?I K JOF;I ;H?L; J>; ?DJ;HJ;CFEH7B 8K:=;J 9EDIJH7?DJ E< 7D ?D:?L?:K7B 8 />; KJ?B?JO ; THIJ8;IJ IEBKJ?ED J>7J ?I J>; IEBKJ?ED ?D J>; 97I; M>;H; J>; THCI 7H; 78B; JE :?IJ?D=K?I> J>; JOF;I 2>?9> JOF; MEKB: >7L; 7D ?D9;DJ?L; JE :;L?7J; : .KFFEI; J>7J J>;H; ;N?IJI 7 I;F7H7J?D= ;GK?B?8H?KC ;H?L; J>; EFJ?C7B  IEBKJ?ED 5  7

 7  "?L; 7D ?DJK?J?L; ;NFB7D7J?ED ;D;L;H JOF; % ?I ; I7C; ?DJ;HJ;CFEH7B 9EDIKCFJ?ED 8KD:B; 7I JOF; " J>;O M?BB 8; M?BB?D= JE =?L; KF B;II E< J>; 9KHH;DJ 9EDIKCFJ?ED ; ; THIJ8;IJ EKJ9EC; 8EJ> JOF;I C7N?C?P; J>;?H ;NF;9J;: KJ?B?JO 7D: J>; THCI ;7HD P;HE ;NF;9J;: FHETJI J J>; EFJ?CKC J>; C7H=?D7B H7J; E< IK8IJ?JKJ?ED ;GK7BI J>; IBEF; E< J>; 8K:=;J 9EDIJH7?DJ />KI 7L;    79 9 79



79



 E9  1 79 9  E9 

7D: J>;H;; THCIWI ;NF;9J;: FHETJ ?I JE P;HE M; E8J7?D ; H;JKHD ED J>; 7DDK?JO   9

 

K K9  59    9  9

 

 E9  0FED IK8IJ?JKJ?ED ?DJE   M; TD: 79  79 

2?J> J>; =?L;D J>; DKC;H?97B L7BK;I

           "    5"  7"     5  7  7 

 7   

 

*8I;HL; J>7J JOF; " H;9;?L;I 7 BEM;H H;JKHD ED 7DDK?JO J>7D JOF; % 7D: IE M?BB >7L; 7D ?D9;DJ?L; JE C?IH;FH;I;DJ J>;?H JOF; : $D 7 I;F7H7J?D= ;GK?B?8H?KC THCI E\;H JME A?D:I E< 7DDK?J?;I IK9> J>7J ;79> JOF; 9>EEI;I ED; 7D: >7I DE ?D9;DJ?L; JE IM?J9> />; THIJ A?D: E< 7DDK?JO M?BB 8; J>; I7C; J>7J ?I E\;H;: JE JOF; " M>;D J>; THCI 97D :?IJ?D=K?I> 8;JM;;D JOF;I 8;97KI; ?J M?BB D;L;H 7JJH79J JOF; % /OF; " M?BB J>;D I;B<I;B;9J JE 8KO J>?I 7DDK?JO />; I;9ED: A?D: E< 7DDK?JO CKIJ J>;D E\;H 7 BEM;H L7BK; JE JOF; % 9ECF7H;: JE J>; THIJ8;IJ EKJ9EC; IE J>7J JOF; " ?I ?D:?\;H;DJ 8;JM;;D J>; JME A?D:I E< 7DDK?J?;I 8KJ JOF; % IJ?BB >7L; ?D9;DJ?L; JE 8KO ?J 7D: FH;; THIJ A?D: E< 7DDK?JO />7J ?I ?< 7 I;F7H7J?D= ;GK?B?8H?KC ;N?IJI

    K K K      5   7  7          ;  I;F7H7J?D= ;GK?B?8H?KC CKIJ I7J?I?=>;H ;NF;9J;: KJ?B?JO J>7D J>; 7DDK?JO 9>EI;D 8O JOF; IE JOF; % M?BB DEJ >7L; ?D9;DJ?L; JE IM?J9> #EM;L;H ?J ?I BEM;H J>7D "    M>?9> ?I 9ECCED JE 7BB J>; ;NF;9J;: KJ?B?JO ?D J>; THIJ8;IJ EKJ9EC;   ?D9;DJ?L; FHE8B;CI E< J>?I A?D: < />; I;F7H7J?D= ;GK?B?8H?KC ;N?IJI KDB;II ?J ?I :EC?D7J;: 8O 7 FEEB?D= ;GK?B?8H?KC M>;H; J>; I7C; 7DDK?JO ?I E\;H;: JE ;L;HOED; 7D: =;D;H7J;I 7 FEI?J?L; FHETJ ; THCI />; FEFKB7J?ED FHE878?B?JO E< IKHL?L?D= ?DJE J>; I;9ED: F;H?E: ?I   "     />; H;JKHD ED 7 FEEB?D= 7DDK?JO J>7J =?L;I P;HE ;NF;9J;: FHETJ JE J>; THCI I7J?IT;I  E  />?I =?L;I J>; IBEF; E< J>; ?DJ;HJ;CFEH7B 8K:=;J 9EDIJH7?DJ 2>;D  ?I IC7BB ?J B?;I 9BEI;H JE J>; 8K:=;J 9EDIJH7?DJ E< JOF; " 7D: >;D9; ?I B?A;BO JE 8; 8;BEM J>; ?D:?\;H;D9; 9KHL; 79>?;L;: 8O JOF; % ?D J>; I;F7H7J?D= ;GK?B?8H?KC />;D J>; I;F7H7J?D= ;GK?B?8H?KC M?J> JME :?\;H;DJ 7DDK?J?;I ;N?IJI *D J>; EJ>;H >7D: M>;D  ?I IK[9?;DJBO B7H=; J>; 8K:=;J 9EDIJH7?DJ B?;I 9BEI; ;DEK=> JE J>; 8K:=;J 9EDIJH7?DJ E< JOF; % JE 8; 78EL; J>; ?D:?\;H;D9; 9KHL;I JOF;I 79>?;L;: ?D J>; I;F7H7J?D= ;GK?B?8H?KC $D IK9> 97I; ?< 7 P;HEFHETJ FEEB?D= 7DDK?JO ?I E\;H;: ?J M?BB 7JJH79J 8EJ> JOF;I  IB?=>JBO B;II JOF;I 7D: M?BB 7BIE =;D;H7J; 7 FEI?J?L; ;NF;9J;: FHETJ ; THCI />;D 7 I;F7H7J?D= ;GK?B?8H?KC 97DDEJ 8; IKIJ7?D;: />; 9H?J?97B L7BK; E<  9EHH;IFED:I JE J>; FEEB?D= 8K:=;J 9EDIJH7?DJ 8;?D= J7D=;DJ JE J>; ?D:?\;H;D9; 9KHL; 79>?;L;: 8O JOF; % ?D 7 I;F7H7J?D= ;GK?B?8H?KC

; :;I?=D E< J>; >;7BJ> 97H; IOIJ;C ?DLEBL;I ?IIK;I E< ?D; FEJ;DJ?7B KI;HI F7J?;DJI 7H; 8;JJ;H ?D;?H EMD IJ7J; E< >;7BJ> 7D: B?7D ?DIKH7D9; 9ECF7D?;I />; >;7BJ> FHEL?:;HI :E9JEHI 7D: >EIF?J7BI ADEM CEH; 78EKJ M>7J F7J?;DJI D;;: J>7D :E ;?J>;H J>; F7J?;DJI J>;CI;BL;I EH J>; ?DIKH7D9; 9ECF7D?;I +HEL?:;HI 7BIE ADEM CEH; 78EKJ J>;?H EMD IA?BBI 7D: ;\EHJI $DIKH7D9; 9ECF7D?;I >7L;

 IJ7J?IJ?97B ?D; ;[979O E< :HK=I J>7D :E EJ>;HI I ?I KIK7B J>; F7HJ?;I >7L; :?\;H;DJ ?DJ;H;IJI 7D: IE J>;O :E DEJ >7L; 7 D7JKH7B ?D9B?D7J?ED JE I>7H; J>;?H ?D;HI 7 !HEC J>?I F;HIF;9J?L; 9EDI?:;H J>; H;B7J?L; C;H?JI E< J>; ;C;I ?  ;C;I 7H; B?A;BO JE 8; CEIJ 8;D;T9?7B JE J>; F7J?;DJI 7D: M>?9> JE J>; FHEL?:;HI 9 2>7J 7H; J>; H;B7J?L; C;H?JI E< FH?L7J; ?DIKH7D9; 9ECF7H;: JE 9EL;H7=; E< 9EIJI 7J J>; :E9JEH >7I KFED J>;?H H;=?IJ;H .K9> 7 F7OC;DJ IJHK9JKH; FHEL?:;I 7D ?D9;DJ?L; 7J ?J :E;I DEJ :E ?I =?L; 7DO ?D9;DJ?L; ; B;7IJ I;HL?9; FEII?8B; I?D9; DE 7::?J?ED7B F7OC;DJ ?I H;9;?L;:  ?9> ?I 8;JJ;H 7F?J7J?ED 7D ;N9;II?L; DKC8;H E< F7J?;DJI :E9JEH M>?B; ?IJ?97J;: IEBKJ?ED JE J>; FHE8B;CI E< 7IOCC;JH?9 ?D;DI?L; FH;C?KC J>7J F7OI ; :E9JEH FHEL?:;I 7D ;D9EKH7=;C;DJ ?I ?I ;NF;DI?L; ; ?DIKH7D9; 9ECF7DO J>7J >7I JE ; L?I?JI 7D: FEJ;DJ?7BBO M7IJ;; :E9JEH />?I 97D H;IKBJ ?D 87: EKJ9EC;I ?< KD?D; 9EIJ ; = J>; 9>7D9; ; 9ECFH;>;DI?L; FH;C?KC H;IKBJI ?D 7D ;N9;II?L; DKC8;H E< L?I?JI 8KJ ;79> E< J>;I; ?I 7 BEM9EIJ ;L;DJ  F7OC;DJ ; E99KHH;D9; E< L;HO 9EIJBO D;=7J?L; EKJ9EC;I 0D:;H CEIJ M;B; THIJ EKJ9EC; ?I FH;; 9ECFH;>;DI?L; FH;C?KC M?BB 8; CK9> CEH; 9EIJBO 8;97KI; E< J>; CEH7B >7P7H: ?DLEBL;: !EH :E9JEHI J>; 9ECFH;>;DI?L; FH;C?KC ?I FH;?9> M?BB 8; TD7D9;: 8O ?DIKH7D9; 9 .E9?7B?P?D= ?DIKH7D9; 8O J7N TD7D9?D= >7I 8EJ> 9EIJI 7D: 8;D;TJI />; 9EIJ E< IE9?7B?P?D= ?DIKH7D9; ?I J>7J M>;D IEC;ED; 9>EEI;I J>; ;NF;DI?L; JH;7J



!   &! !

C;DJ L;HIKI J>; B;II ;NF;DI?L; ED; M?J> B?JJB; C;:?97B :?\;H;D9; 7BB J>; ;NJH7 9EIJ ?I 8EHD; 8O J>; J7NF7O;HI 79> ?D:?L?:K7B ?=DEH;I J>; ;\;9J E< >?I EL;H9ED IKCFJ?ED E< C;:?97B JH;7JC;DJ 8KJ M>;D J>;O 7BB 79J B?A; J>7J J>; JEJ7B 9EIJ ?D9H;7I;I I>7HFBO />; B79A E< 97H; 8O ;79> ?DU7J;I J>; 9EIJ ?D:?L?:K7B M?BB 8;7H J>; 9EIJ E< >?I EL;H9EDIKCFJ?ED J>HEK=> 7 FH;C?KC ?D9H;7I; #EM;L;H FH?L7J; ?DIKH7D9; 9EC F7D?;I KD:;H 9ECF;J?J?L; FH;IIKH; 97DDEJ 9ECC?J DEJ JE KF:7J; J>;?H FH?9;I JE H;U;9J 7DO D;M ?D;D 8;9EC; JEE ;NF;DI?L; ?I FHE8B;C CEH; I;L;H; ?D J>; DE ?DIKH 7D9; 7=7?DIJ KDEI; CEIJ :;IF;H7J; JE 8; ?DIKH;: M?BB TD: ?J ?D9H;7I?D=BO :?[9KBJ JE E8J7?D ?J ; FH?L7J; C7HA;J />;H; ?I 7BIE 7 H;:?I JH?8KJ?ED ;\;9J E< IE9?7B?P?D= ?DIKH7D9; 8O J7N TD7D9?D= .?D9; J7N F7OC;DJI 7H; H;B7J;: JE ?D9EC; 8KJ DEJ JE CEH8?:?JO BEM?D9EC; EH >?=>CEH8?:?JO J7NF7O;HI M?BB F7O 7 J7N FH?9; E< ?DIKH7D9; J>7J ?I BEM;H J>7D J>; FH?9; E< FH?L7J; ?DIKH7D9;

&68 #

! %

-&48*6 

#38.2, EM J>7J C;:?7D LEJ?D= I7J?IT;I J>; 9ED:?J?EDI E< />;EH;C  3098.32  />; 9ED:?J?EDI E< (7OWI />;EH;C 7H; DEDOC?JO );KJH7B?JO

;9?I?L;D;II 7D: +EI?J?L; H;IFEDI?L;D;II )EM 9EDI?:;H C;:?7D LEJ?D= J>7J F?9AI 7I J>; M?DD;H J>; 7BJ;HD7J?L; FH;; C;:?7D LEJ;H =?L;D I?D=B; F;7A;: FH;; D7C;I E< JME ?D:?L?:K7BI J>; C;:?7D LEJ;H M?BB H;C7?D J>; I7C; ;L;D J>EK=> 7 9>7D=; E< D7C; C7O E99KH IE C;:?7D LEJ?D= H;IF;9JI DEDOC?JO $J ?I ?D:?L?:K7BIW FH;7J C7JJ;H BIE ?J ?I E8L?EKI J>7J );KJH7B?JO ?I H;IF;9J;: 7I J>; C; :?7D LEJ;H ?I EKJ :?I9H?C?D7J?D= 7CED= 7BJ;HD7J?L;I BJ;HD7J?L;I 7H; 7BB FKJ ?D 7 IOCC;JH?9 FEI?J?ED 7D: LEJ;HI 7H; H7DA;: JH7DI?J?L;BO 799EH:?D= JE J>;?H CEIJFH;; 7BJ;HD7J?L; M?J> J>; C;:?7D FEI?J?ED ED J>?I JH7DI?J?L; EH:;H ?I J>; M?DD;H .?D9; 7 C;:?7D 7BJ;HD7J?L; 7BM7OI ;N?IJI

;9?I?L;D;II ?I 7BIE H;IF;9J;: C;:?7D LEJ?D= 7BM7OI F?9AI 7 M?DD;H !?D7BBO

TN?D= J>; C;:?7D LEJ;HWI 7BJ;HD7J?L; 7I J>; M?DD;H 7D: 7::?D= LEJ;HI M>E 7BIE FH;?I C;:?7D 7BJ;HD7J?L; ?J ?I 9B;7H J>7J ?J H;C7?DI J>; M?DD;H I?D9; ?J :E;I DEJ 9>7D=; J>; C;:?7D FEI?J?ED 7CED= 7BB FH;HEM J>; IJ7JKI GKE 7D 7BJ;HD7J?L; H;GK?H;I  F;H9;DJ EH CEH; E< J>; LEJ; 2>?9> FHEF;HJO E< LEJ?D= ?I L?EB7J;: $D C7DO 9ECC?JJ;;I J>; 9>7?HC7D >7I J>; 97IJ?D= LEJ; 2>?9> FHEF;HJO E< LEJ?D= ?I L?EB7J;: 3098.32  2?J> IKF;HC7@EH?JO 7I ?I J;HC;: J>; 97I; M>;H; CEH; J>7D  F;H9;DJ E< J>; LEJ; 7H; H;GK?H;: JE :;; IJ7JKI GKE ?J ?I J>; );KJH7B?JO FHEF;HJO J>7J ?I L?EB7J;: I?D9; J>; IJ7JKI GKE >7I 7 9ECF7H7J?L; 7:L7DJ7=; EL;H 7DO 7BJ;HD7J?L; />;O 7H; DE BED=;H FB79;: ?D 7 IOCC;JH?9 FEI?J?ED />;H; ?I 7D E8L?EKI 8?7I ?D ; IJ7JKI GKE 2>;D J>; 9>7?HC7D ?D 7 9ECC?JJ;; >7I 



!  #!

J>; 97IJ?D= LEJ; EH ;L;D MEHI; 7 L;JE LEJ; ?J ?I J>; DEDOC?JO FHEF;HJO J>7J ?I L?EB7J;: 7I F;HCKJ?D= J>; 9>7?HC7D M?J> 7DO EJ>;H C;C8;H E< J>; 9ECC?JJ;; 97D 7\;9J J>; LEJ?D= EKJ9EC;

 I?D9;H; LEJ?D= 97D 7D ;N7CFB; 8; =?L;D ?D M>?9> 7D 7=;D:7 ?I 9EDIJHK9J;: IE J>7J 7 ED:EH9;J M?DD;H ?I :;; I7C; JHK; M?J> IJH7J;=?9 LEJ?D= 3098.32  />; 7DIM;HI 7H; H;IF;9J?L;BO DE 7D: O;I />?I ?I :K; JE (?BB;HWI  H;IKBJ />; H;IKBJ I7OI J>7J IJH7J;=?9 LEJ?D= H;B7J?L; JE I?D9;H; LEJ?D=

:E;I DEJ 7BJ;H J>; I;J E< EKJ9EC;I J>7J 97D 8; 79>?;L;: 8O 7=;D:7 C7D?FKB7J?ED M>;D J>; 7=;D:7I;JJ;H 97D :;I?=D 7DO 8?D7HO 7=;D:7I 7D: ;L;HO EFJ?ED ?I ?D 9BK:;: ?D J>; 7=;D:7 (?BB;H 97BB;: J>?I I;J J>; XJEF 9O9B;Y 7D: FHEL;: J>7J M>;D J>;H; ;N?IJI 7 ED:EH9;J M?DD;H J>; JEF 9O9B; H;:K9;I JE J>7J I?D=B; EFJ?ED 2; 7BIE 97BB J>?I I;J 7 ED:EH9;J 9EDI?IJ;DJ FHE9;:KH; 7I ?J I;B;9JI J>; ED:EH9;J M?DD;H 7I J>; KD?GK; EKJ9EC; M>;D;L;H ?J ;N?IJI #;D9; KD:;H IJH7J;=?9 LEJ ?D= 7D: I?D9;H; LEJ?D= J>; ED:EH9;J M?DD;H ?I 7BM7OI J>; EDBO M?DD;H E< 7DO 8?D7HO 7=;D:7I FHEL?:;: J>7J ;L;HO EFJ?ED ?I ?D9BK:;: ?D J>; 7=;D:7 -;; DKC8;H E< >EKHI E< J;B;L?I?ED 8HE7:97IJ ;79> :7O EDI?:;H J>H;; ?D:?L?:K7BI M?J> FH;EM J>7J J>; J>H;; 9EDIKC;HI >7L; I?D=B;F;7A;: FH;; =EL;HDC;DJ ?I 9>EEI?D= ! ; H7D=; !  M>7J ?I J>; C7@EH?JO LEJ?D= EKJ9EC; 9 E;I J>?I EKJ9EC; C7N?C?P; J>; IKC E< KJ?B?J?;I 0  .  .  .   : #EM 7H; J>; 7DIM;HI JE F7HJI 7 J>HEK=> 9 7BJ;H;: ?< J>; FH;7I FH;7J 7H; ?D9H;7I?D= ?D ! />; I?D=B; F;7A E99KHI 7J J>; C7N?CKC 7L7?B78B; L7BK; />; C7H=?D7B KJ?B?JO E< J>;



!  #!

FK8B?9 =EE: ; C7H=?D7B KJ?B?JO ?I 7BM7OI D;=7J?L; IE 9EDIKC;H  >7I 7 F;7A 7J !  />; C7H=?D7B KJ?B?JO E< J>; FK8B?9 =EE: ;?H FH;; EKJ9EC; ?I !   9 />; IKC E< KJ?B?J?;I ?I ;GK7B JE 0 

! ! ! !   !  !     !       

 

/>; C7H=?D7B ;\;9J E< ?D9H;7I?D= ! ED 0 ?I   80   !   ! 8!  

 

$J 97D 8; E8I;HL;: J>7J J>; :;H?L7J?L; ?I D;=7J?L; 7J !  7D: ;H;; EFJ?C7B L7BK; E< !  : />; C7H=?D7B KJ?B?JO E< J>; FK8B?9 =EE: ; C7H=?D7B KJ?B?JO ?I D;=7J?L; 7I JME F;7AI 7J !  7D: !   />;H; 7H; JME FEII?8B; EKJ9EC;I EDIKC;H  ?I ?D:?\;H;DJ 8;JM;;D !  7D: !   7D: ;?J>;H E< J>;I; 97D 8; J>; C7@EH?JO LEJ?D= EKJ9EC; />; IKC E< KJ?B?J?;I ?I ;GK7B JE 0 

! ! ! !   !   !    !       

 

/>; C7H=?D7B ;\;9J E< ?D9H;7I?D= ! ED 0 ?I   80   !  !   8!  

 

/>?I :;H?L7J?L; ?I D;=7J?L; 7J !  7D: FEI?J?L; 7J !   IE J>; M;B; C7N?CKC H;C7?DI 7J !  

     ! ; E88EK=B7I KJ?B?JO     .KFFEI; J>7J 7 FEBB J7N -  - 9 E< J>; ' C;C8;HI E< IE9?;JO /7N H;L;DK;I 7H; KI;: JE TD7D9; 7 FK8B?9 =EE: ! 7 .>EM J>7J J>; C7@EH?JO LEJ?D= EKJ9EC; ?DLEBL;I J>; 7CEKDJ E< FK8B?9 =EE: !  ' 2 = M>;H; 2 = :;DEJ;I J>; FH;J7N ?D9EC; E< J>; C;:?7D LEJ;H 8 )EM IKFFEI; J>7J 7 FHEFEHJ?ED7B ?D9EC; J7N - 9  H2 9 ?I B;L?;: .>EM J>7J J>; C7@EH?JO LEJ?D= EKJ9EC; ?DLEBL;I J>; 7CEKDJ E< FK8B?9 =EE: !  ' 2 M>;H; 2 ?I J>; C;7D ?D9EC; B;L;B 9 2>;D ?D9EC; ?I KD??9> EKJ9EC; ?I 9BEI;IJ JE J>; ;[9?;DJ EKJ9EC; 3098.32  7 />; THIJ IJ;F ?I JE :;CEDIJH7J; J>7J J>; 9EDIKC;HI >7L; I?D=B;F;7A;: FH;; GK7DJ?JO E< J>; FK8B?9 =EE: ?I ! J>; J7N ED  0I?D= J>?I ; KJ?B?JO E< 9EDIKC;H = ?I ;79> 9EDIKC;H ?I -  $ .

29

! '



! 

 

?\;H;DJ?7J?ED M?J> H;IF;9J JE ! =?L;I J>; CEIJ FH;; KJ?B?JO ?I EFJ?C7B L7BK; ?I KD?GK; 7D: FH;;EH;C 7FFB?;I 7D: J>; EKJ9EC; E< LEJ?D= M?BB 8; J>; 9>E?9; E< J>; C;:?7D LEJ;H #;D9; J>; LEJ?D= EKJ9EC; ?I !  ' 2 = 

 

8 ';J JEJ7B ?D9EC; ?D J>; ;9EDECO 8; 2 /7N H;L;DK; ?I H2 M>?9> J>HEK=> J>; =EL;HDC;DJWI 8K:=;J 9EDIJH7?DJ CKIJ ;GK7B J>; GK7DJ?JO E< FK8B?9 =EE:

.?D9; 2  ' 2

!  H2 

 

!  H' 2 

 

!  ' 2

 

EH H



!  #!

)EM 9EDI?:;H J>; :;9?I?ED FHE8B;C E< J>; C;:?7D ?D9EC; 9EDIKC;H 7D: >;D9; C;:?7D LEJ;H />; B;L;B E< KJ?B?JO ?I     ! .  2 9  -9  

    H 2 9 ! 

  !    29 !    '2 />; THIJEH:;H 9ED:?J?ED ; 9>E?9; E< ! ?I 

 9

   2 ! ! 9  !   !    29        2 '2 ' 2 '2   />?I I?CFB?T;I JE

! 29        !     2 9   '2 '2 M>?9> >7I IEBKJ?ED

!  ' 2    =  9 !EH J>; KD?;H;;I; JME IEBKJ?EDI 7H; ?:;DJ?97B 7D: 7H; ;GK7BBO 9BEI; JE J>; ;[9?;DJ B;L;B E< FHEL?I?ED />; ;[9?;DJ B;L;B E< FHEL?I?ED ?I :;F;D:;DJ ED >EM J>; J7N 8KH:;D ?I :?IJH?8KJ;: 79HEII 9EDIKC;HI H;97BB J>;H; ?I 7D ?DTD?JO E< 7BBE97J?EDI I7J?I; .7CK;BIED HKB; J>7J L7HO ?D ?D9EC; 7BBE97J?ED

; C7@EH?JO LEJ?D= EKJ9EC; ?I DEJ J>; C;:?7D "?L;D J>;I; FH;7J ?I J>; C;:?7D LEJ?D= EKJ9EC; $I J>;H; 7 +7H;JEFH;; FH;; C7JH?N 6 7 8 5

5 8 7 6

7 6 8 5

5 7 6 8

8 6 7 5

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

!EH !  !9 !EH !  !9

I 9 !  6 !  I 9 !  6 ! 

I 

I 

 

6 !9   6 !9  

I 

I 

 





#;D9; J>; C7H=?D7B KJ?B?JO E< J>; FK8B?9 =EE: ?I FEI?J?L; EM J>7J J>?I D;;: DEJ I;B;9J J>; ED:EH9;J M?DD;H 8 ;CEDIJH7J; J>; I9EF; ; THIJ 9>E?9; E< ;79> LEJ;H C7JJ;HI .KFFEI; J>7J J>;H; 7H; TL; LEJ;HI M>EI; FH;; C7JH?N



!  #! 5 6 7 8

6 5 7 8

8 5 6 7

6 5 7 8

7 5 6 8

B;7HBO 5 ?I J>; ED:EH9;J M?DD;H 8KJ 6 M?DI M?J> FBKH7B?JO HKB; />?I ?I 8;97KI; FH;;H EFJ?EDI J>7D J>; THIJ 9>E?9; :E DEJ 9EKDJ 7J 7BB $D J>?I 97I; EFJ?ED 5 ?I J>; I;9ED: 9>E?9; ; THIJ 9>E?9; 7J 5 97D :;?9> ?I 7 8;JJ;H LEJ?D= EKJ9EC; E< J>;C DO I9EH?D= HKB; J>7J B?C?JI ;79> LEJ;H JE 97IJ 7 LEJ; EM B?A;BO ?J ?I J>7J J>;?H THIJ9>E?9; M?BB M?D J>; LEJ; $< J>; THIJ9>E?9; EFJ?ED ?I KDB?A;BO JE M?D LEJ;HI C7O ?DIJ;7: LEJ; E?9; JE FH;L;DJ J>; ;B;9J?ED E< 7 MEHI; EFJ?ED *8L?EKIBO J>?I ?I 7IIKC?D= J>7J LEJ;HI ADEM ;79> EJ>;HWI FH; E< HHEMWI 9ED:?J?EDI :E;I 7FFHEL7B LEJ?D= L?EB7J; 3098.32  FFHEL7B LEJ?D= L?EB7J;I 9ED:?J?ED $ J>; ?D:;F;D:;D9; E< ?H H;B;L7DJ 7BJ;HD7J?L;I /E I;; J>?I J7A; J>; ;N7CFB; ?D J78B;   M?J>  LEJ;HI J>H;; E< J>;C M?J> J>; I7C; FH;H;; 7BJ;HD7J?L;I 5 6 7 $D J>?I ;N7CFB; 5 8;7JI 8EJ> 6 7D: 7 M?J> 7 C7@EH?JO E<  7D:  LEJ;I EKJ E<  H; IF;9J?L;BO 7D: IE 5 ?I 7 ED:EH9;J M?DD;H BIE ?< LEJ;HI 97IJ J>;?H LEJ; EDBO ;?H THIJ 7D: I;9ED: 9>E?9;I J>;D 6 M?BB M?D M?J>  7FFHEL7B LEJ;I 7D: 5 M?BB 8; I;9ED: M?J>  7FFHEL7B LEJ;I )EM 7:: 7D 7BJ;HD7J?L; 8 M>?9> ?I J>; I;9ED: 9>E?9; ; LEJ;HI IE J>7J 7BB J>; ?D?J?7B I;9ED: 9>E?9;I 7H; :EMD =H7:;: JE 7 J>?H: 9>E?9; IE 6 7D: 5 7H; :EMD=H7:;: 8O  LEJ;HI 7D:  LEJ;H

H;IF;9J?L;BO IIKC?D= 7=7?D J>7J LEJ;HI 97IJ J>;?H LEJ;I EDBO ;?H THIJ 7D: I;9ED: 9>E?9;I M; DEM TD: J>7J 5 M?BB M?D M?J>  7FFHEL7B LEJ;I 7D: 6 M?BB BEI; M?J>  7FFHEL7B LEJ; />?I H;L;HI7B E< J>; IE9?7B H7DA?D= 8;JM;;D 5 7D: 6 I>EMI J>7J 7FFHEL7B LEJ?D= L?EB7J;I ?D:;F;D:;D9; E< ?HH;B;L7DJ 7BJ;HD7J?L;I

; ?D:?L?:K7B 8;D;TJI J>7J C7O 7H?I; ; 9EIJ E< LEJ?D= 3098.32  />; ?D:?L?:K7B M?BB >7L; >;H FH;; 8;D;TJ :;F;D:I ED >EM :?\;H;DJ 7H; J>; FEB?9O FB7J ; JME F7HJ?;I HKDD?D= ; 9EIJ JE LEJ; ?I J>; J?C; 7D: H;IEKH9;I IF;DJ JE =7J>;H ?D; 97D:?:7J;I 7D: J>; IJ7J; E< J>; ;B;9J?ED 7D: J>; J?C; IF;DJ ED ;B;9J?ED :7O JE =E JE J>; FEBBI !EH IEC; LEJ;HI J>; 8;D;TJ C7O 8; L;HO B7H=; ; = 7 >?=>?D9EC; LEJ;H FH;; 8;D;TJ J>7J C7JJ;HI 8KJ J>; 8;D;TJ E< ;B;9J?D= J>; FH;J;: 8O J>; FHE878?B?JO J>7J J>; LEJ;H 97IJI J>; F?LEJ7B LEJ; />; LEJ;H M?BB JH7:; E\ J>; ;NF;9J;: =7?D ; 9EIJ  LEJ;H M?BB EDBO 8; F?LEJ7B KD:;H JME 9?H9KCIJ7D9;I ?< I>; 9H;7J;I 7 J?; EH ?< I>; 8H;7AI 7 J?; M?J> >;H LEJ; L;D ?< J>; 8;D;TJI E< J>; FH;?=> 7I 9ECF7H;: JE J>; 9EIJ E< LEJ?D= J>; FHE878?B?JO JE 9H;7J; EH 8H;7A 7 J?; M?J> ED;WI ?D:?L?:K7B LEJ; ?I L;HO BEM ?D 7D ;B;9J?ED M?J> C?BB?EDI E< LEJ;HI #;D9; J>; =7?D ; 9EIJ E< LEJ?D= 7D: M; C7O ;NF;9J H7J?ED7B ?D:?L?:K7BI JE 78IJ7?D /E ?BBKI JH7J; B;J  :;DEJ; J>; 8;D;TJ ; 9EIJ E< LEJ?D= />; LEJ;H ?I ?D:?\;H;DJ 8;JM;;D LEJ?D= EH DEJ ?< )    M?J>  )   J>; FHE878?B?JO E< 97IJ?D= J>; F?LEJ7B LEJ; />?I FHE878?B?JO E< 8;?D= F?LEJ7B 97D 8; 7FFHEN?C7J;: I?CFBO ?< J>; FEFKB7J?ED ?I B7H=; J>; FHE878?B?JO E< ;79>  ED; LEJ?D= ?I IC7BB 7D: J>; F7HJ?;I 7JJH79J ;GK7B ;NF;9J;: DKC8;H E< ?D:?L?:K7BI IKFFEHJ $J ?I =?L;D 8O )    B M?J> B J>;  M>E 9>EEI; JE LEJ; #;D9;  CKIJ ;N9;;:   B ?< J>; LEJ;H ?I JE E8J7?D IK[9?;DJ ;NF;9J;: 8;D;TJ H;B7J?L; JE 9EIJ JE C7A; LEJ?D= MEHJ>M>?B;

7J 7BB LEJ;HI >7L; 7D >EKHBO M7=; E<  7D: J>7J ?J J7A;I >7B< 7D >EKH JE LEJ; $< J>;O IJ7D: JE =7?D  ?< J>;?H F7HJO M?DI J>; ;B;9J?ED ?D 7 JME F7HJO IOIJ;C M>;H; IKFFEHJ ?I ;GK7B M>7J ?I J>; DKC8;H E< LEJ;HI 7J M>?9> LEJ?D= DE BED=;H 8;9EC;I MEHJ>M>?B; 3098.32  />; 9EIJ JE LEJ; ?I    />; 8;D;TJ FEBB;:  LEJ;I />; '78EKH 97D:?:7J; MED J>; JEII ?D J>; 2EHAIEF )EHJ> 7IJ I;7J E< 7II;JB7M ?IJH?9J



!  #!

EKD9?B ?D )EJJ?D=>7CI>?H; 7H;; H;9EKDJI ; 97D:? :7J;I />;H; 7H; JME C;J>E:I JE :;9?:; J>; EKJ9EC; ?D J>; ;L;DJ E< 7 :H7M  ;?J>;H 7 9E?D ?I U?FF;: EH J>; F7HJ?;I :H7M IJH7MI KJ 7I J>; EDI;HL7J?L; 97D:?:7J; M7I DEJ FH;I;DJ 7J J>; 9EKDJ J>; JEII E< 7 9E?D :;9?:;: J>; EKJ9EC; Y D;MI 889 9E KA  >? ?D6:;FJ> KA6FEB?J?9I  BE97B6;B;9J?EDI  IJC />; 0. +H;I?:;DJ?7B B;9J?ED ?D  M7I 7BIE L;HO 9BEI; 7D: J>; IJ7J; E< !BEH?:7 M7I 9H?J?97B JE J>; EKJ9EC; />; EKJ9EC; E< J>; LEJ; ?D !BEH?:7 M7I IK8@;9J JE IEC; KD9;HJ7?DJO 8;97KI; E< J>; ?IIK; E< X>7D=?D= 9>7:I Y M>?9> E99KHH;: M>;D J>; 87BBEJ?D= C79>?D;I :?: DEJ >EB;I ?D J>; 87BBEJ F7F;H />?I D;9;II?J7J;: 7 FHEBED=;: H;9EKDJ E< J>; LEJ;I .EC; H;FEHJI FKJ J>; C7H=?D 8;JM;;D J>; 97D:?:7J;I 7I BEM 7I  LEJ;I 7 C7H=?D M?J>?D J>; H7D=; E< ;HHEH :K; JE >7D=?D= 9>7:I />; );MI(7N 9EC I?J; IKCC7H?P;: J>; FEI?J?ED 7I X%KIJ  LEJ;I I;F7H7J; ";EH=; 2 KI> 7D: 1?9; +H;I?:;DJ B "EH; 2>7J C;H?97DI E< 7BB IJH?F;I M7DJ ?I J>; CEIJ 799KH7J; 9EKDJ FEII?8B; )?D; :7OI 7=E CEIJ E< KI J>EK=>J 9EKDJ?D= LEJ;I M7I 7 I?CFB; IJH7?=>J?L;I 7HJ?9B;I     I>JCB

?9> E< HHEMWI 9ED:?J?ED ?I H;CEL;: JE FHEL; J>; (;:?7D 1EJ;H />;EH;C 2>?9> 9ED:?J?ED :E;I EH:7 -KB; L?EB7J; 2>?9> 9ED:?J?ED :E;I J>; ED:EH9;J C;J>E: O :E M; M?I> JE ;N9BK:; :?9J7JEHI>?F 3098.32  />; (;:?7D 1EJ;H />;EH;C L?EB7J;I 9ED:?J?ED 0 KD?L;HI7B :EC7?D 8;97KI; M; D;;: I?D=B;F;7A;: EH I?D=B;9HEII?D= FH;7D=;I J>; I9EH; E< J>; EJ>;H EFJ?EDI J>KI 9EDJH7:?9J?D= ?D:;F;D:;D9; E< ?HH;B;L7DJ 7BJ;HD7J?L;I />; ED:EH9;J C;J>E: L?EB7J;I 9ED:?J?ED / 7I ?BBKIJH7J;: 8O J>; ED:EH9;J F7H7:EN M>;H; J>; EKJ9EC; ?I DEJ 7 JH7DI?J?L; H7DA?D= ?9J7JEHI>?F ?I C7D?;H ?D:?L?:K7BI 7D: MEKB: >7H:BO H;U;9J J>; M?BB E< J>; F;EFB; DO 9ED9;FJ?ED E< :;CE9H79O 7IF?H;I JE IEC; ; 97D:?:7J; M?J> J>; BEM;IJ DKC8;H E< THIJ9>E?9; LEJ;I ?I ;B?C?D7J;: 7D: J>; LEJ;I JH7DI; I;9ED:9>E?9; 97D:?:7J;I />?I FHE9;II FHE9;;:I KDJ?B 7 97D:?:7J; 79>?;L;I 7 C7@EH?JO 7 7D J>; ED:EH9;J M?DD;H BEI; KD:;H 7 JH7DIE?9; JE M?D 9 .>EM >EM IJH7J;=?9 LEJ?D= 97D 7\;9J J>; EKJ9EC; 3098.32  7 EDI?:;H J>;  EKJ E<  LEJ;I />; JH7DI; EFJ?ED M?J> J>; BEM;IJ DKC8;H E< THIJ 9>E?9;I EDBO ED; 7D: M?BB F?9A 7BJ;HD7J?L; 6 7I J>; M?DD;H 7?9> ?I DEED;WI THIJ 9>E?9; MEKB: 8; ;B?C?D7J;: ?D J>; THIJ HEKD: KD:;H JH7DI; 97D:?:7J; M?J> J>; BEM;IJ DKC8;H E< THIJ 9>E?9; LEJ;I D7C;BO P;HE 9 .JH7J;=?9 LEJ;HI M?BB 9EDI?:;H >EM B?A;BO ?J ?I J>7J J>;?H THIJ9>E?9; M?BB M?D J>; LEJ; $< J>; THIJ9>E?9; EFJ?ED ?I KDB?A;BO JE M?D LEJ;HI C7O ?DIJ;7: LEJ; E?9; JE FH;L;DJ J>; ;B;9J?ED E< 7 MEHI; EFJ?ED $D J>; ;N7CFB; E< F7HJ 7 J>; J>?H: =HEKF E< LEJ;HI >7I 7D ?D9;DJ?L; JE LEJ; IJH7J;=?97BBO ;?H I;9ED: 9>E?9; 5 7I J>;?H THIJ 9>E?9; 7 97DDEJ :;KI 5 M?BB E8J7?D CEIJ E< J>; J>; THIJ 9>E?9; LEJ;I 7D: 7 M?BB =;J DE THIJ 9>E?9; LEJ;  IJH7J;=?9 LEJ?D= JH7DI; ED:EH9;J M?DD;H 5

; FH;H;; FHE@;9JI 5 6 7 7I 7J LEJ;HI 97IJ J>;?H LEJ;I I?D9;H;BO !?D: 7 EH:7 HKB; IOIJ;C I9EH;I JE 8; =?L;D JE THIJ I;9ED: 7D: J>?H: 9>E?9;I M>;H; FHE@;9J 5 M?DI 8 !?D: 7 EH:7 M;?=>J?D= IOIJ;C M>;H; 6 M?DI 9 0D:;H FBKH7B?JO LEJ?D= M>?9> FHEFEI7B M?DI 3098.32  7 EDI?:;H J>; EH:7 HKB; IOIJ;C M?J> J>; LEJ; 7BBE97J?ED  FE?DJI JE THIJ 9>E?9;  JE I;9ED: 9>E?9; 7D:  JE J>?H: 9>E?9; />;D 5 ?I J>; EH:7 M?DD;H M?J>  FE?DJI 6 =;JI  FE?DJI 7D: 7 =;JI  FE?DJI 8 EDI?:;H J>; LEJ; 7BBE97J?ED  FE?DJI JE THIJ 9>E?9;  JE I;9ED: 9>E?9; 7D:  JE J>?H: 9>E?9; />;D 6 ?I J>; EH:7 M?DD;H M?J>  FE?DJI M>?B; 5 =;JI  FE?DJI 7D: 7 =;JI  FE?DJI 9 0D:;H FBKH7B?JO HKB; EDBO J>; THIJ 9>E?9; E< ;79> LEJ;H C7JJ;HI />; FBKH7B?JO M?DD;H ?I 5 7I ?J ?I J>; EFJ?ED J>7J ?I H7DA;: 7J J>; JEF 8O J>; B7H=;IJ DKC8;H E< LEJ;HI



!  #!

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

7 5 8 9

7 9 8 5

8 7 5 9

9 8 7 5

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

 8 6 7 5

 7 6 8 5

9 )E DO 8?D7HO 7=;D:7 M?BB I;B;9J J>; ED:EH9;J M?DD;H M>;D ?J ;N?IJI DE C7JJ;H ?< LEJ;HI LEJ; I?D9;H;BO EH DEJ .E J>; I7C; 7H=KC;DJ 7I ; :?9J7JEH M?BB 7BM7OI F?9A >?I THIJ9>E?9; 7BJ;HD7J?L; ; 3;I 7DO 7BJ;HD7J?L; J>7J ?I DEJ H7DA;: THIJ 8O 7DO LEJ;H MEKB: =;J DE 7FFHEL7B LEJ;I 7D: IE ?J 97DDEJ M?D < 3;I ?J ?I @KIJ 7 I;GK;DJ?7B 7FFB?97J?ED E< FBKH7B?JO LEJ?D= .;; F7HJ 7 78EL;



!  #!

= )E />; JEF 9ED:?J?ED ?I 7 M;7A;H 9ED:?J?ED J>7D J>; +7H;JE 9ED:?J?ED M>?9> F?9AI 7I 7 M?DD;H 7DO 7BJ;HD7J?L; J>7J MEKB: 8; ED JEF E< 7BB ?D:?L?:K7B FH; )E .;; J>; 9EKDJ;H;N7CFB;I ?D F7HJI 7 : ; 7D: < />;O 7BB H;IF;9J J>; JEF 9ED:?J?ED 8KJ ; IE9?7B 9>E?9; C;J>E: KI;: ?I I;GK;DJ?7B F7?HM?I; LEJ?D= M?J> 7 TN;: 7=;D:7 7D: ?< OEK >7L; 7=;D:7 I;JJ?D= FEM;H J>;D OEK 97D 7HH7D=; J>; EH:;H JE ;DIKH; M>?9>;L;H 7BJ;HD7J?L; OEK M7DJ JE 8; J>; 9>EI;D 8 ;TD; 7D 7BJ;HD7J?L; 7I 7 XED:EH9;J BEI;HY ?< ?J ?I :;;H 7BJ;HD7J?L; ?D F7?HM?I; LEJ?D= +HEL; J>7J J>;H; ?I DE ED:EH9;J BEI;H ?D J>?I FH; 7 7=7?DIJ 8 J>;D I;J J>; M?DD;H 7=7?DIJ 6 J>;D J>; M?DD;H 7=7?DIJ 5 /E I;B;9J 6 IJ7HJ M?J> 5 7=7?DIJ 7

J>;D J>; M?DD;H 7=7?DIJ 6 J>;D J>; M?DD;H 7=7?DIJ 8 /E I;B;9J 7 IJ7HJ M?J> 6 7=7?DIJ 8 J>;D J>; M?DD;H 7=7?DIJ 5 J>;D J>; M?DD;H 7=7?DIJ 7 !?D7BBO JE I;B;9J 8 IJ7HJ M?J> 5 7=7?DIJ 6 J>;D J>; M?DD;H 7=7?DIJ 7 J>;D J>; M?DD;H 7=7?DIJ 8 8 5 6 8 6 7 8 7 5 7D: 8 7 #;D9; J>;H; ?I DE XED:EH9;J BEI;HY I?D9; DE 7BJ;HD7J?L; 97D 8; :;; EJ>;HI 9 %KIJ IM7F 7 M?J> 8 ?D J>; B7IJ LEJ;HWI H7DA?D= )EM 8 ?I :;; EJ>;H 7BJ;HD7J?L;I : .M7F 5 M?J> 7 ?D J>; I;9ED: LEJ;HWI H7DA?D= />;D 5 8;9EC;I J>; ED :EH9;J M?DD;H

EM J>7J E?9; ?D I;GK;DJ?7B F7?HM?I; LEJ?D= M?J> 7 TN;: 7=;D:7 DE C7JJ;H M>7J J>; EH:;H E< J>; 7=;D:7

 3098.32  !?HIJ E< 7BB DEJ; J>7J ?< J>; 7BJ;HD7J?L; ?I FH;I;DJ ?D J>; B7IJ HEKD: 8O :;TD?J?ED ?J M?BB 8;7J J>; 9ECF;J?JEH M>?9>;L;H ?J ?I .E M; EDBO >7L; JE I>EM J>7J ?J =;JI JE J>; B7IJ HEKD: ?I ?I IJH7?=>JEI;D 7=7?DIJ ?JI 9ECF;J?JEH M>7J;L;H J>; LEJ?D= IJ7=; 7J M>?9> ?J ?I ?DJHE:K9;: 7D: ;D ED ?J M?BB 8;7J 7DO 9ECF;J?JEH J>7J I>EMI KF ?D J>; IK8I;GK;DJ HEKD:I

D  />;H; 7H; 7D ?DTD?J; DKC8;H E< J?C; F;H?E:I ?D:;N;: 8O H      />;H; ?I 7 I;J E< ?:;DJ?97B FEB?J?9?7DI 7D: 7 I?D=B; H;F H;I;DJ7J?L; LEJ;H J J>; ;D: E< ;79> F;H?E: J>;H; ?I 7D ;B;9J?ED EFFEI?D= J>; ?D9KC8;DJ JE 7 9>7BB;D=;H />; 9>7BB;D=;H ?I H7D:ECBO :H7MD D ?D9KC8;DJ M>E ?I LEJ;: EKJ 97DDEJ HKD 7=7?D ; ?D9KC8;DJ   E8I;HL;I FH?L7J;BO J>; H;7B?P7J?ED E< 7 H7D:EC FHE:K9J?L?JO I>E9A D    7D: ;N;HJI ;\EHJ 9D   />; H7D:EC FHE:K9J?L?JO I>E9A ?I :?IJH?8KJ;: 799EH: ?D= JE 7 ICEEJ> 7D: ?D9H;7I?D= !  M?J> :;DI?JO :   ;D ?D E[9; J>; FEB?J?9?7D H;9;?L;I 7 F;HF;H?E: F7OE\ E< F  7 9D  M>;H; F  7D: J>; 9EIJ E< ;\EHJ 7 9D  ?I ?D9H;7I?D= 7D: IJH?9JBO 9EDL;N M?J> 7

 2>;D DEJ ?D E[9; 7 FEB?J?9?7D H;9;?L;I F7OE\ E< />; LEJ;HWI F7OE\ ?I ?D9H;7I?D= ?D J>; ?D9KC8;DJ F;H; H;FH;I;DJ7J?L; LEJ;H E8I;HL;I EDBO J>; EKJ9EC; MD 8KJ :E;I DEJ E8I;HL; J>; ;\EHJ EH J>; FHE:K9J?L?JO EJ> LEJ;H 7D: FEB?J?9?7DI >7L; 9ECCED F;HF;H?E: :?I9EKDJ H7J;     7 ;TD; J>; ;GK?B?8H?KC E< J>; LEJ?D= CE:;B 7IIKC?D= J>; LEJ;H KI;I 7 9KJE\ IJH7J;=O E< H;;B;9J?D= J>; ?D9KC8;DJ EDBO ?< F;HH;I>EB: 8 ;I9H?8; J>; EFJ?C?P7J?ED FHE8B;C E< J>; FEB?J?9?7DI 9 ;I9H?8; J>; EFJ?C?P7J?ED FHE8B;C E< J>; LEJ;H : .>EM J>7J ?< J>;H; 7H; DE ;B;9J?EDI J>; ?D9KC8;DJ M?BB ;N;HJ DE ;\EHJ ?D ;GK?B?8H?KC ; .>EM J>7J ?< J>;H; 7H; ;B;9J?EDI 8O KI?D= H;JHEIF;9J?L; LEJ?D= J>; LEJ;H 97D ?D:K9; FEB?J?9?7DI JE ;N;HJ ;\EHJ 3098.32  7 GK?B?8H?KC M?J> 9KJE\ IJH7J;=O />; LEJ;H ;CFBEOI 7 IJ7 J?ED7HO 9KJE\ LEJ?D= HKB; 7D: H;;B;9JI J>; ?D9KC8;DJ ?D F;H?E: H ?< 7D: EDBO ?
; FEB?J?9?7DWI IJH7J;=O ?I 9 M  :;DEJ?D= J>; 9>E?9; E< ;\EHJ ; FEB?J?9?7DWI ;\EHJ ?I J>; EFJ?C7B H;IFEDI; JE J>; LEJ;HWI 9KJE\ HKB; 7D: J>; LEJ;H ?I >7FFO M?J> J>; 9>E?9; E< J>; 9KJE\ =?L;D J>; FEB?J?9?7DWI H;IFEDI;



!  #!

8 />; FEB?J?9?7D FHE8B;C />; ?D9KC8;DJ 7J J?C; H E8I;HL;I D 7D: 9>EEI;I ;?J>;H J>; C?D?C7B ;\EHJ H;GK?H;: JE =;J H;;B;9J;: 9  MD EH P;HE ;\EHJ 9  />; F7OE\ ;\EHJ ?I F  7 MD  / M>;H; / ?I J>; 9EDJ?DK7J?ED F7OE\ ;NF;9J;: L7BK; E< 8;?D= 7=7?D ?D E[9; ?D J>; D;NJ F;H?E: H  BJ;HD7J?L;BO J>; F7OE\ E< P;HE ;\EHJ ?I F 7D: IE J>; ?D9KC8;DJ ;N;HJI ;\EHJ ?\ / 7 MD  EH ;GK?L7B;DJBO   

M 7 /





/>; EFJ?C7B ;\EHJ 9>E?9; ?I 9 M 

  M

?9> =?L;I / 

)





F  7 M /  : 8

' F   7 M: 8       

9 />; LEJ;H FHE8B;C EDI?:;H J>; LEJ;H FHE8B;C ?D F;H?E: H .KFFEI; J>; LEJ;H ?I KI?D= 9KJE\ M ?D 7BB 7J >; ?I 9EDI?:;H?D= M>;J>;H JE :;L?7J; ?D F;H?E: H JE IEC; EJ>;H 9KJE\ M 0FED E8I;HL?D= J>?I :;L?7J?ED

J>; ?D9KC8;DJ M?BB 9>7D=; >?I ;\EHJ ?D F;H?E: H JE 9 M   7D: M?BB ;N;HJ ;\EHJ 9  M  ?< 7D: EDBO ?<  M 7 /  />; H;IKBJ?D= ;NF;9J;: F7OE\ JE J>; LEJ;H ?D F;H?E: H     M 7 /  M  M>;H; J>; 9EDJ?DK7J?ED F7OE\ / ?I ?D:;F;D:;DJ E< J>; ED; J?C; :;L?7J?ED M />KI J>; EFJ?C7B FE?DJM?I; :;L?7J?ED IEBL;I   M  (! $)   M 7 /  M  

I 

/>; !* I7J?IT;I M

7 /    :  

 



: .J7J?9 CE:;B ED;F;H?E:  />; F7OE\ E< P;HE ;\EHJ ?I F 7D: IE =?L;D J>; 9KJE\ HKB; M J>; ?D9KC8;DJ ;N;HJI ;\EHJ ?< 7D: EDBO ?< / 7 MD  2?J>EKJ ;B;9J?ED J>; ;GK?B?8H?KC ;\EHJ 9>E?9; ?I P;HE I?D9; J>;H; ?I DE L7BK; E< H;;B;9J?ED JE J>; ?D9KC8;DJ / 

 ; OD7C?9 CE:;B CKBJ?F;H?E:  2?J> ;B;9J?ED 8O KI?D= H;JHEIF;9J?L; LEJ ?D= LEJ;HI 97D ?D:K9; J>; FEB?J?9?7D JE ;N;HJ ;\EHJ />; ;B;9J?ED 9EDIJH7?DJ FKJI IEC; H;IJH7?DJ ED J>; ?D9KC8;DJ />?I H;IJH7?DJ :;F;D:I ED J>; 8;D;TJ E< >EB: ?D= E[9; F 7D: J>; :?I9EKDJ H7J;  />; L7BK; E< H;;B;9J?ED / ?I ?D9H;7I?D= ?D  F7J?;D9; 7D: ?D F H;DJ E< E[9; />; ;GK?B?8H?KC IEBL;I J>; IOIJ;C E< J>H;; ;GK7J?EDI M?J> H;IF;9J JE J>H;; KDADEMD L7H?78B;I   / 7D: M  

M 7 /





' F   7 M: 8  /        M

7 /    :  

 



/>; CE:;B 7IIKC;I J>7J 7BB FEB?J?9?7DI 7H; J>; I7C; 1EJ;HI 7H; ?D:?\;H;DJ 78EKJ 7 F;H;O 7H; ?D:?\;H;DJ ;NFEIJ 78EKJ H;FB79?D= J>; ?D9KC8;DJ 8O 7 9>7BB;D=;H ;GK7BBO 87: />;H; 7H; CKBJ?FB; ;GK?B?8H?KC F;H; FHE878?B?JO E< 8;7J?D= ED; E< J>; EJ>;H 9ECF;J?JEH M>;D 8?::?D=  8;  />;H; 7H;  EJ>;H ?:;DJ?97B 9EDJ;IJ7DJI 8?::?D= ?D:;F;D:;DJBO M?J> J>; I7C; FHE878?B?JO  :?IJH?8KJ?ED IE J>; FHE878?B?JO E< 8;7J?D= 8EJ> E< J>;C ?I   />; ;NF;9J;: F7OE\ ?D ;GK?B?8H?KC CKIJ 8; P;HE IE ?I 9ED:?J?ED ; ;GK?B?8H?KC FHE878?B?JO :?IJH?8KJ?ED



 

 /

 

 

 />; :?IJH?8KJ?ED >7I J>; 7J J>; FHE878?B?JO E< >?=>;H B;L;BI E<  7J E< BEM;H B;L;BI "?L;D J>7J J>; ;NF;9J;: F7OE\ ?D ;GK?B?8H?KC ?I P;HE 7D: J>7J ;L;HOED; ?I ;GK7BBO B?A;BO JE M?D J>; ?I; FHE:K9?D= 7 CEDEFEBO H;DJ E< / M?J> FHE878?B?JO  J>; ;NF;9J;: 7CEKDJ E< 8?::?D= ?I     /    

  

 

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



&9 D9 +  L9 L &9 & 9  +  L9  : L:



8 0I?D= J>; JH7DI; D;9;II7HO 9ED:?J?ED ?I  &

: N:

/>?I 97D 8; MH?JJ;D 7I

+  -&

&

N9

:

N:

. + 

   N    9

   : N:  N9   -& . +  N9  N : :



!  ! 

M>?9> =?L;I  

N9

-&

: N:

.

 +

&

::9 N: 

/>; H?=>J>7D: I?:; ?I ?D9H;7I?D= ?D  7D:     ?I :;9H;7I?D= ?D  />;H; ; 8;IJ H;IFEDI; ?I ?D:;F;D:;DJ E< &9 9 .?D9; J>; 8;IJ H;IFEDI; ?I ?D:;F;D:;DJ E< &9 J>; ;GK?B?8H?KC M?BB 8; IOCC;JH?9 .;JJ?D= N:  N =?L;I 

N   BN  + B   N IE

B    B />; )7I> ;GK?B?8H?KC L7BK; E< L ?I ?D9H;7I?D= ?D  7D: ?D:;F;D:;DJ E< J>; :?IJH?8KJ?ED E< ?D9EC; N   L  +

; H;DJ =E;I JE J>; THC M?J> J>; >?=>;IJ BE88O?D= 79J?L?JO 7D: ?J J7A;I EDBO 7 IC7BB 7:L7DJ7=; JE E8J7?D 7 IKH; M?D )EM IKFFEI; J>7J 7 >?=>;H BE88O?D= 79J?L?JO ?D9H;7I;I J>; FHE878?B?JO E< =;JJ?D= J>; H;DJ 8KJ :E;I DEJ ;DIKH; 7 M?D $< THC = IF;D:I J>; 7CEKDJ L9 ED BE88O?D= 79J?L?JO ?J M?BB =;J J>; ?I; M?J> FHE878?B?JO D9   H H  



7 2>7J ?I J>; EFJ?C7B IF;D:?D= E< THC = ?D H;IFEDI; JE J>; JEJ7B IF;D:?D= & E< J>; JME EJ>;H THCI L9  :9 L:  H7M J>; H;IFEDI; ;H; L9  L M?BB ;79> THC M?BB IF;D: ED BE88O?D= 9 #EM :E;I OEKH 7DIM;H 9>7D=; ?< J>;H; 7H; ' ;NJH7 THCI 9ECF;J?D= ; ?I; 7IIKC?D= 7=7?D 7BB THCI 7H; ?:;DJ?97B  3098.32  7 />; ;NF;9J;: F7OE\ E< THC = ?I L9 &

:

L:

/  L9 

?\;H;DJ?7J?D= M?J> H;IF;9J JE L9 FHE:K9;I J>; THIJEH:;H 9ED:?J?ED ( ( L9 L:  /  L9 L9 L:  /     :9

(KBJ?FBO?D= 8EJ> I?:;I 8O

 

 

:9

-&

: L:

.

M; E8J7?D

    ( (  L:  L9  /   L:   :

:

 



xi Player i’s best response

0

V

V 4

x−i

!?=KH;   ;IJH;IFEDI; ?I ?I 7 9ED97L; & F7H78EB7 M?J> 7 C7N?CKC 7J :9 L:  , 7D: JME P;HEI 7J & :9 L:  7D: :9 L:  / />?I ?I ?BBKIJH7J;: ?D J>; T=KH;   8 .;JJ?D= L9  L:  L ?D J>; 8;IJH;IFEDI;  ' 9EDJ;IJ7DJI J>; 8;IJ H;IFEDI; E< 9EDJ;IJ7DJ = ?I 4 ( ( L9  / L:  L:  :9

 

 

:9

M>;H; J>; EDBO 9>7D=; 7J J>; JEJ7B 8?: E< J>; EJ>;H 9EDJ;IJ7DJI & L 9EDJ;IJ7DJI ?DIJ;7: E<  $D J>; IOCC;JH?9 :9 : ?I J>; IKC EL;H  '   & )7I> ;GK?B?8H?KC L9  L:  L IE :9 L:   '   L   ' L 7D: 1   L  /  '  L   '  L EH

 L



 '  ' 



/

 

/>KI M>;D J>;H; 7H; ' ;NJH7 F7HJ?9?F7DJI 9EDJ;IJ?D= J>; H;DJ ;79> 9EDJ;IJ7DJ $ M?BB 8?: 7 B7H=;H ; H;DJ  $   7D: J>; JEJ7B ; 



!  ! 

 H;DJ J>7J ?I :?II?F7J;: ?I 7BIE B7H=;H $ $  />KI J>; ; H;DJ J>7J ?I :?II?F7J;: =;JI B7H=;H 7I J>; DKC8;H E< 9EDJ;IJ7DJI ?D9H;7I;I

 '  9EDJ;IJ7DJI />; ;\EHJ E< J>; EJ>;HI 9>EEI;I L 8 $D 7 IOCC;JH?9 ;GK?B?8H?KC ?J CKIJ 8; J>; 97I; J>7J 7BB 9EDJ;IJ7DJI 9>EEI; J>; I7C; ;\EHJ L9  L 0I?D= J>?I IOCC;JHO 9ED:?J?ED 7D: J>; 8;IJH;IFEDI; ,  EM J>7J J>; ;GK?B?8H?KC EKJ9EC; ?I L  $$

 .>EM   , 7D: J>7J J>; ; H;DJ J>7J J>7J J>; JEJ7B 9EIJ ' L  '   $ ?I :?II?F7J;: ? ; JEJ7B 9EIJ H;B7J?L; JE J>; L7BK; E< J>; FH?P; ?I 7D ?D9H;7I?D= ; L7BK; E< J>; FH?P; ?I /   

7D: J>; 9EIJ E< ;\EHJ ?I   

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



xi Player i’s best response

0

V 4C [N − 1]

x V C [N − 1]

!?=KH;   ;IJH;IFEDI; ; 8;IJH;IFEDI; ; JEJ7B 9EIJ ?I 1  '   / ' />; JEJ7B 9EIJ H;B7J?L; JE J>; L7BK; E< J>; FH?P; ?I '   ' M>?9> H;FH;I;DJI J>; ; H;DJ J>7J ?I :?II?F7J;: />?I ' 9 0I?D= J>; H;IKBJ ?D F7HJ 8 M; >7L; L 

  

  ' /     '   

 

 

/>; ; H;DJ J>7J ?I :?II?F7J;: ?I $$  : 2>;D J>; 9EIJ E< H;DJI;;A?D= ;\EHJ ?I H;:K9;: ; ;GK?B?8H?KC B;L;B E< H;DJI;;A?D= ?I L 

  

  ' /      '    

 

 

.E J>; 7CEKDJ E< ;\EHJ ;79> 9EDJ;IJ7DJ 9>EEI;I ?D ;GK?B?8H?KC ?I :EK8B;: M>;D J>; 9EIJ E< ;\EHJ ?I H;:K9;: 8O ED;>7B< $J 7J J>; JEJ7B ;GK?B?8H?KC ;\EHJ 9EIJ ?I KD9>7D=;: ' L  '   / '     

 7D: IE J>; 7D=;: />; H;7IED ?I J>7J ?D ;GK?B?8H?KC ;79> 9EDJ;IJ7DJ 7:@KIJI >?I ;\EHJ B;L;B JE J>; 9>7D=; ?D J>; 9EIJ E< ;\EHJ ?D EH:;H JE C7?DJ7?D J>; JEJ7B 9EIJ E< ;\EHJ KD9>7D=;:



!  ! 

;H; ?I 7 =?L;D H;DJ E< + 79> E< JME FB7O;HI IF;D:I H;IEKH9;I 9ECF;J?D= ; H;DJ $< FB7O;H  IF;D:I L J>; FHE878?B?JO J>7J >; M?DI J>;  M>;D FB7O;H  IF;D:I J>; 7CEKDJ L M>;H;    H;DJ ?I D  HH  H 7 2>7J ?I J>; EFJ?C7B IF;D:?D= E< FB7O;H  ?D H;IFEDI; JE 7 =?L;D IF;D:?D= B;L;B E< FB7O;H  2>7J ?I J>; EFJ?C7B H;IFEDI; E< FB7O;H  JE FB7O;H  H7M J>; 8;IJH;IFEDI; ; ;\;9J E< 9>7D=?D=  ED J>; 8;IJH;IFEDI; M?BB ;79> FB7O;H IF;D: ED BE88O?D= 2>?9> FB7O;H ?I CEH; B?A;BO JE M?D J>; H;DJ ?D ;GK?B?8H?KC 9 ECF7H; J>; JEJ7B ;GK?B?8H?KC IF;D:?D= EKB: M; ;NF;9J CEH; IF;D:?D= ?D H;DJI;;A?D= 79J?L?J?;I M>;D FB7O;HI 7H; ?:;DJ?97B 2>O EH M>O DEJ  +  L

3098.32  7 />; ;NF;9J;: F7OE\I E< FB7O;HI  7D:  7H; HH  H 7D: HHH +  L H;IF;9J?L;BO /7A?D= :;H?L7J?L;I M?J> H;IF;9J JE EMD IF;D:?D=  7D: I?CFB?; 8;IJH;IFEDI; 8;IJH;IFEDI; P;HEI 7J L    + 7D: L    + H;IF;9J?L;BO ; 8;IJH;IFEDI; 7I 7 F;7A 7J L  + 7D: J>; 8;IJH;IFEDI; 7I 7 F;7A 7J L  + />; 8;IJH;IFEDI; 7J THC WI 8;IJ H;IFEDI; ?CFB?;I L  +L  L 7D: THC  WI 8;IJ H;IFEDI; ?CFB?;I L  +L  L IE M; CKIJ >7L; L  L ?D ;GK?B?8H?KC .EBL?D= ; IOCC;JH?9 ;GK?B?8H?KC M; E8J7?D L  L  L 

+



 

 

.?D9; 8EJ> THCI 8?: J>; I7C; THC  ?I CEH; B?A;BO JE M?D J>; H;DJ ?D ;GK?B?8H?KC

I?D9; L L   D    D  L L L L 9 !HEC F7HJ 8 M; >7L; J>7J J>; IOCC;JH?9 ;GK?B?8H?KC IF;D:?D= ?I FHE  FEHJ?ED7B JE   M>?9> ?I :;9H;7I?D= ?D  ;D FB7O;HI 7H; ?:;DJ?97B />;H;;D 9EDJ;IJ7DJI 7H; ?D 7 IOCC;JH?9 FEI?J?ED J>7J 9ECF;J?J?ED ?I J>; CEIJ I; L;H; $< ED; E< J>; 9EDJ;IJ7DJI >7I 7 9ECF7H7J?L; 7:L7DJ7=; ?D J>; 9EDJ;IJ J>;H; M?BB 8; B;II IF;D:?D= ED H;DJI;;A?D= 79J?L?J?;I



x2

Player 2’s best response

Player 1’s best response

x1 !?=KH;  

GK?B?8H?KC

; ;H; 7H; '   FB7O;HI 9ECF;J?D= 7D9; JE M?D 8;D;TJI ; =EL;HDC;DJ E< + />; H;DJ ?I =?L;D JE J>; >?=>;IJ 8?::;H />; I;9ED:>?=>;IJ 8?::;H =;JI DEJ>?D= 8KJ CKIJ 7BIE IF;D: J>; 7CEKDJ >; 8?:I 2>7J ?I J>; B?A;BO EKJ9EC; E< IK9> 7 I?JK7J?ED 2>;H; M?BB J>; FHE9;II IJEF $I ?J FEII?8B; J>7J J>; THIJ 7D: I;9ED:>?=>;IJ 8?::;H 9EKB: JE=;J>;H 8?: CEH; J>7D J>; L7BK; E< J>; H;DJ EKB: ;79> E< J>;C IF;D: CEH; J>7D J>; L7BK; E< J>; H;DJ 2>O EH M>O DEJ 3098.32  />?I ?I 7D ;N7CFB; E< 7 H;DJI;;A?D= =7C; ?D M>?9> ?J ?I 8;JJ;H DEJ JE F7HJ?9?F7J; />; =7C; >7I ED; ;GK?B?8H?KC ?D M>?9> J>; THIJ 8?: ?I ;GK7B JE J>; 8;D;TJ + 7D: J>;H; 7H; DE ;H 8?:I 2>7J >7FF;DI ?< J>; THIJ 8?: ?I B;II J>7D + .KFFEI; ?J ?I FB7O;H  M>E 8?:I  M?J>   + J>;D J>; EJ>;H FB7O;H 97D 8?:    M?J>   + 7D: I;9KH; 7 M?D />?I L?9JEHO =?L;I FB7O;H  7 F7OE\ E< +     7D: FB7O;H  =;JI DEJ>?D= 8KJ CKIJ 7BIE IF;D: M>7J >; 8?: .E FB7O;H  M?BB EKJ8?: FB7O;H  JE =;J J>; H;DJ + 7D: DEM ?J ?I FB7O;H  M>E =;JI DEJ>?D= 8KJ CKIJ IF;D: M>7J >; 8?:I +B7O;H  M?BB J>KI EKJ8?: FB7O;H  JE =;J J>; H;DJ 7D: IE ED KDJ?B J>; 8?: H;79>;I J>; L7BK; E< J>; H;DJ + KJ J>; ;I97B7J?ED ?D J>; 8?:I :E;I DEJ IJEF J>;H; $D:;;: IKFFEI; FB7O;H  EKJ8?:I J>; EJ>;H M?J>   + FB7O;H  M?BB =;J DEJ>?D= 8KJ F7O >?I 8?: E<  IE ?J ?I MEHJ>M>?B; ?C JE =E KF 7D: JE 8?: IB?=>JBO CEH; J>7D + JE =;J J>; H;DJ 7D: 7 F7OE\ E< +   KJ DEM ?J ?I FB7O;H  M>E F7OI   + JE =;J DEJ>?D= 7D: IE FB7O;H  M?BB ?D JKHD EKJ8?: FB7O;H  7D: IE ED />;H; FB7O;H ?I 97K=>J ED J>; IB?FF;HO IBEF; 7D: J>; ;I97B7J?ED E< 8?:I M?BB B;7: J>;C JE IF;D: B7H=; 7CEKDJI ?D GK;IJ E< J>; XH;DJY E< L?9JEHO



!  ! 

?I ;N;H9?I; ?I 78EKJ H;DJI;;A?D= ?D FEB?J?9I />; /KBBE9A CE:;B :;L;BEFI J>; 9ECCED ?:;7 J>7J H;DJ I;;A?D= B;7:I JE ?D;[9?;D9O $D J;HCI E< FEB?9OC7A?D= ?J ?I B;II 9B;7H J>7J H;DJI;;A?D= M?BB B;7: JE ?D;[9?;DJ FEB?9O I?CFBO 8;97KI; J>; FEB?9O C7A;H ?I C7N?C?P?D= >?I EMD KJ?B?JO 7D: J>; ED; E< IEC; IF;9?7B ?DJ;H;IJ =HEKF />KI IKH;BO 7DO FEB?9O 9>7D=; M?BB H;:K9; J>; M;B; FEB?9O C7A;H 7D: J>7J E< J>; ?DJ;H;IJ =HEKF 7D: IE J>; FEB?9O 97DDEJ 8; ?D;[9?;DJ ?D J>; +7H;JE I;DI; #EM;L;H

/KBBE9A 7H=K;: J>7J FEB?J?9?7DI MEKB: KI; :?I=K?I;: JH7DI7D?ICI J>7J 7H; ?D;[9?;DJ H;B7J?L; JE 97I> JH7DI?I ?:;7 JE :;CEDIJH7J; J>7J ;N9;II?L; FEHA87HH;B IF;D:?D= 9EKB: H;U;9J ?D;[9?;DJ ;D FEB?J?9?7DI H;:?IJH?8KJ; JE IF;9?7B ?DJ;H;IJ =HEKFI KI?D= FEB?9?;I J>7J 7H; +7H;JE :EC?D7J;: /ME ;N7CFB;I MEKB: 8; IKFFEHJ?D= 7 FK8B?9 FHE@;9J EH KI?D= FH?9; IKFFEHJI M>;D :?H;9J 97I> JH7DI; >?97=E I9>EEB 7H=K;I J>7J ;B;9JEH7B 9ECF;J?J?ED

8O 7D7BE=O M?J> C7HA;J 9ECF;J?J?ED M?BB :?I9?FB?D; FEB?J?9?7DI 8O ;C JE =?L; JH7DI; 1?H=?D?7 I9>EEB H;FH;I;DJ;: 8O /KBBE9A 7H=K;I J>7J J>?I MEKB: DEJ 8; J>; 97I; 8;97KI; FEB?J?9?7DI 97D KI; :?I=K?I;: ; KI; E< 7 87: FK8B?9 FHE@;9J JE H;:?IJH?8KJ; JE IF;9?7B ?DJ;H;IJ M>;D :?H;9J 97I> JH7DI7J FK8B?9 FHE@;9JI 7BM7OI 8;D;TJ JE IF;9?7B ?DJ;H;IJI 8KJ J>;O 97D 8; ;?J>;H =EE: EH 87: ; 9?J?P;DI  87: FHE@;9J FHE:K9;I 7 9EIJ JE J>; 9?J?P;DI J>7J ?I =H;7J;H J>7D J>; 8;D;TJ JE J>; IF;9?7B ?DJ;H;IJ  =EE: FHE@;9J 8;D;TJI ED 7L;H7=; JE J>; 9?J?P;DI 7D: J>; IF;9?7B ?DJ;H;IJ ?J?P;DI 7H; KD9;HJ7?D 78EKJ J>; GK7B?JO E< J>; FK8B?9 FHE@;9J 8EJ> ;N 7DJ; 7D: ;N FEIJ 8;97KI; ;L;D 7 =EE: FHE@;9J C7O ; GK7B?JO E< J>; FEB?9O C7A;H  =EE: FEB?9O C7A;H M?BB D;L;H ?CFB;C;DJ 7 87: FHE@;9J  87: FEB?9O C7A;H MEKB: B?A; JE H;:?IJH?8KJ; JE J>; IF;9?7B ?DJ;H;IJ

7D: C7O 9>EEI; JE :E IE ;?J>;H 8O :?H;9J 97I> JH7DI;D ?< J>; ?D?J?7B H;FKJ7J?ED E< J>; ?D9KC8;DJ ?I =EE: ;DEK=> ? ; 9?J?P;DI >7L; 7 IK[9?;DJBO =EE: ?CFH;II?ED ED J>; GK7B?JO E< J>; ?D9KC8;DJ J>; 87: ?D9KC8;DJ M?BB 9>EEI; JE H;:?IJH?8KJ; ?D;[9?;DJBO L?7 87: FHE@;9JI ?DIJ;7: E< KI?D= ;[9?;DJ :?H;9J 97I> JH7DI7D9; E< H;;B;9J?ED I?D9; 97I> JH7DI; ?I 7 87: ?D9KC8;DJ )EJ; J>7J J>; 7H=KC;DJ H;B?;I ED J>; ; GK7B?JO E< J>; FHE@;9J  ?J C7O EH C7O DEJ 8;D;TJ JE J>; 9?J?P;DI 9?J?P;DI >7L; B;II ?D; FHE@;9J GK7B?JO J>7D J>; ?D9KC8;DJ 7D: 9?J?P;DI 97DDEJ ?D; GK7B?JO ;N FEIJ ; FHE@;9J EKJ9EC; 8;97KI; =EE: FHE@;9J 97D ; ?D9KC8;DJ 97D :?I=K?I; 7 87: FHE@;9J 7I =EE: ED; J>7J ?I 8O J>; D;;: JE B?C?J J>; :?I?D9;DJ?L; ;\;9J ED J>; B78EH IKFFBO E< J>; >?=> 78?B?JO $< J>; IE9?7B FB7DD;H 7?CI ;D 78?B?JO 



!  !!&  !&

U2

W

W

U1

!?=KH;   $D:?\;H;D9; 9KHL;I E< 0  . . 

M?BB :;J;HC?D; J>; ?D9EC; :?IJH?8KJ?ED 8;?9> D;;:I 97D 8; J>; 9EDI;GK;D9; E< 9>E?9;I !EH ;N7CFB; F>OI?97B ?D97F79?JO 97D 8; J>; 9EDI;GK;D9; E< F7HJ?9?F7J?ED ?D ;NJH;C; IFEHJI EH E8;I?JO 97D 8; J>; EKJ9EC; E< :?;J7HO 9>E?9;I -;:?IJH?8KJ?D= JEM7H: J>;I; D;;:I :?IJEHJI 9>E?9;I ?D ;N79JBO J>; I7C; M7O J>7J :?IJH?8KJ?D= JE BEM ?D9EC;I :?IJEHJI B78EH IKFFBO I M; M?BB I;; B7J;H J>; ;NJ;DJ E< H;:?IJH?8KJ?ED J>7J 97D 8; 79>?;L;: ?I 7BM7OI B?C?J;: 8O ?D; ?D9;DJ?L; ?D:?L?:K7BI >7L; JE C?IH;FH;I;DJ J>;?H I?JK7J?ED ?D EH:;H JE =7?D 7:L7DJ7=;

 J>; ?D:?\;H;D9; 9KHL;I E< J>; ;H=IED.7CK;BIED IE9?7B M;B;I; ?D:?\;H;D9; 9KHL;I ?CFBO 78EKJ J>; :;=H;; E< 9ED9;HD E< J>; IE9?7B FB7DD;H -;F;7J ; M;B; ?D:?\;H;D9; 9KHL;I ; IE9?7B M;B;H;; I7C; ?D9EC; B;L;B />; 97B9KB7J?EDI >7L; I>EMD J>7J J>; KD?GK; EFJ?CKC ?I JE 7BBE97J; ?D9EC; ;GK?J78BO 7D: O;J J>?I IE9?7B M;B; ;NFB7D7J?ED ?I 7FF7H;DJ F7H7:EN ?I J>7J J>; M;B7J J>; IKC E< KJ?B?J?;I ?I C7N?C?P;: $J :E;I 97H; 78EKJ J>; 7BBE97J?ED E< ?D9EC; I?D9; J>; ?D:?L?:K7B KJ?B?JO ?I C7A;I IE9?7B M;B; KD?GK; 7D: ;GK?J78B; EFJ?C7B 7BBE97J?ED &8 

; IE9?7B C7H=?D7B KJ?B?JO E< +  #  ?D9EC; ?I :;9H;7I?D= ?D & 8 EM J>7J J>; 7H=KC;DJ ;NJ;D:I JE 7DO 7DEDOCEKI 7D: 9ED97L; IE9?7B M;B7L; J>; I7C; KJ?B?JO ; KJ?B?J7H?7D IE9?7B M;B; KJ?B?JO ; C7H=?D7B KJ?B?JO E< ?D9EC; ?I . 8   8   &   8 & 

 

+KJJ?D= J>;I; JE=;J>;H J>; IE9?7B C7H=?D7B KJ?B?JO E< ?D9EC;  8  ?I 8 

0 . 8   8   &   8 8 . & 

 

/>; ;\;9J E< 7D ?D9H;7I; ?D ?D9EC; ?I ;H;; IE9?7B C7H=?D7B KJ?B?JO E< ?D9EC; :;9H;7I;I M?J> ?D9EC; />; 7H=KC;DJ J>7J 7 TN;: IJE9A E< ?D9EC; CKIJ 8; :?IJH?8KJ;: ;GK?J78BO ?I I?CFB; JE ;IJ78B?I> IIKC; ?D9EC; ?I DEJ :?IJH?8KJ;: ;GK?J78BO />;D J>; 9ED IKC;H 7BBE97J;: J>; BEM;IJ ?D9EC; M?BB >7L; J>; >?=>;IJ IE9?7B C7H=?D7B KJ?B?JO E< ?D9EC; 7D: J>; 9EDIKC;H 7BBE97J;: J>; >?=>;IJ ?D9EC; M?BB >7L; J>; BEM;IJ IE9?7B C7H=?D7B KJ?B?JO E< ?D9EC; /H7DI?=> ?D9EC; 9EDIKC;H JE J>; BEM ?D9EC; 9EDIKC;H CKIJ ?D9H;7I; IE9?7B M;B; BEII ?D M;B?=> ?D9EC; ?I CEH; J>7D E\I;J 8O J>; ?D9H;7I; ?D M;B; BEM ?D9EC; />; I7C; 7H=KC;DJ ;IJ78B?I>;I J>7J 7 M;B;D;L;H JME 9EDIKC;HI >7L; :?\;H;DJ ?D9EC;I />;H;; EFJ?C7B 7BBE97J?ED CKIJ >7L; 7D ;GK7B :?IJH?8KJ?ED E< ?D9EC; $J ?I IJH7?=>J?I 7H=KC;DJ JE 7DO 7DEDOCEKI 7D: 9ED97L; IE9?7B M;B7L; ?:;DJ?97B KJ?B?JO ;I; 7IIKCFJ?EDI ?CFBO J>7J J>; C7H=?D7B IE9?7B KJ?B?J?;I E< ?D9EC; M?BB :;9H;7I; M?J> ?D9EC; />;O M?BB EDBO 8; ;GK7B ?< 7BB ?D9EC; B;L;BI 7H; ;GK7B #;D9; ?< ?D9EC;I 7H; DEJ :?IJH?8KJ;: ;GK?J78BO 7D ?D9H;7I; ?D J>; BEM;IJ 7D: 7 H;:K9J?ED ?D J>; >?=>;IJ M?BB H7?I; IE9?7B M;B7J 9EDIJ?JKJ; 7D ;9EDECO >7L; KJ?B?JO JE 79>?;L; 7 ?I 9EHH;9J 3098.32  />; THIJ IJ;F ?I JE :;TD; M>7J ?I C;7DJ 8O X; 7I J>; 7J DE ?D:?L?:K7B MEKB: M7DJ JE IM7F J>;?H 9EDIKCFJ?ED 8KD:B; ; 9EDIKCFJ?ED 8KD:B; E< 7DO EJ>;H 9EDIKC;H J>; DE;DLO 9ED:?J?ED />; DE;DLO 9ED:?J?ED ?I 7BCEIJ 9;HJ7?DBO JEE :;C7D:?D= JE 8; C;J ?D FH79J?9;  H;7IED78B; 7BJ;HD7J?L; :;TD?J?ED E< 7 ?9> C7N?C?P;I 7 IE9?7B M;B?I I;9ED: ?DJ;HFH;J7J?ED J>; IJ7J;C;DJ ?I DEJ 9EHH;9J />; 9;DJH7B C;II7=; E< J>; .;9ED: />;EH;C ?I J>7J =EL;HDC;DJ ?DJ;HL;DJ?ED I>EKB: 8; J7H=;J;: ED ?D9EC; :?IJH?8KJ?ED $< ?D9EC; :?IJH?8KJ?ED ?I 9EHH;9J C;7D?D= J>7J J>; ;GK?B?8H?KC =?L;D J>; :?IJH?8KJ?ED M?BB 8; J>; ED; J>7J C7N?C?P;I IE 9?7B M;B;D C7HA;JI I>EKB: 8; 7BBEM;: JE EF;H7J; M?J>EKJ ?DJ;HL;DJ?ED *DBO ?< J>;H; ?I C7HA;J ?9> ?I F;H9;?L;: JE 7:L;HI;BO 7\;9J J>; KJ?B?JO ?D:?97JEHI .   &   .   &  7D: .   &  7 .>EM J>7J J>;H; 7H; L7BK;I E<  7D:  J>7J 97D =;D;H7J; 7DO IE9?7B EH:;H?D= E< J>; ?D9EC; 7BBE97J?EDI 5     6     7D: 7     M>;D ;L7BK7J;: 8O J>; IE9?7B M;BEM J>7J J>; ;L7BK7J?ED L?7 J>; KJ?B?J7H?7D IE9?7B M;BE?9; E< J 7D:    J>7J J>; FH;EM  KD:;H J>; IE9?7B M;B; 9ECF7H?IED E< 7BBE97J?EDI KI?D= J>; IKC E< KJ?B?J?;I ?I 7\;9J;: !EH ;N7CFB; ?<    J>;D 0 5   0 6   7D: 0 7   IE J>; H7DA?D= ?I 7 5 6 $<    J>;D 0 5       0 6       IE J>; H7DA?D= E< 5 7D: 6 ?I H;L;HI;:

 J>7J J>; EFJ?C7B 7BBE97J?ED CKIJ 8; +7H;JE;[9?;DJ 2>7J 7IIKCFJ?EDI >7L; OEK FB79;: KFED J>; IE9?7B M;B;H; L   L  9>7H79J;H?P;I 

 J>; ; EFJ?C7B 7BBE97J?ED 8O L    L   /E I>EM J>7J J>; EFJ?C7B 7BBE97J?ED ?I +7H;JE;[9?;DJ

7IIKC; J>7J   ?J ?I DEJ  />;H; ?I J>;D 7D 7BJ;HD7J?L; 7BBE97J?ED 

 I7J?I J>; FHEF;HJO J>7J L    L    8  8   . 8 L 8  ;H;?I 7H=KC;DJ ?J M7I 7IIKC;: J>7J J>; M;B 9EDIKC;H $< J>; M;B7J ?I DEJ  +7H;JE;[9?;DJ -;97BB J>; ; ?D:?\;H;D9; 9KHL;I 7H; 'I>7F;: M?J> 9EHD;HI ED J>;  B?D; />; -7MB I?7D IE9?7B M;B; KJ?B?J7H?7D ,0 M>;D   

JE J>; ;HDEKBB?)7I> ,0 M>;D   7D: JE J>; C7N?C?D-7MBI?7D ,0 M>;D   3098.32  2>;D    J>; M;B ?I J>; KJ?B?J7H?7D IE9?7B M;B IE9?7B M;B7J ; =H7:?;DJ E< J>; ?D:?\;H;D9; 9KHL; E< J>; M;B7J E< J>; ;HDEKBB?)7I> IE9?7B M;B; 97I; E<   />;:;TD?D=  FHEF;HJO E< J>; C7N?C?D-7MBI?7D IE9?7B M;B; IEBKJ?ED CKIJ >7L;  L   L ?< ED; M;H; >?=>;H IEC; 9EDIKCFJ?ED 9EKB: 8; JH7DI; C?D?CKC MEKB: 8; H7?I;: #;D9;      L   L  L  EH L 

 L  

 



!  !!&  !&

x2

α1 > α 2 x

α1 < α 2 x1

x

!?=KH;   (7N?C?D-7MBI?7D 7BBE97J?ED

/>; C7N?C?D-7MBI?7D IEBKJ?ED I>7H;I J>; IJE9A E< =EE: M?J> M;?=>JI 87I;: ED J>; I $<    J>;D 9EDIKC;H  M?BB H;9;?L; J>; =H;7J;H I>7H; 8KJ ?<    9EDIKC;H  M?BB H;9;?L; J>; =H;7J;H I>7H; />?I IEBKJ?ED :E;I DEJ I>7H; J>; =EE: ;GK7BBO 8KJ ;DIKH;I KJ?B?J?;I 7H; ;GK7B?P;: />; IE9?7B ?D:?\;H;D9; 9KHL;I 7H; H?=>J 7D=B;I 8KJ J>; L7BK;I E<  7D:  :;J;HC?D; J>; BE9KI KFED M>?9> J>; 9EHD;HI B?;

EM >EM J>; H;IKBJIE< FH;L?EKI ;N;H9?I; 9>7D=; ?< M; 7IIKC; 7 KJ?B?JO ; ; B;L;B E< IE9?7B M;B 7 KJ?B?J7H?7D IE9?7B M;B?9> IEBL;I JE =?L;







 L  L  



L 





 

 

  L

   

 

 7D: >;D9;

 

L 



  L



   

 

+HEL?:;:   7D:   8EJ> L  7D: L   />; IJH?9J 9ED97L?JO E< J>; ?D:?L?:K7B KJ?B?JO 7J 9EHD;H IEBKJ?EDI 7H; 7LE?:;: />; IE9?7B M;B; ;HDEKBB?)7I> IE9?7B M;B; EFJ?C7B L7BK;I E< L 7D: L 7H; J>;H;; IEBKJ?ED 97D 8; ?9> >7I IEBKJ?ED L 

L  

 

 

!EH J>?I IE9?7B M;B7D=; ?D J>; KJ?B?JO ; EFJ?C7B 7BBE97J?ED 9 />; 7BBE97J?ED C7N?C?P?D= J>; C7N?C?D-7MBI?7D IE9?7B M;B #?9AIW :;TD?J?ED E< ?D9EC; 3098.32   />; #?9AIW :;TD?J?ED E< ?D9EC; ?I F>H7I;: ?D J;HCI E< J>; ;N F;9J;: B;L;B E< 9EDIKCFJ?ED J>7J M?BB B;7L; M;7BJ> KD9>7D=;: />; 9H?J?97B F>H7I; ?D H;B7J?ED JE J>; GK;IJ?ED ?I X;NF;9J Y  BEJJ;HO FH?P; ?I 8O :;TD? J?ED 7 IKHFH?I; IE M?BB DEJ ; :;J;HC?D7J?ED E< J>; ;NF;9J;: B;L;B E< 9EDIKCFJ?ED !EHC7BBO J>; ;NF;9J;: L7BK; E< FH?P; CED;O ; BEJJ;HO I>EKB: 8; ?D9BK:;: ?D ?D9EC; 8KJ J>?I ?I IE IC7BB 7I JE 8; FH79J?97BBO D;=B?=?8B; />; ;N9BKI?ED E< BEJJ;HO FH?P;I ;H; J>; :;TD?J?ED E< #?9AI

; >EKI;>EB: >7L; ?D9EC; & 2?J> FH?9;I D 7D: D J>; 9>E?9; FHE8B;C ; >EKI;>EB: ?I

L 

$) .  #&! #&! L  I J &  D L D L    8

H H  ;DEJ?D= J>; '7=H7D=; CKBJ?FB?;H ED J>; 9EDIJH7?DJ 8O J>; D;9;II7HO 9ED:?J?EDI 7H;  8   D      L 8 7D:

   D    L

 

L D

  L

D

 

D L  D L 

 

?L?:?D= J>; THIJ 8O J>; I;9ED:

EH />?I ?CFB?;I J>7J

D L 

&  

 



!   "!&  #!&

IE >7B< E< ?D9EC; ?I IF;DJ ED ?I 97DDEJ MEHA 7I 7D ;GK?L7B;D9; I97B; I?D9; J>; FHEFEHJ?ED IF;DJ ?I ?D:;F;D:;DJ E< ?D9EC; />; ;N79J ;GK?L7B;D9; I97B; ?I E8J7?D;: 8O E8I;HL?D= L 

&  D

 

L 

&  D

 

7D:

0J?B?JO 7J ?D9EC; & ?I



& & #&! 8D

D

& #&!  8D D

.



.



.EBL?D= J>?I ?I ?I J>; ;N79J ;GK?L7B;DJ ?D9EC; .;J J>; I97B; ; ;N79J ;GK?L7B;D9; I97B; ?I 1  8D D 9+ 1  

 8   

  D D 9+ 8 />; 9>E?9; FHE8B;C ; >EKI;>EB: ?I $) . 

H H 

L  

8



L 

I J &  D L D L 

 

;DEJ?D= J>; '7=H7D=; CKBJ?FB?;H ED J>; 9EDIJH7?DJ 8O J>; D;9;II7HO 9ED:?J?EDI 7H;  L     D      8 8 7D:

  

L   D   

 

?L?:?D= J>; THIJ 8O J>; I;9ED:

L L

 

EH

L  L 8

8  D

 D D

D

 

 

 

 .K8IJ?JKJ?D= ?DJE J>; 8K:=;J 9EDIJH7?DJ &



D L D L



D L D L 8

IE L 





&

D  8 @@

D

D

 

 



 

/>; 8K:=;J I>7H; E< ?I I>7H; ?I ?D9H;7I?D= ?D 8 #EM;L;H ?J ?I ?D:;F;D:;DJ E< & IE ?J 97DDEJ 79J 7I 7D ;GK?L7B;D9; I97B; #EKI;>EB:I M?J> :?\;H;DJ B;L;BI E< ?D9EC; & M?BB IF;D: J>; I7C; I>7H; E< ?D9EC; ED ;O >7L; J>; I7C; ; ;N79J ;GK?L7B;D9; I97B; ?I ; 8K:=;J 9EDIJH7?DJ =?L;I &

D L D L   D  D L D L  8 D



IE L 



&

D 

@ 4 @

 



 

/>; KJ?B?JO B;L;B 7JJ7?D;: 8O J>; >EKI;>EB: ?I .



L  

 



8



L 

     &  & $

% $

% 8 D  8 @ D  4 @@ 

@            % $

%  &  $    

@ 8 D  8 @ D 

@



4 @



!   "!&  #!&

Equivalence scale

Family size !?=KH;  

GK?L7B;D9; I97B;

/>?I 97D 8; IEBL;: ; ;N79J ;GK?L7B;DJ ?D9EC;I &  



4 @ 4 

 



.

  



 @  



 



/E ?BBKIJH7J; J>?I B;J D  D   7D: .   $< J>; ;GK?L7B;D9; I97B; ?I :;TD;: 7I  ; ?CFB?;: I97B; ?I I>EMD ?D T=KH;  

?B:H;D FHEL?:; KJ?B?JO ;?H F7H;DJI I>EM ED 7 :?7=H7C >EM 7D ;GK?L7B;D9; I97B; 97D :;9H;7I; 7I 7J 9>?B:H;D FHEL?:; KJ?B?JO JE J>;?H F7H;DJI J>; ;GK?L7B;D9; I97B; 97D 8; 7 :;9H;7I?D= ; EEI;I J>; 9EDIKCFJ?ED 7BBE97J?ED 7J FE?DJ 5 )EM 7IIKC; J>7J EKJ 7\;9J?D= J>; 8K:=;J 9EDIJH7?DJ 7D: J>7J 9>?B:H;D =?L; KJ?B?JO JE F7H;DJI BJ>EK=> FH;7D=; IK9> 7I CEL?D= JE J>; :7I>;: ?D:?\;H;D9; 9KHL; ?J CKIJ 8; J>; 97I; J>7J KJ?B?JO 7J 5 ?I DEM >?=>;H 9EDIKCFJ?ED >7I DEJ 9>7D=;: 8KJ 9>?B:H;D >7L; 7::;: KJ?B?JO 0J?B?JO ?D9H;7I;I ;H ?< J>; 9EDIKCFJ?ED FB7D ?I H;EFJ?C?P;: JE FE?DJ 6 />; ;II;DJ?7B FE?DJ ?D J>; 7H=KC;DJ 78EL; ?I J>7J J>; 8K:=;J 9EDIJH7?DJ :E;I DEJ 9>7D=; $D J>; 9EDIJHK9J?ED E< IJ7D:7H: ;GK?L7B;D9; I97B;I ?J ?I 9EDIKCFJ?ED F;H ?B:H;D

J>7J ?I C;7IKH;: IE 7::?D= 9>?B:H;D M?BB H;:K9; J>?I ;L;D ?< JEJ7B 9EDIKCFJ?ED 8O J>; 7D=; />?I MEKB: CEL; J>; 8K:=;J 9EDIJH7?DJ ?DM7H:I ?D J>; T=KH; J>KI H;:K9?D= KJ?B?JO ::?D= J>; KJ?B?JO J>7J 9>?B:H;D =?L; C7O

EH C7O DEJ B;7: JE 7 B;L;B 78EL; J>; EH?=?D7B

 J;D F;HIEDI 7 +BEJ J>; 'EH;DP 9KHL; ; ?D9EC; :?IJH?8KJ?ED             8 EDI?:;H 7D ?D9EC; H;:?IJH?8KJ?ED J>7J J7A;I JME KD?JI E< ?D9EC; E< J>; ;IJ 9EDIKC;HI 7D: =?L;I JME KD?JI JE ;79> E< J>; ; 'EH;DP 9KHL; 7=7?D JE :;CEDIJH7J; J>7J ?D;GK7B?JO >7I :;9H;7I;: 9 .>EM J>7J J>; 'EH;DP 9KHL; ; ?D9EC; :?IJH?8KJ?ED            9HEII;I J>; 'EH;DP 9KHL; ; :?IJH?8KJ?ED ?D F7HJ 7 & 8 J>7J J>; JME IE9?7B M;B; ?D9EC; :?IJH?8KJ?EDI ?D F7HJI 7 7D: 9 :?\;H;DJBO 3098.32   7 />; JEJ7B L7BK; E< ?D9EC; ?D J>; FEFKB7J?ED ?I             

 

/>?I ?I KI;: JE 9ECFKJ; J>; THIJ J>H;; 9EBKCDI E< J78B;   +BEJJ?D= J>; J>?H: 9EBKCD 2 7N?I 7=7?DIJ J>; 9EBKCD 1 7N?I FHE:K9;I J>; EKJ;H 'EH;DP 9KHL; ?D T=KH;   8 />; D;M ?D9EC; :?IJH?8KJ?ED ?I             />; :7J7 ?I 7H; =?L;D ?D J78B;   +BEJJ?D= J>; 'EH;DP 9KHL; ?I ?D9EC;



!   "!&  #!&

$D9EC;          

.KC          

+HEFEHJ?ED E< /EJ7B            

+HEFEHJ?ED E< +EFKB7J?ED          

/78B;   7J7 ; ?DD;H 9KHL; H;FH;I;DJI 7 BEM;H :;=H;; E< ?D;GK7B?JO 9 />; :7J7 7H; I>EMD ?D J78B;   ECF7H?D= J>?I M?J> J>; :7J7 ?D J78B;   I>EMI J>7J J>; JME 'EH;DP 9KHL;I 9HEII />; 9KHL; 7J ; JME M;B; ?D9EC; B;L;BI E< 7 FEFKB7J?ED E< " >EKI;>EB:I 8; 7HH7D=;: ?D ?D9H;7I?D= EH:;H IE & ?I J>; BEM;IJ ?D9EC; 7D: &  ?I J>; >?=>;IJ ?D9EC; />; "?D? ! 97D 8; ;NFH;II;: 8O 9EDI?:;H?D= 7BB FEII?8B; F7?HI E< ?D9EC;I 7D: EKJ E< ;79> F7?H I;B;9J?D= J>; C?D?CKC ?D9EC; B;L;B .KCC?D= J>; C?D?CKC ?D9EC; B;L;BI 7D: :?L?:?D= 8O " 

M>;H; ?I J>; C;7D ?D9EC; JE ;DIKH; 7 L7BK; 8;JM;;D  7D:  FHEL?:;I J>; ; ?D:;N >7I J>; L7BK; E<  EB: />; "?D? 9E;[9?;DJ FHEL?:;I 7D KD7C8?=KEKI H7DA?D= E< J>; ?D9EC; :?IJH?8KJ?EDI $J 7=H;;I M?J> J>; H7DA?D= 8O J>; 'EH;DP 9KHL; M>;D J>; 9KHL;I ; 7H;7 8;JM;;D J>; 'EH;DP 9KHL; 7D: J>; :?7=ED7B 7H;7 5 ?D T=KH;   7I 7 FHEFEHJ?ED E< J>; 7H;7 KD:;H J>; :?7=ED7B E< J>; 8EN />; "?D? 97D 8; KI;: JE :;J;HC?D; J>; ?CF79J E< J7N;I 7D: JH7DI; ?D:;N ; ?D9EC; :?IJH?8KJ?ED 8;HEK=> 9 E< ;N;H9?I; ?I9KII J>; L7BK;I E8J7?D;: 3098.32   !EH J>; :7J7 =?L;D "    />; "?D? ?D:;N ?I :;TD;: 8O   

"   & "   &  "   &  &    "

  />; THIJ ?D9EC; :?IJH?8KJ?ED ?I             IE   7D: !

!

 



                               

  



/>; I;9ED: ?D9EC; :?IJH?8KJ?ED ?I             IE   7D: !

 



                              

   



/>; J>?H: ?D9EC; :?IJH?8KJ?ED ?I            IE   7D: !



              







             

 

  

 

/>; "?D? 9E;[9?;DJ FHEL?:;I 7D KD7C8?=KEKI H7DA?D= E< J>; ?D9EC; :?IJH?8K J?EDI $J 7=H;;I M?J> J>; 'EH;DP H7DA?D= M>;D J>; 'EH;DP 9KHL;I :E DEJ 9HEII />; "?D? H7DAI J>; J>?H: ?D9EC; :?IJH?8KJ?ED 7I >7L?D= J>; CEIJ ?D;GK7B?JO ;L;D J>EK=> ?JI 'EH;DP 9KHL; 9HEII;I J>; 9KHL; ; THIJ :?IJH?8KJ?ED

; ;N;H9?I; ; -7MBI?7D IE9?7B M;B; BE=7H?J>C?9 KJ?B?JO ; THIJ ?D9EC; :?IJH?8KJ?ED

   #&! &  #&!  #&!  #&!  #&!  #&!   #&!  #&!  #&!  #&!  #&!      IE =?L?D=

   #&! &   

 

&  9    

 

!EH J>; I;9ED: ?D9EC; :?IJH?8KJ?ED

    #&!  #&!  #&!  #&!    #&! & #&!   #&!  #&!  #&!  #&!  #&!     =?L?D=

 &  9    

 

!EH J>; J>?H: ?D9EC; :?IJH?8KJ?ED

   #&! &  #&!  #&!  #&!  #&!  #&!  #&!  #&!  #&!  #&!  #&!    =?L?D=

&  9   

   

/>; JA?DIED ?D;GK7B?JO C;7IKH; ?I :;TD;: 8O 

& 

 

7B9KB7J?D= J>?I ; J>H;; :?IJH?8KJ?EDI =?L;I 











                   

     

 />; L7BK; E< & M>;D IE9?7B M;B; C?D?CKC ?D9EC; B;L;B />?I =?L;I

&  & &

  

  

     

7D: 











               

     

/>; L7BK; E< J>; ?D;GK7B?JO ?D:;N ?I CK9> 9BEI;H JE  J>; C7N?CKC L7BK; ; -7MBI?7D IE9?7B M;B FHEL?:; J>; I7C; H7DA?D= E< J>; ?D9EC; :?IJH?8KJ?EDI

7J :H7M879AI 7H; J>;H; JE ;B?C?D7J?D= ?D;GK7B?JO 3098.32   />;H; 7H; JME E8L?EKI :H7M879AI JE ;B?C?D7J?D= ?D9EC; ?D ;GK7B?JO !?HIJ J>; 9>7D9; E< ;7HD?D= 7 >?=> ?D9EC; ?I 7D ?D9;DJ?L; JE IKFFBO ;\EHJ 7D: JE KD:;HJ7A; H?IA $< ?D9EC; ?D;GK7B?JO ?I H;CEL;: IE ?I J>; ?D9;DJ?L; JE IJH?L; ?;L; 7 IE9?7BBO ;[9?;DJ EKJ 9EC; .;9ED: >?=> ?D9EC; 7=;DJI 7H; 78B; JE 9EDJH?8KJ; JEM7H: FK8B?9 =EE:I $D J>; 7D7BOI?I E< J>; FH?L7J; 9EDJH?8KJ?ED CE:;B J>; B7H=;H 9EDJH?8KJ?ED ?I 7B M7OI C7:; 8O J>; H?9>;H ?D:?L?:K7B 2?J>EKJ ?D;GK7B?JO 7==H;=7J; M;B?I B7JJ;H FE?DJ ?I ?BBKIJH7J;: 8O J>; ";JJO (KI;KC 7D: J>; 9ED JH?8KJ?EDI JE C;:?97B 9>7H?J?;I 8O ?BB "7J;I $D9EC; ?D;GK7B?JO 7BIE F;HC?JI ;NF;D:?JKH; ED ;NJH7L7=7DJ FHE@;9JI J>7J FHEL?:; FB;7IKH; ; C7DO 9B7II?9 8K?B:?D= 8K?BJ 8O L;HO M;7BJ>O FH?L7J; ?D:?L?:K7BI ; = K9A?D=>7C +7B79; 7D: #7CFJED EKHJ $J ?I DEJ?9;78B; J>7J ;DC7HA

H;DEMD;: 7I 7 :;7HJ> E< D7J?ED7B JH;7IKH;I

EKB: M; 8; 9ED9;HD;: M?J> ?D;GK7B?JO ?< ?J ?I :K; JE :?\;H ;D9;I ?D 78?B?JO 2>7J ?< ?J ?I :K; JE :?\;H;D9;I ?D ;\EHJ B;L;BI 3098.32   />; I7C; 87I?9 H;7IED?D= 7FFB?;I >;H; 7I ?J :E;I JE J>; 7H =KC;DJI 7J 7H; ?D>;H;DJ ?D J>; D7JKH; E< :?\;H;DJ 9EDIKC;HI J>;D J>;H; ?I 7 IJHED= 7H=K C;DJ ?D;GK7B?JO JE 8; IEC;J>?D= J>7J ?J ?I FH;; F7H7C;J;H  C;7IKH;I J>; :;=H;; E< ?D;GK7B?JO 7L;HI?ED I  ?D9H;7I;I J>; JA?DIED ?D:;N M?BB H?I; ; C;7IKH; E< H?IA 7L;HI?ED ?I 7BIE J>; C;7IKH; E< ?D;GK7B?JO 7L;HI?ED  I?CFB; IJEHO 97D 8; =?L;D M>?9> ;NFB7?DI M>O J>;I; 9ED9;FJI 7H; H;B7J;: $C7=?D; 7BB 9EDIKC;HI 7H; M7?J?D= X8;>?D: J>; L;?B E< ?=DEH7D9;Y JE 8; 7BBE97J;: JE 7D ?D9EC; B;L;B />; 9EDIKC;HI ADEM J>; :?IJH?8KJ?ED E< ?D9EC;I 8KJ :E DEJ ADEM M>?9> ?D9EC; J>;O M?BB H;9;?L; !HEC J>?I FEI?J?ED J>; 9EDIKC;HI

 7H; ; CEH; H?IA 7L;HI; J>;O 7H; J>; CEH; J>;O MEKB: FH;7J >7I B?JJB; L7H?7J?ED ?D ?D9EC; $D EJ>;H MEH:I ?< J>;O 7H; H?IA 7L;HI; J>;O :?IB?A; ?D;GK7B?JO $D 7::?J?ED J>; ;GK7BBO :?IJH?8KJ;: ?D9EC; ?I @KIJ J>; 9;HJ7?DJO ;GK?L7B;DJ E< J>; H7D:EC ?D9EC; :?IJH?8KJ?ED

; ; ;\;9J E< 7 TN;: JH7DI; ?D9EC; :?IJH?8KJ?ED 5 E;I J>; "?D? >7L; EJ>;H X:?I7:L7DJ7=;IY 3098.32   />; "?D? 9E;[9?;DJ ?I =?L;D 8O   

"   & "   &  "   &  &   " 

  M>?9> 97D 7BIE 8; MH?JJ;D !

!

   ( "  <   & 8   "

 

8

EDI?:;H 7 JH7DIEB: = JE >EKI;>EB: > M?J> J>; >EKI;>EB:I 9>EI;D IE J>7J & :  & 9 />; 9>7D=; ?D J>; "?D? 9E;[9?;DJ ?I =?L;D 8O !



       "  =   & 9  "  >   & :   " 

       "  =   & 9 "  >   & :    "

.?CFB??I ;NFH;II?ED !  



>  =    " 

 

$D J>; 97I; E< J>; "?D? J>; ;\;9J E< J>; JH7DI; C;7IKH; :;F;D:I EDBO ED J>; BE97J?EDI E< = 7D: > ?D J>; ?D9EC; :?IJH?8KJ?ED !EH ;N7CFB;

7 JH7DIEKI;>EB: 7J FEI?J?ED =   JE J>; >EKI;>EB: 7J FEI?J?ED >   9EKDJI 7I CK9> 7I ED;   $J C?=>J 8; ;NF;9J;: J>7J 7D ?D;GK7B?JO I>EKB: 8; CEH; I;DI?J?L; JE JH7DIEKI;>EB:I BEM ?D J>; ?D9EC; :?IJH?8KJ?ED />; 7H=KC;DJ E< EM;BB ?I 9EHH;9J ?< J>; JH7DIO D;M9EC;H 7HH?L;I ED J>?I ?IB7D: M?J> 7D ?D9EC; E<   #EM :E;I ?J 9>7D=; J>; 'EH;DP 9KHL; 2>7J ?I J>; ?CF79J ED J>; "?D? 9E;[9?;DJ 3098.32   7 />; 'EH;DP 9KHL; ?I FBEJJ;: ?D T=KH;   />; L7BK; E< J>; "?D? 9E;[9?;DJ ?I J>; 7H;7 78EL; J>; 9KHL; 7I 7 FHEFEHJ?ED E< J>; 7H;7 8;BEM J>; :?7=ED7B 'EEA?D= 7J J>; T=KH; =?L;I 7D 7FFHEN?C7J; L7BK; ; "?D? 9E;[9?;DJ E<   />; ;N79J L7BK; E< J>; "?D? 9E;[9?;DJ ?I !

 



                     



 



 

8 />; D;M 'EH;DP 9KHL; ?I FBEJJ;: ?D T=KH;   $J 97D 8; I;;D 8O ?DIF;9J?ED J>7J J>;H; ?I DEM CEH; ?D;GK7B?JO />; "?D? 9E;[9?;DJ 7BIE H?I;I !



                     













 

; 0D?J;: .J7J;I 7L7?B78B; ED J>; M;8I?J; >JJF

MMM 9;DIKI =EL >>;I ?D9EC; >?IJ?D9 >?IJ?D9J8 >JCB .;B;9J #EKI;>EB:I 7D: J>;D /78B; # 7 +BEJ J>; 'EH;DP 9KHL; 9KHL; 2>7J 97D OEK I7O 78EKJ J>; ;LEBKJ?ED E< ?D;GK7B?JO EL;H J?C; 8 7I;: ED OEKH :?7=H7C 97D M; 9ED9BK:; J>7J J>; "?D? 9E;[9?;DJ ?I >?=>;H ?D  EH  NFB7?D >;9A OEKH 7DIM;H 8O 9EDIKBJ?D= /78B; # ED J>; 2;8 I?J;



100 80 60 40 20 0 0

20

40

60

80

100

!?=KH;   'EH;DP 9KHL;

100 90 80 70 60 50 40 30 20 10 0 0

20

40

60

!?=KH;   'EH;DP 9KHL;

80

100



!   "!&  #!&

 E< FEFKB7J?ED     

 E< ?D9EC;  

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



   

.?D=B;    

/ME    

/>H;;    

!EKH    

/78B;   +EL;HJO B?D;I 9E;[9?;DJ E<   ; H;7IED?D= 9 />; :7J7 7H; DEJ IK[9?;DJ JE H;79> 7 9ED9BKI?ED 78EKJ J>; FEI?J?ED E< J>; FEEH />;O >EB: H;B7J?L;BO B;II ?D9EC; 8KJ M; :E DEJ >7L; ?D; H;7B L7BK; E< J>?I ?D9EC; J>;O C7O >7L; 7 IC7BB;H IB?9; E< 7 CK9> B7H=;H F?; /78B; # =?L;I J>; >?=>;IJ ?D9EC; B;L;B ?D ;79> =HEKF $D  J>; >?=>;IJ ?D9EC; M7I ;GK?L7B;DJ JE   ;L7BK7J;: ?D  :EBB7HI 7D: ?D  J>; >?=>;IJ ?D9EC; M7I ;GK?L7B;DJ JE   ;L7BK7J;: ?D  :EBB7HI />; ?D9EC; E< J>; H?9>;IJ C;C8;H E< J>; BEM;IJ ?D9EC; =HEKF >7I H?I;D />?I FHEL?:;I 7 FH;B?C?D7HO IJ;F ?D :;CEDIJH7J?D= J>; FEEH C7O 8; 8;JJ;H E\ ?D  J>7D ?D  ;L;D J>EK=> J>;?H I>7H; E< ?D9EC; >7I EKB: >7L; DE ;\;9J IIKC; J>;H; 7H; JME F;EFB; M?J> ;79> ?D9EC; B;L;B $< J>; JME F;EFB; M?J> ;79> ?D9EC; B;L;B C7HHO J>; :?IJH?8KJ?ED E< ?D9EC; >7I DEJ 9>7D=;: BB J>7J >7I >7FF;D;: ?I J>7J JME ?D:?L?:K7BI >7L; 8;;D 9EC8?D;: ?DJE ED; >EKI;>EB: 8KJ J>; ?D9EC; I>7H; E< ;79> =HEKF H;C7?DI J>; I7C;

;H; 7H; JME I;D?EH 7:L?IEHI JE J>; =EL;HDC;DJ  7D: 

M>E 8EJ> 7=H;; J>7J J>; FEL;HJO B?D; ?I 7J   ;O >7L; :?\;H;DJ ;GK?L7B;D9; I97B;I (H  8;B?;L;I J>7J J>; I97B; EKB: 8;   7::?J?ED7B 7J J>; I97B; EKB: 8;   7 !?D: J>; FEL;HJO B?D; ; I97B; EM (H  7D: (HI  CKIJ >7L; L;HO :?\;H;DJ L?;MI 78EKJ ?D9EC; I>7H?D= M?J>?D 7 IK9> :?\;H;DJ 7DIM;HI 9 .KFFEI; J>; =EL;HDC;DJ ?I 9ECC?JJ;: JE FHEL?:; M;B?I =EL;HDC;DJ M?I>;I JE A;;F JEJ7B IF;D:?D= JE 7 C?D?CKC M>?9> E< J>; JME L?;MI I>EKB: ?J IKFFEHJ 3098.32   7 />; FEL;HJO B?D;I 7H; IKCC7H?P;: ?D J78B;   8 />; 7J (H  7D: (HI  7=H;; ED J>; FEL;HJO B?D; EMI J>7J J>;?H :?L;H=;D9; E< L?;MI :E;I DEJ 9EC; ; 87I?9 :;TD?J?ED E< FEL;HJO 2>;H; J>;O :?\;H ?I ?D J>; 9EIJ E< 7: :?J?ED7B 7J J>;H; 7H; I?=D?T97DJ ;9EDEC?;I E< I97B; ?D 7J ?D9EC; CKIJ 8; I>7H;: ;\;9J?L;BO 7CED= 7J J>; H;JKHDI JE I97B; 7H; CK9> BEM;H IE J>7J J>;H; ?I B;II ?D9EC; I>7H?D= 7CED= J>; 7J ?
; FEEH    ;   !EH J>; THIJ ?D9EC; :?IJH?8KJ?ED E   "    

;   ;   ;   ;   7D: ;   0I?D= J>;I; L7BK;I A

#

 

!@

  



       



 

  

E   & E   &  E   &  & A

E



                  

 

IE ,

 



 

        

 

 

 

 !EH J>; I;9ED: ?D9EC; :?IJH?8KJ?ED E   "    

  ;   ;   ;   ;   ;   7D: ;   0I?D= J>;I; L7BK;I E8J7?DI

#

 

       



 

 !@









 

IE ,

 

 



                 



 

         

 

 

/>; I;9ED: ?D9EC; :?IJH?8KJ?ED H;9EH:I 7 BEM;H L7BK; ; .;D FEL;HJO C;7 IKH; />; 97B9KB7J?EDI H;L;7B J>7J 8EJ> J>; ?D9EC; =7F H7J?E 7D: J>; "?D? ?D:;N 7H; BEM;H 'EEA?D= 7J J>; JME ?D9EC; :?IJH?8KJ?EDI ED; 97D I;; J>7J J>; I;9ED: ?I E8J7?D;: 7BCEIJ 7I 7D ?D;GK7B?JOH;:K9?D= JH7DI; FEEH

; JME ?D9EC; :?IJH?8KJ?EDI ?D ;N;H9?I;   JE ;L7BK7J; J>; !EIJ;H"H;;H/>EH8;9A; FEL;HJO C;7IKH; ; :?IJH?8KJ?EDI JE ;L7BK7J; J>; FEL;HJO C;7IKH; ; JEJ7B FEFKB7J?ED .>EM J>7J J>; C;7IKH; ?I 7 M;?=>J;: IKC E< J>; C;7IKH;I ; ?D:?L?:K7B :?IJH?8KJ?EDI 3098.32   />; !EIJ;H"H;;H/>EH8;9A; FEL;HJO C;7IKH; ?I :;TD;: 8O   A   ( ( ;8  )  " 

N

 

8

M>;H; " ?I J>; JEJ7B FEFKB7J?ED  ?I J>; DKC8;H E< IK8=HEKFI N ?I J>; FEL;HJO B?D; 7D: ;8 J>; ?D9EC; =7F E< F;HIED < ?D =HEKF  2?J> 7 I?D=B; IK8=HEKF 7D:    J>; FEL;HJO C;7IKH; H;:K9;I JE  )  "



A ( ;8 N

 

 

8

L7BK7J?D= ; THIJ ?D9EC; :?IJH?8KJ?ED )

 



         

 

 

L7BK7J?D= ; I;9ED: ?D9EC; :?IJH?8KJ?ED )

 



         



 



!   "!&  #!&

!?D7BBO ; 9EC8?D;: ?D9EC; :?IJH?8KJ?ED )



      



 









      

   

$J 97D 8; I;;D J>7J

 

    

 

IE J>; JEJ7B ?I J>; M;?=>J;: IKC E< J>; JME IK8=HEKF FEL;HJO C;7IKH;I

; +7H;JE :?IJH?8KJ?ED ?I 7 FEFKB7H ; C;7D ?D9EC; ; +7H;JE :?IJH?8KJ?ED ?I L 

H 

8  .>EM  J>7J J>; :?IJH?8KJ?ED 7D=?D= J>; F7H7C;J;H 

L 

9 />; +7H;JE :?IJH?8KJ?ED F7H7C;J;H?P;: 8O  97D ;7I?BO 8; KI;: JE 9ED IJHK9J 7 L;HO I?CFB; ?D;GK7B?JO C;7IKH; M>?9> ?I :;TD;: 7I ; C;7D ?D9EC; E< J>; IK8FEF KB7J?ED E< 7BB ?D9EC; ;7HD;HI M>E >7L; 7D ?D9EC; B7H=;H J>7D L />; H7J?E E<  J>?I C;7D ?D9EC; JE J>; ?D9EC; L ?I =?L;D 8O #  

 7B9KB7J; J>; L7BK;I E< J>?I ?D;GK7B?JO ?D:;N 7J ?I J>; B?C?J?D= L7BK; E< # ?I H;IKBJ : .>EM J>7J J>; 'EH;DP 9KHL; ; +7H;JE :?IJH?8KJ?ED ?I % D      M>;H; D  L 7D: D     2>7J ?I J>; I>7F; E< J>; 9KHL; ; 'EH;DP 9KHL; ; JME 'EH;DP 9KHL;I M?BB D;L;H 9HEII < .>EM J>7J J>; "?D? 9E;[9?;DJ ; +7H;JE :?IJH?8KJ?ED M?J> F7H7C;J;H

 ?I !  

#EM :E;I ?J 9ECF7H; M?J> OEKH 7DIM;H ?D F7HJ ; 

  #

 

 

 

 

 

/78B;   $D;GK7B?JO 7D: J>; L7BK; E<  3098.32   7 />; C;7D ?D9EC; B;L;B ?I =?L;D 8O ) L 



H )

M: M 8M

  ML 8M M H )

L M  8M

  

L







H



M 



H

 L L

 L    



 

8 />; :?IJH?8KJ?ED ; ; L7BK;I E< # 7H; IKCC7H?P;: ?D J78B;   $J 97D 8; I;;D J>7J BEM L7BK;I E<  H;FH;I;DJ =H;7J;H ?D;GK7B?JO 799EH:?D= JE J>?I ?D:;N : J 7D ?D9EC; B;L;B L J>; >EH?PEDJ7B 9EEH:?D7J; E< J>; 'EH;DP 9KHL; ?I J>;



!   "!&  #!&

FHEFEHJ?ED E< FEFKB7J?ED M>E >7L; ?D9EC; B;II J>7D EH ;GK7B JE L />?I ?I ) H : M 8M 8  H

 

L D

 

/>; L;HJ?97B 9EEH:?D7J; ?I J>; FHEFEHJ?ED E< ?D9EC; >;B: 8O J>?I FEFKB7J?ED />?I ?I )  H M: M 8M F  L  H ) H     ML 8M M L  H ) H L  M  8M L  H   H M L  L     H    L L   L    

   L  KJ L  L     IE J>?I H;:K9;I JE    L  L  F  L     L    L O J>; 7J

L    L L J>?I 8;9EC;I .  F      L  .       D  

!EH L;HO B7H=;  J>; J;HC





 

 

 IE F D

 

/>; 9EEH:?D7J;I E< J>; 'EH;DP 9KHL; 7H; J>;H;; 9KHL; ?I 7  B?D; Z J>;H; ?I DE ?D;GK7B?JO ; !EH JME L7BK;I E<  M?J>     J>; 'EH;DP 9KHL;I 7H;

7D:

% D      D   

 

% D      D   

 



Proportion of income

α1 = 5

α2 = 2

Proportion of population !?=KH;   'EH;DP 9KHL;I ;: J>7J ; 9KHL;I 97DDEJ 9HEII $D :;J7?B J>?I ?D;GK7B?JO ?I     D        D   

 

7D9;B?D= J;HCI 7D: J7A?D= J>; BE=7H?J>C E< 8EJ> I?:;I       #&!   D  #&!   D 



 

8KJ #&!   D  IE J>?I ?I ;GK?L7B;DJ JE         



 

M>?9> ?I ?CFB?;: 8O     /ME 'EH;DP 9KHL;I 7H; FBEJJ;: ?D T=KH;   ; 7H;7 KD:;H J>; 'EH;DP 9KHL; IE )

% D8D 6 

)    #;D9;





    D  8D

 

  D  D

        

 



 !   6 

              

 

/>; "?D? 9E;[9?;DJ :;9H;7I;I ?D  IE >7I J>; EFFEI?J; :?H;9J?ED E< 9>7D=; JE # EJ> C;7IKH; ?D;GK7B?JO 8KJ H;GK?H; EFFEI?J; ?DJ;HFH;J7J?EDI

?I FEII?8?B?JO ?DL7B?:7J; FEL;HJO 9ECF7H?IEDI 3098.32   />; ;NFB7D7J?ED 97D 8; ; HEB; E< J>; >;7:9EKDJ ?D FEL;HJO C;7IKH;C;DJ />; ;7I?;IJ 7D: 9>;7F;IJ HEKJ; JE 79>?;L; 7 H;:K9J?ED

 ?D J>; >;7:9EKDJ ?I JE FHEL?:; 7::?J?ED7B H;IEKH9;I JE ?D:?L?:K7BI ED EH @KIJ 8;BEM J>; FEL;HJO B?D; />?I M?BB ?CF79J FEI?J?L;BO ED J>; >;7:9EKDJ 7D: H;:K9; C;7IKH;: FEL;HJO #EM 97D J>?I ?D9H;7I; ?D;GK7B?JO />?I 97D E99KH ?D JME M7OI />; THIJ ?I M>;D J>; H;IEKH9;I KI;: JE H7?I; J>EI; 7J J>; C7H=?D EKJ E< FEL;HJO 7H; J7A;D 7M7O EI; ;L;D ;H ; FEL;HJO B?D; />?I C7A;I L;HO BEM ?D9EC; F;EFB; MEHI; E\ 7D: H7?I;I ?D;GK7B?JO />; I;9ED: ?I 8;97KI; E< J>; :?\;H;DJ M7OI ?D M>?9> J>; JME 7H; C;7IKH;: I 7 I?CFB; ;N7CFB; 7IIKC; 7 FEFKB7J?ED E<  F;EFB; M?J> ?D9EC; :?IJH?8KJ?ED    7D: 7 FEL;HJO B?D; E<  IE J>; >;7:9EKDJ E< FEL;HJO ?I  )EM B;J FEB?9O 9>7D=; J>; ?D9EC; :?IJH?8KJ?ED JE    IE J>; >;7:9EKDJ ?I ?I 7 IK99;II7J H7D=; E< J>; I;9ED: :?IJH?8KJ?ED  ?I =H;7J;H J>7D J>; H7D=; E< J>; THIJ  7D: J>7J J>; L7H?7D9; E< J>; THIJ :?IJH?8KJ?ED ?I   M>?B; J>; L7H?7D9; E< J>; I;9ED: :?IJH?8KJ?ED ?I  $D;GK7B?JO M?BB ?D9H;7I; M>;D C;7IKH;: 8O J>; H7D=; 7D: 7DO ?D;GK7B?JO C;7IKH; 87I;: ED 7 JH7DI; L7H?7D9; IK9> 7I J>; 9E;[9?;DJ E< L7H?7J?ED M?BB 7BIE ?D9H;7I; />;I; E8I;HL7J?EDI :E;I DEJ ?DL7B?:7J; FEL;HJO C;7IKH;C;DJ 8O 7DO C;7DI EJ> FE?DJI C7:; ?BBKIJH7J; J>; ?CFEHJ7D9; E< 9>EEI?D= J>; 9EHH;9J C;7IKH; (EL?D= 8;OED: J>; >;7:9EKDJ 97D ;DIKH; J>7J J>; :?IJH?8KJ?ED E< ?D9EC; 7CED= J>EI; ?D FEL;HJO C7JJ;HI 7D: J>; XJH?9AY M?J> J>; ?D;GK7B?JO C;7IKH;I ?I 7 9EDI;GK;D9; E< ?=DEH?D= J>7J J>; C;7D ?D9EC; >7I ?D9H;7I;:

;H; 7H; J>H;; C;7IKH;I E< ?DJ;H=;D;H7J?ED7B JH7DIC?II?ED E< ?D9EC; />; THIJ C;7IKH; ?I J>; ?DJ;H=;D;H7J?ED7B ;B7IJ?9?JO$" />; H; DEJ?D= J>7J ;7HD?D=I I>EKB: 8; :;TD;: 7D: C;7IKH;: 7I F;HC7D;DJ ;7HD?D=I />?I H7?I;I ?CFEHJ7DJ C;7IKH;C;DJ ?I IK;I />; I;9ED: C;7IKH; E< ?DJ;H=;D;H7J?ED7B JH7DIC?II?ED E< ?D9EC; ?I J>; ?DJ;H=;D;H7J?ED7B 9EHH;B7J?ED $" $"   .  /  799EH:?D= JE M>?9> J>; :?IJH?8KJ?ED E< ?D9EC; ?D 8EJ> =;D;H7J?EDI ?I IJ7D:7H:?P;: 8O ?JI IJ7D:7H: :; L?7J?ED *8L?EKIBO J>; $" ?I ?:;DJ?97B JE J>; $" ?D J>; IJ;7:O IJ7J;I M>;H; J>; IJ7D:7H: :;L?7J?ED E< ?D9EC; :?IJH?8KJ?ED ?I 9EDIJ7DJ EL;H J?C;  .   / />; J>?H: C;7IKH; E< ?DJ;H=;D;H7J?ED7B JH7DIC?II?ED E< ?D9EC; ?I J>; $DJ;H=;D ;H7J?ED7B CE8?B?JO C7JH?N $"( $J =?L;I 7 CEH; 9ECFH;>;DI?L; F?9JKH; E< J>; ?D9EC; CE8?B?JO 79HEII =;D;H7J?EDI EL;H J>; M>EB; :?IJH?8KJ?ED E< ?D9EC; 7D: DEJ EDBO 7HEKD: J>; C;7D ?D9EC; />; 7:L7DJ7=; E< J>?I C;7IKH; ?I JE 97FJKH; J>; ; :H7M879A E< J>?I C;7IKH; ?I



!   "!&  #!&

J>7J ?J ?I B;II IODJ>;J?9 7D: CEH; :7J7 :;C7D:?D= $J ?I M?:;BO KI;: ?D IE9?E BE=?97B IJK:?;I E< IE9?7B CE8?B?JO M?J> GK7B?J7J?L; :7J7 .;; H?AIED - 7D: "EB:J>EHF; % #  $! *)./)/ '03 3"*-  3"*- )%1!-.%/4 -!.. EH H;;D -  *%' *%'%/4 %) 0-*+! 3"*-  3"*- )%1!-.%/4 -!..

; ; ;7HD?D=I E< =;D;H7J?ED H ?D ; >KC7D 97F?J7B E< =;D;H7J?ED H #KC7D 97F?J7B 799KCKB7J?ED ?I =?L;D 8O "9D   #&! #9D  99D  M>;H;  ?I 7 KD?; B78EKH C7HA;J 7I ; 9E;[9?;DJ E< 9EHH;B7J?ED 8;JM;;D #&! 29D 7D: #&! 29D ?D   />?I 97D 8; :ED; KI?D= J>; 3KB;Z27BA;H ;GK7J?EDI I;; ; = D:;HI 2  F        : />;H; ?I DE IJHK9JKH7B ?DJ;HFH;J7J?ED E<  />; :;I9H?FJ?L; 7FF;7B E< J>; CE:;B ?I JE FHEL?:; 7 H;:K9;: ; DEHC7J?L; 7FF;7B E< J>; CE:;B ?I L7=K;BO J>; IF;;: E< H;=H;II?ED JE J>; C;7D />; CE:;B 7BIE ?:;DJ?T;I A;O 7IF;9JI E< ?D J;H=;D;H7J?ED7B JH7DIC?II?ED IK9> 7I ;:K97J?ED7B JH7DIC?II?ED  B78EH C7HA;J  X=;D;J?97BY JH7DIC?II?ED E< 78?B?JO  !EH CEH; 7D7BOI?I ED 97KI7B ;L?:;D9;

I;; B79A 7D: ;L;H;KN  -;;D; .EBED CE:;B :;I9H?8;: ?D J>; FH;L?EKI ;N;H9?I; KI; J>; 9HEIII;9J?ED7B +$. :7J7 ED ;:K97J?ED J;IJ I9EH;I ; 9EKDJHO E< OEKH 9>E?9; J>;?H J;IJ I9EH; 7D: J>;?H .. ?D:;N ? ; J>; ;9EDEC?9 7D: IE9?E9KBJKH7B ?D:;N E< J>;?H F7H;DJ



!   "!&  #!&

7 +BEJ J>; FKF?BI J;IJ I9EH;I 7D: J>;?H .. ?D:;N ECFKJ; J>; H;=H;II?ED B?D; 8 -;=HEKF FKF?BI 8O .. GK7HJ?B; M?J> J>; THIJ GK7HJ?B; H;FH;I;DJ?D= J>;  F;H9;DJ E< FKF?BI M?J> J>; BEM;IJ .. 7D: J>; GK7HJ?B; H;FH;I;DJ?D= J>;  F;H9;DJ E< FKF?BI M?J> J>; >?=>;IJ .. ?D:;N H7M J>; 9KCKB7J?L; :?IJH?8KJ?ED ;9A M>;J>;H J>; THIJEH:;H IJE9>7IJ?9 :EC?D7D9; 9ED:?J?ED ?I I7J?IT;: 3098.32   7 />; 9EKDJHO M; I;B;9J ; 7D7BOI?I ?I ;B=?KC 7D: M; J7A; J>; +$.  J;IJ I9EH;I 2; M?BB DEJ H;FHE:K9; >;H; J>; FBEJ E< FKF?BI +$. I9EH;I 7D: J>;?H .. ?D:;N />?I ?I 8;97KI; J>; DKC8;H E< E8I;HL7J?EDI ?I JEE >?=> JE C7A; J>; FBEJ H;7:78B; 2; M?BB H;=H;II J>; FKF?BI J;IJ I9EH;I ?D +$.  7=7?DIJ J>;?H .. ?D:;N 9EDJHEBB?D= ; I9>EEB B;L;B ..

J>; C?=H7J?ED IJ7JKI 7D: J>; B7D=K7=; IFEA;D 7J >EC; !?HIJ=;D;H7J?ED ?CC? =H7DJI 7D: I;9ED:=;D;H7J?ED ?CC?=H7DJI 7H; H;IF;9J?L;BO :;TD;: 7I FKF?BI J>7J 7H; DEJ 8EHD ?D ;B=?KC 7D: FKF?BI J>7J 7H; 8EHD ?D ;B=?KC 8KJ 7H; 9>?B:H;D E< ?CC?=H7DJI +KF?BI J>7J 7H; THIJ EH I;9ED:=;D;H7J?ED ?CC?=H7DJ 7D: :E DEJ IF;7A J>; I9>EEB B7D=K7=; 7J >EC; 7H; =HEKF;: ?D 7 B7JJ;H 97J;=EHO E< DED D7J?L; FKF?BI />?I CKBJ?B;L;B H;=H;II?ED 7D7BOI?I H;B7J;I J>; J;IJ I9EH; E< FKF?BI JE J>; IE9?7B 9ECFEI?J?ED E< J>; I9>EEB 7D: J>; IE9?E;9EDEC?9 7D: C?=H7J?ED IJ7JKI E< FKF?BI I IJK:;DJI 7H; 9BKIJ;H;: ?D :?\;H;DJ I9>EEBI J>; 7IIKCFJ?ED E< ?D:;F;D:;DJ DE?I; ?I L?EB7J;: $J ?I J>KI D;9;II7HO JE ?D9BK:; I9>EEB L7H?78B;I ?DJE J>; ;CF?H?97B 7D7BOI?I JE E8J7?D KD8?7I;: ;IJ?C7J;I /E 799ECCE:7J; J>; >?;H7H9>?97B 9BKIJ;H?D= E< FKF?BI ?D I9>EEBI M; ?D9BK:; I9>EEB ;\;9JI 7I M;BB 7 IF;9?T9 H7D:EC ?D:?L?:K7B ;\;9J #'( CE:;B M?J> THIJ B;L;B FKF?BI L7H?78B;I 7D: I;9ED: B;L;B I9>EEB L7H?78B;I 2; HKD I;F7H7J; H;=H;II?EDI ; JME 9EC CKD?J?;I !B7D:;HI 7D: !H;D9>IF;7A?D= 9ECCKD?JO />; I7CFB; I?P; ?I  FKF?BI 7D:  I9>EEBI ?D !B7D:;HI 7D:  FKF?BI 7D:  I9>EEBI ?D !H;D9> IF;7A?D= 9ECCKD?JO />; H;=H;II?ED H;IKBJI 7H; H;FHE:K9;: ?D J>; J78B; 8;BEM 2; TD: J>7J FKF?BI .. 7D: I9>EEB .. 7H; I?=D?T97DJBO H;B7J;: JE FKF?BI J;IJ I9EH;I (EH;EL;H C?=H7DJ IJ7JKI ?I 7BIE I?=D?T97DJBO H;B7J;: JE FKF?BI J;IJ I9EH;I IK==;IJ?D= 7::?J?ED7B ;\;9J E< C?=H7J?ED IJ7JKI EL;H J>; .. ;\;9JI 8 2; H;=HEKF FKF?BI 8O .. GK7HJ?B; M?J> J>; THIJ GK7HJ?B; H;FH;I;DJ?D= J>;  F;H9;DJ E< FKF?BI M?J> J>; BEM;IJ .. 7D: J>; GK7HJ?B; H;FH;I;DJ?D= J>;  F;H9;DJ E< FKF?BI M?J> J>; >?=>;IJ .. ?D:;N 2; :H7M J>; 9KCKB7J?L; :?IJH?8KJ?ED IF;7A?D= 9ECCKD?JO />;O 7H; H;FH;I;DJ;: 8;BEM $J ?I ;7I?BO I;;D J>7J J>; THIJEH:;H IJE9>7IJ?9 :EC?D7D9; 9ED:?J?ED ?I I7J?IT;: ?D 8EJ> 9ECCKD?J?;I I?D9; J>; KFF;H GK7HJ?B;I >7L; 7 9KCKB7J?L; :?IJH?8KJ?ED ;H; 8;BEM J>; BEM;H GK7HJ?B;I



Variable

Flanders

French-sp. comm.

Flanders

French-sp. comm.

ESCS of pupil

0:136 (4:84) 1:786 (13:96)

0:146 (3:19) 1:742 (12:86)

19:593 (293:27) 5033:719

18:770 (213:46) 2437:750

0:114 (4:30) 1:735 (13:49) 0:413 ( 2:60) 0:509 ( 3:04) 0:515 ( 3:31) 19:654 (309:23) 4997:498

0:110 (2:45) 1:658 (13:06) 0:284 ( 2:73) 0:349 ( 2:88) 0:488 ( 2:83) 18:857 (212:34) 2417:368

61:060% 0:670% 3430 238

59:130% 0:841% 1517 141

61:060% 2:824% 3430 238

58:342% 3:806% 1517 141

Sub-school average ESCS First-generation immigrant Second-generation immigrant Immigrant that does not speak o¢ cial Belgian language at home Constant Log likelihood Variation explained: Between sub-schools Within sub-schools Number of level 1 units Number of level 2 units

Table 14.7: Inequality: a multilevel regression approach. Dependent variable: …rst principal component of …rst plausible value of test scores in reading, math and science

Figure 14.11: Distribution of PISA 2006 test scores by ESCS quartile (Belgium: Flanders)



!   "!&  #!&

Figure 14.12: Distribution of PISA 2006 test scores by ESCS quartile(Belgium: French-speaking community)

&68 #

!$!

-&48*6 

3113).8= !&J BEII E< ?DJHE:K9?D= 7 9ECCE:?JO J7N H M>;D J>; C7H=?D7B 9EIJ E< FHE:K9 J?ED ?I 9EDIJ7DJ 7J 7 #EM ?I J>; :;7:M;?=>J BEII 7\;9J;: 8O 9>7D=;I ?D 5 7D: 6 #EM :E;I 7 9>7D=; ?D 6 7\;9J J>; ;B7IJ?9?JO E< :;C7D: 7J ;GK?B?8H?KC M?J>EKJ J7N7J?ED 3098.32   />; :;7:M;?=>J BEII ?I ?BBKIJH7J;: ?D T=KH;   />; ?D?J?7B FH?9; M?J>EKJ J7N7J?ED ?I ;GK7B JE C7H=?D7B 9EIJ IE J>; B;L;B E< :;C7D: ?I L

  567 2?J> J7N7J?ED J>; FH?9; H?I;I JE 7 H 7D: :;C7D: ; ; 7H;7 E< J>; :;7:M;?=>J BEII JH?7D=B; ?I J>;H;7D=; ?D 5 :E;I DEJ 7\;9J :;7:M;?=>J BEII D ?D9H;7I; ?D 6 ?D9H;7I;I :;7: M;?=>J BEII J J>; ?D?J?7B ;GK?B?8H?KC J>; ;B7IJ?9?JO E< :;C7D: ?I 

67 D 8L   L 8D 5  67

 

D ?D9H;7I; ?D 6 ?D9H;7I;I J>; 78IEBKJ; L7BK; E<  IE :;C7D: 8;9EC;I CEH; ;B7IJ?9 />?I ?I M>O 7D ?D9H;7I; ?D 6 H7?I;I J>; :;7:M;?=>J BEII $J 97D 8; I;;D ; T=KH; J>7J 9>7D=?D= 5 J>; L;HJ?97B ?DJ;H9;FJ E< :;C7D: M?BB DEJ 9>7D=; J>; :;7:M;?=>J BEII ?J CEL;I L H 7D: L

 B;J 8KJ J>; I?P; E< J>; :;7:M;?=>J BEII JH?7D=B; ?I KD9>7D=;: #EM;L;H ?J :E;I 7\;9J J>; ;B7IJ?9?JO />?I I>EMI J>7J J>; ;B7IJ?9?JO ?I ?CFEHJ7DJ J BEII 8KJ ?I DEJ J>; EDBO :;J;HC?D7DJ

; :;C7D: ; J7N ?D9?:;D9; 



!   !& !%!

Price

DWL

c+t c

x(t ) x(0 )

Quantity

!?=KH;   ;7:M;?=>J BEII

8 D 7: L7BEH;C J7N 7J 7 H7J; E< H   ?I ?DJHE:K9;: ;J;HC?D; J>; J7N ?D9?:;D9; 9 #EM :E J>; ?D9?:;D9; E< J>; IF;9?T9 J7N 7D: J>; 7: L7BEH;C J7N :?\;H ?< IKFFBO ?I =?L;D 8O 2  )  3098.32   !?HIJ M; D;;: JE 97B9KB7J; J>; ;GK?B?8H?KC FH?9; 7D: GK7DJ?JO M?J>EKJ J7N $D J>; THIJ 97I; M?J> J>; F;H; ;GK?B?8H?KC FH?9; ?I )   7D: J>; ;GK?B?8H?KC GK7DJ?JO ?I 1         $D J>; I;9ED: 97I; M?J> J>; IKFFBO =?L;D 8O 2  ) J>; ;GK?B?8H?KC FH?9; ?I :;J;HC?D;: 8O   )



)

)



 

7D: J>; ;GK?B?8H?KC GK7DJ?JO ?I 1   ? ; J>; I7C; 7I ?D J>; THIJ 97I; 7 .?D9; J>; IKFFBO ?I F;H; FH?9; H;9;?L;: 8O J>; I;BB;H :E;I DEJ 9>7D=; ) )   />; FH?9; F7?: 8O J>; 8KO;H )  I7J?IT;I  1    )   )   ) )   />?I =?L;I )    7D: 1   />; J7N H;L;DK; ?I =?L;D 8O - +        7D: J>; J7N ?D9?:;D9; ?I ; 8KO;H

 8 I ?D F7HJ 7 J>; FH?9; H;9;?L;: 8O J>; I;BB;H ?I ) )   />; FH?9; F7?: 8O J>; 8KO;H )  I7J?IT;I  1    )   )   ) )  />?I =?L;I )    7D: 1   />; J7N H;L;DK; ?I J>; I7C; 7I ?D F7HJ 7

7D: J>; J7N ?D9?:;D9; 7=7?D ?I ; 8KO;H 9 !EH J>; IF;9?T9 J7N J>; I;BB;HWI FH?9; 7D: J>; 8KO;HWI FH?9; IEBL; J>; ; ;GK?B?8H?KC FH?9; 2>7J ?I J>; ;\;9J ED J>;

?< 4  C    ;I9H?8; ;GK?B?8H?KC FH?9; E< J>; ?DJHE:K9J?ED E< 7 J7N H  >EM J>; ?D9?:;D9; E< J>; J7N ?I :?L?:;: 8;JM;;D 9EDIKC;HI 7D: IKFFB?;HI



!   !& !%!

3098.32   />; ;GK?B?8H?KC FH?9; ;GK7J;I IKFFBO 7D: :;C7D: D  D" 

 

M>?9> ?CFB?;I J>7J D  

?I ?DJHE:K9;: 7D: J>; B;=7B ?D9?:;D9; ; IIKC; 7 J7N E< H  FHE:K9;HI #;D9; J>; FHE:K9;HI H;C?J 7CEKDJ H JE J>; J7N 7KJ>EH?JO KD?J E< J>; =EE: IEB: />; D;M ;GK?B?8H?KC FH?9; I7J?IT;I D   D  H





 

EH 7 I?:;I

  D D H 

 

 1  H

H   

 

/>; IEBKJ?ED JE J>?I ;GK7J?ED ?I D

1 />; 9EDIKC;HI ; FH?9; J>;O F7O ; 9EDIKC;HI 7D: FHE:K9;HI />; ?D9H;7I; ?D J>; 9EDIKC;H FH?9; ;N9;;:I J>; :;9H;7I; ?D J>; FHE:K9;H FH?9;

; 7D7BOI?I E< J7N7J?ED ?D J>; I?D=B;9EDIKC;H ;9EDECO KI;: B78EH 7I 7D KDJ7N;: DKC]H7?H; .>EM J>7J J>; EFJ?C7B 7BBE97J?ED M?J> 9EC CE:?JO J7N7J?ED ?I KD9>7D=;: M>;D J>; 9EDIKCFJ?ED =EE: 8;9EC;I J>; KDJ7N;: DKC]H7?H; />;D ;IJ78B?I> J>7J ?J :E;I DEJ C7JJ;H M>?9> =EE: ?I DKC]H7?H; 7D: M>?9> ?I J7N;: 3098.32   />; EFJ?C7B 7BBE97J?ED ?I :;TD;: 8O J>; ?DJ;HI;9J?ED E< J>; E\;H 9KHL; 7D: J>; FHE:K9J?ED I;J />?I 9EDIJHK9J?ED ?I ?D:;F;D:;DJ E< J>; DEHC7B ?P7J?ED 7FFB?;: JE FH?9;I />; 9EDIJHK9J?ED E< J>; EFJ?C7B J7N ED B78EH M>;D 9EDIKCFJ?ED ?I J>; KDJ7N;: DKC]H7?H; ?I ?BBKIJH7J;: ?D T=KH;   />; EFJ? CKC ?I 7J FE?DJ 9 ED ?D:?\;H;D9; 9KHL; # />; FH?9;I ?D J>; 78I;D9; E< J7N7J?ED 7H; K   +E?DJ 9 ?I 79>?;L;: 8O J7N?D= B78EH IE J>7J J>; 9EDIKC;H FH?9; E< B78EH 8;9EC;I KD M>;H; KD  K  H 7D: J>; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ

K  H 4  L +E?DJ 9 ?I J>; EFJ?C7B 7BBE97J?ED H;=7H:B;II E< M>;J>;H 9EDIKCF J?ED EH B78EH ?I J>; DKC]H7?H; IE ?J ?I ;IJ78B?I>;: J>7J ?J :E;I DEJ C7JJ;H M>?9> =EE: ?I J7N;:

; 17BK; ::;: /7N IOIJ;C H;GK?H;I 7BB =EE:I JE 8; IEB: 7J 7 FH?9; M>?9> ?D9BK:;I J7N DO THC FKH9>7I?D= 7 =EE: JE KI; 7I 7D ?DFKJ 97D H;9B7?C J>; J7N ?J >7I F7?: II;II J>?I J7N IJHK9JKH; KI?D= J>; ?7CED:(?HHB;;I +HE:K9J?ED [9?;D9O ';CC7



Good 2 (consumption)

e Y

I0 -R

1

wt

w0 Good 1 (labor)

!?=KH;   *FJ?C7B J7N ED B78EH

3098.32   />; ?7CED:(?HHB;;I +HE:K9J?ED [9?;D9O ';CC7 IJ7J;I J>7J J>; EFJ?CKC 7BBE97J?ED M?J> 9ECCE:?JO J7N;I CKIJ 8; ED J>; ; FHE:K9J?ED I;J />?I ?CFB?;I J>7J FHE:K9;H FH?9;I CKIJ DEJ 8; :?IJEHJ;: 8O J7N 7J?ED IE J7N;I ED ?DJ;HC;:?7J; =EE:I I>EKB: DEJ 8; ;CFBEO;: />; 1/ IOIJ;C 7BBEMI THCI JE H;9B7?C J7N;I F7?: ED ?DFKJI IE EDBO TD7B 9EDIKCFJ?ED ?I J7N;: 1/ :E;I DEJ ?DLEBL; J>; J7N7J?ED E< ?DJ;HC;:?7J; =EE:I IE ?J ?I ?D 7=H;;C;DJ M?J> J>; ?7CED:(?HHB;;I B;CC7

 7 I?D=B; 9EDIKC;H M>EI; FH;;H; L ?I 9EDIKCFJ?ED 7D: 4 B78EH IKFFBO IIKC; J>; 9EDIKCFJ?ED =EE: ?I FHE:K9;: KI?D= B78EH 7BED; M?J> 7 9EDIJ7DJH;JKHDIJE I97B; J;9>DEBE=O 0D?JI E< C;7IKH;C;DJ 7H; 9>EI;D IE J>7J J>; FHE:K9;H FH?9;I E< 8EJ> J>; 9EDIKCFJ?ED =EE: 7D: J>; M7=; H7J; 7H; ;GK7B JE  7 ';J J>; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ 8; EL  4 M>;H; J>; 9EDIKC;H FH?9; ?I E   H 7D: H ?I J>; 9ECCE:?JO J7N O C7N?C?P?D= KJ?B?JO TD: J>; :;C7D: ; B78EKH IKFFBO ; H;L;DK; H;GK?H;C;DJ E< J>; =EL;HDC;DJ ?I  E< 7 KD?J E< B78EKH H7M J>; FHE:K9J?ED FEII?8?B?J?;I ; ;9EDECO 7D: J>; 9EDIKC;HWI E\;H 9KHL; 9 O KI?D= J>; E\;H 9KHL; 7D: J>; FHE:K9J?ED FEII?8?B?J?;I I>EM J>7J J>;  7D: 4   EFJ?C7B 7BBE97J?ED M?J> 9ECCE:?JO J7N7J?ED >7I L 



!   !& !%!

Good 2 (consumption) Offer curve

Y

−1

−

Good 1 (labor)

1 10

!?=KH;   *\;H 9KHL; 7D: FHE:K9J?ED FEII?8?B?J?;I

: 7B9KB7J; J>; EFJ?C7B 9ECCE:?JO J7N ; O :;H?L?D= J>; THIJ8;IJ 7BBE97J?ED I>EM J>7J J>; 9ECCE:?JO J7N EFJ? CKC ?I I;9ED:8;IJ 3098.32   7 />; 9EDIKC;HWI EFJ?C?P7J?ED FHE8B;C ?I $) .  #&! L  4 I J EL  4

H0

.EBL?D= J>?I EFJ?C?P7J?ED

  E

 

4  

 

L 7D:

 

8 />; 7J FHE:K9;H FH?9;I 97D 8EJ> 8; C7:; ;GK7B JE  ?CFB?;I J>7J ED; KD?J E< B78EH FHE:K9;I  KD?J E< J>; 9EDIKCFJ?ED =EE: />; FHE:K9J?ED 9EDIJH7?DJ ?I :?IFB79;: ; EH?=?D 8O J>; H;L;DK; H;GK?H;C;DJ E<  E< 7 KD?J E< B78EH />; 9EDIKC;H FHEL?:;I  KD?J E< B78EH H;=7H:B;II E< J>; 9EDIKC;H FH?9; E />; E\;H 9KHL; ?I J>;H;?I ?I I>EMD ?D T=KH;  

E< 7 KD?J 9 />; 9EDIKC;H IKFFB?;I  KD?J E< B78EH />; =EL;HDC;DJ 9B7?CI  ?D J7N7J?ED />?I B;7L;I JE 8; KI;: ?D FHE:K9J?ED IE =?L;D J>; FHE:K9J?ED  J;9>DEBE=O EKJFKJ CKIJ 8;

 : />; :;C7D: ; EFJ?CKC L  FHE:K9;H FH?9; ?I D   IE HED

     





IE E 

 

/>;

 

; />; THIJ8;IJ 7BBE97J?ED H;CEL;I E< 7 KD?J E< B78EH 7I 7 BKCFIKC J7N />?I C7A;I J>; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ

L4

  

IE J>; THIJ8;IJ ?I 9>7H79J;H?P;: 8O J>; EFJ?C?P7J?ED

  4 $) .  #&! 4  

0 />; D;9;II7HO 9ED:?J?ED ?I

IE



    4 

 

 

  

 

L  

 

4 7D:

 

7L; ?D9EC;I E<   7D:  

H;IF;9J?L;BO  7D:  9EDIKC; J>; I7C; 8KD:B; E< =EE:I M?J> 7 9EIJ ?D9BK: ?D= J7N E<   />; EDBO J7N ?D J>; ;9EDECO ?I 7 9ECCE:?JO J7N B;L?;: KD?7J FHEFEHJ?ED E< ?D9EC; ?I F7?: ?D J7N 8O  7D:  8 2>7J ?CFB?97J?EDI :E;I IK9> 7 J7N >7L; ?D J;HCI E< ;GK?JO 9 $I J>;H; 7DO M7O J>; 9ECCE:?JO J7N 97D 8; H;IJHK9JKH;: JE ?CFHEL; ?JI ;GK?JO FHEF;HJ?;I   3098.32   7 />; 8;; 8KD:B; E< =EE:I ?I     

/>;H;; 7; 7CEKDJ E<  



    E< J>;?H ?D9EC; ?D J7N EDIKC;H

  

EDIKC;H  F7OI 



 F7OI    E< J>;?H ?D9EC; ?D J7N 8 />?I J7N ?I H;=H;II?L; 7I J>; >?=>;H ?D9EC; 9EDIKC;H F7OI 7 BEM;H FHE FEHJ?ED E< J>;?H ?D9EC; ?D J7N 9ECF7H;: JE J>; BEM;H ?D9EC; 9EDIKC;H />KI

?J B;7:I JE 7 >?=>;H ?D;GK7B?JO 9 />; 9EDIKC;HI FKH9>7I; J>; I7C; 8KD:B; E< =EE:I 7J 9KHH;DJ FH?9;I 8KJ J>?I :E;I DEJ C;7D J>;O M?BB 9EDJ?DK; JE FKH9>7I; J>; I7C; 8KD:B; ?< FH?9;I M;H; JE 9>7D=; />; ;GK?JO EKJ9EC; M?BB 8; ?CFHEL;: ?< 7 H;L?I?ED E< J>; J7N H7J;I 97D ?D9H;7I; J>; H;B7J?L; 8KH:;D ED J>; >?=>?D9EC; 9EDIKC;H M>?B; A;;F?D= H;L;DK;



!   !& !%!

9EDIJ7DJ />?I M?BB 8; FEII?8B; FHEL?:;: J>; 9EDIKC;H  7D: 9EDIKC;H  >7L; :?\;H;DJ ;B7IJ?9?J?;I E< :;C7D: ; J7N H7J; I>EKB: 8; H;:K9;: ED J>; =EE: J>7J ?I CEH; ?D;B7IJ?9 ; =EE: J>7J ?I CEH; ?D;B7IJ?9 ?9> ?I FHE:K9;: KI?D= B78EH I>EM J>7J 7J J>; EFJ?C7B 7BBE97J?ED M?J> 9ECCE:?JO J7N7J?ED J7N H;L;DK; HL ?I ;GK7B JE J>; =EL;HDC;DJ KI; E< B78EH + 3098.32   />; FHE:K9;H FH?9;I 7H; I;J JE ;DIKH; J>7J J>; B;L;B E< FHETJ ?I P;HE ;DEJ; J>; GK7DJ?JO E< B78EH KI;: ?D FHE:K9J?ED 8O 4@ 7D: 7IIKC; J>7J B78EH ?I J>; KDJ7N;: DKC]H7?H; />; P;HE FHETJ 9ED:?J?ED 97D 8; MH?JJ;D DL  4@  

 

/>; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ ?I 4  EL  D H L

 

4  4@ HL

 

HL  4  4@  +

 

KJ DL  K4@ IE M>?9> 97D 8; H;7HH7D=;: JE =?L;

7J J>; FHE:K9J?ED J;9>DEBE=O ?I IK9> J>7J ;79> KD?J E< EKJFKJ H;GK?H;I ED; KD?J E< B78EH 7D: J>7J J>; =EL;HDC;DJ >7I 7 H;L;DK; H;GK?H;C;DJ E< ED; KD?J E< B78EH BIE 7IIKC; J>7J J>;H; ?I 7 I?D=B; 9EDIKC;H 7 0I?D= 7 :?7=H7C :;I9H?8; >EM J>; EFJ?C7B J7N ED J>; 9EDIKCFJ?ED =EE: ?I :;J;HC?D;: )EM 7IIKC; J>7J J>; 9EDIKC;H >7I FH;;H; L ?I 9EDIKCFJ?ED 7D: 4 4   ?I B78EH IKFFBO 8 O C7N?C?P?D= KJ?B?JO IK8@;9J JE J>; 8K:=;J 9EDIJH7?DJ EL K4   9EDIJHK9J J>; 9EDIKC;HWI E\;H 9KHL; 9 /H;7J?D= J>; ;GK7J?EDI E< J>; FHE:K9J?ED ; E\;H 9KHL; 7I 7 I?CKBJ7D;EKI IOIJ;C :;J;HC?D; J>; EFJ?C7B J7N H7J; 3098.32   7 />; 7DIM;H ?I ?BBKIJH7J;: 8O T=KH;   />; FHE:K9J?ED I;J E< J>; THC ?I :?IFB79;: ; EH?=?D 8O J>; =EL;HDC;DJ H;L;DK; H;GK?H;C;DJ />; FHE:K9;H FH?9;I 7H; :;J;HC?D;: 8O 9ECF;J?J?ED ;DIKH?D= P;HE FHETJ ; THCI />?I C7A;I J>; FHE:K9;H FH?9;I EHJ>E=ED7B JE J>; FHE:K9J?ED I;J IIKC; B78EH ?I J>; KDJ7N;: DKC]H7?H; />; E\;H 9KHL; ?I 9EDIJHK9J;: 7I J>; BE9KI E< 9EDIKC;H 9>E?9;I 7I J>; 9EDIKC;H FH?9; E< J>; 9EDIKCFJ?ED =EE: ?I L7H?;: />;



Good 2 (consumption)

q

e

I0

Y

-R

t* p

1

Good 1 (labor)

!?=KH;   *FJ?C7B 9ECCE:?JO J7N7J?ED

EFJ?C7B 7BBE97J?ED ?I M>;H; J>; E\;H 9KHL; C;;JI J>; 8EKD:7HO E< J>; FHE:K9J?ED I;J />; ?D:?\;H;D9; 9KHL; J>HEK=> J>?I FE?DJ :;J;HC?D;I J>; 8K:=;J 9EDIJH7?DJ J>; 9EDIKC;H CKIJ 8; E\;H;: 7D: J>; 9EDIKC;H FH?9;I 7H; EHJ>E=ED7B JE J>?I 8K:=;J 9EDIJH7?DJ />; EFJ?C7B J7N ED J>; 9EDIKCFJ?ED =EE: ?I J>; :?\;H;D9; 8;JM;;D J>?I 9EDIKC;H FH?9; 7D: J>; FHE:K9;H FH?9; 8 !HEC J>; 8K:=;J 9EDIJH7?DJ 4  EL 0J?B?JO 97D J>; 8; MH?JJ;D 7I .  #&! L #&!   EL  (7N?C?P?D= J>?I J>; EFJ?C7B L7BK; E< L ?I L  A

 7D: >;D9; 4   />; E\;H 9KHL; ?I J>;D ?CFB?9?JBO :;I9H?8;: 8O  A 9 />; H;L;DK; H;GK?H;C;DJ ?CFB?;I J>7J J>; FHE:K9J?ED HEK=> J>; FE?DJ   7D: J>;H;7I ;GK7J?ED M    4 M>;H; M ?I FHE:K9J?ED 2?J> 4   FHE:K9J?ED ?I M   $D ;GK?B?8H?KC L  M IE   A =?L?D= E   />; FHE:K9;H FH?9; E< EKJFKJ CKIJ 8; D   IE J>; EFJ?C7B J7N ?I H  

7I 7 I?D=B; 9EDIKCFJ?ED =EE: FHE:K9;: KI?D= B78EH 7D: 7 I?D=B; 9EDIKC;H />; FHE:K9J?ED FHE9;II >7I :;9H;7I?D= H;JKHDI JE I97B; NFB7?D J>; :;H?L7J?ED E< J>; EFJ?C7B 9ECCE:?JO J7N M>;D FHETJ ?I DEJ J7N;: 3098.32   />; 9EDI;GK;D9; E< :;9H;7I?D= H;JKHDI ?I J>7J J>; 9EDIKC;H H;9;?L;I FHETJ ?D9EC; ; THC />; B;L;B E< FHETJ ?I :;F;D:;DJ ED FHE:K9;H



!   !& !%!

FH?9;I IE J>; 8K:=;J 9EDIJH7?DJ E< J>; 9EDIKC;H ?I 7\;9J;: 8O 8EJ> FHE:K9;H 7D: 9EDIKC;H FH?9;I />?I 97D 8; I;;D 8O MH?J?D= EL  K4  D K 

 

/>;H; ?I DE BED=;H ?D:;F;D:;D9; 8;JM;;D J>; FHE:K9J?ED 7D: 9EDIKCFJ?ED I;9 JEHI />; IEBKJ?ED FHE9;:KH; ?I 7I ;D   L L  M M>;H; L ?I =EL;HDC;DJ :;C7D: 7D: M ?I EKJFKJ 7D: ;GK?B?8H?KC ?D J>; B78EH C7HA;J H;GK?H;I   44 4  4 M>;H; 44 ?I B78EH :;C7D: ; 9EDIKC;H :;C7D: ; FHE:K9J?ED ; M7=; H7J; ?I DEHC7B?P;: 7J  FHETJ 97D 8; ;NFH;II;: 7I    

 D: 44  44  7D: J>; D;9;II7HO 9ED:?J?ED ; B;L;B E< FHETJ CKIJ 8; ;GK7B JE    

 D L E  L  4 E   4 

 

 

"?L;D J>; L7BK;I E< L 7D: 4 M>?9> H;FH;I;DJ J>; =EL;HDC;DJ H;L;DK; H;GK?H; C;DJ ?D H;7B J;HCI ;GK7J?EDI   7D:   97D 8; IEBL;: JE MH?J; D  D E 7D:  E IE FHE:K9;H FH?9;I 7D: FHETJ 97D 8; MH?JJ;D 7I ; 9EDIKC;H FH?9; 0J?B?JO ?I J>;D C7N?C?P;: 8O 9>E?9; E< E J7A?D= J>; C7HA;J ;GK?B?8H?KC 9ED:?J?EDI 7I 9EDIJH7?DJI

; KJ?B?JO EM J>7J J>; FH?9; ;B7IJ?9?JO E< :;C7D: 9ECCE:?J?;I ?I ;GK7B JE  8 .;JJ?D= FHE:K9;H FH?9;I 7J D  D   I>EM J>7J J>; ?DL;HI; ;B7IJ?9?JO HKB; ?CFB?;I DD  AA 9 ';JJ?D= K  

7D:     97B9KB7J; J>; J7N H7J;I H;GK?H;: JE 79>?;L; H;L;DK; E< +   3098.32   7 />; 9EDIKC;HWI :;C7D:I IEBL; $)  #&! L  #&! L  4 I J K4  E L E L 

H H 0

 

 EH

$)  #&! L  #&! L 

H H 

E

E L  L  K K

 

GK7J?D= J>; F7HJ?7B :;H?L7J?L;I JE P;HE =?L;I  E  E     L

K L K

 

K K  L  E

E

 

/>; :;C7D:I 7H; J>;H;; ;B7IJ?9?JO E< :;C7D: ?I :;TD;: 8O 49 

8L9 E9  8E9 L9

 

7B9KB7J?D= J>?I ; 97B9KB7J?ED ?I ?:;DJ?97B ; ?DL;HI; ;B7IJ?9?JO HKB; IJ7J;I J>7J

#;D9;

H9     =     H9 49

 

H 4 H 4        H

 H 

 

KJ 49   7D:  H9  E9  IE H

H   E

E

 

-;7HH7D=?D= FHE:K9;I J>; H;GK?H;: H;IKBJ 9 -;L;DK; ?I :;TD;: 8O +  H L H L 

 

0I?D= J>; IEBKJ?EDI ; :;C7D:I K K H  E

E

 

H H K K E E

 

+  H

.?D9; H 

A D A 

J>?I 8;9EC;I +



!   !& !%!

!?D7BBO I?D9;     +   7D: K  

 J>; EFJ?C7B J7N ED =EE:  IEBL;I   M>?9> >7I IEBKJ?ED H 





H   H

 

7D: >;D9; H   





;-?DL;HI; . ;B7IJ?9?JO . HKB; JE I>EM J>7J J>;

   EFJ?C7B J7N H7J;I 7H; H;B7J;: 8O D   

 D 9 .;JJ?D= K  

   7D:    TD: J>; J7N H7J;I H;GK?H;: JE 79>?;L; H;L;DK; E< +   7D: +   : 7B9KB7J; J>; FHEFEHJ?ED7B H;:K9J?ED ?D :;C7D: ; JME =EE:I 9EC F7H?D= J>; DEJ7N FEI?J?ED M?J> J>; FEI?J?ED 7; EFJ?C7B J7N;I H;L;DK; B;L;BI ECC;DJ ED J>; H;IKBJI 3098.32   7 .K8IJ?JKJ?D= ; KJ?B?JO ; D;9;II7HO 9ED:?J?ED ; 9>E?9; E< =EE: = =    ?I 

9 L9  .EBL?D= J>?I =?L;I

L9 



9 K E9

E9   K 







 

 

7I H;GK?H;: 8 />; THIJ IJ;F ?I JE 97B9KB7J; J>; FH?9; ;B7IJ?9?JO !HEC  

49  

    9

 

2?J> D  D   J>; ?DL;HI; ;B7IJ?9?JO HKB; 97D 8; KI;: JE MH?J; I;;  

EH

H 4 H 4      H

 H 

 

 H 4  H 4     H

H 

 



+ +   +  

L

  

  

L   

  

/78B;   -;:K9J?EDI ?D :;C7D: .K8IJ?JKJ?D= ; ;B7IJ?9?J?;I 7D: H;7HH7D=?D=      

           H H

 

!HEC J>?I ; H;GK?H;: 7DIM;H    

       H        H

 

9 0I?D= J>; F7H7C;J;H L7BK;I =?L;D        H H

IE H 

D

 

  

 

/KHD?D= JE J>; H;L;DK; 9EDIJH7?DJ +

H L H L



  K   K   H

H  H

 H







  H

H  H

 H  

  $  %  H



  H

  

D  



 

#

+BEJJ?D= H;L;DK; 7=7?DIJ J>; J7N H7J; =?L;I T=KH;   )EJ; >EM J>?I 9KHL; >7I J>; '7\;H FHEF;HJO J>;H; ?I 7 C7N?CKC B;L;B E< H;L;DK; 7J 7FFHEN?C7J;BO H 

 7?9> >?=>;H J7N;I B;7: JE BEM;H H;L;DK; !EH +   J>; IEBKJ?ED ?I H  

 H  

 7D: ; IEBKJ?ED ?I H   H   : />; :;C7D: B;L;BI 7D: J>; F;H9;DJ7=; H;:K9J?EDI ?D :;C7D: ; DEJ7N FEI?J?ED 7H; =?L;D ?D J78B;   />; J78B; I>EMI J>7J J>; EFJ?C7B J7N;I :E H;:K9; :;C7D: ?D 7FFHEN?C7J;BO J>; I7C; FHEFEHJ?ED 9ECCE:?J?;I $D J>?I 97I; J>; ?DJ;HFH;J7J?ED E< J>; -7CI;O HKB; ?I 7FFB?978B; ;L;D M>;D J>; J7N ?DJ;HL;DJ?ED >7I 7 I?=D?T97DJ ;\;9J ED J>; B;L;B E< :;C7D:



!   !& !%!

R

t !?=KH;   /7N H;L;DK;

; I7C; H7J; J>; :?IJEHJ?ED ?D FH?9;I ?I C?D?C?P;: Y NFB7?D M>O J>?I IJ7J;C;DJ :E;I DEJ 79J 7I 7 =K?:; ; IJ7J;C;DJ ?I 7J :H?L;I 9EDIKC;H :;9? I?EDI 7H; J>; H;B7J?L; FH?9;I E< J>; 9ECCE:?J?;I I?D9; H;B7J?L; FH?9;I C;7IKH; J>; H7J; 7J M>?9> ED; 9ECCE:?JO 97D 8; JH7:;: ;H />?I ?I J>; 87I?9 9ED 9BKI?ED E< J>; 7D7BOI?I E< 9ECF;J?J?ED 7D: ;[9?;D9O /7N?D= 7BB 9ECCE:?J?;I 7J J>; I7C; H7J; :E;I DEJ :?IJEHJ H;B7J?L; FH?9;I ?< J>; ?D?J?7B FH?9;I E< 9ECCE:?J?;I = 7D: > 7H; D9 7D: D: 7D: J>; FH?9;I 7; FH?9; H7J?E ?I D9 D: 8;; I7C; H7J; DE H;L;DK; ?I H7?I;: #;D9; 7J B;7IJ ED; 9ECCE:?JO CKIJ 8; JH;7J;: :?\;H;DJBO ?< H;L;DK; ?I JE 8; H7?I;: />; 7D7BOI?I >7I I>EMD J>7J ED; 9ECCE:?JO 97D 8; 9>EI;D 7I 7D KDJ7N;: DKC]H7?H; IIKC; J>7J J>?I ?I B78EH />; KD?;D :?IJEHJI FH?9;I H;B7J?L; JE B78EH ;; FH?9; E< 9ECCE:?JO = H;B7J?L; JE J>; M7=; H7J; ?I D9 K

7; H;B7J?L; FH?9; ?I  H D9 K />; J7N IOIJ;C M?BB 7BJ;H J>; JH7:;E\I ;H 9ECCE:?J?;I $D =;D;H7B :?\;H;DJ 9ECCE:?J?;I M?BB >7L; :?\;H;DJ H;B7J?EDI JE B78EH IEC; C7O 8; IK8IJ?JKJ;I

EJ>;HI C7O 8; 9ECFB;C;DJI />;I; H;B7J?EDI I>EKB: 8; H;U;9J;: ?D >EM J>; JH7:;E\ ?I 9>7D=;: 8O 9ECCE:?JO J7N7J?ED /7N?D= 7BB =EE:I 8KJ ED; 7J J>; I7C; H7J; 7BJ;HI J>; JH7:;E\ ;GK7BBO ?I ?I H7H;BO ;[9?;DJ

  7 I?D=B; 9EDIKC;H M>EI; FH;;H; L 7D: L 7H; J>; 9ED IKCFJ?ED B;L;BI E< =EE:I  7D:  7D: 4 ?I B;?IKH; IIKC; J>7J 8EJ> =EE:I 7H; FHE:K9;: KI?D= B78EH 7BED; IK8@;9J JE 7 9EDIJ7DJH;JKHDIJEI97B; J;9>DEBE=O 0D?JI E< C;7IKH;C;DJ 7H; 9>EI;D IE J>7J J>; FHE:K9;H FH?9;I E< 8EJ> =EE:I 7D: J>; M7=; H7J; 7H; ;GK7B JE  7 0I?D= % JE :;DEJ; J>; 9EDIKC;HWI ;D:EMC;DJ E< J?C; ;NFB7?D J>; 8K:=;J 9EDIJH7?DJ E L E L K4  K% 8 .>EM J>7J J>; 9EDIKC;HWI :;C7D:I I7J?I; 9ED:?J?EDI H;GK?H;: ; ?DL;HI; ;B7IJ?9?JO HKB; JE 7FFBO 9 0I; J>; ?DL;HI; ;B7IJ?9?JO HKB; JE 9ED9BK:; J>7J 8EJ> =EE:I I>EKB: 8; IK8@;9J JE J>; I7C; B;L;B E< J7N : 7B9KB7J; J>; J7N H;GK?H;: JE E8J7?D 7 B;L;B E< H;L;DK; E< +   ; .>EM J>7J J>; 9ECCE:?JO J7N;I 7H; I;9ED:8;IJ 3098.32   7 />; ?DJ;HFH;J7J?ED E< J>; 8K:=;J 9EDIJH7?DJ ?I J>7J J>; 9ED IKC;H I;BBI J>;?H ;DJ?H; J?C; ;D:EMC;DJ % 7D: FKH9>7I;I IEC; E< ?J 879A 7I B;?IKH; 4 />; H;C7?D?D= J?C; %  4 ?I :;LEJ;: JE B78EH @ />?I B7JJ;H E8I;H L7J?ED 7BBEMI J>; 8K:=;J 9EDIJH7?DJ JE 8; MH?JJ;D ?D J>; ?I ; 8K:=;J 9EDIJH7?DJ IJ7J;I J>7J J>; D;J ;NF;D:?JKH; E< J>; 9ED IKC;H ?I P;HE 8 />; 9EDIKC;H FH?9;I 7H; DEM MH?JJ;D E   H 7D: E   H />; KJ?B?JO C7N?C?P7J?ED FHE8B;C ?I $) #&! L  #&! L  4 I J  H  L  H  L 4  %

H H 0

 

0I?D= J>; 8K:=;J 9EDIJH7?DJ JE IK8IJ?JKJ; ; FHE8B;C JE $) #&! L  #&! L    H  L   H  L %

H H 0

 

/>; D;9;II7HO 9ED:?J?ED ; 9>E?9; E< =EE: = ?I    H9    L9 IE L9 

  =     H9

 

 

/>; 9ED:?J?ED H;GK?H;: ; ?DL;HI; ;B7IJ?9?JO HKB; JE 7FFBO ?I J>7J J>; :;C7D: =EE: ?I ?D:;F;D:;DJ E< J>; FH?9;I E< EJ>;H =EE:I />; H;IKBJ ?D   I>EMI J>7J J>?I ?I I7J?IT;:



!   !& !%! 9 />; ;B7IJ?9?JO E< :;C7D: ;H; E9 ?I J>; 7; :;C7D: =EE:I >7L; 7D ;B7IJ?9?JO E<  J>; J7N M?BB 8; J>; I7C; ED 8EJ> />?I 97D 8; I;;D 8O DEJ?D= J>7J J>; ?DL;HI; ;B7IJ?9?JO HKB; ?I H9      H9 49

 

H

H      H

 H

 

0I?D= 49   ?J 7J

M>?9> >7I IEBKJ?ED H  H  H : />; B;L;B E< =EL;HDC;DJ H;L;DK; ?I +  HL HL  H

 H  H    H  H  H

 

$< H;L;DK; E< +   ?I JE 8; H7?I;:  M>?9> >7I IEBKJ?ED

H   H

H  

   

; 2?J> H   J>; B;L;B E< :;C7D: ?I L9   =    />; B;L;B E< KJ?B?JO ?I      #&!       %   #&!  % .  #&!        %   $< 7 BKCFIKC J7N E< -   M;H; ?CFEI;: ?DIJ;7: J>; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ MEKB: 8;   L L 4  %  - EH

L L  @  

 

/>; KJ?B?JO C7N?C?P7J?ED FHE8B;C 8;9EC;I $) #&! L  #&! L  4 I J L L 4   %

H H 0

 

 />?I >7I IEBKJ?ED L9   =    7D: %  4   />; B;L;B E< KJ?B?JO ?I .  #&! L  #&! L  4  #&!  #&!    %   %

 

/>?I ?I 7 >?=>;H B;L;B J>7D 79>?;L;: M?J> 9ECCE:?JO J7N7J?ED M>?9> I>EMI J>7J J>; 9ECCE:?JO J7N;I 7H; I;9ED:8;IJ

EM >EM J>; ?CF79J E< 7 9ECCE:?JO J7N KFED 7 9EDIKC;HWI EFJ?C7B :;C7D: 97D 8; I;F7H7J;: ?DJE 7D X?D9EC; ;\;9JY 7D: 7 XIK8IJ?JKJ?ED ;\;9J Y 3098.32    9ECCE:?JO J7N ED 7 =EE: H7?I;I J>; 9EDIKC;H FH?9; />?I ?D9H;7I; ?D FH?9; >7I JME ;\;9JI />; THIJ ;\;9J ?I JE H7?I; J>; FH?9; E< J>; =EE: H;B7J?L; JE J>; FH?9;I E< EJ>;H =EE:I />; I;9ED: ;\;9J ?I JE H;:K9; J>; H;7B FKH9>7I?D= FEM;H E< J>; 9EDIKC;H 8O C7A?D= IEC; FH;L?EKIBO 7JJ7?D78B; 9EDIKCFJ?ED FB7DI KD7\EH:78B; />;I; JME ;\;9JI 7H; ; IK8IJ? JKJ?ED 7D: ?D9EC; ;\;9JI />; IK8IJ?JKJ?ED ;\;9J ?I E8J7?D;: 8O F?LEJ?D= J>; 8K:=;J 9EDIJH7?DJ 7HEKD: J>; EH?=?D7B ?D:?\;H;D9; 9KHL; M?J> J>; ?D?J?7B =H7:?;DJ H;U;9J?D= J>; FH?9;I 8;; J7N 7D: J>; TD7B =H7:?;DJ H;U;9J?D= J>; FH?9;I 7; 9>7D=; ?D :;C7D: 8;JM;;D J>; EH?=?D7B BE97J?ED ED J>; ?D:?< ; TD7B BE97J?ED ?I J>; IK8IJ?JKJ?ED ;\;9J &;;F?D= H;B7J?L; FH?9;I 9EDIJ7DJ CEL;I J>; 8K:=;J 9EDIJH7?DJ ; EH?=?D7B ?D:?\;H;D9; 9KHL; JE J>; TD7B BEM;H ?D:?\;H;D9; 9KHL; />; 9>7D=; ?D :;C7D: ?I CEL; ?I J>; ?D9EC; ;\;9J

; 78I;D9; E< J7N7J?ED 7 9EDIKC;H >7I J>; 8K:=;J 9ED IJH7?DJ D L D L  K4   .>EM J>7J 7D 7: L7BEH;C J7N B;L?;: 7J H7J; H ED 8EJ> 9ECCE:?J?;I 7D: ED B78EH H7?I;I DE H;L;DK; NFB7?D J>?I 7D 7: L7BEH;C J7N 7J H7J; H J>; 7; 7; L7BK; E< H;L;DK; H7?I;: ?I +  HD L HD L  HK4

 

$J ?I ?CFEHJ7DJ JE DEJ; J>7J J>; L7BK; E< B78EH K4 ;DJ;HI ?DJE J>?I ;NFH;II?ED M?J> 7 C?DKI I?=D />; J7N H7?I;I J>; M7=; H7J; ; 9EDIKC;H IKFFB?;I B78EH IE J>?I ?D9H;7I; ?D J>; M7=; ?I 7 IK8I?:O 7D: CKIJ 8; :;:K9J;: J7N7J?ED J>; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ ?I

 H D L  H D L   H K4   H D L D L  K4  

 



!   !& !%!

#;D9; D L D L  K4  />; 8K:=;J 9EDIJH7?DJ 97D 7BIE 8; MH?JJ;D 7I

 H D L  H D L   H K4  D L D L  K4 H D L D L  K4  H D L D L  K4  HD L HD L  HK4  

 

/>;H;; KD??I ?I 8;97KI; J>; 9EIJ E< J>; IK8I?:O JE B78EH ;N79JBO E\I;JI J>; H;L;DK; :;H?L;: ; JME J7N;I

H;;=EE: ;9EDECO ?     ?D M>?9> ;L;HO 9EDIKC;H >7I FH;; KJ?B?JO ;H; J>; =EE: ?I FHE:K9;: M?J> 9EDIJ7DJ H;JKHDI JE I97B; ; IF;9?T9 9ECCE:?JO J7N ED =EE: ? IE J>; 9EDIKC;H FH?9; ?I E;   H;  7 EDI?:;H JME 9ECCE:?JO J7N I9>;C;I H  H  H  H  7D: H  H  H   H  .>EM J>7J ?<  H ;     H;  ; JME J7N I9>;C;I H7?I; J>; I7C; 7CEKDJ E< J7N H;L;DK; 8 H=K; 7J J>; =EL;HDC;DJ 97D M?J>EKJ 9EIJ H;IJH?9J J7N I9>;C;I JE B;7L; ED; =EE: KDJ7N;: 9 .;J H  7D: IKFFEI; J>; =EL;HDC;DJ CKIJ H7?I; H;L;DK; E< + 2>7J 7H; J>; J7N H7J;I ED =EE:I  7D:  J>7J C?D?C?P; J>; M;B7J EFJ?C7B J7N H7J;I 7H; ?DL;HI;BO FHEFEHJ?ED7B JE J>; ;B7IJ?9?JO E< J>; :;C7D: =EE: ?I9KII J>?I J7N HKB; ; 2>;D I>EKB: 8EJ> =EE:I 8; J7N;: ;GK7BBO 2>?9> =EE: I>EKB: 8; J7N;: CEH; 3098.32   7 />; 8K:=;J 9EDIJH7?DJ ; 9EDIKC;H M?J> J7N I9>;C; H  H  H  H  ?I

 H L  H L  H L  

 

#;D9; J7N H;L;DK; + ?I +  H L H L H L   L L L 

 

.?C?B7H H;7IED?D= I>EMI J>7J M?J> J7N I9>;C; H  H  H   H  J>; J7N H;L;DK;

+ ?I +  H L H  L  H L   L L  L   

 KJ J>; :;C7D: 9ECCE:?JO ?I >ECE=;D;EKI E< :;=H;; P;HE IE J>7J L9

/>;H;; L7BK; E<  97D 8; 9>EI;D 7H8?JH7H?BO $D F7HJ?9KB7H 7 J7N IOIJ;C M?J> 7 J7N H; ED =EE: ? 97D 8; I>EMD JE 8; ;GK?L7B;DJ JE ED; M?J> DE J7N ED =EE: ? 8O 9>EEI?D=       H; 9 />; EFJ?C?P7J?ED :;9?I?ED ; 9EDIKC;H ?I $)

H H H 

.  L ; L  < L  I J L  H  L  H  L    

.K8IJ?JKJ?ED ; 8K:=;J 9EDIJH7?DJ H;:K9;I J>; D;9;II7HO 9ED:?J?EDI ; EFJ?C?P7J?ED JE   ; L    H    7D:

< L    H   

 

/>;I; D;9;II7HO 9ED:?J?EDI H;IKBJ ?D :;C7D: 7J L    H  L   H  L 

 

/>; EFJ?C?P7J?ED E< J>; =EL;HDC;DJ 97D DEM 8; MH?JJ;D 7I $) .



  H  L   H  L ; L  < L 

I J +



H L H L

D D 

 

M>;H; L 7D: L 7H; ?D J>;?H JKHD ; IEBKJ?ED JE J>?I FHE8B;C FHEL?:;I J>; J7N H7J;I J>7J C?D?C?P; M;B; D;9;II7HO 9ED:?J?EDI 7H;

7D:

; L   L   H  L   L H L    

 

< L  L   H  L  L H L   

 



!   !& !%!

!HEC J>; 9EDIKC;HWI 9>E?9; FHE8B;C ;   H 7D: <   H  />;I; 7BBEM J>; ?CFB?9?J IEBKJ?EDI L  H      L 7D: H  

L   L

 

: />; ;B7IJ?9?JO E< :;C7D: ?I :;TD?J?ED

7D:

 H;  L ;  L;

 

H     4  H 

 

H     4  H 

 

/>; J7N H7J; ED =EE: ? ?I J>;H;; ;B7IJ?9?JO E< :;C7D: 7J =EE: .;JJ?D= J>; H;B7J?L; J7N;I ?D J>?I M7O C?D?C?P;I J>; ;N9;II 8KH:;D H;IKBJ?D= ; D;;: JE H7?I; J>; H;L;DK; + ; />?I J7N HKB; ?CFB?;I J>7J J>; =EE: M?J> J>; BEM;H ;B7IJ?9?JO E< :;C7D: I>EKB: >7L; J>; >?=>;H J7N H7J; />; JME =EE:I I>EKB: 8; J7N;: 7J J>; I7C; H7J; EDBO ?< J>;O >7L; J>; I7C; ;B7IJ?9?JO E< :;C7D:

H;;=EE: ;9EDECO ?     ?D M>?9> ;L;HO 9EDIKC;H >7I FH;; KJ?B?JO ;H; J>; =EE: ?I FHE:K9;: M?J> 9EDIJ7DJ H;JKHDI JE I97B; ; IF;9?T9 9ECCE:?JO J7N ED =EE: ? IE J>; 9EDIKC;H FH?9; ?I E;   H;  .KFFEI; 7 J7N 9>7D=; ?I H;IJH?9J;: JE EDBO =EE:  H   H  M?J>   7 2>7J ?I J>; 9EHH;9J C;7IKH; E< J>; M;BEM J>7J ?< H  J>;D J>; C;7IKH; E< M;B; M;B;D =EE:  ?I 7 IK8IJ?JKJ; 7J ?I J>;D J>; 9EHH;9J C;7IKH; E< J>; M;B7D=; 9 .>EM J>7J ?< H  J>;D J>; C;7IKH; E< M;B; M;B;D =EE:  ?I 7 9ECFB;C;DJ 7J ?I J>; 9EHH;9J M;B7D=; : .>EM J>7J ?< =EE:  ?I IK8I?:?P;: H   J>;D J>; J>; C;7IKH; E< M;B; M;B;D =EE:  ?I 7 IK8IJ?JKJ; ?I H;IKBJ

 ; .>EM J>7J ?< =EE:  ?I IK8I?:?P;: H   J>;D J>; J>; C;7IKH; E< M;B; M;B;D =EE:  ?I 7 9ECFB;C;DJ ; J7N ?D9H;7I; H;:K9;I KJ?B?JO . 8KJ H7?I;I J7N H;L;DK; + $< 8EJ> 7H; L7BK;: ;GK7BBO M; 97D MH?J; J>; M;B; DKC]H7?H; =EE: J>; FH?9; E< B78EH ?I DEHC7B?P;: JE  7D: B78EH ?I J>; KDJ7N;: =EE: />; FHE:K9;H FH?9; ?I D 7D: J>; 9EDIKC;H FH?9; ?I E  D H M>;H; H  ?I J>; IF;9?T9 9ECCE:?JO J7N 7 ;I9H?8; J>; >EKI;>EB:WI EFJ?C?P7J?ED FHE=H7C JH;7J?D= FHETJ ?D9EC; 7D: 9EDIKC;H FH?9; ?D J>; 8K:=;J 9EDIJH7?DJ 7I TN;: !?D: J>; :;C7D: ; IBEF; E< J>; ?DL;HI; :;C7D: ; THCI 79J ?D KD?IED B?A; 7 CEDEFEB?IJ !?D: J>; IKFFBO E< J>; CEDEFEBO 7I 7 7J ?I J>; ;GK?B?8H?KC FH?9; 9>7H=;: 8O J>; CEDEFEB?IJ 2>7J ?I J>; FHE:K9;H FH?9; 2>7J ?I J>; :?L?I?ED E< J>; J7N 8KH:;D 8;JM;;D J>; FHE:K9;H 7D: J>; 9EDIKC;H ; .KFFEI; J>7J J>; THCI 79J ?D:;F;D:;DJBO C7N?C?P?D= J>;?H EMD FHETJ J7A?D= FH?9;I 7I =?L;D 2>7J ?I J>; ;GK?B?8H?KC FHE:K9;H FH?9; 2>7J ?I J>; :?L?I?ED E< J>; J7N 8KH:;D 8;JM;;D FHE:K9;H 7D: 9EDIKC;H ECF7H; M?J> J>; H;IKBJ ?D F7HJ : 3098.32   7 />; 9EDIKC;H IEBL;I  $) .   L  4 I J EL  4 

H"

/>; IEBKJ?ED ?I L

  E

 

 

8 />; ?DL;HI; :;C7D: ; ;B7IJ?9?JO E< J>; IBEF; ?I :;TD;: 8O

 4A 8 4H  L  L   L      4A 8L   L 4H

 

 

 9 $< J>; THCI 79J 7I 7 CEDEFEB?IJ J>; B;L;B E< FHETJ ?I

 E  H L  4

 

0I?D= J>; ?DL;HI; :;C7D: ; FHE:K9J?ED J;9>DEBE=O J>; EFJ?C?P7 J?ED 8;9EC;I      $)    H L  L

H L />; IEBKJ?ED ?I L : />; 9EDIKC;H FH?9; ?I 7D: J>; FHE:K9;H FH?9;





  H

 

E    H 

 

D  E  H   H

 

/>; FHE:K9;H FH?9; H?I;I 7J J>; I7C; H7J; 7I J>; J7N 7D: J>; 9EDIKC;H FH?9; H?I;I 7J JM?9; J>; H7J; E< J7N />; THC F7II;I CEH; J>7J J>; L7BK; E< J>; J7N EDJE J>; 9EDIKC;H ; $< J>; THCI 79J ?D:;F;D:;DJBO J>; EDBO ;GK?B?8H?KC ?I JE >7L; J>; 9EDIKC;H FH?9; ;GK7B JE C7H=?D7B 9EIJ (7H=?D7B 9EIJ ?I J>; IKC E< J7N FBKI B78EH 9EIJ />;H;?I 97I; J>; ;DJ?H; J7N 8KH:;D ?I F7II;: EDJE J>; 9EDIKC;H

 JME H;FH;I;DJ7J?L; >EKI;>EB:I <    M>E IKFFBO B78EH 48 JE J>; H;FH;I;DJ7J?L; THC 7D: 8KO 7 9EDIKCFJ?ED =EE: L8 '78EH IKFFBO ?I ?D;B7IJ?9 M?J> 4   7D: 4   7D: F;H;H; ?I DE :?IKJ?B?JO E< B78EH />; KJ?B?JO ; THC FHE:K9;I ED; KD?J E< L M?J> ED; KD?J E< B78EH '78EH ?I J>; DKC]H7?H; =EE: M?J> ?JI FH?9; DEHC7B?P;: JE  />; FHE:K9;H FH?9; E< L ?I D />; =EL;HDC;DJ 97D B;LO ?D:?L?:K7B?P;: 9ECCE:?JO J7N H8 ED =EE: L />KI J>; 9EDIKC;H FH?9; EKI;>EB: < ?I E 8  D H8  />;H; ?I DE H;L;DK; H;GK?H;C;DJ IE +  H L H L  7 2>7J ?I J>; ;GK?B?8H?KC FHE:K9;H FH?9; 8 2>7J ?I J>; :;C7D: E< =EE: L 7I 7 ; J7N H7J; >EKI;>EB: 9 0I; J>; :;C7D: ; KJ?B?JO E< ;79> >EKI;>EB: 7I 7 ; FH?9; E< J>; 9EDIKCFJ?ED =EE: : .>EM J>7J =EL;HDC;DJ 8K:=;J 87B7D9; ?CFB?;I J>7J J>; J7N;I 7H; H;B7J;:  8O H   DD  



!   !& !%!

; 0I; J>; 8K:=;J 87B7D9; 9ED:?J?ED ?D F7HJ : JE TD: J>; J7N H7J;I C7N? C?P?D= J>; -7MBI?7D IE9?7B M;B; :;C7D:I ; KJ?B?JO ; ?D:?H;9J KJ?B?JO ?I 7D: I?CFB?;I; KJ?B?JO ; I;9ED: 7D: J>?H: J;HCI 7H; 7\;9J;: 8O J7N 7J?ED IIKC; J>7J 9EDIKC;H  >7I BEM;H KJ?B?JO J>7D 9EDIKC;H  7D: J>7J ?J ?I DEJ FEII?8B; ?I H7DA?D= />; IEBKJ?ED JE J>; EFJ?C?P7J?ED ?D   97D J>;D 8; EEI?D= H IE 7I JE C?D?C?P;  #&! E     #&! E   

 #&!  H     #&!  H 

8 H

  #&!  H     #&!   H 8 8  8

 

/>; D;9;II7HO 9ED:?J?ED ?I EFJ?C?P7J?ED ?I      M?J> IEBKJ?ED H 

8

  H 8 8  8

   & 

   8  8    8 8   & &  

#;D9; H  

   &  

   & &  

 

 

 

/>; ?D?J?7B B;L;B E< KJ?B?JO ?I . ?  #&! &   #&!     #&!     #&! 

 

; J7N IOIJ;C ?I ?D FB79; KJ?B?JO H?I;I JE . >

   &    & &  

   &      #&!   

   & &    #&!     #&!     #&!  #&! &    #&! 



 

/>; ?D9H;7I; ?D KJ?B?JO ?I .

>

.

?

9 $<    J>;D 7D:

& &    #&!  & &  

   &    &      #&!   

   & &  

H   H 

 

. >  . ?   #&!      #&!   

 



!   !& !%!

IE DE H;:?IJH?8KJ?ED 97D 8; 79>?;L;: />; ;NFB7D7J?ED ?I 9ED9BKI?ED ?I J>7J M>;D    J>; JME 9EDIKC;HI 8KO J>; =EE:I ?D J>; I7C; FHEFEHJ?ED />;H;; 9EDIKC;HI 8O IK8I?:?P?D= ED; E< J>; 9ECCE:?J?;I M?J>EKJ 8;D;TJJ?D= J>; EJ>;H 9EDIKC;H

7I 9EIJ 7J ?I J>; THIJ8;IJ FH?9; ; THC JE 9>7H=; 2>7J GK7DJ?JO ?I IEB: E;I J>; THC C7A; 7 BEII 7J J>?I FH?9; 8 2>7J ?I J>; 8H;7A;L;D FH?9; ; THC 2>7J GK7DJ?JO ?I IEB: 9 ECF7H; J>; :?\;H;D9; ?D 9EDIKC;H IKHFBKI 8;JM;;D J>; EKJ9EC;I ?D 7 7D: 8 $I J>;H; I9EF; ; =EL;HDC;DJ JE IK8I?:?P; J>; THC M>;D ?J I;JI J>; THIJ8;IJ FH?9; 3098.32   7 />; THIJ8;IJ FH?9; ;GK7BI C7H=?D7B 9EIJ ) ?  7 />; GK7DJ?JO IEB: ?I J>;H;; THC ?I C7A?D= BEII;I I?D9; FHETJ ?I D;=7J?L; L?   ) ? L?  7 L?     8 />; 8H;7A;L;D FH?9; ?I ; I;9ED: HEEJ ?I HKB;: EKJ 7I J>; FH?9; >7I JE 8; 8;BEM 5 ; GK7DJ?JO JE 8; FEI?J?L; />; GK7DJ?JO IEB: ?I 4 57  6 L   6 5  7 9 2?J> J>; THIJ8;IJ FH?9; 9EDIKC;H IKHFBKI ?I , ? 



5  7  6

7D: M?J> J>; 8H;7A;L;D FH?9; ?J ?I 5  7 ,  6



4 

 6 5  7



 , ? 

/>;H;; 9EDIKC;H IKHFBKI

-&48*6 

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

HK4  6 6  H  K4 K4 K4

 

$J 97D 8; I;;D J>7J J>; 7L;H7=; H7J; E< J7N :;9H;7I;I M?J> ?D9EC; ?< 6 ?I FEI?J?L; 8KJ ?D9H;7I;I M?J> ?D9EC; ?< 6 ?I D;=7J?L; 2?J> J>; =?L;D KJ?B?JO ; 9EDIKC;HWI EFJ?C?P7J?ED FHE8B;C ?I $) .  L  4 I J L  6   H K4

H0

 

.K8IJ?JKJ?D= ; 8K:=;J 9EDIJH7?DJ H;:K9;I J>; EFJ?C?P7J?ED JE $) .  6   H K4  4 

0

 

/>; D;9;II7HO 9ED:?J?ED EEI?D= 4 ?I

  H K  4   />;H;;I; FH;; B;L;B E< B78EH IKFFBO I DEJ;: 6 ?I ;?J>;H 7 BKCFIKC J7N EH IK8I?:O D ?D9H;7I; ?D 6 J>;H;7I EDBO 7D ?D9EC; ;\;9J />; KJ?B?JO ; J7N H7J; H;:K9;I B78EH IKFFBO />; J7N H7J; H >7I 8EJ> 7D ?D9EC; ;\;9J 7D: 7 IK8IJ?JKJ?ED ;\;9J $D J>?I 97I; J>; IK8IJ?JKJ?ED ;\;9J ?I :EC?D7DJ 7D: B;7:I JE BEM;H B78EH IKFFBO

7I FH;;H; L ?I 9EDIKCFJ?ED 7D: 4 ?I B78EH !EH 7 =?L;D M7=; H7J; K M>?9> J7N B;7:I JE 7 >?=>;H B78EH IKFFBO 7D ?D9EC; J7N 7J 9EDIJ7DJ H7J; H EH 7 BKCFIKC J7N - J>7J H7?I;I J>; I7C; H;L;DK; 7I J>; ?D9EC; J7N 3098.32  />; THIJ IJ;F ?I JE IEBL; J>; EFJ?C?P7J?ED FHE8B;C ; JME :?\;H;DJ J7N ?DIJHKC;DJI 2?J> 7 BKCFIKC J7N - J>; 9EDIKC;HWI 8K:=;J 9ED IJH7?DJ ?I L  K4  -   IE J>; EFJ?C?P7J?ED FHE8B;C 97D 8; MH?JJ;D $) .  L   4 I J L  K4  -

H0

 

B?C?D7J?D= L ?D J>; KJ?B?JO ; D;9;II7HO 9ED:?J?ED ; 9>E?9; E< B78EH IKFFBO ?I K   4 K4  -   

 

.EBL?D= J>?I 9ED:?J?ED =?L;I

K  K />; 8K:=;J 9EDIJH7?DJ M?J> J>; ?D9EC; J7N 7J H7J; H ?I 4

L    H K4

 

 

IE J>; EFJ?C?P7J?ED FHE8B;C 8;9EC;I $) .  L   4 I J L    H K4

H0

 

.K8IJ?JKJ?D= ; 8K:=;J 9EDIJH7?DJ H;:K9;I J>?I JE $) .    H K4   4 

0

 

 />; D;9;II7HO 9ED:?J?ED ; 9>E?9; E< 4 ?I

  H K   4    H K4  

 

/>?I ;GK7J?ED >7I IEBKJ?ED

     />; 9EDJH7IJ 8;JM;;D J>; JME B;L;BI E< B78EH IKFFBO 97D DEM 8; C7:; 2?J> J7N H7J; H 7D: B78EH IKFFBO 4   J>; H;L;DK; H7?I;: ?I 4

+

 HK 

 

$< J>; BKCFIKC J7N H7?I;I J>; I7C; H;L;DK; J>;D -  + EH - 

 HK 

 

/>; B78EH IKFFBO M?J> J>?I L7BK; E< BKCFIKC J7N ?I 4

K  HK   K   H K K  

 

.?D9; 

H   J>; B;L;B E< B78EH IKFFBO ?I >?=>;H M?J> J>; BKCFIKC J7N J>7D M?J> 7D ?D9EC; J7N J>7J H7?I;I ;GK7B H;L;DK;

; 9EDIKC;H ; ?I JE IK8IJ?JKJ; ; KJ?B?JO ; EFJ?C?P7J?ED FHE8B;C ; 9EDIKC;H $) .  #&! K4 #&!   4

0

 

/>; D;9;II7HO 9ED:?J?ED ; 9>E?9; E< B78EH IKFFBO ?I   K   K4 4

 

/>?I 9ED:?J?EDI IEBL;I JE =?L; J>; B;L;B E< B78EH IKFFBO 4 />;H;; M7=; H7J; >7I DE ;\;9J ED B78EH IKFFBO />; ?D9EC; ;\;9J 97D 8; E8J7?D;: 8O ?DJHE:K9?D= DEDB78EH ?D9EC; & ?DJE J>; 8K:=;J 9EDIJH7?DJ 7D: 97B9KB7J?D= J>; C7H=?D7B ;\;9J J>7J 7D ?D9H;7I; ?D J>?I >7I ED B78EH IKFFBO $D J>;I; D;M 9?H9KCIJ7D9;I J>; EFJ?C?P7J?ED FHE8B;C ?I   $) .  #&! & K4 #&!   4

0

/>; D;9;II7HO 9ED:?J?ED ?I   K   & K4 4

 

/>?I ;GK7J?ED 97D 8; IEBL;: JE =?L; 4

K&  K

 

/>; ?D9EC; ;\;9J ED B78EH IKFFBO 97D 8; ; IK8IJ?JKJ?ED ;\;9J 97D 8; E8J7?D;: 8O 9EDIJHK9J?D= J>; 9ECF;DI7J;: B78EH IKFFBO ?I ; D;J ;NF;D:?JKH; ;NF;D:?JKH; ED 9EDIKCFJ?ED B;II B78EH ?D9EC; IK8@;9J JE J>; 7JJ7?DC;DJ E< 7 =?L;D B;L;B E< KJ?B?JO />?I :;I9H?FJ?ED B;7:I JE J>; EFJ?C?P7J?ED FHE8B;C $"% L  K4 I J .  #&! L #&!   4

 

H0

2?J> 8;?D= J>; '7=H7D=; CKBJ?FB?;H ED J>; KJ?B?JO 9EDIJH7?DJ J>; D;9;II7HO 9ED:?J?EDI 7H;        L 7D:      K 4 ?L?:?D= J>; THIJ 8O J>; I;9ED: =?L;I

EH

 4   K L

 

L  K   4 

 

.K8IJ?JKJ?D= J>?I H;IKBJ ?DJE J>; KJ?B?JO 9EDIJH7?DJ =?L;I 

.  #&! K   4 #&!   4  #&! K   4 

 

M>?9> 97D 8; IEBL;: JE =?L; 

9+  K   4 

 



!   !%!

/>; 9ECF;DI7J;: B78EH IKFFBO ; ;\;9J E< 7 M7=; ?D9H;7I; ED 9ECF;DI7J;: B78EH IKFFBO =;D;H7J;I J>; IK8 IJ?JKJ?ED ;\;9J   + 9 84  9+     8K +  K K 

8KJ I?D9; 9+  K   4 J>; IK8IJ?JKJ?ED ;\;9J 97D 8; MH?JJ;D 7I       K   4 84  K   4    4    8K +  K K  K

 

/>; .BKJIAO ;GK7J?ED :;J;HC?D;I J>; ;\;9J E< 7 9>7D=; ?D J>; M7=; H7J; ED B78EH IKFFBO 7I J>; IKC E< IK8IJ?JKJ?ED 7D: ?D9EC; ;\;9JI 84 84 84     4 8K 8K + 8& 0I?D= J>; H;IKBJI E8J7?D;: =?L;I



   4  84  4   8K  K K

40 J J>; ?D?J?7B EFJ?C7B 9>E?9; E< B78EH IKFFBO 4   IE 4G H;:K9;I JE

84            8K  K  K

 

 

/>?I ?I J>; H;IKBJ E8J7?D;: ?D  

; KJ?B?JO 7I J>; 9EDIJ7DJ ;B7IJ?9?JO E< IK8IJ?JKJ?ED ; J7N IOIJ;C J>; B78EH IKFFBO :;9?I?ED E< 7 9EDIKC;H E< IA?BB B;L;B G ?I $) .  #&! L #&!   4 I J L  6   HG4

H0

 

M>?9> 97D 8; I?CFB?T;: JE $) .  #&! 6   HG4 #&!   4

0

 

/>; EFJ?C7B B78EH IKFFBO 97D 8; ; KJ?B?JO ; KJ?B?JO B;L;B 79>?;L;: M?J> J>?I J7N IOIJ;C



6   H G 6   H G #&!    .  #&!     H G />; =EL;HDC;DJ 8K:=;J 9EDIJH7?DJ H;GK?H;I J>7J J>; BKCFIKC F7OC;DJI 6

CKIJ 8; ;GK7B ?D L7BK; JE J>; H;L;DK; ; J7N H />?I 8K:=;J 9EDIJH7?DJ ?I )

)

6: G 8G  HG4: G 8G  



.?D9; J>; :?IJH?8KJ?ED E< 78?B?JO ?I KD?; ?DJ;HL7B    J>; :;DI?JO : G   />; 8K:=;J 9EDIJH7?DJ I?CFB?T;I JE

) 6 H

8G G 6   H  

H G 6G     H

6 H         H #;D9; 6

H   H     H

 

/>; EFJ?C7B J7N C7N?C?P;I J>; B;L;B E< IE9?7B M;B; -7MBI?7D IE9?7B M;B; MEHIJE\ C;C8;H E< IE9?;JO />?I CKIJ 8; J>; 9EDIKC;H M?J> G   2>;D G  J>; 9EDIKC;H CKIJ :E DE MEHA 4  7D: 9EDIKC; EDBO J>; BKCFIKC IK8I?:O L  6 />; EFJ?C?P7J?ED FHE8B;C ?I

H   H #&!     $) 0  #&! 6 #&!   #&!    H

D D D />; EFJ?C7B J7N H7J; CKIJ C7N?C?P; D

IE :?\;H;DJ?7J?D= 7D: IEBL?D= J>; D;9;II7HO 9ED:?J?EDI

1    H        

/>; KJ?B?J7H?7D IEBKJ?ED H;GK?H;I CEH; MEHA />; KJ?B?JO 7JJ7?D;: 8O 7 9EDIKC;H E< IA?BB G 97D DEM 8; MH?JJ;D 7I 7 ; FEFKB7J?ED )

. G: G8G 0 

)  H

  H    H G  #&!    H

   H H   H G 8G #&!    H   H G

 

/>; ?DJ;=H7B ?I 0  #&!   H     #&!   H

H #&!   #&! H  H

 

"H7F>?D= M;B; J7N H7J; FHE:K9;I T=KH;   />; C7N?CKC E99KHI 7J H     $J ?I ?DJ;H;IJ?D= JE DEJ; J>7J J>?I ?I >?=>;H J>7D J>; -7MBI?7D J7N

; J7N 9EDIKCF J?ED =?L;D 8O L  N  5N 6N  7



!   !%!

t

W !?=KH;   2;B; B;L;B E< ?D9EC; J>7J C7N?C?P;I .  L  4 4%)/ .K8IJ?JKJ; ; 78EL; 7D: EM J>7J 7J ?D9EC; B;L;B N J>; C7H=?D7B H7J; E< J7N ?I 5 6L : .K8IJ?JKJ; J>; 7DIM;H ; ;NFH;II?ED ; C7H=?D7B H7J; E< J7N 7D: 97B9KB7J; J>; B?C?J?D= C7H=?D7B J7N H7J; 7I N  ; 0I; J>; 7DIM;H JE F7HJ : JE I>EM J>7J J>; J7N ?I ?D9EC; ?I 4

G   5 N   G   6G 

 

/>; :;H?L7J?L; E< B78EH IKFFBO M?J> H;IF;9J JE IA?BB ?I      5   6G 4    G   6G  IE ?J ?I ?D9H;7I?D= ?D G ; IEBKJ?ED ?I 97D 8; ;NFH;II;: ?D J;HCI E< 78?B?JO 7I -  5 6 $D J>; B?C?J 7I G 

5 6G G   5      6G   6G

 

#"$ -  

 

C

.?D9; J>;H; ?I DE B;L;B E< 78?B?JO ?9> -   J>?I 97DDEJ 8; 7D EFJ?C7B J7N ; 7BBE97J?ED JE J>; BEM IA?BB 9EDIKC;H 8O L  N 7D: J>7J JE J>; >?=> IA?BB 9EDIKC;H 8O L  N 7 !EH J>; KJ?B?JO EM J>7J ?D9;DJ?L; 9ECF7J?8?B?JO H;GK?H;I J>7J N  N G I L   I L  8 !EH J>; KJ?B?J7H?7D IE9?7B M;B; C7H=?D7B H7J; E< IK8IJ?JKJ?ED ; JME 9EDIKC;HI 7J J>; EFJ?C7B 7BBE97J?ED ECC;DJ ED OEKH H;IKBJI 3098.32  7 $D9;DJ?L; 9ECF7J?8?B?JO H;GK?H;I J>7J ;79> 9EDIKC;H I>EKB: FH;;?H EMD 7BBE97J?ED JE J>7J E< J>; EJ>;H />; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJ EDBO 8?D:I ; 7BBE97J?ED ?DJ;D:;: ;C 7D: J>; 7BBE97J?ED ?DJ;D:;: ?I 97D 8; MH?JJ;D 7I N N

 I L      I L   G G />; ;GK7B?JO   97D 8; IEBL;: JE MH?J; N  N G I L   I L  

 

8 />; FHE:K9J?ED 9EDIJH7?DJ ; ;9EDECO ?I L L  N N 

 

0I?D= J>; FHE:K9J?ED 9EDIJH7?DJ JE IK8IJ?JKJ; J>; FHE:K9J?ED 9EDIJH7?DJ JE =?L;    N  L L G I L   I L    .K8IJ?JKJ?D= ; M;B; EFJ?C?P7J?ED E< M;B; D;9;II7HO 9ED:?J?ED ; C7H=?D7B H7J; E< IK8IJ?JKJ?ED ?I ; KJ?B?JO H;IF;9J JE 9EDIKCFJ?ED 7D: B78EH IKFFBO />; JEJ7B :;H?L 7J?L; ?I IEBL;I ; C7H=?D7B H7J; E< IK8IJ?JKJ?ED & +, 8 

8N8 G8   8L8 L8

 

!EH 9EDIKC;H  IK8IJ?JKJ?ED E< J>; IEBKJ?ED ; 7J & +,    I>EMI J>7J J>; 9>E?9; 8;JM;;D 9EDIKCFJ?ED 7D: ?D9EC; ; EFJ?C7B J7N IOIJ;C 2?J>EKJ J7N7J?ED 9EDIKC;H  97D JH7:; ?D9EC; ?I JE ;DIKH; J>; 9>E?9; E< J>; >?=> 78?B?JO 9EDIKC;H ?I DEJ :?IJEHJ;: 7J J>; C7H=?D !EH 9EDIKC;H 

& +, 

G

 



G

C C C

G G G G G    G G G G  G

 

/>; & +, ?I DEJ ;GK7B JE  IE J>; EFJ?C7B J7N :?IJEHJI J>; 9>E?9; E< 9EDIKC;H  7J J>; C7H=?D />; 9>E?9; >7I JE 8; :?IJEHJ;: 8;97KI; E< ?D9;DJ?L; ;\;9JI

; 7D7BOI?I E< I;9J?ED    CE:?T;: ?< G  G  4%)/ />?DA 78EKJ M>7J CKIJ >7FF;D JE J>; 8;; EFJ?C7B J7N IEBKJ?ED J>; ?D9EC; E< 9EDIKC;H  ?I 

 

     G #&!  #&! N      

 G G  G   G G  G #&! G   #&!   G G G G    G G G #&! G  G   G #&! G G       G G



!   !%!

I G J;D:I JE G ?I ?I 7 9EDI;GK;D9; E< J>; 7J DE H;IJH?9J?ED >7I 8;;D FB79;: ED J>; CE:;B JE ;DIKH; J>; ?D9EC; E< 9EDIKC;H  ?I FEI?J?L; 2>;D J>; IA?BB :?\;H;DJ?7B ?I IK[9?;DJBO B7H=; ?J ?I IE9?7BBO FH;7D:B; IK9> 97I;I J>; EFJ?C?P7J?ED I>EKB: 8; 9ED:K9J;: M?J> 7D ;NFB?9?J 9EDIJH7?DJ J>7J J>; ?D9EC; E< 9EDIKC;H  ?I DEDD;=7J?L;

 IA?BB B;L;BI  7D:  />;H; ?I 7D ;GK7B DKC8;H E< 8EJ> JOF;I $< J>; IE9?7B M;B; EFJ?C7B 7BBE97J?ED ?< IA?BB M7I FK8B?9BO E8I;HL78B; 3098.32  )EJ; />?I ;N;H9?I; 97D 8; IEBL;: 8O 7FFBO?D= J>; I7C; C;J>E: 7I ?D ;N;H9?I;   />; 7BJ;HD7J?L; :?H;9J 7FFHE79> ?I =?L;D >;H; />; 7IIKCFJ?ED E< ;GK7B DKC8;HI E< J>; JME JOF;I ?I ;GK?L7B;DJ JE 7IIKC?D= ED; E< ;79> JOF; 0I?D= J>; =?L;D KJ?B?JO ; EFJ?C?P7J?ED FHE8B;C :;J;HC?D?D= J>; EFJ?C7B J7N ?I $)

H H J J 

0  #&! L  

N

N #&! L     

 

IK8@;9J JE J>; FHE:K9J?ED 9EDIJH7?DJ L L  N N 

 

7D: J>; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJ #&! L  

N N

 #&! L     

 

M>;H; ?D9;DJ?L; 9ECF7J?8?B?JO H;GK?H;I J>; >?=>IA?BB JE TD: J>;?H 7BBE97J?ED 7J B;7IJ 7I =EE: 7I J>; 7BBE97J?ED E< J>; BEMIA?BB 2?J> '7=H7D=; CKBJ?FB?;HI 7D:

J>; D;9;II7HO 9ED:?J?EDI 7H;  L

 L      

L

 L



   

.EBL?D= J>;I; 9ED:?J?EDI =?L;I     L 





 





 





 





 





#;D9;

  L    

 

 !HEC J>; FHE:K9J?ED 9EDIJH7?DJ    EC8?D?D= J>?I M?J> J>; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJ

     #&!    #&!   N     N N 

 

 

7D:



   N   #&!    #&!        $< IA?BB ?I FK8B?9BO E8I;HL78B; J>; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJ :E;I DEJ 7F FBO J>; =EL;HDC;DJ 97D 7BBE97J; :?H;9JBO ED J>; 87I?I E< IA?BB />; EFJ?C?P7J?ED H;:K9;I JE N

N $) #&! L      0  #&! L    

H H J J  IK8@;9J JE J>; FHE:K9J?ED 9EDIJH7?DJ L L  N N 

 

/>; D;9;II7HO 9ED:?J?EDI ;I; 97DDEJ 8EJ> >EB: IE ED; E< J>; ?D9EC; B;L;BI CKIJ 8; 7J 7 9EHD;H $D ; BEMIA?BB 9EDIKC;HI MEHA M>;D J>;O >7L; 7 >?=>;H C7H=?D7B :?IKJ?B?JO J>7D >?=>IA?BB 9EDIKC;HI />; D;9;II7HO 9ED:?J?EDI ; EFJ?C7B 7BBE97J?ED ;GK7B?P;I 9EDIKCFJ?ED ; JME JOF;I E< 9EDIKC;HI 8KJ EDBO >?=>IA?BB 9EDIKC;HI MEHA J J>; EFJ?CKC J>; >?=>IA?BB 9EDIKC;HI 7H; MEHI; E\ J>7D J>; BEMIA?BB 9EDIKC;HI />?I 97DDEJ >7FF;D ?D J>; I;9ED: 8;IJ I?D9; J>; 7BBE97J?EDI 7H; 9EDIJH7?D;: 8O ?D9;DJ?L; 9ECF7J?8?B?JO

;H; H     ?I J>; J7N H7J; 7D:  H ?I J>; J7N 87I; .KFFEI; J>7J J>; J7N ;B7IJ?9?JO E< J>; J7N D M?J>     87I; ?I    D 7 2>7J ?I J>; H;L;DK; C7N?C?P?D= J7N H7J; 8 "H7F> J7N H;L;DK; 7I 7 ; J7N H7J; 8EJ> ; ?CFB?97J?EDI E< J>?I KFK?J'7\;H 9KHL;



!   !%!

3098.32  7 />; D;9;II7HO 9ED:?J?ED ; ;B7IJ?9?JO E< J>; J7N 87I; ?I :;TD;: 8O 

H 8   8H

 

0I?D= J>?I MH?J; J>; D;9;II7HO 9ED:?J?ED 7I 8+ H 8         8H  8H

 

/>; H;L;DK; C7N?C?P?D= J7N H7J; J>;D I7J?IT;I H     H EH H

  

   

8 />; ?D; ;B7IJ?9?JO I>EMI J>7J  8     8H   H

 

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



γ =1

R

γ =

1 2

t !?=KH;   /7N H;L;DK;

7I H;FH;I;DJ;: 8O M7=; K 7D: 7 J7NJH7DI;C; H  IK9> J>7J L     H K4 M>;H; H 

  ?I J>; C7H=?D7B J7N H7J; 7D:   ?I J>; KD9ED:?J?ED7B 8;D;TJ F7OC;DJ 7 !?D: J>; EFJ?C7B B78EH IKFFBO 78?B?JO K 2?BB 7 >?=> IA?BB F;HIED MEHA CEH; J>7D 7 BEMIA?BB F;HIED 2?BB J>; >?=>IA?BB F;HIED >7L; >?=>;H :?IFEI78B; ?D9EC; J>7D J>; BEMIA?BB F;HIED .>EM J>7J J>; 9ED:?J?ED ; 8;D;TJ  M>7J ?I J>; =EL ;HDC;DJWI 8K:=;J 9EDIJH7?DJ 9 .KFFEI; J>7J J>; C;7D IA?BB ?D J>; FEFKB7J?ED ?I K 7D: J>7J J>; BEM;IJ IA?BB ?I 7 ; C;7D IA?BB $< J>; =EL;HDC;DJ M7DJI JE H;:?IJH?8KJ; 7BB J7N FHE9;;:I JE TD7D9; J>; 97I> 8;D;TJ  M>7J 9ED:?J?ED I>EKB: J>; J7N JH7DI;C; H  I7J?I; EFJ?C7B J7N H7J; ?< J>; =EL;HDC;DJ I;;AI JE C7N?C?P; J>; :?IFEI78B; ?D9EC; E< J>; BEM;IJIA?BB MEHA;H IK8@;9J JE ;L;HOED; MEHA?D= 3098.32  7 />; B78EH IKFFBO :;9?I?ED ?I 



$) .     H K4   4

0



 

/>; D;9;II7HO 9ED:?J?ED ?I    H K    





   H K4   4    H K4 



   H K4   4 4

 

 

 IE

!   !%!

   H K   4        H K4  

.EBL?D= ?I H;IKBJ

    

  H K

   

84

       8K

  H K

 

IE 7 >?=>IA?BB F;HIED M?BB MEHA CEH; J>7D 7 BEMIA?BB F;HIED />; :?IFEI78B; ?D 9EC; E< J>; >?=>IA?BB CKIJ J>;H;; B78EH C7HA;J F7HJ?9?F7J?ED 9ED:?J?ED ?I

    4    

  H K .EBL?D= J>?I ?D;GK7B?JO FHEL?:;I J>; 9ED:?J?ED =?L;D ?D J>; GK;IJ?ED 8 ';J J>; IA?BB B;L;B >7L; 7 :?IJH?8KJ?ED :;I9H?8;: 8O J>; :;DI?JO ; FEFKB7J?ED H;9;?L;I J>; KD9ED:?J?ED7B 8;D;TJ  #EM;L;H

?D9EC; J7N ?I F7?: EDBO 8O J>EI; M>E F7HJ?9?F7J; ?D ;CFBEOC;DJ />; 8K:=;J 9EDIJH7?DJ ; =EL;HDC;DJ ?I ) G ) G : K8K  HK4 K : K8K    G G  #  0 / M>;H; K ?I J>; BEM;IJ M7=; K ?I J>; >?=>;IJ M7=; 7D: $) K     D 97FJKH;I FEJ;DJ?7B DEDF7HJ?9?F7J?ED .K8IJ?JKJ?D= ; 8K:=;J 9EDIJH7?DJ 8;9EC;I   ) G ) G

    : K8K : K8K  HK   

  H K G G  #  ) G  H K: K8K  G  #  ) H     G : K8K       H G  #  9 )EHC7B?P?D= J>; JEJ7B FEFKB7J?ED 7J  IE 9EDIJH7?DJ I?CFB?T;I JE   HK5 

' G G

H     )5  H

: K8K   J>; 8K:=;J  

M>;H; K5 ?I J>; C;7D M7=; E< J>EI; ?D ;CFBEOC;DJ 7D: )5 ?I J>; FHEFEHJ?ED E< J>; FEFKB7J?ED ?D ;CFBEOC;DJ $< J>; ;DJ?H; FEFKB7J?ED F7HJ?9?F7J; ?D ;CFBEO C;DJ J>;D K5  K 7D: )5   -;JKHD JE J>; F7HJ?9?F7J?ED 9ED:?J?ED />; BE9KI E< 9H?J?97B L7BK;I E<  7D: H 97D 8; MH?JJ;D 7I 

  H K    



B

B

t

t

!?=KH;   +7HJ?9?F7J?ED 7D: J>; 8K:=;J FEII?8?B?J?;I

/>?I ?I 7 :EMDM7H: IBEF?D= IJH7?=>J B?D; +7?HI H  78EL; J>; B?D; ?CFBO DED F7HJ?9?F7J?ED M>?B; F7?HI H  8;BEM J>; B?D; ?CFBO 7BB F7HJ?9?F7J; />; T=KH;   IA;J9>;I J>; FEII?8?B?J?;I />; BE9KI ?CFB?;: 8O   M>;D K5  K 7D: )5   ?I :H7MD IEB?: $< J>; B?D; :;I9H?8;: 8O   B?;I ;L;HOM>;H; 78EL; J>?I J>;D J>;H; ?I 7BM7OI ; JME ?DJ;HI;9J J>;D J>; BE9KI E< F7?HI J>7J I7J?I; 8K:=;J ?I 9>7D=;: JE J>; :7I>;: I;9J?ED H?=>J>7D: F7D;B : $< J>;H; ?I ; 8K:=;J 9EDIJH7?DJ ?I   HK  IE

H      H

 

  H HK    H />; :?IFEI78B; ?D9EC; E< J>; BEM;IJIA?BB 9EDIKC;H ?I 

 

L     H K 4      H K   .K8IJ?JKJ?D= ; J7N H7J; J>7J C7N?C?P;I J>?I ?D9EC; M>?BIJ =K7H7DJ;;?D= F7HJ?9?F7J?ED IEBL;I



   H H $)    H K  I J 

     H   H

D $< J>; 9EDIJH7?DJ ?I 8?D:?D=  97D 8; H;FB79;: ?D J>; E8@;9J?L; ; THIJEH:;H 9ED:?J?ED IEBL;: JE =?L;    H    



!   !%!

/>?I IEBKJ?ED 7FFB?;I ?< J>; F7HJ?9?F7J?ED 9EDIJH7?DJ ?I 8?D:?D= M>?9> ?J M?BB 8; M>;D             ;H; ;79> 9EDIKC;H >7I ED; E< JME IA?BB B;L;BI />; BEM IA?BB B;L;B ?I G 7D: J>; >?=> IA?BB B;L;B ?I G />;H; 7H; ' 9EDIKC;HI ?D JEJ7B 7D: B9 >7L; IA?BB B;L;B = 79> 9EDIKC;H >7I FH;; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJI ; ;9EDECO 2>?9> M?BB 8?D: 7J J>; EFJ?CKC 8 IIKC?D= J>7J DE H;L;DK; ?I JE 8; 9EBB;9J;: MH?J; :EMD J>; EFJ?C?P7J?ED :;I9H?8?D= J>; EFJ?C7B 7BBE97J?ED ; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJ 7D: J>; FHE:K9J?ED 9ED IJH7?DJ 97D 8; IEBL;: JE ;NFH;II L 7D: L ?D J;HCI E< ?D9EC;I 7D: IA?BBI : 0I; J>;I; IEBKJ?EDI JE E8J7?D;: 7 H;:K9;: ; ;\;9J E< 9>7D=?D= J>; H;B7J?L; FEFKB7J?ED FHEFEHJ?EDI 3098.32  7 />; F7?H E< ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJI 7H;   N

N

L   L  G

G

  N N

L   L  G G />; I;9ED: E< J>;I; M?BB 8; 8?D:?D= 7J 7D EFJ?CKC J>; THIJ M?BB DEJ 8 />; ; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJ ; FHE:K9J?ED 9EDIJH7?DJ =?L;I      N N

 B N B  N B

  L  ' G G #;D9;

     N N

 B N B  N B    L  ' G G

 : .K8IJ?JKJ?D= J>; ;NFH;II?EDI ; M;B;H;; ?CFB?;: 9EDIKCFJ?ED B;L;BI 7H;   G

G G  G   L  B B  B  '   G   G G G  G  B B   B    L  '   G ; />; IC7BB;H B ?I H;B7J?L; JE ' J>; 9BEI;H 8;9EC; J>; 9EDIKCFJ?ED B;L;BI />?I ?I 8;97KI; J>;H; 7H; ?=> IA?BB JE H;:?IJH?8KJ; 7J ?D9EC; B;L;B :E DEJ 9>7D=; 7I J>; FEFKB7J?ED FHEFEHJ?EDI 9>7D=; />?I ?I 8;97KI; J>; ?D9EC; B;L;BI 7H; 7J J>; THIJ8;IJ J>7J MEKB: 8; 79>?;L;: ?D J>; 78I;D9; E< J>; ?D9;DJ?L; 9ECF7J?8?B?JO 9EDIJH7?DJ #;D9; B78EH IKFFBO ?I DEJ :?IJEHJ;: ?D J>?I ;9EDECO

; D;=7J?L; ?D9EC; J7N 7BB ?D:?L?:K7BI 7H; =K7H7DJ;;: 7 C?D?CKC IJ7D:7H: E< B?L?D= 8O 8;?D= 7M7H:;: 7 =H7DJ 7D: J>; =H7DJ ?I H;:K9;: 7I J>;?H ;7HD?D=I H?I; J>EK=> 8O B;II J>7D ED;; =EL;HDC;DJ F7OI OEK 7 H;?I J7N 9H;:?J ?I J>;D F>7I;: EKJ 7?D= 7 C7N?CKC IE J>7J J>; 9H;:?J =E;I JE P;HE ; MEHA ?D9;DJ?L;I E< J>; M7=; IK8I?:O 7D: J>; D;=7J?L; ?D9EC; J7N ; ;DJ?H; ?D9EC; :?IJH?8KJ?ED 0I; 7 :?7=H7C 7D: ;NFB7?D 8 IIKC; 7 FEL;HJO B?D; TN;: 7J   ;I?=D 7 D;=7J?L; ?D9EC; J7N JE 9EC87J FEL;HJO 8O 9>EEI?D= 7 87I?9 =H7DJ B;L;B 7D: 7D ?CFB?9?J J7N H7J; 7J M>?9> J>?I =H7DJ ?I H;:K9;: 7I ?D9EC;I H?I; 2>7J 7H; J>; JH7:;E\I ?DLEBL;: ?D I;JJ?D= J>; =H7DJ B;L;B 7D: J7N H7J; 2>7J 7H; J>; ;[9?;D9O 7D: ;GK?JO ;\;9JI E< 9>EEI?D= :?\;H;DJ =H7DJ B;L;BI 7D: J7N H7J;I #EM M?BB J>; FHE=H7C 7\;9J F;EFB; M?J> :?\;H;DJ ?D9EC;I 9 )EM 9EDI?:;H J>; FEII?8?B?JO E< KI?D= 97J;=EH?97B M;B?I C?D?CKC =H7DJ ?I J7A;D



!   !%!

Consumption

Consumption

c

χ β

b a Leisure

α Leisure

!?=KH;   );=7J?L; ?D9EC; J7N 7D: M7=; IK8I?:O

7M7O ED; EKB: J>; =EL;HDC;DJ 9>EEI; J>; H?=>J 97J;=EH?;I ; 7:L7DJ7=;I 7D: :?I7:L7DJ7=;I E< 97J;=EH?97B =H7DJI H;B7J?L; JE D;=7J?L; ?D9EC; J7N 3098.32  7 />; D;=7J?L; ?D9EC; J7N ?I =H7F>;: ?D J>; B;7D: F7D;B E< T=KH;   7D: J>; M7=; IK8I?:O ?D J>; H?=>J>7D: F7D;B />; D;=7J?L; ?D9EC; J7N FHEL?:;I 7 =H7DJ ; J>7J =?L;I 7D ?D9EC; 7J P;HE B78EH FE?DJ 5 />; =H7DJ ?I ;DJ?H;BO F>7I;: EKJ 7J FE?DJ 6 />; 9EDI;GK;D9; E< J>; D;=7J?L; ?D9EC; J7N ?I J>7J J>; 8K:=;J 9EDIJH7?DJ >7I 7 A?DA 7J 6 />?I =?L;I 7D ?D9;DJ?L; JE ;?J>;H 9>EEI; 7 BEM B78EH IKFFBO EH 7 >?=> B78EH IKFFBO 2?J> 9EDL;N ?D:?\;H;D9; 9KHL;I DEED; M?BB 9>EEI; JE IKFFBO 7HEKD: FE?DJ 6 />; M7=; IK8I?:O 97KI;I J>; 8K:=;J 9EDIJH7?DJ JE H?I; IJ;;FBO ; H?=>J>7D: F7D;B />; =H7:?;DJ E< J>; 8K:=;J 9EDIJH7?DJ J>;D :;9H;7I;I 7I J>; M7=; IK8I?:O ?I F>7I;: EKJ KDJ?B ?J H;79>;I FE?DJ  />; ;\;9J E< J>?I ?DJ;HL;DJ?ED ?I =?L; 7D ?D9;DJ?L; JE FHEL?:; 7 B78EH IKFFBO E< 7J B;7IJ  8 />; 8;IJ M7O JE ?:;DJ?; FHE8B;CI ?I JE 9EDI?:;H J>; ;\;9J E< J>; I?CFB;IJ IEBKJ?ED />?I IEBKJ?ED ?I JE I;J J>; =H7DJ B;L;B 7J   7D: M?J>:H7M J>; =H7DJ 7J J>; H7J; E<   ;7HD;: />; :H7M879A E< J>?I 7FFHE79> ?I J>7J ?J =?L;I DE ?D9;DJ?L; EI; M>E MEKB: 8; ?D FEL;HJO M?J>EKJ J>; I9>;C; JE IKFFBO 7DO B78EH $DIJ;7: J>;O M?BB @KIJ 799;FJ J>; =H7DJ !KHJ>;HCEH; J>; H7J; E< M?J>:H7M7B E< J>; =H7DJ FHEL?:;I DE ?D9;DJ?L; JE ;7HD ?D9EC; 78EL; J>; =H7DJ KDB;II 7D 7CEKDJ ?D ;N9;II E<   MEKB: 8; ;7HD;:  BEM;H =H7DJ J>;H;:H7M7B FHEL?:;I 7D ?D9;DJ?L; JE ;7HD 78EL; J>; C?D?CKC =H7DJ />; :H7M879A ?I J>7J FEL;HJO C7O DEJ 8; ; ?DJ;DJ?ED ?I JE ;B?C?D7J; FEL;HJO J>; 97J;=EH?97B =H7DJ I>EKB: 8; J7H=;J;: 7J J>EI; M>E MEKB: H;C7?D ?D FEL;HJO ?< 7DO BEM;H =H7DJ M;H; E\;H;:

 : />; 7:L7DJ7=; E< 97J;=EH?97B =H7DJI ?I J>7J J>;O 97D 8; KI;: JE IKFFEHJ J>EI; M>E MEKB: ;7HD B?JJB; EI; M>E MEKB: ;7HD 78EL; J>; FEL;HJO B?D; />?I ?I JHK; ?< J>; =H7DJ 97D 8; :;B?L;H;: JE J>EI; M?J> J>; 9EHH;9J 9>7H79J;H?IJ?9I

;H M?J> J>; KJ?B?JO ;H; L ?I 9EDIKCFJ?ED 7D: @ ?I B;?IKH; />; CEJ>;H 97D MEHA KF JE  >EKHI F;H CEDJ> DO E< J>;  >EKHI J>7J 7H; DEJ MEHA;: 7H; B;?IKH; >EKHI .>; ;7HDI 7 M7=; E<  F;H >EKH 7D: F7OI DE J7N;I />; 9EDIKCFJ?ED FH?9; ?I DEHC7B?P;: JE  /E 8; 78B; JE MEHA I>; >7I JE ?D9KH 7 9>?B: 97H; 9EIJ E<  EKH MEHA;: 7 .KFFEI; J>;H; 7H; DE J7N 7D: M;BEKHI M?BB I>; MEHA 7D: M>7J M?BB 8; >;H 9EDIKCFJ?ED B;L;B H7M J>; =H7F> :;F?9J?D= >;H 8K:=;J I;J M?J> 9EDIKCFJ?ED ED J>; L;HJ?97B 7N?I 7D: B;?IKH; ED J>; >EH?PEDJ7B 7N?I 8 .KFFEI; J>; =EL;HDC;DJ ?DJHE:K9;I 7 D;=7J?L; ?D9EC; J7N ' #- J>7J =K7H7DJ;;I 7D ?D9EC; E<  F;H CEDJ> />; 8;D;TJ ?I J7A;D 7M7O ED; ; D;M 8K:=;J I;J ECFKJ; J>; D;M DKC8;H E< >EKHI MEHA;: 7D: 9EDIKCFJ?ED B;L;B #7I 9EDIKCFJ?ED ?D9H;7I;: 7D: ?I J>; CEJ>;H 8;JJ;H E\ 2>O EH M>O DEJ 9 )EM IKFFEI; J>; ?D9EC; =K7H7DJ;; ?I H;:K9;: 8O ED; >7B< JE J>; 7CEKDJ E<  F;H CEDJ> 2>7J ?I J>; D;M DKC8;H E< >EKHI MEHA;: 7D: J>; 9EDIKCFJ?ED B;L;B ECF7H; M?J> OEKH H;IKBJ ?D F7HJ 8 : )EM 9EDI?:;H J>; ?D9EC; =K7H7DJ;; 7I ?D F7HJ 8 E<  F;H CEDJ> 7D: IKFFEI; J>; =EL;HDC;DJ 9ECFB;C;DJI J>?I 8;D;TJ 8O E\;H?D= ?B: 97H; H7M J>; D;M 8K:=;J I;J 7D: 97B9KB7J; J>; DKC8;H E< >EKHI MEHA;: 7D: 9EDIKCFJ?ED B;L;B 7B9KB7J; J>; JEJ7B 9EIJ E< J>; FHE=H7C ; =EL;HDC;DJ #EM :E;I ?J 9ECF7H; M?J> J>; FHE=H7C ?D F7HJ 8 ;TD; FHE=H7C ;[9?;D9O 7I J>; H7J?E E< J>; CEJ>;HWI 9EDIKCFJ?ED JE =EL;HDC;DJ ;NF;D:?JKH; 2>?9> FHE=H7C :EC?D7J;I ED ;[9?;D9O =HEKD:I 3098.32  7 />; M7=; B;II 9>?B: 97H; 9EIJ ?I  F;H >EKH />; 8K:=;J 9EDIJH7?DJ ?I L  4   M>;H; 4 ?I B78EH IKFFBO $D9EHFEH7J?D= J>; JEJ7B J?C; 7L7?B78?B?JO 7D: J>; 8K:=;J 9EDIJH7?DJ ?DJE J>; KJ?B?JO ; D;9;II7HO 9ED:?J?ED EEI?D= 4 ?I       4  

 4

 



!   !%!

Consumption 500

100

Leisure

!?=KH;   K:=;J I;J

.EBL?D= =?L;I 4



 

 

7D:



    />; 8K:=;J I;J ?I 7 :EMDM7H: IBEF?D= IJH7?=>J B?D; M?J> =H7:?;DJ  I>EMD ?D T=KH;   8 />; ?D9EC; =K7H7DJ;; ?I ?I ?I H;:K9;: 7I ?D9EC; ?I ?D9H;7I;: 7D: H;79>;I P;HE M>;D ?D9EC; H;79>;I  2>;D MEHA?D= 9>?B: 97H; 9EIJI >7L; JE 8; F7?: />; 8K:=;J 9EDIJH7?DJ ?I   4  4 

  4   4 

 L    4  4  4  

 L

/>?I ?I =H7F>;: ?D J>; T=KH;   />; 8K:=;J IBEF;I :EMDM7H: ; =K7H7DJ;;: ?D9EC; ?I IJ;7:?BO M?J>:H7MD 7D: 9>?B: 97H; 9EIJI >7L; JE 8; F7?: />; 9>E?9; FHE8B;C ; 9EDIKC;H ?I M>;J>;H J>;O FH;; 7BBE97J?ED ?9> ?I IJ?BB 7JJ7?D78B; EH J>; 7BBE97J?ED 7J FE?DJ 5 />; KJ?B?JO E< J>; 7BBE97J?ED ; KJ?B?JO )$/

/>; FHEL?I?ED E< J>; D;=7J?L; ?D9EC; J7N C7A;I J>; I?D=B; CEJ>;H FH;; ?D9EC; =K7H7DJ;; ?I H;:K9;: JE  J>; KJ?B?JO E< DEJ MEHA?D= ?I .

  #&! 

 #&! 

     

 

/>; I?D=B; CEJ>;H J>;H; J>; D;=7J?L; ?D9EC; J7N : $< ?B: 97H; ?I E\;H;: J>; 8K:=;J 9EDIJH7?DJ 8;9EC;I   4 

  4   4 

 L    4  4  

 />?I ?I =H7F>;: ?D T=KH;   />; 9>E?9; ?I 8;JM;;D FE?DJ 5 M>?9> =?L;I KJ?B?JO   7D: J>; IEBKJ?ED JE $) . 

0

/>; B7JJ;H >7I J>; IEBKJ?ED

  #&!  4 #&! 

 4    

  

L   4

J>7J =?L;I J>; KJ?B?JO B;L;B E<





 

 #&! 

    .  #&!    

 

   

 



!   !%!

Consumption 1000

a

200

80 100

Leisure

!?=KH;   !H;; 9>?B: 97H;

/>?I EKJ9EC; ?I FH;; JEJ7B 9EIJ E< J>?I FHE=H7C ?I J>; IK8I?:O JE 9>?B: 97H; 79> >EKH 9EIJI

 7D:  >EKHI 7H; MEHA;: IE J>; 9EIJ ?I />; 9EIJ E< J>; FHE=H7C ?D F7HJ 8 ?I J>; D;=7J?L; ?D9EC; J7N E<  +HE=H7C ;[9?;D9O 7I E7J J>; IA?BB :?IJH?8KJ?ED ?I ?:;DJ?97B JE J>; ?D9EC; :?IJH?8KJ?ED />?I D;;: DEJ 8; J>; 97I; IIKC; J>; KJ?B?JO ;HM?I; 7 +HEL?:; 7D ?DJ;HFH;J7J?ED E< J>?I KJ?B?JO 7J J>; IA?BB B;L;B E< 7BB 9EDIKC;HI ?I IJH?9JBO FEI?J?L; 2>7J M?BB 8; J>; E8I;HL;: :?IJH?8KJ?ED E< ?D9EC; 9 2?BB J>?I 8; ?:;DJ?97B JE J>; IA?BB :?IJH?8KJ?ED

 : ECC;DJ ED J>; FH79J?9; E< 7IIKC?D= J>; ?D9EC; 7D: IA?BB :?IJH?8KJ?EDI 7H; ?:;DJ?97B 3098.32  7 />; KJ?B?JO 7J J>;H; ?I 7 C?D?CKC B;L;B E< 9EDIKCFJ?ED L  J>7J 9EDIKC;HI M?I> JE 79>?;L; $< J>;O :E DEJ 79>?;L; J>?I J>;O E8J7?D 7D ?DTD?J;BO BEM KJ?B?JO Z J>?I 9EKB: 8; ?DJ;HFH;J;: 7I IJ7HL7J?ED 8EL; J>; B;L;B E< 9EDIKCFJ?ED L  KJ?B?JO :;9H;7I;I M?J> ;H B78EH BB 9EDIKC;HI M?BB IKFFBO IK[9?;DJ B78EH JE 79>?;L; J>; 9EDIKCFJ?ED B;L;B L  8KJ DE CEH; 8 />; E8I;HL;: ?D9EC;I 7H; 9ECFB;J;BO ;GK7B?P;: 7BB 9EDIKC;HI M?BB ;7HD @KIJ IK[9?;DJ JE FKH9>7I; 9EDIKCFJ?ED B;L;B L  9 />; ?D9EC; :?IJH?8KJ?ED ?I ;DJ?H;BO ?D:;F;D:;DJ E< J>; IA?BB :?IJH?8KJ?ED : />?I ;N7CFB; I>EMI >EM KJ?B?JO C7N?C?P7J?ED 9EC;I 8;JM;;D J>; IA?BB :?IJH?8KJ?ED 7D: J>; E8I;HL;: ?D9EC; :?IJH?8KJ?ED />;H; ?I DE D;9;II7HO 9ED D;9J?ED 8;JM;;D J>; JME :?IJH?8KJ?EDI -;; IF;9?T97J?ED E< CE:;BI E< EFJ?CKC ?D9EC; J7N7J?ED *0-)' *" 0'% *)*(%.  Z

; ?DJ;HL7B   2  M?J> C;:?7D ?D9EC; 8;BEM J>; 7L;H7=; ?D9EC; M= M EDI?:;H J>; GK7:H7J?9 J7N 7  J>; KD?; FHEFEHJ?ED7B?JO F7H7C;J;H 7D: 5  5  J>; FHE=H;II?L?JO H;=H;II?L?JO F7H7C;J;H !;7I?8B; J7N7J?ED H;GK?H;I H M M 7J J7N7J?ED ?I FKH;BO H;:?IJH?8KJ?L; IE J>7J 8K:=;J 87B7D9; H;GK?H;I ' H M8 M  2?J> J>; GK7:H7J?9 J7N I9>;:KB; H M  7 6M 5M  J>; 8K:=;J 87B7D9; H;GK?H;C;DJ ?CFB?;I J>7J 7  6M 5M  M>;H; M  ?I J>; 7L;H7=; ' E< IGK7H; ?D9EC; B;L;BI M  8 M .>EM J>7J ;H; ;N?IJI 7 ;C; H  7 6 M 5 M  M?J> 5  5 6  6 7D: 7  7 IK9> J>7J CEH; J>7D >7B< J>; LEJ;HI MEKB: FH;; JME J7N I9>;:KB;I H  7 6 M 5 M  7D: H  7 6 M 5 M  7D: B;J -

 H  H   7  7  6  6  M 5  5  M   7 6M 5M 

M?J> 5  5  5  6  6  6   7D: 7  7  7  !HEC J>; 87B7D9;: 8K:=;J 9EDIJH7?DJ M; >7L; 7  6M 5M  B;7HBO - ?I IJH?9JBO 9EDL;N M?J> 7 D;=7J?L; ?DJ;H9;FJ .?D9; - ?I IJH?9JBO 9EDL;N KI?D= %;DI;DWI ?D;GK7B?JO M; =;J )  ) / / -  M  M8 M  - M 8 M  



.E -  M   7D: I?D9; - ?I IJH?9JBO 9EDL;N - CKIJ 8; IJH?9JBO ?D9H;7I?D= 7D: J>;H;EI; M?J> ?D9EC; 8;BEM J>;



!   !%!

C;7D ?D9EC; F7O BEM;H J7N;I KD:;H H J>7D KD:;H H .?D9; M= M CEH; J>7D >7B< J>; LEJ;HI MEKB: FH;; H;IKBJ ; ?D:? L?:K7B $D EJ>;H 9EKDJH?;I IK9> 7I !H7D9; J>; J7N KD?J ?I J>; >EKI;>EB: EDI?:;H 7  F;HIED >EKI;>EB: M>;H; J>; THIJ ;7HD;H ;7HDI K6 7D: J>; I;9 ED: ;7HD;H ;7HDI KC $D 7D ?D:?L?:K7B IOIJ;C J>; >EKI;>EB: F7OI J7N E< 7CEKDJ - K6  KC   H K6  H KC  $D 7 @E?DJ J7N IOIJ;C J>; >EKI;>EB: F7OI -: K6  KC   H

K6 KC  7 ?BB 7D: %E:O B?L; JE=;J>;H ?BB ;7HDI  7D: %E:O ;7HDI  />; J7N IOIJ;C H K >7I JME 8H79A;JI M?J> 7 J7N H7J; E<  F;H9;DJ ; 7L;H7=; J7N H7J; E< J>; >EKI;>EB: ?< J>; J7N IOIJ;C ?I ?D:?L?:K7B 2>7J ?< ?J ?I 7 @E?DJ IOIJ;C 8 .>EM J>7J O J>?I ?I JHK; ;H; 8; 7 KD?;D J7N 97DDEJ 8; ;L7:;: ?D9EC; 7; KJ?B?JO ?D J>; JME @E8I ?I ;GK7B M>;D



  H 2 



 2 



 

.GK7H?D= 8EJ> I?:;I E< J>?I ;NFH;II?ED I>EMI J>7J 2    H 2 

 

D ?D9H;7I; ?D J>; J7N H7J; H;:K9;I J>; ?D9EC; B;L;B 2 Z J>; 9EDIKC;H M?BB 799;FJ 7 BEM;H M7=; M>;D CEH; ?I JE 8; =7?D;: ;I; L7BK;I E< J>; F7H7C;J;HI J>; ;NFH;II?ED ; H;L;DK; ; =H7F> H;L;7BI J>7J J>; C7N ?CKC H;L;DK; ?I 7JJ7?D;: 7J D   IE ;I; F7H7C;J;H L7BK;I J>; H;L;DK; 7KJ>EH?JO M?BB 9>EEI; 7K:?J?D= ;\EHJ JE ;DIKH; J>; FHE878?B?JO E< :;J;9J?ED 7J J>?I B;L;B



R

p !?=KH;   -;L;DK;

7I 7 9>E?9; 8;JM;;D JME E99KF7J?EDI *D; E99K F7J?ED F7OI 7 I7B7HO E<   8KJ =?L;I DE 9>7D9; ; EJ>;H F7OI   8KJ :E;I F;HC?J ;L7I?ED $< J>; FHE878?B?JO E< :;J;9J?ED D  

J>; J7N H7J; H   7D: J>; TD; H7J;   M>?9> E99KF7J?ED M?BB 8; 9>EI;D ?< .  2   3098.32   />; THIJ IJ;F ?I JE 9ECFKJ; J>; ;NF;9J;: KJ?B?JO EEI ?D= J>; E99KF7J?ED J>7J F;HC?JI ;L7I?ED />?I ?DLEBL;I 9>EEI?D= J>; EFJ?C7B :;9B7H7J?ED />; 9>E?9; E< ?D9EC; :;9B7H;: 1 IEBL;I J>; EFJ?C?P7J?ED $) .

.





   

 1



   

  

 1





 

?\;H;DJ?7J?D= M?J> H;IF;9J JE 1 7D: IEBL?D= J>; D;9;II7HO 9ED:?J?ED =?L;I    

 

  1  

     





  />; L7BK; E< ;NF;9J;: KJ?B?JO ?I .





 

   



   

  

   



 



!   !% # 

99;FJ?D= J>; E99KF7J?ED J>7J FHEL?:;I DE FEII?8?B?JO E< ;L7I?ED =;D;H7J;I KJ?B?JO .  2   

  

 

ECF7H?D= J>;I; DKC8;H I>EMI J>7J J>; 9EDIKC;H M?BB 9>EEI; J>; E99KF7J?ED J>7J :E;I DEJ F;HC?J ;L7I?ED

; F7H7C;J;H L7BK;I ; FH;L?EKI ;N;H9?I; ;N9;FJ M?J> J>; CE:?T97J?ED J>7J F7O ?D J>; E99KF7J?ED F;HC?JJ?D= ;L7I?ED ?I =?L;D 8O  

  B M>;H; B ?I J>; FHEFEHJ?ED E< J>; FEFKB7J?ED 9>EEI?D= J>?I E99KF7J?ED 2>7J ?I J>; ;GK?B?8H?KC L7BK; E< B #EM ?I J>?I L7BK; 7\;9J;: 8O 7D ?D9H;7I; ?D H 3098.32   />; 9>E?9; E< ?D9EC; :;9B7H;: 1 IEBL;I J>; EFJ?C?P7J?ED $) .

.





   

  B  H1



   H 

  B   

  B  1    ?\;H;DJ?7J?D= M?J> H;IF;9J JE 1 7D: IEBL?D= J>; D;9;II7HO 9ED:?J?ED =?L;I

 

    H   H   1  

  B

 H   H   H H  

  B    H H  />; L7BK; E< ;NF;9J;: KJ?B?JO ?I .





   H H

 

  B   H    H H 

    H H  

  B      H 

/>; ;GK?B?8H?KC L7BK; E< B ?I ; KJ?B?JO ; JME E99K F7J?EDI #;D9; B IEBL;I



  H H

 

  B   H    H H 

    H H  

  B   H    !EH H   J>; L7BK; E< B IEBL;I 1     B  



 

 

 M>?9> >7I IEBKJ?ED B   !EH H   J>; L7BK; E< B ?I B   

 

/>;H;; J7N H7J; H;:K9;I J>; FHEFEHJ?ED E< J>; FEFKB7J?ED ;DJ;H?D= J>; E99KF7J?ED J>7J F;HC?JI ;L7I?ED EDJH7HO JE ;NF;9J7J?EDI 7 >?=>;H J7N H7J; C7A;I J>; E99KF7J?ED M?J> DE ;L7I?ED CEH; 7JJH79J?L;

; I?CKBJ7D;EKI CEL; =7C; 8;JM;;D 7 J7NF7O;H 7D: 7 J7N ?DIF;9JEH />; J7NF7O;H 9>EEI;I M>;J>;H EH DEJ JE KD:;HH;FEHJ J7N78B; ?D9EC; />; J7N ?DIF;9JEH 9>EEI;I ;?J>;H JE 7K:?J EH DEJ J>; ?D9EC; H;FEHJ />; 9EIJ E< 7K:?J?D= ?I 7   7D: J>; TD; ?D9BK:?D= J7N F7OC;DJ ?CFEI;: ?< J>; J7NF7O;H ?I 97K=>J 9>;7J?D= ?I M?J>  7   2?J> JHKJ>; J7NF7O;H >7I JE F7O 7 J7N E<  KD?J E< ?D9EC; />; F7OE\I 7H; =?L;D ?D J>; C7JH?N M>;H; J>; THIJ DKC8;H ?D ;79> 9;BB :;DEJ;I J>; J7N ?DIF;9JEHWI F7OE\ 7D: J>; I;9ED: DKC8;H ?I J>; J7NF7O;HWI F7OE\ !?D: J>; )7I> ;GK?B?8H?7 E< J>?I =7C; 9EDI?:;H?D= 8EJ> FKH; 7D: C?N;: IJH7J;=?;I K:?J )E K:?J

0D:;H-;FEHJ  7 



/HKJ>; )7I> ;GK?B?8H?KC ?D FKH; IJH7J;=?;I ?I ;H; D;?J>;H FB7O;H >7I 7D ?D9;DJ?L; JE :;L?7J; $D J>?I =7C; J>;H; ?I DE F7?H E< IJH7J;=?;I J>7J I7J?IT;I J>?I 9H?J;H?ED />; C?N;: IJH7J;=O ;GK?B?8H?KC ?I 7 F7?H E< FHE878?B?J?;I IK9> J>7J ;79> FHE878?B?JO ?I 7 8;IJH;FBO JE J>; EJ>;H FB7O;HWI 9>E?9; ';J J>; J7N ?DIF;9JEH FB7O K:?J M?J> FHE878?B?JO D 7D: )E K:?J M?J> FHE878?B?JO   D 7D: B;J J>; J7NF7O;H FB7O 0D:;H-;FEHJ M?J> FHE878?B?JO E 7D: /HKJ> FHE878?B?JO   E />; ;NF;9J;: F7OE\ E< J>; J7N ?DIF;9JEH ?I )

 E D  7   D    E D   7   D   ED  7   E   D7   

/>; ;NF;9J;: F7OE\ E< J>; J7NF7O;H ?I )*



D E     E    D E    E 



D E

  E    D   E 

 

/>; D;9;II7HO 9ED:?J?ED EEI?D= D ?I ; D;9;II7HO 9ED:?J?ED EEI?D= E ?I ;I; 9ED:?J?EDI =?L;I D



 E

7



 

/>;I; FHE878?B?J?;I 9>7H79J;H?P; J>; C?N;: IJH7J;=O ;GK?B?8H?KC

7J ?J M?BB EDBO 7K:?J ?D9EC; :;9B7H7J?EDI 8;BEM 7 9H?J?97B B;L;B 2   $< OEK >7: 7D ?D9EC; ?D ;N9;II E< 2   M>7J B;L;B E< ?D9EC; MEKB: OEK 7DDEKD9; *D9; :;9B7H7J?EDI 7H; C7:; M?BB J>; H;L;DK; I;HL?9; 79J 799EH:?D= JE ?JI 7DDEKD9;: 7K:?J?D= FB7DI 3098.32   $< IK9> 7 :;9B7H7J?ED M;H; C7:; J>;H; MEKB: 8; DE 8;D;TJ ?D9EC; 78EL; J>?I L7BK; MEKB: :;9B7H; EDBO 2  /E 79J ?D J>?I M7O H;GK?H;I 7 8;B?;< J>7J J>; :;9B7H7J?ED E< J>; H;L;DK; I;HL?9; ?I 9H;:?8B; IE J>7J ?J M?BB 79J ?D J>; M7O ?J >7I IJ7J;: IIKC; J7NF7O;HI 8;B?;L; J>; H;L;DK; I;HL?9; 7D: 79J 7I :;I9H?8;:  H;L;DK; I;HL?9; J>7J :;9?:;I JE 7K:?J :;9B7H7J?EDI E< 2  M?BB :?I9EL;H J>7J 7BB J>EI; M?J> ?D9EC; 78EL; 2  >7L; 7JJ;CFJ;: JE ;L7:; +HEL?:;I J>7J J>; H;JKHDI ; 9EIJI E< 7K:?J J>; H;L;DK; I;HL?9; M?BB 8;D;TJ ; 7K:?J />;H;; H;L;DK; I;HL?9; >7I 7D ?D9;DJ?L; JE :;L?7J; ; F7OE\ C7JH?N 8;BEM #ED;IJ L7:;

K:?J 

  2 

)E K:?J 

    -

7 !EH M>7J L7BK; E< - ?I  L7:; )E K:?J 7 )7I> ;GK?B?8H?KC 8 7D  L7:; K:?J ;L;H 8; 7 )7I> ;GK?B?8H?KC 2>7J :E;I J>?I ?CFBO 78EKJ J>; FKD?I>C;DJ IJHK9JKH; 9 E;I 7 I?CKBJ7D;EKI CEL; =7C; 97FJKH; J>; 7K:?J?D= FHE8B;C 3098.32   7  L7:; )E K:?J ?I 7 )7I> ;GK?B?8H?KC ?< D;?J>;H J>; J7NF7O;H EH J>; H;L;DK; I;HL?9; M?I>;I JE :;L?7J; $< J>; H;L;DK; I;HL?9; FB7OI )E K:?J J>; J7NF7O;H H;9;?L;I 7 F7OE\ E<  ; J7NF7O;H FB7OI L7:; J>; H;L;DK; I;HL?9; H;9;?L;I  ?I =7C;  ?I J>; IKC E< J7N 7D: TD; B;II 7K:?J 9EIJI ; 7K:?J E< 7D ;L7:;H 7D: - ?I J>; J7N F7?: 8O 7D ;L7:;H 8  L7:; K:?J ?I 7 )7I> ;GK?B?8H?KC ?< -  J>; H;L;DK; I;HL?9; FH;; J7NF7O;H FH;; 9ED:?J?ED 2 

 IJ7J;I J>7J 7 J7NF7O;H 97K=>J ;L7:?D= ?I DE MEHI; E\ 77D ?< J>;O >7: 79J;: >ED;IJBO />?I 97D EDBO >7FF;D ?< J>; F;D7BJO ?I B;II J>7D J>; L7BK; E< ;L7:;: J7N $D IK9> 7 97I; J>;H; ?I DE :?I?D9;DJ?L; JE ;L7I?ED 9 />; =7C; 97FJKH;I IEC; ; FHE8B;C D7C;BO KD9;HJ7?DJO 78EKJ 8;?D= 7K:?J;: 7D: J>; 9EIJ E< 7K:?J?D= >ED;IJ H;FEHJI 2>7J ?J :E;I DEJ 97FJKH; ?I J>; 7J J>; H;L;DK; I;HL?9; 9>EEI;I 7D 7K:?J?D= :;9?I?ED 7; 799HK7B E< ?D; H;L;DK; I;HL?9; EL;H J?C;

; 87I?9 CE:;B E< J7N ;L7I?ED FEHJH7OI J>; 9>E?9; FHE8B;C 7I 7 =7C8B; J>; J7N ;L7:;H J7A;I 7 9>7D9; J>7J ;L7I?ED M?BB 8; IK99;II?I CE:;B FHEL?:;I 9ECF7H7J?L; IJ7J?9I FH;:?9J?EDI M>?9> 7H; ?D B?D; M?J> J>; :7J7 #EM;L;H J>; IK[9?;DJ 9ED:?J?ED 7J ?< J>; CE:;B ?I 9EHH;9J CK9> CEH; J7N ;L7I?ED I>EKB: 8; E8I;HL;: $D 7::?J?ED J>; FH;:?9J?ED J>7J ;L7I?ED ?I H;:K9;: 7I J>; J7N H7J; ?D9H;7I;I 9EDU?9JI M?J> 7 FH?EH? ;NF;9J7J?EDI 7D: M?J> IEC; E< J>; ;CF?H?97B ;L?:;D9; CF?H?97B 7D: ;NF;H?C;DJ7B ;L?:;D9; 7BIE >?=>B?=>JI J>; ?CFEHJ7D9; E< IE9?7B ?DJ;H79J?ED ?D J>; ;L7I?ED :;9?I?ED /7N ;L7I?ED >7I ;B;C;DJI E< 7 =7C8B; 8KJ J>; ;L?:;D9; IK==;IJI J>7J ?J ?I CEH; J>7D @KIJ 7 =7C8B;

EI; M>E 7 :EEH 7J J>; I7C; J?C; EH ; IE9?7B 9KIJEC >7I 7 8;D;TJ M?J>EKJ J>; HKB; 9EIJI MEKB: 8; ?CFEI;: 8O J>; 9EDU?9JI J>7J MEKB: ;C;H=; M>;D JME F7HJ?;I JH?;: JE KI; J>; :EEH I?CKBJ7D;EKIBO !EB BEM?D= J>; IE9?7B 9KIJEC 97D =?L; 7 FEI?J?L; F7OC;DJ JE 8EJ> F7HJ?;I />; I7C; ?I JHK; E< IE9?7B 9KIJECI ?D J7N ;L7I?ED />; CE:;B?D= 7II;HJI J>7J J>;H; ?I 7 F7OE\ ; IE9?7B 9KIJEC 7D: J>7J J>; :;9?I?ED JE ; IE9?7B 9KIJEC EH DEJ ?I J7A;D H7J?ED7BBO J J>; ;GK?B?8H?KC J>;H; ?I DE I;DI; ?D M>?9> IEC;ED; M>E >7I 9>EI;D JE ; IE9?7B 9KIJEC M?I>;I ?D H;JHEIF;9J JE >7L; 9>7D=;: J>;?H 9>E?9; #;D9; =?L;D 7 I;J E< FH;?9> H;M7H: ; IE9?7B 9KIJEC J>; 9>E?9; ?I DEJ

 7H; ?DJ;HC?JJ;DJ F;H?E:I E< >?=> ?DJ;DI?JO FEB?9?D= .EC; ;N7CFB;I ?D9BK:; :HKDA :H?L?D= ?DJ;H:?9J?ED 799ECFB?I>;: KI?D= IE8H?;JO 9>;9AFE?DJI 9H79A:EMDI ED IF;;:?D= 79>?;L;: J>HEK=> 7 =H;7J;H 7DDEKD9;: FEB?9; FH;I;D9; ED 9;HJ7?D



!   !% # 

>?=>M7OI EH 9H79A:EMDI ED :HK= JH7[9A?D= /ME 7H79J;H?P; EKH DE J?ED E< H7D:EC 9H79A:EMDI !?HIJ J>;O 7H; 7H8?JH7HO ?D J>; I;DI; J>7J J>;O IK8@;9J 9;HJ7?D =HEKFI ?:;DJ?T;: 8O FH;I;D9; ?D 7 F7HJ?9KB7H J?C; EH FB79; EH 8O EJ>;H E8I;HL78B; 9>7H79J;H?IJ?9I J>7J 7H; DEJ DEJ78BO :?\;H;DJ ;H =HEKFI ?D 9H?C?D7B FHEF;DI?J?;I JE >?=>;H ?DJ;DI?JO FEB?9; CED?JEH?D= .;9ED:

J>;O 7H; FK8B?9?P;: D7C;BO J>EI; M>E 7H; IK8@;9J;: JE 9H79A:EMDI 7H; ?D ;C 8;;O ;D=7=; ?D 9H?C?D7B 79J?L?JO 7?C;: 7J F7HJ?9KB7H D;?=>8EH>EE:I ?I9KII J>; FEJ;DJ?7B 9EIJI 7D: 8;D;TJI E< 7 I?C?B7H 9H79A:EMD FEB?9O JE 9EC87J J7N ;L7I?ED 4%)/ OEK 97D 7BIE KI; 8;>7L?EH7B 7H=KC;DJI E?9;I 5 3098.32   H79A:EMDI ED J7N ; ?:;7 ?I J>7J 8O ?DJHE:K9?D= :?IF7H7J; JH;7JC;DJ M?J>?D 7 FEF KB7J?ED E< E8I;HL78BO ?:;DJ?97B ?D:?L?:K7BI :?IFB7O?D= :?\;H;DJ FHEF;DI?J?;I JE ;L7:; J7N;I J>; J7N 7=;D9O 97D 8;JJ;H 9ED9;DJH7J; ;D J7N ;D; 9ECFB?7D9;C7N?C?P?D= 7=;D9O TD: ?J EFJ?C7B JE ;CFBEO 9H79A:EMDI $J ?I 7BIE FEII?8B; JE H;IEHJ JE DEDH7J?ED7B 7H=KC;DJI ; KI; E< 9H79A:EMDI 8O 7FF;7B?D= JE FIO9>EBE=?97B J>;EH?;I 799EH:?D= JE M>?9> J>; ?CFH;II?ED 9H;7J;: 8O J>; J;CFEH7HO I>EM E< ; 9H79A:EMD ?I 7 FIO9>EBE=?97B X8BK\Y J>7J B;7:I FEJ;DJ?7B DED9ECFB?;HI JE EL;H;IJ?C7J; J>; H?IA E< :;J;9J?ED I;; J>; BEII 7L;HI?ED 7H=KC;DJ ?D J>; 8;>7L?EH7B 9>7FJ;H

; C7?D ?:;7 8;>?D: 9H79A:EMD FEB?9O 9EDI?:;H 7D ;N7CFB; M>;H; J>; J7N ;D7B< E< M>EC MEKB: D;L;H ;L7:; J7N;I 7D: >7B< E< M>EC MEKB: ;L7:; J7N;I KDB;II ?J ?I IK[9?;DJBO B?A;BO J>7J J>;O M?BB 8; 7K:?J;:  J7NF7O;HWI FHEF;DI?JO JE ;L7:; J7N ?I KDE8I;HL78B; JE J>; J7N ;D; J7N ;D J>7J EDBO  J7NF7O;HI 97D 8; 7K:?J;: 7 -7D:EC 7K:?J .KFFEI; J>7J J7NF7O;HI 7H; 7K:?J;: 7J H7D:EC IE J>7J ;79> J7NF7O;H >7I 7 FHE878?B?JO  E< 8;?D= 7K:?J;: />;D M>7J M?BB 8; J>; 9ECFB?7D9; H7J; 8 H79A:EMD 7K:?J .KFFEI; DEM J>7J >7B< E< J>; J7NF7O;HI 7H; I;B;9J;: 87I;: ED E8I;HL78B; 9>7H79J;H?IJ?9I ; = ;O; 9EBEH ADEMD JE 8; ?D:;F;D:;DJ E< J>; FHEF;DI?JO JE ;L7:; J7N;I IE ?J ?I 7H8?JH7HO );L;HJ>;B;II IKFFEI; 7BB J7NF7O;HI ?D J>?I =HEKF 7H; 7K:?J;: 7D: J>; H;IJ E< J>; J7NF7O;HI 7H; DEJ 7K:?J;: *L;H7BB  J7NF7O;HI 7H; 7K:?J;: 7I H;GK?H;: 8O J>; 8K:=;J 9EDIJH7?DJ />;D M>7J M?BB 8; J>; 9ECFB?7D9; H7J; ECF7H; M?J> F7HJ 7 9 2>7J E8@;9J?EDI MEKB: OEK C7A; JE J>?I 7H8?JH7HO 9H79A:EMD J7N ;D7J J>; J7N 7=;D9O 7K:?JI 9?J?P;DI 7J H7D:EC DEJ; J>7J 7BB 9?J?P;DI BEEA J>; I7C; JE J>; J7N 7=;D9O IE J>7J ;79> 9?J?P;D >7I 7 FHE878?B?JO ED; >7B< E< 8;?D= 7K:?J;: />;D EDBO J>; EFFEHJKD?IJ?9 J7NF7O;HI M?BB ;L7:; J7N =?L?D= H?I; JE 7 9ECFB?7D9; H7J; E<  8 H79A:EMD 7K:?J .KFFEI; DEM J>7J >7B< E< J>; J7NF7O;HI >7L; 8BK; ;O;I >7B< >7L; 8HEMD ;O;I 7D: J>7J ;O; 9EBEH ?I ADEMD JE 8; ?D:;F;D:;DJ E< J>; 9ECFB?7D9; :;9?I?ED );L;HJ>;B;II IKFFEI; J>7J J7N 7=;D9O 9H79A :EMD ED 8HEMD;O;: J7NF7O;HI 7D: 7K:?J J>;C 7BB 7D: 9ECFB;J;BO ?=DEH; J>; 8BK;;O;: J7NF7O;HI />;D DE 8HEMD ;O;: ;L;H ;L7:;I J7N 8;97KI; J>;O 7H; IKH; J>7J J>;O MEKB: 8; 7K:?J;: 7D: EDBO J>EI; 8BK;;O;: J7NF7O;HI M>E 7H; EFFEHJKD?IJ?9 M?BB ;L7:; J7N />KI J>; 9ECFB?7D9; H7J; M?J> 7 9H79A:EMD ED 8HEMD ;O;: F;HIEDI ?I

M>?9> ?I BEM;H J>7D J>; 9ECFB?7D9; H7J; E<  E8J7?D;: M?J>EKJ 9H79A:EMDI 9 />; C7?D E8@;9J?ED JE EKH H7J?ED7B 9H79A:EMD ?I J>7J J>;O 7H; ;DJ?H;BO 7H8?JH7HO ?D J>; I;DI; J>7J J>;O IK8@;9J 9;HJ7?D =HEKFI ?:;DJ?T;: 8O E8I;HL78B; 7D: DEDC7D?FKB78B; 9>7H79J;H?IJ?9I J>7J 7H; DEJ DEJ78BO :?\;H;DJ ;H =HEKFI ?D 9ECFB?7D9; H7J;I JE 7 >?=>;H ?DJ;DI?JO E< CED?JEH?D= .E J>?I ?I DEJ IJ7J?IJ?97B :?I9H?C?D7J?ED 8KJ C;H;BO FKH; :?I9H?C?D7J?ED M?J> L?EB7J?ED E< J>; FH?D9?FB; E< ;GK7B JH;7JC;DJ E< ;GK7BI );L;HJ>;B;II 9H79A:EMDI 7H; ;CFBEO;: ?D 7 DKC8;H E< I?JK7J?EDI H79A:EMDI 9ED9;HD?D= :HKDA :H?L?D= 7H; ?CFB; C;DJ;: 8O KI?D= 7H8?JH7HO IE8H?;JO 9>;9AFE?DJI H79A:EMD JE :;J;H IF;;:?D= 7H; KI;: ?D I;L;H7B 9EKDJH?;I M>;H; FEB?9; >7L; 7:EFJ;: FHE=H7CI E< 7DDEKD9;: H7:7H 9EDJHEBI J>7J FK8B?9?P; J>; BE97J?ED 7D: 7FFHEN?C7J; J?C; E< EF;H7J?ED E< H7:7H 9EDJHEBI />;H; 7H; 7BIE H;=KB7H 9H79A:EMDI ED :HK= JH7[9A?D= 7?C;: 7J F7HJ?9KB7H D;?=>8EH>EE:I

7J  F;H9;DJ E< J>; FEFKB7J?ED M?BB 7BM7OI ;L7:; J7N DE C7JJ;H M>7J 7DOED; ;BI; :E;I GK7BBO  F;H9;DJ E< J>; FEFKB7J?ED M?BB D;L;H ;L7:; F7O?D= J7N;I />; H;C7?D?D=  F;H9;DJ 7H; CEH; B?A;BO JE ;L7:; M>;D J>; FHEFEHJ?ED ;L7:?D= ?D9H;7I;I +HEL; J>7J J>;H; M?BB 8; 7J B;7IJ ED; ;GK?B?8H?KC B;L;B E< J7N ;L7I?ED .>EM >EM CKBJ?FB; ;GK?B?8H?7 97D E99KH 2>?9> ;GK?B?8H?7 7H; IJ78B; 3098.32   />; 7H=KC;DJ ?I IKCC7H?P;: ?D T=KH;   *D J>; >EH?PEDJ7B 7N?I ?I J>; FHEFEHJ?ED E8I;HL;: ;L7:?D= 7D: ED J>; L;HJ?97B J>; FHEFEHJ?ED M>E M?I> JE ;L7:; 2>;D DEED; ?I E8I;HL;: ;L7:?D= J>;  F;H9;DJ E< J>; FEFKB7J?ED J>7J 7BM7OI ;L7:; M?BB 9>EEI; JE :E IE />?I 97DDEJ 8; 7D ;GK?B?8H?KC I?D9; J>; FEFKB7J?ED E8I;HL;: ;L7:?D= ?I IC7BB;H J>7D J>; FEFKB7J?ED J>7J 9>EEI;I JE :E IE 2>;D ;L;HOED; ?I E8I;HL;: ;L7:?D= J7N J>;  F;H9;DJ J>7J D;L;H ;L7:; M?BB IJ?BB DEJ :E IE B;7HBO J>?I FE?DJ 97DDEJ 8; 7D ;GK?B?8H?KC ;?J>;H I?D9; J>; FEFKB7J?ED 9B7?C;: JE 8; ;L7:?D= ?I B7H=;H J>7D J>; FEFKB7J?ED J>7J :E;I IE #EM;L;H E8I;HL; J>7J J>; THIJ FE?DJ 5 ?I 78EL; J>;  B?D; 7D: J>; I;9ED: FE?DJ 6 ?I 8;BEM J>;  B?D; I J>; FEFKB7J?ED E8I;HL;: ;L7:?D= ?I ?D9H;7I;: ; B?D; B?DA?D= FE?DJI 5 7D: 6 CKIJ 9HEII J>;  B?D; 7J B;7IJ ED9; 79> ?DJ;HI;9J?ED M?J> J>;  B?D; ?I 7D ;GK?B?8H?KC M>;H; J>;



!   !% # 

Proportion choosing to evade 3

b

2 2 1 a

Proportion observed evading !?=KH;   .J78B; 7D: KDIJ78B; ;GK?B?8H?7

FEFKB7J?ED E8I;HL;: ;L7:?D= ?I ;GK7B JE J>; FEFKB7J?ED J>7J 9>EEI;I JE ;L7:; D ;GK?B?8H?KC ?I IJ78B; ?< IC7BB 9>7D=; ?D J>; FEFKB7J?ED E8I;HL;: ;L7:?D= 7M7O ; ;GK?B?8H?KC L7BK; B;7:I JE 7 IC7BB;H 9>7D=; ?D J>; FEFKB7J?ED 9>EEI?D= JE ;L7:; #;D9; ;GK?B?8H?7  7D:  7H; IJ78B; ;GK?B?8H?KC  ?I DEJ

7J 7BB J7NF7O;HI >7L; J>; KJ?B?JO ;H; 2 : ?I ?D9EC; ?D IJ7J; > 7D: >  7 B 2>;D J>; J7NF7O;H >7I JHK; ?D9EC;2 :;9B7H;I ?D9EC; B;L;B 1 7D: ;L7I?ED ?I :;J;9J;: J>; TD; ?I =?L;D 8O

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



  D 2  H1



D 2  H1   G H 2  1 





/>; H;FEHJ M?BB B;7: JE 7 TD; J>7J 97D 8; 7\EH:;: EDBO ?<  G H 2  1  2  H1 />; THIJEH:;H 9ED:?J?ED E?9; E< :;9B7H7J?ED ?I   DG  2  H1   G H 2  1   2  H1 D

 

 

M>?9> 97D 8; IEBL;: JE =?L; . @C    G H @  2 1  .   @C H G @

 

)EM 9>;9A ?<   >EB:I ;H;  7D:

 G H    G 

DG  D

 



 

 

)EJ; J>7J  H $D J>?I DEJ7J?ED

2  H1    G H 2  1  

 2      G H    2   H  G H       H     2 HG G   H  G  2 G  2       

7D: J>;H;EB:I ; 9KJE\ HKB; 7DO J7NF7O;H M>E :;9B7H;I 7D ?D9EC; E< 7 EH CEH; M?BB DEJ 8; 7K:?J;: B;7HBO DEED; M?BB 7D 7 />;H;; EFJ?C7B 7DDEKD9;C;DJ ?I $"% 2 7



?
; 9KJE\ HKB; M?BB 8; FH; 9>7H79J;H?IJ?9I  2 





   D 2  H1   2  H7

 EH KI?D=   Z 



   H7

     D D    2

M>?9> =?L;I 2



D 2  H1    G H 2  1       

H



       D D 

#;H; 



 

7  7   

 

   

 

H

       D D 

$J ?I ;7IO JE I;; J>7J    7I BED= 7I 7 J7NF7O;H TD:I ?J EFJ?C7B JE ;L7:; ? ; 1   2 $D:;;: 7 J7NF7O;H M?J> ?D9EC; E< 2 FH;; JHKJ>;H;?9> C;7DI 7  2 />7J ?I 7 J7NF7O;H M?J> ?D9EC; 8;BEM 7J EH @KIJ 78EL; 7 M?BB D;L;H FH;; 9KJE\ HKB; 8;97KI; M?J> J>; H7D:EC 7K:?J J>;O 97D :;9B7H; ?D9EC; 8;BEM 7 7D: ;I97F;  J7NF7O;H M?J> ?D9EC; IK[9?;DJBO 78EL; 7 M?BB FH;; 9KJE\ HKB; />; J>H;I>EB: J>; L7BK; E<  ?I :;9H;7I?D= ?D H D G

7D:  />7J ?I J>; IKFFEHJ ; 9KJE\ HKB; ?I M?:;H J>; >?=>;H ?I J>; J7N H7J; J>; CEH; B?A;BO ?I :;J;9J?ED J>; CEH; I;L;H; ?I FKD?I>C;DJ 7D: J>; CEH; H?IA7L;HI; 7H; J>; J7NF7O;HI M?J> ?D9EC; 78EL; 7

; EFJ?C7B 7K:?J IJH7J;=O 8O 7 J7N 7KJ>EH?JO BB J7NF7O;HI >7L; ;?J>;H 7 BEM ?D9EC; 2" EH 7 >?=> ?D9EC; 2 M?J> 2"  2 />;O TB; 7 J7N H;JKHD 8KJ J>; H?9> J7NF7O;HI C7O 7JJ;CFJ JE KD:;HH;FEHJ />; FHEFEHJ?EDI E< J7NF7O;HI M?J> >?=> 7D: BEM?D9EC;I 7H; ADEMD 8KJ 7 F;HIED7B J7N H;JKHD 97D EDBO 8; L;H?T;: J>HEK=> 7D 7K:?J J>7J 9EIJI 7 />;H; ?I 7 9EDIJ7DJ J7N H7J; ED ?D9EC; H 7D: 7 TD; 9EDI?IJ?D= E< 7 IKH9>7H=; ED 7DO KD:;HF7?: J7N />; F7H7C;J;HI 7 H 7H; DEJ 9>EI;D 8O J>; J7N 7KJ>EH?JO 7 .KFFEI; J>; J7N 7KJ>EH?JO 97D FH;9ECC?J JE ?JI 7K:?J FEB?JO 2>7J ?I J>; EFJ?C7B 7K:?J IJH7J;=O ; J7N 7KJ>EH?JO $I IK9> FEB?9O 9H;:?8B; 2>O EH M>O DEJ 8 $< J>;H; ?I 7 TN;: ?=>?D9EC; J7NF7O;HI M>E 7H; ADEMD JE H;FEHJ JHKJ>7J 9EKB: 8; 7 9H;:?8B; 7K:?J IJH7J;=O 2>7J ?I J>; ?CF79J ED J>; ;GK?B?8H?KC 7K:?J IJH7J;=O E< 7D ?D9H;7I; ?D J>; 9EIJ E< 7K:?J?D=

 3098.32   7 $D J>;I; 9?H9KCIJ7D9; J>; >?=>?D9EC; J7NF7O;HI M?BB ;?J>;H 7BB :;9B7H; 2" EH 7BB :;9B7H; 2 ';J J>; DKC8;H E< J7NF7O;HI M?J> ?D9EC; 2 8; ' 7D: J>; JEJ7B DKC8;H E< J7NF7O;HI 8; ' IIKC; 7BB >?=>?D9EC; J7NF7O;HI :;9B7H; 2" $< J>; J7N 7KJ>EH?JO 9ED:K9JI  7K:?JI J>; FHE878?B?JO E< 7 J7N ;L7:;H 8;?D= 97K=>J ?I ' />; ;NF;9J;: KJ?B?JO E< ;L7I?ED ?D J;HCI E<  ?I

  . 2  H2"  .

  H 2  2  2"     .    ' ' 7D: J>; KJ?B?JO E< >ED;IJ F7OC;DJ ?I .  .

  H 2    >?=>?D9EC; J7NF7O;H M?BB 7DDEKD9; 2" ?<

   . 2  H2"  .

  H 2  ' '

 

2  2"   .

  H 2  

  />;H; ?I 7 L7BK;     IK9> J>7J ; >?=>?D9EC; J7NF7O;HI 7DDEKD9; 2" 7D: ;O 7DDEKD9; 2 />; H;L;DK; ; J7N 7KJ>EH?JO ?I =?L;D 8O    ' H2" " '  '  H2"   $  +     $ ' H2 2  2"   7    !

'  '  H2" ' H2  7   />; THIJ JME B?D;I 7H; J>; IKC E< J7N H;L;DK; ; BEM?D9EC; J7N H;L;DK; ; >?=>?D9EC; M>E IK99;II; TD; FBKI J7N ?=> ?D9EC; 97K=>J ;L7:?D= B;II J>; 9EIJ E< 7K:?J?D= />; J>?H: B?D; ?I J>; IKC E< J7N H;L;DK; ; BEM ?D9EC; 7D: J>; >?=> ?D9EC; M>;D 7BB :;9B7H; >ED;IJBO B;II J>; 9EIJ E< 7K:?J +HEL?:;: J>7J 

' H2 '

2  2"   ' H2"   7  

 

J>; H;L;DK; ; 7L; 7 :?I9EDJ?DK?JO 7J  7I J>; >?=>?D9EC; J7NF7O;HI IM?J9> ED;IJO />; FEB?9O E< J>; H;L;DK; I;HL?9; :;F;D:I ED M>7J >7FF;DI 7J J>?I :?I9EDJ?DK?JO L7BK7J?D= J>; JME F7HJI E< J>; ; C7=D?JK:; E< J>; :?I9EDJ?DK?JO 7I     +  +   + 

    2" 

H2 2  2"    ' H 2    ' ' 7D: 7 IK[9?;DJ 9ED:?J?ED ; :?I9EDJ?DK?JO JE 8; 7D KFM7H: ED; I;; T=KH;   ?I

    H   ' '



!   !% # 

R(A)

A*

A

!?=KH;   -;L;DK; 7D: J>; DKC8;H E< 7K:?JI

;OED:  ?J ?I 9B;7H J>7J +  ?I :;9H;7I?D= ?D  

  IIKC; J>7J $    $ H />; EFJ?C7B FEB?9O E< J>; J7N 7KJ>EH?JO ?I JE 7K:?J 7J 7 L7BK; @KIJ 78EL;  />?I ;DIKH;I J>7J DE J7NF7O;H ;L7:;I 7J J>; B;7IJ FEII?8B; 7K:?J?D= 9EIJ $I J>?I FEB?9O 9H;:?8B; H;:?8?B?JO 97D 8; J;IJ;: 8O 9EDI?:;H?D= M>;J>;H ;?J>;H F7HJO MEKB: M?I> JE 9>7D=; 8;>7L?EH =?L;D J>; 9>E?9; E< J>; EJ>;H F7HJO />; J7NF7O;HI :E DEJ M?I> JE 9>7D=; =?L;D J>; 7K:?J IJH7J;=O #EM;L;H ?< 7BB J7NF7O;HI 7H; >ED;IJ J>; J7N 7KJ>EH?JO M?BB DEJ M?I> JE 7K:?J !EH J>?I H;7IED J>; FEB?9O 9>E?9; E< J>; J7N 7KJ>EH?JO ?I DEJ 9H;:?8B; =?L;D J>; 8;>7L?EH E< J>; J7NF7O;HI 8  9H;:?8B; ;GK?B?8H?KC CKIJ ?DLEBL; J>; 9>E?9; E< J>; H;L;DK; I;HL?9; 8;?D= 7 8;IJH;IFEDI; JE J>; 9>E?9;I E< J>; J7NF7O;HI 7D: L?9; L;HI7 $J ?I J>;H;; )7I> ;GK?B?8H?KC IJH7J;=?;I I F7HJ 7 ?CFB?;I J>;H; ?I DE )7I> ;GK?B?8H?KC ?D FKH; IJH7J;=?;I />?I ?I :K; JE J>; :?I9EDJ?DK?JO ?D J7NF7O;H 8;>7L?EH /E TD: 7 )7I> ;GK?B?8H?KC C?N;: IJH7J;=?;I D;;: JE 8; 7D7BOP;: !EH J>; H;L;DK; I;HL?9; J>?I ?I I?CFB; $J M?BB D;L;H 7K:?J >?=> ?D9EC; H;FEHJI :E?D= IE =7?DI DE J7N H;L;DK; 8KJ ?DLEBL;I 7 9EIJ 7D: D;;: DEJ H7D:EC?P; EL;H  #;D9; 7 C?N;: IJH7J;=O ; H;L;DK; I;HL?9; D;;: DEJ 8; 9EDI?:;H;: 'EM ?D9EC; J7NF7O;HI D;L;H :E 7DOJ>?D= 8KJ 79J >ED;IJBO />;H; ?I DEM 7 I;J E< >ED;IJ >?=> ?D9EC; J7NF7O;HI M>E 7BIE 79J >ED;IJBO />; C?N;: IJH7J;=O J>7J ;DIKH;I 7D ;GK?B?8H?KC ?I FB7O;: 8O J>; >?=> ?D9EC; J7NF7O;HI M>E M?BB 9>EEI; JE :;9B7H; 7 BEM ?D9EC; M?J> FHE878?B?JO D 7D: 7 >?=> ?D9EC; M?J> FHE878?B?JO   D />; FHE878?B?JO ?I 9>EI;D 7I J>; 8;IJ H;IFEDI; JE  7D: >7I J>; ;\;9J E< H;CEL?D= J>; :?I9EDJ?DK?JO D ; DKC8;H E< J7NF7O;HI :;9B7H?D= 7 BEM ?D9EC; ?I '  ' D   '  $<  7K:?JI 7H; 9ED:K9J;: J>; FHE878?B?JO E< 8;?D= 7K:?J;: ?D:?L?:K7B :;9B7H?D= 7 BEM ?D9EC; ?I E   '  ' D   '  IIKC?D= J>7J J>;

 DKC8;H E< J7NF7O;HI ?I IK[9?;DJBO >?=> J>7J ;79> ?D:?L?:K7B J7A;I E 7I =?L;D 7 >?=>?D9EC; J7NF7O;H 9>EEI;I D JE IEBL; $) .



@ 

D    E . 2  H2"  E.

  H 2 

2  2" 

  D . 2   H 

 

/>; D;9;II7HO 9ED:?J?ED ?I

  E . 2  H2"  E.

  H 2  . 2   H  

2  2"   

);NJ :;DEJ?D= . 2  H2"   . 2   H 8O . 7D: . 2  H2"   .

  H 2  2  2"  8O . M; 97D H;MH?J;   7I



.  E.



. 

 .  '  ' D   '

 

/>; H;L;DK; I;HL?9; E8J7?DI 7 F7OE\ E< +



'  '  H2" ' H2  7 D    ' 

H2 '  ' D   '

2  2"  

 

/>; D;9;II7HO 9ED:?J?ED HEK=> 9>E?9; E<  ?I D    '

H2 '  ' D   '

2  2"   7  

 

.EBL?D= J>; D;9;II7HO 9ED:?J?EDI ; J7NF7O;HI 7D: J>; H;L;DK; I;HL?9; I? CKBJ7D;EKIBO =?L;I J>; ;GK?B?8H?KC IJH7J;=?;I D 7D: 

7 '  '  

  ' H2 2  2" 

.

.



'  '  H2 2  2"  H2 2  2"   7

 



 

$J ?I 97D 8; I;;D ; EFJ?C7B 7K:?J?D= IJH7J;=O J>7J ?< J>; 9EIJ E< 7K:?J H?I;I J>; DKC8;H E< 7K:?JI ?D9H;7I;I />?I 9EKDJ;H?DJK?J?L; H;IKBJ ?I 7 9EDI;GK;D9; E< D H?I?D= 7I 7 H?I;I IE 7K:?J?D= 8;9EC;I CEH; H;M7H:?D= ; H;L;DK; 7KJ>EH?JO

7J 7D ?D9H;7I; ?D ;L7I?ED ;D9EKH7=;I O;J ;H ;L7I?ED $D IK9> 9?H9KC IJ7D9;I ?I J>; EDBO ;GK?B?8H?KC JE >7L; ;L;HOED; ;L7:?D=



!   !% # 

3098.32   $D IK9> 7 CE:;B J>;H; 7H; 7BM7OI 7J B;7IJ JME ;GK?B?8H?7 DE ;L7I?ED 7D: JEJ7B ;L7I?ED #;D9; ;L;HOED; ;L7:?D= ?I DEJ J>; EDBO ;GK?B?8H?KC #EM C7DO 7::?J?ED7B ;GK?B?8H?7 J>;H; 7H; :;F;D:I ED J>; H7J; 7J M>?9> ;L7I?ED ?D9H;7I;I $< 7D ?D9H;7I; ?D ;L7I?ED 7BM7OI ;D9EKH7=;I 7D ;L;D =H;7J;H ?D9H;7I; J>;D J>; FHE9;II E< ?D9H;7I; M?BB DEJ 9;7I; KDJ?B 7BB 7H; ;L7:?D= #EM;L;H ?< 7D ?D9H;7I; ?D ;L7I?ED ?I C;J 8O 7 IC7BB;H ?D9H;7I; J>; FHE9;II 97D >7L; ED; EH CEH; ?DJ;H?EH ;GK?B?8H?7 !EHC7BBO M; 7H; BEEA?D= 7J 7 C7FF?D= 9 : 9 M>;H; 9 ?I ;L7I?ED M?J> : 9   :

  7D: :    D ;GK?B?8H?KC ?I 7 TN;: FE?DJ IK9> J>7J 9  : 9 *D 7 =H7F> J>?I ?I M>;H; J>; ;  B?D; />; DKC8;H E< ;GK?B?8H?7 :;F;D:I ED J>; =H7:?;DJ E< J>; ;?H ?D9EC; B;L;BI ?D KD?JI E< J>; BE97B 9KHH;D9O J>; J7N H7J; J>; FHE878?B?JO E< :;J;9J?ED 7D: J>; TD; IJHK9JKH; />;I; F7H7C;J;HI 7H; J>; I7C; ; 7CEKDJ E< ?D9EC; DEJ :;9B7H;: ?I ED 7L;H7=; :?\;H;DJ 7CED= J>; 9EKDJH?;I ?I9KII FEII?8B; ;NFB7D7J?EDI ?I TD:?D= 3098.32   />;H; 7H; I;L;H7B ;NFB7D7J?EDI 7 +H;; J>H;; 9EKDJH?;I 8 />; ?D9EC; B;L;BI ?D J>; ;NF;H?C;DJ :E DEJ >7L; J>; I7C; H;7B L7BK; ?D ;79> 9EKDJHO 9 L7I?ED ?I :;F;D:;DJ ED 7 IE9?7B 9KIJEC 7D: J>; IE9?7B 9KIJEC :?\;HI 7CED= J>; 9EKDJH?;I : L7I?ED ?I :;J;HC?D;: 8O F;H9;FJ?EDI 78EKJ J>; =EL;HDC;DJ 7D: J>?I L7H?;I 7CED= J>; 9EKDJH?;I ; />; :;J;HC?D7DJ E< ;L7I?ED ?I 7 F;H9;?L;: FHE878?B?JO E< :;J;9J?ED DEJ J>; FHE878?B?JO 7DDEKD9;: < />; :;J;HC?D7DJ E< ;L7I?ED ?I 7 F;H9;?L;: FKD?I>C;DJ ; FKD?I>C;DJ 7DDEKD9;:

-&48*6 

!-* .1.87 83 *).786.'98.32  8;JM;;D 7 :?H;9J H;L;B7J?ED C;9>7D?IC 7D: 7D ?D:? H;9J H;L;B7J?ED C;9>7D?IC H?;UO :;I9H?8; >EM J>; B78EH ?D9EC; J7N I9>;:KB; 97D 8; H;FH;I;DJ;: 8O 7 :?H;9J H;L;B7J?ED C;9>7D?IC 3098.32   />; 87I?I E< 7 C;9>7D?IC ?I J>7J J>; 7=;DJI ?D J>; ;9EDECO C7A; 7D 7DDEKD9;C;DJ E< ?D?I 7DDEKD9;C;DJ 9EKB: ;?H FH;;I; 7DDEKD9;C;DJI J>; C;9>7D?IC :;J;HC?D;I J>; IE9?7BBO :;I?H78B; ;9EDEC?9 7BBE97J?ED !EH J>; B7HA;"HEL;I C;9>7D?IC J>; 7BBE97J?ED ?I J>; :;9?I?ED JE FHE:K9; EH DEJ J>; FK8B?9 =EE: 7D: J>; I;J E< I?:; F7OC;DJI $D J>; 9ECF;J?J?L; ;9EDECO J>; 7BBE97J?ED ?I :;J;HC?D;: 8O J>; C7HA;J ;GK?B?8 H?KC =?L;D 7DDEKD9;: :;C7D:I /E ?BBKIJH7J; J>; :?IJ?D9J?ED 8;JM;;D :?H;9J 7D: ?D:?H;9J 7BBE97J?ED C;9>7D?ICI 9EDI?:;H J>; CE:;B E< EFJ?CKC ?D9EC; J7N $D J>?I CE:;B J>; 7=;DJI 7H; 9>7H79J;H?P;: 8O J>;?H 78?B?JO B;L;BI  :?H;9J C;9> 7D?IC MEKB: ?DLEBL; ;79> 7=;DJ 7DDEKD9?D= J>;?H 78?B?JO :?H;9JBO 7D: H;9;?L?D= 7D 78?B?JOH;B7J;: ?D9EC; 7D: 9EDIKCFJ?ED 8KD:B; $D 9EDJH7IJ ?D9EC; J7N7J?ED ?I 7D ?D:?H;9J C;9>7D?IC ?D M>?9> J>; 7DDEKD9;C;DJ EH ?D:?L?:K7B 9>E?9; ?I 7D ?D9EC; B;L;B 7D: J>; J7N I9>;:KB; ?I J>; C;9>7D?IC J>7J H;B7J;I 9EDIKCFJ?ED B;L;BI JE ?D9EC; B;L;BI )7JKH7BBO J>; ?D9EC; B;L;B ?I H;B7J;: JE 78?B?JO ?< J>; >?=> 78?B?JO 7=;DJI 9>EEI; JE 7DDEKD9; >?=>;H ?D9EC; B;L;BI 8KJ ?I DEJ :?H;9JBO 78?B?JO />; ?DJ;H;IJ ?D :?H;9J C;9>7D?IC ?I J>7J 7DO ?D:?H;9J C;9>7D?IC 97D 7BM7OI 8; H;FB?97J;: M?J> 7 :?H;9J C;9>7D?IC J>7J 79>?;L;I J>; I7C; EKJ9EC;

; J7N FH?D9?FB; 7D: ?JI C7?D ?CFB?97J?EDI ;H; 7H; J>H;; H;7IEDI M>O JH7DI JH7DI?;L;: J>HEK=> IJ7D:7H: J7NJH7DI; THIJ H;7IED ?I +*'%/%' -7J>;H J>7D LEJ?D= 7J 8;D;TJI J>; FEEH F;EFB; C?=>J ?CFEI; J>;?H EMD FH;EK=> J>; H;9?F?;DJ MEKB: >7L; FH;;H KI; E< =EL;HDC;DJ H;L;DK; F7J;HD7B?IJ?9 LEJ;HI 1EJ;HI C7O IKFFEHJ H;:?IJH?8KJ?ED7B FEB?9?;I ?< ?DA?D: 8KJ DEJ ?< ?D 97I> M?J> KI; 7J J>; :?I9H;J?ED E< J>; H;9?F?;DJ !EH ?DIJ7D9; FK8B?9 ;:K97J?ED FHE=H7CI MEKB: 8; ;O M;H; 9EDL;HJ;: ?DJE 97I> JH7DIE 9EKB: 9>EEI; >EM JE IF;D: J>; 97I> />; I;9ED: H;7IED ?I I;B<I;B;9J?ED />?I 7H=KC;DJ H;B?;I ED :?\;H;D9;I ?D FH;; =EL;HDC;DJ ?I 9EDI?:;H?D= H;:?IJH?8KJ?ED ;?J>;H ?D 97I> EH ?D J>; EKI?D= BB >EKI;>EB:I D;;:O EH DEJ MEKB: B?A; J>; 97I> JH7DIEB:I C7O M7DJ JE B?L; ?D BEM?D9EC; >EKI?D= />;O 97D 7\EH: 8;JJ;H >EKI?D= />KI I;B<I;B;9J?ED 7H?I;I 8O M>?9> J>; DEDD;;:O :HEF EKJ E< J>; >EKI?D= FHE=H7C 7D: EDBO J>; D;;:O J7A; ?J KF  J>?H: H;7IED ?I /%(! %)*).%./!)4 #;H; J>; 7H=KC;DJ ; =EL;HDC;DJ JE 9ECC?J JE ?JI ; FHE8B;C E< J?C; ?D9EDI?IJ;D9O ?I E8L?EKI M?J> F;DI?EDI /E J>; ;NJ;DJ J>7J >EKI;>EB:I ;NF;9J J>; =EL;HDC;DJ JE FHEL?:; IEC; 87I?9 F;DI?EDI JE J>EI; M?J> JEE B?JJB; I7L?D=I J>;?H ?D9;DJ?L; JE I7L; 7J J>; =EL;HDC;DJ C7O FH;7J 9EDIKCFJ?ED J7N;I 7H; H; :KD:7DJ ?D J>; FH;I;D9; E< DEDB?D;7H B78EH ?D9EC; J7N 2>7J 7H; J>; H;IJH?9J?EDI ?CFEI;: ED FH;; ?CFB?97J?ED E< FH;< ;H;D9;I J>7J 7H; DEJ I;F7H78B; 8;JM;;D 9EDIKCFJ?ED 7D: B;?IKH; ; = 7J 7H; 9ECFB;C;DJI JE B;?IKH; 3098.32   />; JA?DIED.J?=B?JP I;F7H7J?ED FH?D9?FB; IJ7J;I J>7J KD:;H J>; 7IIKCFJ?ED J>7J FH;;D 7D EFJ?C7B DEDB?D;7H ?D9EC; J7N ?I ?CFB;C;DJ;: IE9?7B M;B?9> :?H;9J?ED :;L?7J?EDI MEKB: FE?DJ ?D J;HCI E< :?\;H;DJ?7B 9ECCE: ?JO J7N;I />;H; ?I 7 I?CFB; 97I; M>;H; J>; :?H;9J?ED E< :;L?7J?EDI ; ?DJK?J?ED ?I J>7J J>EI; =EE:I C7A; ?J CEH; :?[9KBJ ; =EL;HDC;DJ JE ?CFEI; H;:?IJH?8KJ?L; B78EH ?D9EC; J7N7J?ED 8;97KI; J>; 9EIJ JE >?=>78?B?JO ?D:?L?:K7BI E< MEHA?D= B;II ?I H;:K9;: 8O J>; FH;I;D9; E< J>; =EE:I J>7J H7?I; J>; L7BK; E< B;?IKH; /7N?D= J>EI; =EE:I :?\;H;DJBO J>;H;; ?D9;DJ?L; 9EDIJH7?DJI J>7J J>; =EL;HDC;DJ CKIJ I7J?I;H ?CFEHJ7DJ H; IJH?9J?ED ?D J>; JA?DIED.J?=B?JP I;F7H7J?ED H;IKBJ M>?9> ?I J>7J >EKI;>EB: >7I @KIJ ED; :EK8B;?D9EC; >EKI;>EB:I J>?I ?I DE BED=;H J>; 97I; 7D: J>; I;F7H7J?ED FH?D9?FB; I>EKB: 8; ;NJ;D:;: JE 7IIKC; J>7J 9ED IKCFJ?ED ?I I;F7H78B; EB: $< DEJ J>;H; ?I 7 FH;IKCFJ?ED J>7J B;?IKH; ; >EKI;>EB: 9EKB: 8; IK8@;9J JE :?\;H;DJ J7N I9>;:KB;I .?C?B7H 7H=KC;DJI 7FFBO JE J7N7J?ED EL;H J?C; L;D ?< 9EDIKCFJ?ED M;H; I;F 7H78B; 7J B;?IKH; 7J :?\;H;DJ F;H?E:I I>EKB: 8; IK8@;9J JE I7C; J7N I9>;:KB; $J ?I FEII?8B; JE C7A; J>; 97I; J>7J 7D 7=;H;B7J;: B78EH ?D9EC; J7N I9>;:KB; ?I :;I?H78B;

O 9EDIKCFJ?ED J7N C7O 8; 7 8;JJ;H ?DIJHKC;DJ JE H;:?IJH?8KJ; J>7D B78EH ?D9EC; J7N M>;D B78EH ?D9EC; ?I ?CF;H7J 9EDIKCFJ?ED J7N;I 7H; 7 CEH; ;< EB:I M>E :E DEJ H;FEHJ >ED;IJBO ?D9EC; EH J7N B?78?B?J?;I KD:;H J>; ?D9EC; J7N I9>;:KB; />; 7H=KC;DJ ?I J>7J J>;I; >EKI;>EB:I 9KHH;DJBO KD:;HF7O J7N;I EH F7O DE J7N 8KJ MEKB: 8; >?J 8O



!   ! ! !  !"!

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

7J 9?H9KCIJ7D9;I 97D M; 7FFBO J>; JA?DIED.J?=B?JP I;F7H7J?ED FH?D9?FB; JE IKFFEHJ J>; 9B7?C J>7J J>;H; CKIJ 8; P;HE J7N7J?ED ED 97F?J7B ?D9EC; 3098.32   $< ED; JH;7JI J>; 9EDIKCFJ?ED E< :?\;H;DJ =EE:I ?D J>; JA?DIED .J?=B?JP I;F7H7J?ED FH?D9?FB; 7I 9EDIKCFJ?ED ?D :?\;H;DJ F;H?E:I J>;D J>; H;IKBJ C7O 8; ?DJ;HFH;J;: 7I :;CEDIJH7J?D= J>; EFJ?C7B?JO E< 7 DEDB?D;7H B78EKH ?D9EC; 7D: KD?; KD??I 97I; MEKB: ?CFBO J>7J M; 97DDEJ >7L; >?=>;H J7N;I ED 7D ED 9KHH;DJ 9EDIKCFJ?ED 9EDJH7HO JE M>7J MEKB: 8; J>; 97I; M?J> 7 97F?J7B ?D9EC; J7N /7N?D= ;7L?BO J>7D 9KHH;DJ 9EDIKCFJ?ED 97D 8; 79>?;L;: 8O J7N?D= 97F?J7B ?D9EC; 7D: J>KI I7L?D=I #EM;L;H ?D 7 :OD7C?9 CE:;B M?J> 97F?J7B 799KCKB7J?ED ?J ?I B;II B?A;BO J>7J J>; I;F7H7J?ED E< 9EDIKCFJ?ED 7D: B;?IKH; 7J :?\;H;DJ :7J;I MEKB: >EB: $D 7J 97F?J7B ?D9EC; ?I 7 9ECFB;C;DJ JE B;?IKH; ?D M>?9> 97I; 97F?J7B ?D9EC; I>EKB: 8; J7N;: />; ?DJK?J?ED ?I J>7J 97F?J7B ?D9EC; C7A;I ?J CEH; :?[9KBJ ; =EL;HDC;DJ JE H;:?IJH?8KJ; ?D9EC; M?J> FHE=H;II?L; B78EH ?D9EC; J7N

8;97KI; J>; 9EIJ JE >?=>78?B?JO ?D:?L?:K7BI E< MEHA?D= B;II ?I H;:K9;: 8O J>; FH;I;D9; E< 7::?J?ED7B 97F?J7B ?D9EC; /7N?D= 97F?J7B ?D9EC; J>;H;; ?D9;DJ?L; 9EDIJH7?DJI ; =EL;HDC;DJ 7D: J>KI ?D9H;7I;I J>; I9EF; ;H; ?I DE J7N ? ;J;HC?D; J>; 9EDIKC;HWI B?

 C1

52 .5 45

35 40

70

C0

!?=KH;   EDIKCFJ?ED 9>E?9;

?? 2H?J; J>; B?7J ?I J>; IBEF; E< J>; 8K:=;J 9EDIJH7?DJ ??? "H7F> J>; B?; >EH?PEDJ7B 7N?I 7D:  ED J>; L;HJ?97B 7N?I .>EM J>; 9EDIKC;HWI ;D:EMC;DJ FE?DJ K  K  

   ED J>; =H7F> ?L .EBL; J>; KJ?B?JO C7N?C?P7J?ED FHE8B;C JE TD: J>; EFJ?C7B 9KHH;DJ 7D: EM J>; EFJ?C7B 9EDIKCFJ?ED 8KD:B; ED J>; I7C; =H7F> $I J>; 9EDIKC;H 7 8EHHEM;H EH 7 B;D:;H 8 .KFFEI; ?DJ;H;IJ ?D9EC; ?I IK8@;9J JE 7 J7N 7J J>; H7J; E<  F;H9;DJ ? ; H   7D: ?DJ;H;IJ F7OC;DJI 8O 8EHHEM;HI 7H; :;:K9J?8B; DE J7N7J?ED J>; 9EDIKC;HWI B? ?I 9KHH;DJ ?D9EC; FBKI J>; :?I9EKDJ;: L7BK; E< ; ?DJ;H;IJ H7J; F 

  K

   K  F   ?? />; B?; L7BK; E< B?; L7BK; E< B?; IBEF; E< J>; 8K:=;J 9EDIJH7?DJ ?I 4 4    F   ??? />; T=KH; :?IFB7OI J>; B?; ?D?J?7B 9EDIKCFJ?ED ;D:EMC;DJ K  K 7D: J>; EFJ?C7B 9EDIKCFJ?ED 9>E?9; ?L *FJ?C7B?JO H;GK?H;I J7D=;D9O E< J>; ?D:?\;H;D9; 9KHL; 7D: J>; 8K:=;J 9EDIJH7?DJ "?L;D J>; KJ?B?JO ; IBEF; E< J>; ?D:?< ?97BBO M?J> ?D9EC; ED J>; >EH?PEDJ7B 7N?I 7D: B?; L;HJ?97B 7N?I

J>; EKJFKJ J7A;D ; >?=>78?B?JO ?I J>; L;HJ?97B :?IJ7D9; 8;BEM J>;  B?D; H;FH;I;DJ?D= DE H;:?IJH?8KJ?ED />; ?D:?\;H;D9; 9KHL; E< J>; >?=>78?B?JO ?I ?D9H;7I?D= 9EDL;N ?D J>?I ?D9EC;B?; 7CEKDJ J>7J ?I J7A;D ; >?=>78?B?JO ?I C7N?C?P;: 7BED= 7 =?L;D ?D:?\;H;D9; 9KHL; M>;D J>; ?D:?\;H;D9; 9KHL; ?I F7H7BB;B JE J>;  B?D; />KI J>; ?D9EC; 9EDIKCFJ?ED 9>E?9; E< J>; >?=>78?B?JO ?D:?L?:K7B I>EKB: DEJ 8; :?IJEHJ;: 7J J>; C7H=?D />?I ?CFB?;I J>7J >?=>78?B?JO ; 8KD:B; :;I?=D7J;: ; BEM78?B?JO JOF; B?;I ED J>; ?D:?\;H;D9; 9KHL; E< J>; >?=>78?B?JO J>; 9>E?9; E< J>; BEM78?B?JO CKIJ 8; :?IJEHJ;: JE H;B7N ?D9;DJ?L; 9EDIJH7?DJ 7D: ?D9H;7I; J>; I9EF; ;HB7AEJ7 ) 7D: /IOL?DIA?   *FJ?C7B ?D:?H;9J 7D: 97F?J7B J7N7J?ED !1%!2 *" *)*(% /0 %!.  Z

7J ?I J>; ?CFB?97J?ED ; EFJ?C7B ?D9EC; J7N 8 .KFFEI; E8I;HL78B; :?I9EKDJ H7J;I J>7J 7H; 9EHH;B7J;: M?J> 78?B?JO 2>7J ?I J>; ?CFB?97J?ED ; EFJ?C7B ?D9EC; J7N 2>7J ?I J>; ?CFB?97J?ED ; :?\;H;D9; ?D :?I9EKDJ H7J;I EH IKHL?L7B H7J;I ?CFB?;I J>; :?[9KBJ ?IIK; E< >EM JE 7==H;=7J; B??8?J ?D= :?\;H;DJ J?C; FH;; C7H=?D7B 9EIJ E< FK8B?9 =EE: FHEL?I?ED >    $< J>; H?9> H;I?:;DJI 9EDJH?8KJ; E< J>; 9EIJ E< BE97B FK8B?9 =EE: M>;H; J>;O B?L; 7D: J>; FEEH 9EDJH?8KJ;

J>;D M; >7L; ?D ;79> H;=?ED > J>7J :  &:  ';J : 8; J>; FHEFEHJ?ED E< H?9> H;I?:;DJI ?D H;=?ED > .?D9; J>; ( 7L;H7=; 9EIJ F;H H;I?:;DJ ?I   ! M; CKIJ >7L; :   ( : : (     : 

 

#;D9; J>; C7H=?D7B 9EIJ H;I?:;DJ ?D H;=?ED > ?I :  (

    :

 

    :

 

7D: &: 

/>;I; H;IKBJI I>EM J>; C7H=?D7B 9EIJ ?I :;9H;7I?D= JOF;I 7I J>; FHEFEH J?ED E< H?9> H;I?:;DJI ?D9H;7I;I ;; FHEFEHJ?ED E< H?9> H;I?:;DJI ?I  ?D H;=?ED  7D: ?D H;=?ED  IE    7D:   $J 7J C7H =?D7B 9EIJI 7H;      (  &            7D:

  (

  

  &   



 

 



!     

$D H;=?ED  J>; H?9> 7H; ?D 7 C7@EH?JO 7D: J>;O M?BB 9>EEI; J>;?H FH;; C7H=?D7B L7BK; JE J>; C7H=?D7B 9EIJ J>7J ?I !  ! ( IEBL;I  

 !      #;D9;   !     (  

   />; FEEH 7H; ?D 7 C7@EH?JO ?D H;=?ED  7D: J>;O M?BB 9>EEI; J>;?H FH;; C7H=?D7B L7BK; JE J>; C7H=?D7B 9EIJ />7J ?I !  ! & IEBL;I 

 !     #;D9;

! &  

   

 

ECF7H;: JE J>; FH;L?EKI ;N;H9?I; FHEFEHJ?ED7B 9EDJH?8KJ?ED ?D9H;7I;I J>; 9EIJ E< FK8B?9 =EE: JE J>; H?9> 7D: H;:K9;I J>; 9EIJ JE J>; FEEH />KI J>; FEEH M?BB FH;; H?9> M?BB FH;; ;\;9J E< J>?I ?I JE H;:K9; J>; :?\;H;D9; ?D FK8B?9 =EE: FHEL?I?ED 79HEII H;=?EDI

 9ECF7H;: JE J>; 97I; E< KD?7H?D= IE !&  ! &  !(  !( $D:;;: FK8B?9 =EE: FHEL?I?ED ?I >?=>;H ?D H;=?ED  8;97KI; J>;H; ?I 7 C7@EH?JO E< H?9> H;I?:;DJI M>E L7BK; J>; FK8B?9 =EE: CEH; 7I M7I J>; 97I; 8;; H?9> >7L; JE F7O CEH; J>7D J>; FEEH M>?9> H;:K9;I J>;?H :;C7D: ; FK8B?9 =EE: IE ! (  !( *D J>; EJ>;H >7D: J>; :;C7D: ; FEEH 97D C7A; J>; H?9> F7O CEH; ; FK8B?9 =EE: IE ! &  !& />;H;7I 7D ;GK7B?P?D= ;\;9J ED J>; :?IF;HI?ED E< BE97B FK8B?9 =EE: B;L;BI 79HEII H;=?EDI 8 />; H?9> C?=H7DJI BEM;H J>; 9EIJ E< FK8B?9 =EE: FHEL?I?ED ; ;N?IJ?D= H;I?:;DJI IE 7H; MEHJ> 7JJH79J?D= EDI?:;H J>; H?9> H;I?:;DJI ?D H;=?ED  9ED JHEBB;: 8O J>; FEEH ECF7H;: JE J>; H?9> H;I?:;DJI ?D H;=?ED  J>;O =;J B;II  FK8B?9 =EE: ! &  !( 7D: J>;O F7O 7 B7H=;H 9EIJ 7I J>;H; 7H; H;I?:;DJI ?D H;=?ED  O CEL?D= JE H;=?ED  J>;O M?BB =;J J>;?H FH;;H; 7H; CEH; H?9> H;I?:;DJI .E 7BB J>; H?9> ?D H;=?ED  MEKB: B?A; JE CEL; JE H;=?ED  I 7 H;IKBJ 8;; FEEH J>; FHEFEHJ?ED E< H?9> ?D H;=?ED  M?BB ?D9H;7I; ; FHEFEHJ?ED E< H?9> ?D H;=?ED  M?BB :;9H;7I; 7J 78EKJ J>; FEEH H;I?:;DJI ?D J>; H?9> H;=?ED  />; 9EIJ E< CEL?D= JE H;=?ED  7J ?J :EK8B;I J>;?H C7H=?D7B 9EDJH?8KJ?ED H7J;     JE J>; FK8B?9 =EE: ; =7?D ;?H FH;;D J>;O @E?D 7 H;=?ED M?J> EDBO FEEH H;I?:;DJI #;D9; :;F;D:?D= ED J>; 87B7D9; E< J>;I; JME ;\;9JI J>; FEEH H;I?:;DJ ?D J>; H?9> H;=?ED  C7O EH C7O DEJ M7DJ JE CEL; )EM ?J 7J J>;H; 97DDEJ 8; 7D ;GK?B?8H?KC ?D J>?I CE:;B

;?J>;H 8;97KI; J>; FEEH H;I?:;DJI ?D J>; H?9> H;=?ED  M7DJ JE CEL; JE H;=?ED

  EH 8;97KI; ?< J>;O :E DEJ M7DJ JE CEL; J>;D J>; FEEH H;I?:;DJI ?D H;=?ED  MEKB: M7DJ JE CEL; JE H;=?ED 

; ; ?D9EC; E< 7 JOF; H;I?:;DJ E< H;=?ED > />; M;B 97D 8; MH?JJ;D 7I ) .: 





8

:  L:

 7;:     #&! ;:   #&! ;:  

 

7D: JEJ7B M;B; JME H;=?EDI ?I 0  . .  />; 7==H;=7J; 8K:=;J 9EDIJH7?DJ H;GK?H;I )



) 8

L







) 8

 L







) 8

&







8

 &

 7 ; ;  

7D: J>; THIJEH:;H 9ED:?J?EDI ; 7==H;=7J; M;B    ;: 7IIKC?D= J>; IEBKJ?ED ?I ?D J>; ?DJ;H?EH 0I?D=   JE=;J>;H M?J>   M; E8J7?D   )  )     . .   8  7  8     ;

; ;



7D: 7 I?C?B7H ;GK7J?ED ?I =?L;I

:

  :  7 >    ;: ;:

.EBL?D= J>?I IOIJ;C E< ;GK7J?EDI M; E8J7?D ;:5 

   :  :  >    7

 

8 $D J>; :;9;DJH7B?P;: H;=?C; H;=?ED > 9>EEI;I ;: JE C7N?C?P; .: />;H; ; FK8B?9 =EE: B;L;BI ?D J>; ?DJ;H?EH EFJ?CKC 7H; :;J;HC?D;: 8O .:   >    ;: M>;H; ) .: 





8

:  &:

 7;:     #&! ;:   #&! ;:  

 

0I?D=   M; E8J7?D ;:4 



:  >    7

!HEC J>; 9ECF7H?IED M?J>   ED; 97D I;; J>7J ;:4  ;:5  

 :   7

 



!     

7I BED= 7I   9 $D J>; 9;DJH7B?P;: H;=?C; ) .: 





8

7D: ; IEBL;I

:  &:

 7;  #&! ;:  

 

8 . .    8;

0I?D=   M; E8J7?D

 

)   . .   8 ;

  7

;

EH





;3 

7

 )   8 ;

 

   7 ;

  7

 

0I?D=   ED; 97D I>EM J>7J ; 3  ;:5

   :  :

: :  7 7     

:  :    7



"?L;D J>7J      7D:

  ED; 97D I;; J>7J ;5 ; 3 ; 5 $D EJ>;H MEH:I ?D J>; 9;DJH7B?P;: H;=?C; J>; FK8B?9 =EE: M?BB 8; KD:;HFHEL?:;: ?D J>; H;=?ED M?J> IJHED=;H 7L;H7=; FH; M;7A;H 7L;H7=; FH;; M;B KD:;H J>; :;9;DJH7B?P;: H;=?C; ?I =?L;D 8O   M?J> ;  ;:4 7I ?D   M>?9> I?CFB?T;I JE  

   :

   : 4  #&!  .:  &:     : :    #&! 7 7 M>;H; &: ?I J>; 7==H;=7J; ?D9EC; ?D H;=?ED > />; JEJ7B M;BKI

04



   7    

   #&!



     #&!   &    

 

  #&!

M>;H; &  & & ?I J>; 7==H;=7J; ?D9EC; ?D J>; JME H;=?EDI 0D:;H J>; 9;DJH7B?P;: H;=?C; J>; M;B ?I =?L;D 8O   M?J> ;  ; 3 7I ?D   />?I I?CFB?T;I JE .:3  &: 

: :

: : : #&!   7

 7D: J>; JEJ7B M;B; JME H;=?EDI ?I 0 3  & 

 

  #&!

  7

$< H;=?ED7B FH;; I7C;

04



&       #&!

03



&    #&!

7D:

 7

  #&!  7

0 3  0 4    #&!    

 

?I E8I;HL; J>7J : L  L #&!   L  7D ED; ; 2>;D FH;?I ;NFH;II?ED 7J   M; =;J

 

#&!

  #&!  



 

#&!

 #&!



  



  



  

 #&!     

#&! 







   H #&! H  7J ?I E8I;HL; J>7J ; L  #&!  H    H 

L   7D: ; L   H #&!   ;H;; ;NFH;II?ED ?D 8H79A;JI ?D   ?I D;=7J?L; *D J>; EJ>;H >7D:

  

  

  

  #&!

  #&!

0       

  #&!

#&!      

      

   #&!  

   /E I;; J>?I E8I;HL; J>7J < L    #&! L H   7J L   7D: < L  H 

HH    ;H;; ;NFH;II?ED ?D 8H79A;JI ?D   ?I FEI?J?L; !KHJ>;HCEH; 0





  #&!

80  



 

   #&!  8 





!     

  ; (;7D 17BK; />;EH;C I?D9; 0

  0  

7D: 0    ?I 9EDJ?DKEKI 7D: CEDEJED?97BBO ?D9H;7I?D= ?D   J>;H; ;N?IJI IEC;  ?    IK9> J>7J 0  ?   7D: 0   ;H; ?I 7 JH7:;E\ 8;JM;;D J>; JME H;=?C;I ?D J>7J KD:;H 9;DJH7B?P7J?ED JEE CK9> FK8B?9 =EE: ?I FHEL?:;: ?D J>; H;=?ED M?J> M;7A;H FH;; H;=?ED M?J> IJHED=;H FH;;D J>; IF?BBEL;H ?I IK[9?;DJBO IJHED= J>; 7::?J?ED7B KJ?B?JO :;H?L;: 8O J>; H;I?:;DJI E< J>; H;=?ED M?J> IJHED=;H FH;; H;=?ED M?J> M;7A;H FH;;C ; BEII E< KJ?B?JO ;?H EMD H;=?ED

7D: J>; JEJ7B M;B?=>;H J>7D ?D J>; :;9;DJH7B?P;: H;=?C;

;H; 7H; JME H;=?EDI >    7D: JME =EE:I 7 FH?L7J; =EE: L 7D: 7 FKH; FK8B?9 =EE: ; />;H; 7H; B: ?:;DJ?97B H;I?:;DJI ?D H;=?ED > 79> H;I?:;DJ ?I ;D:EM;: M?J> 7 TN;: 7CEKDJ E< FH?L7J; =EE: M>?9> 97D 8; JKHD;: ?DJE 7 FK8B?9 =EE: 7J 7 KD?J 9EIJ ;GK7B JE ED; />; KJ?B?JO E< ;79> H;I?:;DJ ?D H;=?ED > ?I .  L: : #&! ; 7 .KFFEI; J>7J    7D: B  B .KFFEI; 7BIE J>7J ;79> H;=?ED 9>EEI;I ?JI FK8B?9 =EE: FHEL?I?ED ?D:;F;D:;DJBO& IE J>7J J>; 9ECCED B;L;B E< FK8B?9 =EE: ?I J>; IKC E< H;=?ED7B FHEL?I?EDI ;  : ;: #EM CK9> FK8B?9 =EE: M?BB ;79> H;=?ED FHEL?:; ?D )7I> ;GK?B?8H?KC 4%)/ ;M7H; E< 9EHD;H IEBKJ?EDI 5 8 #EM :E;I J>; ;GK?B?8H?KC EKJ9EC; 9>7D=; ?< M; 7IIKC; J>7J    7D: B  B  9 )EM 7IIKC; J>7J FK8B?9 =EE: FHEL?I?ED ?I :;9?:;: @E?DJBO ; JME H;=?EDI 8O 7 9;DJH7B 7KJ>EH?JO 9;DJH7B?P;: I;JJ?D= (7@EH?JO LEJ?D= ?CFB?;I J>7J FK8B?9 =EE: FHEL?I?ED ?I J>;D 87I;: ED J>; FH;; C;:?7D B7H=;H H;=?ED J>7J ?I H;=?ED  ?D F7HJ 7 7D: H;=?ED  ?D F7HJ 8 />; 7:L7DJ7=; ?I JE IFH;7: J>; 9EIJ CEH; M?:;BO 7D: J>; :?I7:L7DJ7=; ?I JE ?CFEI; J>; FH;; EJ>;H !?D: J>; EFJ?C7B FK8B?9 =EE: FHEL?I?ED 7D: 9ECF7H; M?J> IF;D:?D= B;L;BI ?D F7HJ 7 7D: F7HJ 8 $I ?J FEII?8B; 7J ?I J>; M;B;D ?J ?I H;=?ED  M>?9> ?I B7H=;H E;I OEKH 9ED9BKI?ED 9>7D=; ?< H;=?ED  ?I B7H=;H 2>O EH M>O DEJ 3098.32  7 />; M;B; TN;: ;D:EMC;DJ E< FH?L7J; =EE: E< ;79> H;I?:;DJ ?D H;=?ED  7D:

> ?I J>; F;H H;I?:;DJ C7H=?D7B 9EIJ E< FK8B?9 =EE: FHEL?I?ED ?D H;=?ED  />; THIJEH:;H 9ED:?J?ED ; 8;IJH;IFEDI; ; M;B; TN;: ;D:EMC;DJ E< FH?L7J; =EE: E< ;79> H;I?:;DJ ?D H;=?ED  7D:

> ?I J>; F;H H;I?:;DJ C7H=?D7B 9EIJ E< FK8B?9 =EE: FHEL?I?ED ?D H;=?ED  />; THIJEH:;H 9ED:?J?ED .  ;  ;       ; B ; ;

 

97D 8; IEBL;: ; 8;IJH;IFEDI; ;H;7L;  B   B 7D: ?J 7J J>; )7I> ;GK?B?8H?KC ?I   ;   ;   B  />; C7H=?D7B 9EIJ ?I BEM;H 7D: J>; L7BK; E< FK8B?9 =EE: ?I >?=>;H ?D H;=?ED 

IE M?J> F;H;D J>;H; 7H; J>H;; FEII?8?B?J?;I !?HIJ  B   B 7D: J>; )7I> ;GK?B?8H?KC ?I J>; I7C; 7I ?D F7HJ 7 .;9ED:

 B   B 7D: J>; )7I> ;GK?B?8H?KC ?I H;L;HI;: M?J> H;=?ED  ?H:  B   B 7D: M; >7L; 7 IOCC;JH?9 ;GK?B?8H?KC ;  ; M?J> ; ;   B 

 

9 2?J> 9;DJH7B?P;: 9>E?9; E< FK8B?9 =EE: B;L;B 8O C7@EH?JO LEJ?D= ?D F7HJ 7 ?J ?I J>; B7H=;H H;=?ED  J>7J 9>EEI;I KD?; FH;; C;:?7D H;I?:;DJ  />7J ?I ; IEBL;I $) 7

L

;  #&! ; B B

 

M>;H; J>; 9EIJ E< FK8B?9 =EE: FHEL?I?ED ?I DEM IFH;7: EL;H J>; ;DJ?H; FEFKB7J?ED B B />; THIJEH:;H 9ED:?J?ED ?I 

    B B ;

 

#;D9; J>; C7@EH?JO LEJ?D= ;GK?B?8H?KC FHEL?I?ED ?I ;   B B    B 

 



!     

+K8B?9 =EE: FHEL?I?ED ?I ?D9H;7I;: H;B7J?L; JE J>; ;GK?B?8H?KC ?D F7HJ 7 8;97KI; ?J ?I J>; H;=?ED M>?9> L7BK;I J>; FK8B?9 =EE: CEH; J>7J ?I :;9?I?L; ?D J>; C7@EH?JO LEJ; 7D: J>; 9EIJ ?I IFH;7: EL;H 7 B7H=;H =HEKF 0D:;H F7HJ 8    7D: B  B IE ?J ?I H;=?ED  J>7J ?I B7H=;H 7D: M?BB 9>EEI; FK8B?9 =EE: FHEL?I?ED -;=?ED  M?BB 9>EEI; KD?; FH;; C;:?7D H;I?:;DJ  M?J>     />7J ?I ; IEBL;I ;  #&! ;   $) L  7 B B M>;H; J>; 9EIJ E< FK8B?9 =EE: FHEL?I?ED ?I 7=7?D IFH;7: EL;H J>; ;DJ?H; FEFKB7J?ED B B />; THIJEH:;H 9ED:?J?ED 



   B B ;

 

=?L;I J>; C7@EH?JO LEJ?D= ;GK?B?8H?KC FHEL?I?ED ;   B B  

 

/E 9ECF7H; J>?I LEJ?D= ;GK?B?8H?KC M?J> J>; ;GK?B?8H?KC ?D F7HJ 8 M; D;;: JE 9EDI?:;H J>H;; 97I;I $<  B   B J>; )7I> ;GK?B?8H?KC ?I J>; I7C; 7I ?D F7HJ 7 M?J> ;  ;   B .E ?J ?I FEII?8B; ?9> H;GK?H;I  B   B   B );NJ ?<  B   B J>;D J>; )7I> ;GK?B?8H?KC ?I =?L;D 8O ;  ;   B 7D: 7J  B B    B

M>?9> ?I ?CFEII?8B; !?D7BBO ?<  B   B J>;D J>; )7I> ;GK?B?8H?KC ?I =?L;D 8O ;  ; ;   B 7D: 7J  B B    B M>?9> ?I ?CFEII?8B; />;H; 9;DJH7B?P7J?ED M>;D H;=?ED  ?I B7H=;H B  B  J>; FK8B?9 =EE: FHEL?I?ED ?I ;   B B  7D: J>; M;B;D H;=?ED  ?I B7H=;H B  B  FK8B?9 =EE: FHEL?I?ED ?I ;   B B  M?J>  B B    B B  7D: M;B; :?\;H;D9; 8;JM;;D J>; JME M;B;H; I?D9;     J>; THIJ J;HC ?I FEI?J?L; 7D: J>; I;9ED: J;HC ?I D;=7J?L; />?I H;U;9JI J>; J>; JH7:;E\ 8;JM;;D 9EIJ :KFB?97J?ED 7D: FH;?D=

     

M;B?=>;H M>;D H;=?ED  M?J> IC7BB;H  #&!    

FH;    9ECF;J?D= HEK=> J>;?H FEB?9O 9>E?9; />; FEB?9O 9>E?9; E< ;79> H;=?ED > ?I H;FH;I;DJ;: 8O 7 FE?DJ L: ED J>; ?DJ;HL7B    +HEIF;9J?L; H;I?:;DJI :?\;H ?D J>;?H FEB?9O FH;E B?L;I ?D H;=?ED > M?J>  FEB?9O L: >7I KJ?B?JO . L:       L:  />KI JOF; WI FH;; ?DJ;HL7B    "?L;D J>; FEB?9O 9>E?9; E< ;79> H;=?ED ;79> H;I?:;DJ 9>EEI;I J>; H;=?ED M?J> J>; FEB?9O 9BEI;H JE >?I CEIJ FH;;I JE 9>7D=; ?JI FEB?9O =?L;D J>; FEB?9O E< J>; EJ>;H H;=?ED 7D: DE ?D:?L?:K7B M?I>;I JE CEL; =?L;D J>; FEB?9O 9>E?9;I 7 $< 8EJ> H;=?EDI 7H; KJ?B?J7H?7D ? ; C7N?C?P; J>; IKC E< J>;?H H;I?:;DJIW KJ?B?J?;I I>EM J>7J ?D ;GK?B?8H?KC J>; JME H;=?EDI BE97J?D= 7J 7D:  H;IF;9 J?L;BO M?J> J>; FEFKB7J?ED ;GK7BBO :?L?:;: 8;JM;;D J>;C 8 .>EM J>7J ?< 8EJ> H;=?EDI 7H; -7MBI?7D ? ; J>;O C7N?C?P; J>; C?D?CKC KJ?B?JO E< J>;?H H;I?:;DJI J>;O M?BB BE97J; 7J

7D: H;IF;9J?L;BO M?J> 7=7?D J>; FEFKB7J?ED ;L;DBO :?IJH?8KJ;: 2>E 7H; J>; MEHIJE\ H;I?:;DJI ECF7H; M?J> OEKH 7DIM;H ?D F7HJ 7 9 )EM 7IIKC; H;=?ED  ?I -7MBI?7D 7D: H;=?ED  ?I KJ?B?J7H?7D .>EM J>7J J>; ;GK?B?8H?KC ?DLEBL;I H;=?ED  BE97J?D= 7J   7D: H;=?ED  BE97J?D= 7J   M?J> J>EI; JE J>; B;; B7H=;H =HEKF JE J>; H?=>J E<   B?L?D= ?D J>; KJ?B?J7H?7D H;=?ED  2>E 7H; J>; MEHIJE\ H;I?:;DJI : ECF7H?D= F7HJI 7 7D: 9 I>EM J>7J ?< ED; H;=?ED IM?J9>;I JE 7 CEH; ;=7B?J7H?7D E8@;9J?L; M>?B; J>; EJ>;H ?I KJ?B?J7H?7D J>;D IE9?;JO 7I 7 M>EB; M?BB 8;9EC; B;II ;=7B?J7H?7D 4%)/ ECF7H; J>; M;B; MEHIJE\ H;I?:;DJI ?D 97I;I 7 7D: 9 5 ; .?C?B7HBO 9ECF7H?D= F7HJI 8 7D: 9 I>EM J>7J ?< ED; H;=?ED IM?J9>;I JE 7 CEH; ;=7B?J7H?7D E8@;9J?L; M>;D J>; EJ>;H ?I -7MBI?7D J>;D IE9?;JO 7I 7 M>EB; 8;9EC;I CEH; ;=7B?J7H?7D 3098.32  7 ';J E :;DEJ; J>; H;I?:;DJ M>E ?I ?D:?\;H;DJ 8;JM;;D J>; JME H;=?EDI M>;D ;79> H;=?ED 9>EEI;I ?JI FEB?9O 799EH:?D= JE J>; KJ?B?J7H?7D 9H?J;H?ED O J>; IOCC;JHO E< J>; :?IJH?8KJ?ED E< FH;; IOCC;JHO E< J>; H;=?ED7B E8@;9J?L; ; FEFKB7J?ED M?BB 8; ;GK7BBO :?L?:;: 8;JM;;D J>; JME H;=?EDI />KI E   />; EFJ?C7B FEB?9O 9>E?9; E< J>; KJ?B?J7H?7D H;=?ED  ?I =?L;D 8O J>; ;H; :  ?I J>; :;DI?JO ; JH?7D=KB7H FEFKB7J?ED :?IJH?8KJ?ED ED J>; ?DJ;HL7B    ?I =?L;D 8O  

  :             #;D9; J>; E8@;9J?L; ; THIJEH:;H 9ED:?J?ED E?9; E< L ?I 80 L   8L

M>?9> ?CFB?;I

)



  L  8  

' 

 8 L  '   8





 







  

 

 

7D: 8O IOCC;JHO J>; KJ?B?J7H?7D IEBKJ?ED 7J JOF;    ?I ?D:?\;H;DJ 8;JM;;D H;=?ED  7D: H;=?ED  />EI; M?J>    IJH?9JBO FH;EI; M?J>    IJH?9JBO FH;; FKH; KJ?B?J7H?7D 97I; J>; H;=?EDI 9>EEI; 7 FEB?9O 7J 7D:  H;IF;9J?L;BO 7D: J>; H;I?:;DJI :?L?:; ;GK7BBO 8;JM;;D J>; JME H;=?EDI 8 $< 8EJ> H;=?EDI 7H; -7MBI?7D J>;O C7N?C?P; J>; C?D?CKC KJ?B?JO E< J>;?H H;I?:;DJI ';J L :;DEJ; J>; H;I?:;DJ M>E ?I ?D:?\;H;DJ 8;JM;;D J>; JME H;=?EDI ?D J>; FKH; -7MBI?7D 97I; />;D H;=?ED  9>EEI;I 7 FEB?9O 7J J>; C?:FE?DJ E< J>; I;=C;DJ   L M>?9> =?L;I H /E FHEL; J>?I IKFFEI; EJ>;HM?I; />;D ?< J>; FEB?9O ?I JE J>; B;; C?:FE?DJ JOF; L MEKB: 8; J>; MEHIJE\ ?D:?L?:K7B ?D J>; H;=?ED 7D: ?J MEKB: 8; FEII?8B; JE ?D9H;7I; >;H M;B; FEB?9O JE J>; H?=>J 9BEI;H JE J>; C?:FE?DJ BJ;HD7J?L;BO ?< J>; FEB?9O ?I 7J H?=>J E< J>; C?:FE?DJ J>;D JOF;   MEKB: 8; J>; MEHIJ E\ ?D:?L?:K7B ?D J>; H;=?ED 7D: ?J MEKB: 8; FEII?8B; JE ?D9H;7I; >;H M;B; FEB?9O JE J>; B;; C?:FE?DJ O J>; I7C; H;7IED?D= J>; -7MBI?7D =EL;HDC;DJ ?D H;=?ED  M?BB 9>EEI; 7 FEB?9O 7J J>; C?:FE?DJ E< J>; I;=C;DJ L  M>?9> =?L;I H  "?L;D J>;I; FEB?9O 9>E?9;I ?J 7J J>; ?D:?\;H;DJ H;I?:;DJ ?I L   M?J> FEB?9O 9>E?9;I 7J

7D:  7D: J>; H;I?:;DJI 7H; :?L?:;: ;GK7BBO 8;JM;;D J>; JME H;=?EDI $D 9EDJH7IJ JE F7HJ 7 J>; -7MBI?7D =EL;HDC;DJI 9>EEI; FEB?9?;I 7J J>; C?:FE?DJ E< J>; FH;;?H H;I?:;DJI

7D:

M>;H;7I J>; KJ?B?J7H?7D =EL;HDC;DJI 9>EEI; FEB?9?;I 7J J>; 9;DJ;H E< =H7L?JO E< J>; FH;;?H H;I?:;DJI 7D:   M>?9> 7H; 9BEI;H JE ;79> EJ>;H =?L;D J>; JH?7D=KB7H :?IJH?8KJ?ED

 9 .KFFEI; J>7J L   ?I J>; H;I?:;DJ M>E ?I ?D:?\;H;DJ 8;JM;;D J>; JME H;=?EDI M>;D H;=?ED  ?I -7MBI?7D 7D: 9>EEI;I J>; C?:FE?DJ FEB?9O E< J>; ?DJ;HL7B    7D: H;=?ED  ?I KJ?B?J7H?7D 7D: 9>EEI;I 7 FEB?9O 7J J>; 9;DJ;H E< =H7L?JO E< J>; ?DJ;HL7B    />KI J>; -7MBI?7D H;=?ED  9>EEI;I 7 FEB?9O 7J  7D: J>; 9;DJ;H E< =H7L?JO E< J>; FH;; THIJEH:;H 9ED:?J?ED ?I 80 L   8L

)





  L  : 8  

 

?9> '

L



: 8



'



'    

: 8

'

 8      8  '  '

8     8  

  



         





         

   

         

 

2; DEM L;H?7J JOF;    ?I ?D:?\;H;DJ 8;JM;;D FEB?9O L   7D: FEB?9O L   !HEC J>; KJ?B?JO FEB?9?;I 7H; ;GK7BBO 9BEI; JE J>; FH;?9> ?I J>;D ?D:?\;H;DJ 8;JM;;D J>; JME H;=?EDI BB J>EI; H;I?:;DJI M?J>  

 M?BB IJH?9JBO FH;EI; H;I?:;DJI M?J>    M?BB IJH?9JBO FH;;I ; EJ>;H H;=?ED H;C7?DI KJ?B?J7H?7D J>;D J>; FEB?9O ?D H;=?ED  M?BB 9>7D=; ; KJ?B?J7H?7D H;=?ED J>; FEB?9O M?BB 9>7D=; J>; KJ?B?J7H?7D H;=?ED 7JJH79J?D= 7 B7H=;H FEFKB7J?ED I 7 H;IKBJ J>; MEHIJ E\ ?D:?L?:K7B ?D J>; IE9?;JO ? ; J>; ?D:?L?:K7B M?J>    M?BB =;J 7 FEB?9O



!     

(a)

0 (b)

0

1 1 4 3

0 .2

2 3 3 4

0.6

1

1

!?=KH;   +EB?9O BE97J?EDI

J>7J ?I  7M7O ;?H FH;; FKH; KJ?B?J7H?7D 97I; #;D9; IE9?;JO 7I 7 M>EB; 8;9EC;I B;II ;=7B?J7H?7D />?I ;N7CFB; I>EMI J>7J J>; 78?B?JO E< ED; H;=?ED JE 79>?;L; 7 CEH; ;=7B?J7H?7D EKJ9EC; 97D 8; :;; EJ>;H H;=?ED ?I DEJ FKHIK?D= J>; I7C; ;=7B?J7H?7D E8@;9J?L; ; $< H;=?ED  IM?J9>;I ; EJ>;H H;=?ED H;C7?DI -7MBI?7D J>;D J>; FEB?9O ?D H;=?ED  M?BB 9>7D=; ; EJ>;H -7MBI?7D H;=?ED J>; FEB?9O M?BB 9>7D=; 8EJ> H;=?EDI DEM 7JJH79J?D= J>; I7C; FEFKB7J?ED I>7H; I 7 H;IKBJ J>; MEHIJE\ ?D:?L?:K7B ?D J>; IE9?;JO ? ; J>; ?D:?L?:K7B M?J>    M?BB =;J 7 FEB?9O J>7J ?I  7M7O ;?H FH;; C?N;: 97I; />;D IE9?;JO 7I 7 M>EB; 8;9EC;I CEH; ;=7B?J7H?7D />;I; 7H=KC;DJI 7H; ?BBKIJH7J;: ?D T=KH;   -; 7D ?DL;HJ;: JH?7D=KB7H :?IJH? 8KJ?ED E< FEFKB7J?ED .>EM J>7J J>; M;B; MEHIJE\ H;I?:;DJ ?I 7BM7OI ?CFHEL;: ?< ED; H;=?ED IM?J9>;I JE 7 CEH; ;=7B?J7H?7D E8@;9J?L; DE C7JJ;H M>7J J>; E8@;9J?L; E< J>; EJ>;H H;=?ED ?I 4%)/ />; FEFKB7J?ED :?IJH?8KJ?ED ?I 8? CE:7B 5 3098.32  -;F;7J J>; 7D7BOI?I E< J>; FH;L?EKI ;N;H9?I; 8O I?CFBO 9>7D= ?D= J>; :;DI?JO ; ?DL;HJ;: JH?7D=KB7H :?IJH?8KJ?ED          :         



(a)

0 (b)

0

1 1 6 4

0.28

3 5 4 6

1

0.84 1

!?=KH;   +EB?9O BE97J?EDI

!?=KH;   KFF;H F7D;B ?BBKIJH7J;I J>; ;GK?B?8H?KC ?D J>; FKH; -7MBI?7D 97I; M?J> J>; H;=?ED7B FEB?9?;I KD9>7D=;: 7J

7D: 7I M;BB 7I J>; ;GK?B?8H?KC ; FKH; KJ?B?J7H?7D 97I; M?J> CEH; ;NJH;C; H;=?ED7B FEB?9?;I 7J  7D:  />; C?N;: 97I; ?I ?BBKIJH7J;: ?D J>; BEM;H F7D;B E< T=KH;   M?J> J>; -7MBI?7D FEB?9O 7J  J>; KJ?B?J7H?7D FEB?9O 7J  7D: J>; ?D:?\;H;DJ H;I?:;DJ 7J  />; I>EHJ9KJ JE :;H?L; J>; C?N;: 97I; ;GK?B?8H?KC ?I JE :;DEJ; 8O L J>; H;I?:;DJ M>E ?I ?D:?\;H;DJ 8;JM;;D J>; KJ?B?J7H?7D 7D: J>; -7MBI?7D H;=?EDI />;D J>; -7MBI?7D H;=?ED I7O H;=?ED  9>EEI;I FEB?9O C?D?C?P?D= J>; :?IJ7D9; 7J ?I 7J H  />; KJ?B?J7H?7D =EL;HDC;DJ ?D H;=?ED  9>EEI;I ?JI FEB?9O 7J J>; 9;DJ;H E< =H7L?JO E< J>; ?DJ;HL7B L  M>?9> ?I 7BM7OI 9BEI;H JE  J>7D JE L M?J> J>; ?DL;HJ;: JH?7D=KB7H :?IJH?8KJ?ED I?D9; CEH; E< J>; FEFKB7J?ED ?I 9BEI;H JE  J>7D JE L />; ;GK?B?8H?KC L7BK; E< J>; KJ?B?J7H?7D H;=?ED ?I 7J H  IK9> J>7J J>; ?D:?\;H;DJ JOF; L ?I ?D:;;: 7J 7D ;GK7B :?IJ7D9; ; JME FEB?9?;I E< H 7D: H   $J ?I J>;D IJH7?=>J; L7BK; E< L ; KJ?B?J7H?7D E8@;9J?L; J>; JH?7D=KB7H :?IJH?8KJ?ED

J>; ?DL;HJ;: JH?7D=KB7H FEFKB7J?ED :?IJH?8KJ?ED I>?; FEB?9O 9>E?9;I JE J>; ;NJH;C;I ?< 8EJ> H;=?EDI 7H; KJ?B?J7H?7D />?I FEB7H?P7J?ED E< FEB?9O 9>E?9;I ?I :K; JE J>; I>?; 9;DJ;H E< =H7L?JO M>?9> ?I 9BEI;H JE J>; ;NJH;C;I J>7D JE 9;DJ;H E< J>; FEFKB7J?ED 7I CEH; E< J>; FEFKB7J?ED ?I 9BEI; JE ;?J>;H EH  J>7D JE   2?J> J>; ?DL;HJ;: JH?7D=KB7H :?IJH?8KJ?ED J>; C7N?CKC :?IJ7D9; E< 7DO H;I?:;DJ ;?H FH;; KJ?B?J7H?7D 97I;  ?D J>; C?N;: 97I; 7D:  ?D J>; -7MBI?7D 97I; I EFFEI;: JE J>; JH?7D=KB7H :?IJH?8KJ?ED J>; CEL; E< ED; H;=?ED JE 7 CEH; ;=7B?J7H?7D E8@;9J?L; 7BM7OI ?CFHEL;I J>; KJ?B?JO E< J>; MEHIJE\ C;C8;H E< IE9?;JO



!     

;H; 7H; JME J?C; F;H?E:I $D ;79> F;H?E: FEB?J?9?7DI ?D E[9; 9>EEI; J>; B;L;B E< FK8B?9 =EE: ;JM;;D F;H?E:I J>;H; ?I 7D ;B;9J?ED BB FEB?J? 9?7DI 7H; 8;D;LEB;DJ J>;H; ?I DE H;DJ :?L;HI?ED />;O :?\;H ?D J>;?H 9ECF;J;D9; ? ; %'%/4 JE JH7DI;H; ?I KD9;HJ7?DJO 78EKJ J>; 9>7H79J;H JOF; E< FEB?J?9?7DI FEB?J?9?7DI 7H; X=EE:Y M?J> FHE878?B?JO 7D: X87:Y M?J> FHE878?B?JO    />; =EE: JOF; ?I 7BM7OI BEM 9EIJ 7D: 97D FHE:K9; J>; FK8B?9 =EE: 7J 7 KD?J 9EIJ " />; 87: JOF; ?I 7BM7OI >?=> 9EIJ 7D: 97D FHE:K9; J>; FK8B?9 =EE: 7J 7 KD?J 9EIJ  M>;H;   " BB LEJ;HI >7L; 7D ?:;DJ?97B F;HF;H?E: KJ?B?JO ;H;  ! ?I J>; ?D9H;7I?D= 9ED97L; 8;D;TJ ; FK8B?9 =EE: 7D:  ?I J>; C7H=?D7B 9EIJ E< FK8B?9 ; ?DJ;DI?T97J?ED E< J7N 9ECF;J?J?ED ?I H;FH;I;DJ;: 8O 7D ?D9H;7I; ?D ? ; 7 87I?9 ?CFB?97J?ED E< J>; J7N 9ECF;J?J?ED J>;EHO />;H; ?I DE :?I9EKDJ?D= 8;JM;;D F;H?E:I />;H; ?I 7 FH?L7J; 8;D;TJ EB:?D= E[9; E< +  7 ;H?L; J>; ;GK?B?8H?KC EKJ9EC; 7D: F;HF;H?E: LEJ;H M;BEM J>7J CEH; 9ECF;J?J?ED H;:K9;I J>; ;GK?B?8H?KC B;L;B E< FK8B?9 =EE: FHEL?I?ED 7D: LEJ;H M;B?I J;HC H;;H ?DIJ? JKJ?ED7B C;9>7D?ICI J>7J 9EDIJH7?D J>; H;DJI;;A?D= 79J?L?J?;I E< E[9; >EB:;HI

 IK9> 7I J7A?D= 8H?8;I ;H; 7H; JME 7IF;9JI JE 799EKDJ78?B?JO *D; ?I ?D9;DJ?L; 7D: J>; EJ>;H ?I I;B;9J?ED />;I; JME ;\;9JI 97D =E ?D EFFEI?J; :?H;9J?ED M>;D ?CFHEL?D= ?D9;DJ?L;I C7A; J>; I;B;9J?ED E< 87: 7D: =EE: ?D9KC8;DJI CEH; :?< T9KBJ />; 9EIJ E< :;9;DJH7B?P7J?ED ?I J>; :KFB?97J?ED E< 9EIJI 7D: J>; B?C?J ?D H;:?IJH?8KJ?ED 7D: H?IA I>7H?D= />; EJ>;H 9EIJ E< :;9;DJH7B?P7J?ED ?I J>; B79A E< 9EEH:?D7J?ED 7D: 9EDJHEB E< ;NJ;HD7B?J?;I IF?BBEL;HI 79HEII H;=?EDI

-&48*6 

.7(&0 314*8.8.32 O ?I IEKH9;87I;: J7N7J?ED E< 97F?J7B ?D9EC; B?A;BO JE ?D:K9; KD:;HJ7N7J?ED E< 97F?J7B 3098.32  .EKH9;87I;: J7N7J?ED ?I B;L?;: ?D J>; @KH?I:?9J?ED M>;H; ;9E DEC?9 79J?L?JO J7A;I FB79; $D J>; 97I; E< 97F?J7B J>?I ?I J>; @KH?I:?9J?ED ?D M>?9> J>; 97F?J7B ?I KI;: ?D 7 FHE:K9J?ED FHE9;II 2?J> 7 IOIJ;C E< IEKH9;87I;: J7N7J?ED CE8?B; 97F?J7B 97D 9>EEI; 7CED= H;=?EDI JE I;9KH; J>; >?=>;IJ 7; J7N ED 97F?J7B 8O ED; @KH?I:?9J?ED M?BB H7?I; J>; 7; FE?DJ M>;H; J>; 7?9> H;IKBJ ?D J>; KD:;HJ7N7J?ED M>;D @KH?I:?9J?ED 9ECF;J; ; BE97J?ED E< J>; EMD;H ?D FH79J?9; J>; IJ7J;: >;7:GK7HJ;HI E< J>; ;DJ;HFH?I; />; EMD;H E< J>; 97F?J7B M?BB ; I7C; J7N H7J; M>;H;L;H J>; 97F?J7B ?I FKJ ?DJE J>; FHE:K9J?ED FHE9;II I 7 9EDI;GK;D9; J>; BE97J?ED E< ?DL;IJC;DJ M?BB 8; ?D:;F;D:;DJ E< 97F?J7B J7N;I M>?9> H;IKBJI ?D 7D ;[9?;DJ :?I JH?8KJ?ED E< 97F?J7B 79HEII H;=?EDI HEII8EH:;H ?DL;IJC;DJ M?BB 8; ;[9?;DJ M?J> H;I?:;D9;87I;: J7N7J?ED $D 9EDJH7IJ J>; BE97J?ED E< ?DL;IJC;DJ M?BB :;F;D: ED 97F?J7B J7N;I KD:;H IEKH9;87I;: J7N7J?ED $< H7J;I :?\;H 7CED= @KH?I:?9J?EDI J>; 7BBE97J?ED E< 97F?J7B M?BB 8; :?IJEHJ;: 7D: 9HEII8EH:;H ?DL;IJC;DJ M?BB 8; ?D;[9?;DJ

7J 7H; J>; ?CFB?97J?EDI E< IEKH9;87I;: J7N7J?ED ; ;[ 9?;D9O E< 9HEII8EH:;H ?DL;IJC;DJ 



!    !!

3098.32  HEII8EH:;H ?DL;IJC;DJ :;9?I?EDI 7H; :;J;HC?D;: 8O 9ECF7H?D= J>; 77J 97D 8; ;7HD;: ED 97F?J7B BE97J;: ?D :?\;H;DJ @KH?I:?9 J?EDI $DL;IJC;DJ M?BB 7BM7OI 8; :?H;9J;: JE J>; @KH?I:?9J?ED E\;H?D= J>; >?=>;IJ 7;?H J7N H7J;I @KH?I:?9J?EDI 7H; 78B; JE 7\;9J J>; 7BBE97J?ED E< ?DL;IJC;DJ  9KJ ?D J>; J7N H7J; M?BB ?D:K9; 7::?J?ED7B ?DL;IJC;DJ D ;[9?;DJ 7BBE97J?ED E< ?DL;IJC;DJ E99KHI M>;D J>; 8;; I7C; ?D 7BB @KH?I:?9J?EDI />; 7BBE97J?ED E< ?DL;IJC;DJ 79HEII @KH?I:?9J?EDI ?I ?D ;GK?B?8H?KC M>;D J>; 7; ;[9?;DJ 7BBE97J?ED 7D: J>; ;GK?B?8H?KC 7BBE97J?ED M?BB :?\;H ?< J7N H7J;I 7H; DEJ ;GK7B 79HEII @KH?I:?9J?EDI 0DB;II ;GK?B?8H?KC 8;>7L?EH H;IKBJI ?D ;GK7B J7N H7J;I IEKH9;87I;: J7N7J?ED M?BB B;7: JE 7D ?D;[9?;DJ 7BBE97J?ED E< 9HEII8EH:;H ?DL;IJC;DJ

; MEHB: ;9EDECO 7BIE 9EDJ7?DI ED; KD?J E< 97F?J7B M>?9> ?I 7L; ?:;DJ?97B FHE:K9J?ED ;H; % :;DEJ;I B78EH 7D: $ :;DEJ;I 97F?J7B />; FH?9; E< EKJFKJ ?I TN;: 7J  7 .KFFEI; DED; E< J>; 9EKDJH?;I J7N;I ;?J>;H 97F?J7B EH B78EH !?D: J>; ;GK?B?8H?KC ?DJ;H;IJ H7J; 7D: 7BBE97J?ED E< 97F?J7B 79HEII 9EKDJH?;I 2>7J ?I J>; JEJ7B ?D9EC; H;9;?L;: 8O 97F?J7B?IJI J>; EMD;HI E< J>; TN;: ; ?DJ;H;IJ H7J; 7D: ?D9EC; B;L;BI ; ?CF79J E< 7 J7N 7J H7J;  ED 97F?J7B ?D9EC; ?D 9EKDJHO  ?< EJ>;H 9EKDJH?;I :E DEJ J7N 97F?J7B ?D9EC; IIKC; J>7J J7N H;L;DK;I 7H; KI;: JE 8KO EKJFKJ 7J J>; TN;: FH?9;  2>7J ?I DEM J>; 77J ?I J>; ;GK?B?8H?KC ?DJ;H;IJ H7J; 7D: 7BBE97J?ED E< 97F?J7B 79HEII 9EKDJH?;I !?D: J>; JEJ7B ?D9EC; H;9;?L;: 8O 97F?J7B?IJI 7D: MEHA;HI 7D: J>; J7N H;L;DK;I ?D 9EKDJHO  7I 7 ; M7=; H7J; ?I K  :" 

  %  $   '     % 

 

/>; JEJ7B ?D9EC; E< MEHA;HI ?D J>; ' 9EKDJH?;I ?I   &-  ' K%  ' '    '    

 



K F

' 

    

    

'  

    

   

/78B;   $DJ;H;IJ H7J; 7D: M7=; H7J; />; JEJ7B ?D9EC; E< 97F?J7B?IJI ?I &  F$ 

  '  

 

/>; ?DJ;H;IJ H7J; 7D: M7=; H7J; 7H; =?L;D ?D J78B;   />; M7=; H7J; ; DKC8;H E< 9EKDJH?;I ?D9H;7I;I 8KJ J>; ?DJ;H;IJ H7J; H?I;I />?I ?I ;NFB7?D;: 8O J>; TN;: IJE9A E< 97F?J7B 8;9EC?D= CEH; I97H9; H;B7J?L; JE B78EH 7I J>; DKC8;H E< 9EKDJH?;I H?I;I 8 ';J J>; 97F?J7B KI;: ?D 9EKDJHO  8; :;DEJ;: $ $D ;GK?B?8H?KC J>; H;C7?D?D= 97F?J7B ?I :?L?:;: ;GK7BBO 7CED= J>; EJ>;H '   9EKDJH?;I 2?J> J>; J7N 7J H7J;  J>; H;JKHD ?D 9EKDJHO  JE J>; EMD;H E< 97F?J7B ?I    F />; 7BBE97J?ED E< 97F?J7B ;DIKH;I J>; J>; H;JKHD ?I ;GK7J;: 79HEII 7BB 9EKDJH?;I IE $ I7J?IT;I

     $

      

    $    '  .EBL?D= J>; ;GK7J?ED ; J7N H;L;DK; ; 97F?J7B ?D9EC; J7N H7J; ?D 9EKDJHO  7J    7 !?D: J>; 9>7D=; ?D JEJ7B 97F?J7B 7D: JEJ7B B78EH ?D9EC; 7D: J>; H;L;DK; H7?I;: ?D 9EKDJHO  7J >7FF;DI JE J>; 8;; 9EKD JH?;I M?J>EKJ J7N;I ; MEHA;HI ?D 9EKDJHO  8;JJ;H E\ 7I 7 H;IKBJ E< J>; J7N 2>7J 78EKJ J>; ?CF79J E< J>; J7N ED J>; M;B; MEHA;HI ?D DEDJ7N?D= 9EKDJH?;I : ?I9KII J>; J7NI>?; DKC8;H E< 9EKDJH?;I ?D9H;7I;I ; ?D9EC; B;L;BI 8;; C7H=?D7B FHE:K9J E< 97F?J7B ?I ;GK7B JE J>; J7N H7J; 0I?D= J>?I ; MEHA;HI ?D 9EKDJHO  7H; C7:; MEHI; E\ 8O J>; J7N />; M7=; H7J; ?D J>; DEDJ7N?D= 9EKDJH?;I ?I 9ECF7H;: ?D J>; J78B;   />; M7=; H7J; H?I;I 8;97KI; E< J>; J7N />?I C7A;I J>; MEHA;HI 8;JJ;H E\ : />; DKC8;H E< 9EKDJH?;I :E;I DEJ 7\;9J J>; :?H;9J?ED E< 9>7D=; />; ;NJ;DJ E< 9>7D=; ?I IC7BB;H J>; B7H=;H ?I J>; DKC8;H E< 9EKDJH?;I



Revenue 0.10

0.08

0.06

0.04

0.02

0.00 0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

!?=KH;   /7N H;L;DK;

&&

;;D H     =?L;I F   />; ;GK7B?P7J?ED E< D;J ?DJ;H;IJ H7J;I ?CFB?;I    $

 %    $  %

   H $

$ 2?J> J>; F7H7C;J;H L7BK;I

 





 $



  





$

  

+BEJJ?D= =?L;I $   7D: $   #;D9; '   ??? 2>;D H      =?L;I F   />; ;GK7B?P7J?ED E< D;J ?DJ;H;IJ H7J;I M?J> J>; F7H7C;J;H L7BK;I I>EMI

 





 $

 

 





$

  

+BEJJ?D= =?L;I $   7D: $   #;D9; '   />; IK8I?:O JE 97F?J7B B;7:I JE 7 >?=>;H M;B; ;N;H9?I; 78EL; 8KJ DEM 7IIKC; J>7J B78EH ?I 7BIE CE8?B; 7D: J>7J H;=?ED = B;L?;I 7 J7N ED 97F?J7B H9 ! "   =    "  ! "  H  F !

7 .>EM J>7J K 

 !  "

8 .>EM J>7J F H   ! ! ! 9 ;CEDIJH7J; J>7J J>; H;IKBJ ?D 7 ?CFB?;I "  "  #EM 97D J>?I 8; 9EDI?IJ;DJ M?J> J>; H;IKBJ ?D 8  : 2>7J M?BB 8; J>; EFJ?C7B J7N;I ; JME H;=?EDI ?< J>;O M?I> JE C7N? C?P; D7J?ED7B ?D9EC;



!    !!

3098.32  2>;D B78EH ?I CE8?B; J>; M7=; H7J; ;GK7B?P;I 79HEII H;=?EDI

>;D9; K  K  K />KI F7HJI 7 7D: 8 8 EDBO M>;D H  H />?I ?I 8;97KI; J>; ;GK7J?EDI ?D 7 7D: 8 9EHH;IFED: JE J>; ?DJ;H?EH IEBKJ?ED ; 7BBE97J?ED E< 97F?J7B 7D: B78EH ?D J>; JME H;=?EDI 2?J> CE8?B; 97F?J7B 7D: B78EH 7D: ?D J>; 78I;D9; E< B78EH J7N 7 >?=>;H 97F?J7B J7N ?D ED; H;=?ED M?BB H;IKBJ ?D 7BB 97F?J7B UEM?D= JE J>; EJ>;H H;=?ED 7D: B78EH M?BB ;D J>; J7N;I ?D JME H;=?EDI 7H; ;GK7B M?BB J>;H; 8; IJH?9JBO FEI?J?L; 7CEKDJ E< ?DFKJI 7D: EKJFKJ ?D 8EJ> H;=?EDI : />; BE=?9 78EL; ?CFB?;I J>7J ?< ED; H;=?ED I;JI 7 IJH?9JBO FEI?J?L; J7N H9  ED 97F?J7B J>;D J>; EFJ?C7B J7N H7J; ; EJ>;H H;=?ED M?BB 8; 7D H:  H9   7F?J7B 7D: B78EH M?BB J>;D UEM JE H;=?ED > EDI;GK;DJBO J>; EDBO ;GK?B?8H?KC M?J> 9ECF;J?J?L; J7N I;JJ?D= CKIJ 8; H  H  />;I; 7H; 7BIE J>; ;[9?;DJ J7N H7J;I

;H; JE BE97J; J>?I D;M FB7DJ />; EDBO ?DFKJI KI;: ?D 97H FHE:K9J?ED 7H; B78EH 7D: 97F?J7B 7D: J>; FHE:K9J?ED ;H; % ?I J>; B78EH ?DFKJ 7D: $ ?I J>; 97F?J7B ?DFKJ $D 9EKDJHO  B78EH 9EIJI  F;H KD?J 7D: 97F?J7B 9EIJI  F;H KD?J M>?B; ?D 9EKDJHO  B78EH 9EIJI CEH;  8KJ 97F?J7B 9EIJI B;II  7 $D M>?9> 9EKDJHO I>EKB: OEK BE97J; J>; D;M FB7DJ IE 7I JE C?D?C?P; 9EIJ F;H KD?J E< EKJFKJ ? ; 7L;H7=; 9EIJ  8 )EM 7IIKC; 9EKDJHO  IK8I?:?P;I B78EH IE J>7J B78EH 9EIJI  F;H KD?J ?D 9EKDJHO  E;I ?J 9>7D=; J>; BE97J?ED :;9?I?ED E< J>; THC 9 $DIJ;7: E< IK8I?:?P?D= B78EH IKFFEI; J>7J 9EKDJHO  IK8I?:?P;I 97F?J7B IE J>7J 97F?J7B 9EIJI  F;H KD?J E;I ?J 9>7D=; J>; BE97J?ED :;9?I?ED E< J>; THC : 2>7J MEKB: >7FF;D ?< 8EJ> 9EKDJH?;I 79J ?:;DJ?97BBO ?D ;?J>;H J7N?D= EH IK8I?:?P?D= 97F?J7B 7D: B78EH 2>7J MEKB: 8; J>; BE97J?ED :;9?I?ED E< J>; THC #7I 7DO 9EKDJHO 7D ?D9;DJ?L; JE 7BJ;H IB?=>JBO ?JI J7NIK8I?:O 9>E?9; 7D: ?< IE

>EM 3098.32  7 />; 9EIJ ;H; M ?I 7 =?L;D B;L;B E< EKJFKJ />; D;9;II7HO 9ED:?J?EDI ; C?D?C?P7J?ED 7H; %  $  K     %

 7D: F

%  $    $

 

K $   F %

 

?L?:?D=   8O   =?L;I

0I?D= J>; FHE:K9J?ED 9EDIJH7?DJ M%

- K .  F



 

IE J>; 9EIJ ; 7L;H7=; 9EIJ ?I BEM;H ?D  IE J>7J ?I M>;H; J>; EKB: 8; BE97J;: 8 $< 9EKDJHO  IK8I?:?P;I J>; 9EIJ E< B78EH J>; 7L;H7=; 9EIJ ?D  ?I ?I DEM BEM;H J>7D J>; 9EIJ ?D  $< J>; THC >7I DE 9EIJI E< CEL?D= BE97J?ED 7D: ;NF;9JI J>; IK8I?:O JE F;HI?IJ ?J I>EKB: CEL; ; ;\;9J E< IK8I?:?P?D= 97F?J7B JE  F;H KD?J ?I ;N79JBO J>; I7C; 7I IK8I?:?P?D= B78EH .E J>; 97F?J7B IK8I?:O M?BB 7BIE ?D:K9; J>; THC JE CEL; KD?J E< B78EH J>; 7L;H7=; 9EIJ ?D  ?I 7L;H7=; 9EIJ ?I ;N79JBO J>; I7C; 7I J>; IK8I?:?P;: 9EIJ ?D  IE J>; THC MEKB: 8; ?D:?\;H;DJ 78EKJ BE97J?ED $< 9EKDJHO  IK8I?:?P;: 97F?J7B ?DIJ;7: J>; 7L;H7=; 9EIJ 8;9EC;I           

 



!    !!

/>; 97F?J7B IK8I?:O B;7:I JE 7 BEM;H 9EIJ J>7D J>; M7=; IK8I?:O 7D: MEKB: ?D:K9; J>; THC JE H;BE97J; $< J>; 9EKDJH?;I M?I> JE 7JJH79J J>; THC J>;O 8EJ> >7L; 7D ?D9;DJ?L; JE IK8I?:?P; />; IK8I?:O ?I 8;JJ;H J7H=;J;: ED 97F?J7B ?D 9EKDJHO  $D 9EKDJHO  J>; IK8I?:O >7I J>; I7C; ;\;9J ?D= =H7DJ 7D: ;NFB7?D M>O ?J 9EKB: 8; FH;?D= =H7DJ M>?9> C7J9>;I IJ7J; IF;D:?D= :EBB7H ?9> FE?DJ J>; IK8I?:O ?I F>7I;: EKJ E OEK J>?DA 9BEI;:;D: C7J9>?D= =H7DJ ?I FH; ?D= =H7DJ 3098.32  7 (7J9>?D= =H7DJ FHE=H7CI IF;9?7J J>; ;I ED 7 :EBB7H; ;\;9J ?I JE BEM;H J>; FH?9; E< BE97B FK8B?9 =EE:I 7D: J>;H;8O E\I;J J>; J;D:;D9O EMI M>O 7 C7J9>?D= =H7DJ ?I CEH; ;\;9J?L; ?D IJ?CKB7J?D= BE97B FK8B?9 ;NF;D:?JKH;I J>7D 7 8BE9A =H7DJ E< J>; I7C; 7CEKDJ />; C7J9> ?D= =H7DJ B;7:I JE 7 >?=>;H B;L;B E< FK8B?9 =EE: H;B7J?L; JE FH?L7J; =EE: J>7D J>; 8BE9A =H7DJ />; H;7IED ?I J>7J J>; 8BE9A =H7DJ 97D 8; KI;: ?D 7DO M7O J>; H;9?F?;DJ M?I>;I ?D 9EDJH7IJ JE 7 C7J9>?D= =H7DJ J>7J ?I ?D9H;7I?D= M?J> J>; 7CEKDJ E< FK8B?9 IF;D:?D= 8 *D; 7:L7DJ7=; E< 7 8BE9A =H7DJ ?I JE C7?DJ7?D TI97B :?I9?FB?D; 8O 9H;7J?D= 7 >7H: 8K:=;J 9EDIJH7?DJ  9BEI;:;D: C7J9>?D= =H7DJ 9EC8?D;I J>; ?D9;DJ?L; E< J>; C7J9>?D= =H7DJ M?J> J>; TI97B :?I9?FB?D; E< J>; 8BE9A =H7DJ />; 9BEI;:;D: C7J9>?D= =H7DJ ?I FH;;H; ?I ;DEK=> ?D; 7CEKDJ 7J M>?9> J>; IK8I?:O ?I F>7I;: EKJ

 FEFKB7J?ED I>7H;I

7D:  IK9> J>7J    />;H; ?I 7 MEHB: IJE9A E< 97F?J7B ;GK7B JE  JE 8; ; 7BBE97J;: 8;JM;;D J>; JME 9EKDJH?;I />; FHE:K9J?ED EEI;I H9 IE 7I JE C7N?C?P; J>; D;J ?D9EC; E< ?JI H;FH;I;DJ7J?L; 9EDIKC;H M9  : ?9   : ?9 ?9 ?9 H9 ?9



Private Good Block Grant

Matching Grant

Public Good !?=KH;   (7J9>?D= 7D: 8BE9A =H7DJI

7 2>7J 7H; J>; THIJ 8;IJ J7N B;L;BI H 7D: H ?D J>?I I;JJ?D= 8 NFH;II J>; :;C7D: ; ?DJ;HD7J?ED7B 97F?J7B C7HA;J ?  ?   IEBL; EM M?BB  H;79J #EM :E OEK ?DJ;HFH;J J>?I H;IKBJ  9 .>EM  J>7J ;79> 9EKDJHOWI E8@;9J?L; ; THIJEH:;H 9ED:?J?ED E?9; E< J>; J7N H7J; 7D: I>EM >EM J>; I?=D E< J>; J7N H7J; :;F;D:I ED J>; D;J ;NFEHJ?D= FEI?J?ED E< J>; 9EKDJHO ; .KFFEI; DEM J>7J     ?   7D: ?   H7M J>; J7N H;IFEDI; ; ;GK?B?8H?KC J7N;I 7D: J>; 9EHH;IFED:?D= L7BK;I E<  ?  7D: ? $I J>?I ;GK?B?8H?KC EKJ9EC; ;[9?;DJ #EM 97D OEK C;7IKH; J>; ?D;[9?;D9O E< J7N 9ECF;J?J?ED < NFH;II ;GK?B?8H?KC J7N;I 7I ; F7H7C;J;HI    ?  7D:  ?  7D: I>EM J>7J J>; ;GK?B?8H?KC J7N;I CKIJ 8; E< EFFEI?J; I?=DI 3098.32  7 />; THIJ 8;IJ J7N B;L;BI H 7D: H C7N?C?P; J>; JEJ7B ?D9EC; E< J>; 9EDIKC;HI ?D JME 9EKDJH?;I H  H   (! $) 0  M  M  

 

M9  : ?9   : ?9  ?9 ? 9 H9 ?9 

 

M>;H; 7D:

 : ?9   ?9  ?9 

 

  : ?9   H9 

 

/>; C7HA;J9B;7H?D= 9ED:?J?ED ?I ?  ?  

 

M>?9> ?CFB?;I

  ?

  ?\;H;DJ?7J?ED E< J>; 7H8?JH7=; 9ED:?J?ED ? 

 

: ?   H  : ?   H

 

8?

8?

   : ?    : ?  8H

 8H

 

M?J> H;IF;9J JE H =?L;I

M>?9> 97D 8; IEBL;: 7I 8?

  8H

 : ?  : ? 

 

.K8IJ?JKJ?ED ; =?L;D FHE:K9J?ED ;I; :;TD?J?EDI J>; E8@;9J?L; ?I ?I JE 8; ;NF;9J;: 97F?J7B ?I ?D TN;: IKFFBO ; F;HIF;9J?L; E< J>; MEHB: ;9EDECO 7D: 7BB J7N7J?ED :E;I ?I H;7BBE97J; ?J 8; JM;;D H;=?EDI BIE 7DO H;L;DK; H7?I;: ?I 7 JH7DI; B;L;B 8 />; :;C7D: ; C7H=?D7B FHE:K9J E< 97F?J7B JE ?JI 7; 97F?J7B C7HA;J9B;7H?D= 9ED:?J?ED M; 9EC8?D; J>; :;C7D:I ;H J7N C7A;I ?J 9EIJB?;H JE EMD 97F?J7B J>; :;C7D: ; ;NFH;II?ED ; E8@;9J?L; 9EKDJHO 9>EEI;I J>; J7N H7J; J7A?D= J>; EJ>;H 9EKDJHOWI J7N 9>E?9; 7I =?L;D />; THIJEH:;H 9ED:?J?ED ; EFJ?C?P7J?ED FHE8B;C ?I  8 M9 8?9   : ?9   ?9   ? 9  ?9   =    H9 8H9 8H9 O J>; FH;L?EKI 97B9KB7J?EDI J>?I I?CFB?T;I JE   H9   9   9 ? 9  ?9   =   

 

 



!    !!

t1 =

t2

1 t2 + 3 3

1 t t2 = − + 1 3 3 t1

!?=KH;   ;IJH;IFEDI; ; 9EKDJHO ?I 7 D;J ;NFEHJ;H E< 97F?J7B ? 9  ?9  J>;D H9   />; 9EDL;HI; >EB:I ?< J>; 9EKDJHO ?I 7 D;J ?CFEHJ;H E< 97F?J7B ? 9  ?9  ; 2?J> J>;I; F7H7C;J;H L7BK;I J>; THIJEH:;H 9ED:?J?EDI 8;9EC;

 H   ?      7D:

H 

  ? 

 

 

0I?D=   7D:   JE IK8IJ?JKJ; ?DJE J>; THIJEH:;H 9ED:?J?EDI 7D: IEBL?D= =?L;I J>; 8;IJH;IFEDI; ;I; 8;IJH;IFEDI; ; ;GK?B?8H?KC J7N H7J;I H   H    < />; THIJEH:;H 9ED:?J?EDI 7H;   H9   9   9 ? 9  ?9   =    .K8IJ?JKJ?D= 7D B78EH '78EH CE8?B?JO ?I 7\;9J;: 8O =;E=H7F>?97B 7D: E99KF7J?ED7B ?9> J>?I ;GK? B?8H?KC ;N?IJI 4%)/ $D IK9> 7D ;GK?B?8H?KC J>; C;:?7D LEJ;H ?D  9>EEI;I JE MEHA ?D @KH?I:?9J?ED  5 9 .KFFEI; DEM J>7J ?D ;GK?B?8H?KC @KH?I:?9J?ED WI C;:?7D LEJ;H MEHAI ?D @KH?I:?9J?ED  !?D: J>; )7I> ;GK?B?8H?KC ?D J7N;I E;I ;?J>;H @KH?I:?9J?ED IK8I?:?P; J>; M7=; 2>O EH M>O DEJ "?L; 7 9ED:?J?ED ED  IK9> J>7J J>?I ;GK? B?8H?KC ;N?IJI ECF7H; OEKH 7DIM;H JE J>7J E< F7HJ 8 $DJ;HFH;J J>; :?\;H;D9;



!    !!

3098.32  7 ';J L    8; J>; BE97J?ED E< J>; ?D:?L?:K7B ?D:?< ; 7?I 97I; @KH?I:?9J?ED WI C;:?7D LEJ;H 7BIE MEHAI ?D @KH?I:?9J?ED  />; =EL;HDC;DJ E< @KH?I:?9J?ED  9>EEI;I H JE C7N?C?P; 

  H   H '     H    ' 

    H     H     H  

     H  H      H  

0

J7A?D= H 7I =?L;D !HEC J>; THIJEH:;H 9ED:?J?ED

 80

   H    H     8H



 

 

M; E8J7?D J>; 8;IJH;IFEDI; ; =EL;HDC;DJ E< @KH?I:?9J?ED 

H 

H     

 

.?C?B7HBO J>; =EL;HDC;DJ E< @KH?I:?9J?ED  9>EEI;I H JE C7N?C?P; 0



  H   H '

    H     H     H   H 

    H    H     H   H 

J7A?D= H 7I =?L;D !HEC J>; THIJEH:;H 9ED:?J?ED

 80    H    H   8H 

 

 

 M; E8J7?D J>; 8;IJH;IFEDI; ; =EL;HDC;DJ E< @KH?I:?9J?ED 

H 

H     

 

.EBL?D= J>; ;GK7J?EDI ;GK?B?8H?KC ?D J7N;I H



H



           

   

EJ> J7N H7J;I 7H; ;GK7B JE P;HE ?<    $<    J>;D H  7D: H  7D: 9EDL;HI;BO ?<    J>;D H  7D: H  0I?D= J>?I H;IKBJ ?D J>; 9ED:?J?ED L    H      H 

M; E8J7?D J>; H;IJH?9J?ED ED  KD:;H M>?9> J>?I IEBKJ?ED ;N?IJI       2>;D J>?I ;GK?B?8H?KC ;N?IJI 9EKDJHO  IK8I?:?P;I J>; M7=; H7J; 7D: 9EKDJHO  J7N;I .?D9; 9EKDJHO  ?I ;CFBEO?D= IEC; E< J>; MEHA;HI ?I ?I I>?; J7N 87I; EDJE J>EI; H;I?:;DJ ?D 9EKDJHO  9 2>;D @KH?I:?9J?ED WI C;:?7D LEJ;H MEHAI ?D @KH?I:?9J?ED  J>; E8@;9J?L; E< >?I =EL;HDC;DJ ?I JE C7N?C?P; 0

 

  H  H '   H   ' 

   H      H     H 

    H    H    H  

 

7D: ; THIJEH:;H 9ED:?J?ED 80      H    H  8H 

 

M; TD: J>?I =EL;HDC;DJWI 8;IJH;IFEDI; 7J @KH?I:?9J?ED WI C;:?7D LEJ;H MEHAI ?D @KH?I:?9J?ED  M; 97D KI; J>; 8;IJH;IFEDI; ?I =EL;HDC;DJ ; )7I> ;GK?B?8H?KC ?D J>?I 97I; H



H



            

   



!    !!

I ED; 97D I;; J>; =EL;HDC;DJ E< @KH?I:?9J?ED  IK8I?:?P;I M7=; H  ; C;:?7D LEJ;H ?I JE MEHA ?D ?JI EMD @KH?I:?9J?ED 8;97KI; J>; D;J M7=; ?D @KH?I:?9J?ED  ?I BEM;H J>7D ?D @KH?I:?9J?ED  />?I ;GK?B?8H?KC ;N?IJI ?< J>; BE97J?ED E< J>; ?D:?\;H;DJ MEHA;H I7J?IT;I   L   0FED IK8IJ?JKJ?ED E< H 7D: H ?DJE L M; E8J7?D J>; 9ED:?J?ED ?I 9ED:?J?ED H  J>7J ?I J>; =EL;HDC;DJ E< @KH?I:?9J?ED  7BIE IK8I?:?P;I M7=; JE >7L; ?JI C;:?7D LEJ;H MEHA ?D ?JI @KH?I:?9J?ED

;  M;B;EHO IK==;IJ J>?I ?I J>; H?=>J J>; FEB?9O 3098.32  />;H; 7H; JME 9ECF;J?D= F;HIF;9J?L;I E\;H;: 8O J>; J>;EHO !?HIJ J>;H; 7H; 7H=KC;DJI ; D;;:O 7D: J>; D;;: JE IKFFBO ?D9;DJ?L;I JE 7LE?: :;F;D:;D9O />; 9EHH;9J H;IEBKJ?ED E< J>?I JH7:;E\ M?BB L7HO 7CED= H;=?EDI EDL;HI;BO ;79> H;=?ED C7O M?I> JE 7JJH79J J>; ;9EDEC?97BBO IK99;II7J 97D 8; E\;H;: ?I 7 BEM J7N 8KH:;D $D JKHD 7 BEM J7N 8KH:;D 97D 8; 79>?;L;: 8O H;:K9?D= J>; =;D;HEI?JO E< M;B?I C7O >7L; J>; 7::?J?ED7B 7:L7DJ7=; E< :H?L?D= J>; H;9?F?;DJI E< M;B; H;=?ED 7D: ?DJE 7 CEH; =;D;HEKI ED;

7J ?I C;7DJ 8O J>; -79; JE J>; EJJEC 2>7J :E;I J>; ;L?:;D9; IK==;IJ 3098.32  />; -79; JE J>; EJJEC ?I J>; 9ED9;FJ E< 7 I;H?;I E< IJH7J;=?9 H;:K9J?EDI ?D J7N;I 7D: M;B; M?I> E< ?D:;F;D:;DJ H;=?EDI JE I;;A ;9EDEC?9 7:L7DJ7=; />; ;L?:;D9; ; KHEF;7D 0D?ED H;L;7BI J>7J IJ7JKJEHO 97F?J7B J7N H7J;I M>?9> ?I J>; J7N CEIJ B?A;BO JE 8; I;J IJH7J;=?97BBO >7L; 9BEI;H ?DJ;=H7J?ED E< J>; KHEF;7D 0D?ED />; B;II 7D: H;L;7BI B?C?J;: IKFFEHJ ; -79; JE J>; EJJEC

 ; 97F?J7B EMD;: 8O DEDH;I?:;DJI ?I J7N;: 2>7J 7H; J>; ;\;9JI E< IK9> J7N ;NFEHJ?D= $I ?J FHETJ78B; JE IK8I?:?P; 97F?J7B EMD;: 8O DEDH;I?:;DJI 3098.32  />; J7N7J?ED E< J>; 97F?J7B EMD;: 8O DEDH;I?:;DJI 7J 7 H7J; :?\;H;DJ JE J>7J B;L?;: ED 97F?J7B EMD;: 8O H;I?:;DJI ?I 7D ;N7CFB; E< J7N ;NFEHJ?D= />; CEJ?L; ?; 8KH:;D E< H;L;DK; 9EBB;9J?ED EDJE DEDH;I?:;DJI 7D: JE BEM;H ?J ED H;I?:;DJI $< 7BB ;BI; ?I >;B: 9EDIJ7DJ J>?I ?I 9B;7HBO E< 8;D;TJ JE H;I?:;DJI #EM;L;H J>; I7C; BE=?9 7FFB?;I JE 7BB 9EKDJH?;I IE J7N H7J;I C7O 8; I;J JEE >?=> M>;D 9EKDJH?;I 9ECF;J; $< J>;H; 7H; 7DO 7IOCC;JH?;I ?D J>; ?D?J?7B EMD;HI>?F E< 97F?J7B 79HEII 9EKDJH?;I

;GK?B?8H?KC J7N H7J;I M?BB :?\;H 79HEII 9EKDJH?;I EKDJH?;I M?J> 7 >?=> ?D?J?7B ;D:EMC;DJ E< 97F?J7B M?BB 8; 97F?J7B ;NFEHJ;HI 7D: I;J 7 BEM H7J; E< 7 J7N EKDJH?;I M?J> 7 BEM ;D:EMC;DJ E< 97F?J7B M?BB 8; D;J ?CFEHJ;HI 7D: 8;97KI; E< J7N ;NFEHJ?D= M?BB I;J 7 >?=> H7J; E< J7N />?I H;IKBJI ?D 7D ?D;[9?;DJ 7BBE97J?ED E< 97F?J7B 79HEII 9EKDJH?;I

-&48*6 

779*7 .2 28*62&8.32&0 !& E< MEHB: JH7:; EL;H J>; F7IJ  O;7HI #EM CK9> :?: JH7:; =HEM 8;JM;;D  7D:  3098.32  />; J?C; F7J> E< J>; L7BK; E< ;NFEHJI ?I I>EMD ?D J>; T=KH; />?I KI;I  7I J>; 87I; O;7H />; ?D:;N E< L7BK; M7I  ?D  7D:  ?D  IE J>; L7BK; E< JEJ7B ;NFEHJI >7I ?D9H;7I;: 8O 7 ;  O;7HI $D 7::?J?ED J>;H; >7I 8;;D 7 :EK8B?D= E< J>; L7BK; E< JEJ7B ;NFEHJI I?D9;  />?I 97D 8; I;;D ?D J>; IJ;;F ?D9H;7I; ?D =H7:?;DJ 7J O;7H KDJ?B J>; H;9;II?ED E< 

; ;[9?;D9O 9ED:?J?EDI E< I;9J?ED    CE:?T;: ?< J>;H; ?I 7 9EIJ E< G F;H KD?J JE JH7DIFEHJ J>; FHE:K9J 8;JM;;D 9EKDJH?;I 3098.32  IIKC; ; ;NFEHJI ; ;NFEHJI ; ;[9?;DJ 7BBE97J?ED IEBL;I $)

! !  " " . .  

$   %   1    G 1  

 

IK8@;9J JE J>; 9EDIJH7?DJI J>7J

$   %   1    G 1  2   $  $  $   %  % %  7D:

1   1   

   



!  

"  !! !%!

!?=KH;   2EHB: C;H9>7D:?I; ;NFEHJI

M>;H; 2  ?I IEC; TN;: B;L;B E< EKJFKJ ?D 9EKDJHO  />; IEBKJ?ED JE J>?I EFJ?C?P7J?ED ?I 9>7H79J;H?P;: 8O J>; IJ7D:7H: ;[9?;D9O 9ED:?J?ED   ! $  %    " $  % 



  ! $  %     " $  % 

 

7D: J>; JME THIJEH:;H 9ED:?J?EDI ;H; :  ?< 1 :  IIKC; 1   7D: 1   !HEC       G  7D:   G   M>?9> =?L;     G />?I ?I DEJ JHK; IE   J>7J 7J CEIJ ED; E< 1 7D: 1 ?I FEI?J?L; />; ;[9?;D9O 9ED:?J?ED IJ?BB ?DLEBL;I ;GK7B?P7J?ED E< J>; H7J?E E< C7H=?D7B FHE:K9JI 8KJ J>; JH7DIFEHJ 9EIJ M?BB 7BJ;H J>; B;L;BI E< EKJFKJ ?D J>; JME 9EKDJH?;I 2?J>EKJ J>; 9EIJ J>; ;[9?;DJ 9>E?9; ?I JE C7N?C?P; MEHB: EKJFKJ 7D: J>;D :?IJH?8KJ; 79HEII 9EKDJH?;I 2>;D J>; 9EIJ ?I FHE>?8?J?L; J>; EKJFKJ 97DDEJ 8; JH7DIFEHJ;: G   FHE:K9J?ED ?D  M?BB 8; ;N79JBO ;GK7B JE 2   />; EKJ9EC; M?J> FEI?J?L; 8KJ DEDFHE>?8?J?L; 9EIJ M?BB 8; ?DJ;HC;:?7J; 8;JM;;D J>;I; JME

; CE:;B E< I;9J?ED    I>EM J>7J ?< ED; 9EKDJHO B;L?;I 7 J7N ED 97F?J7B J>;H; M?BB 8; ?D;[9?;D9O ;L;D M?J> F;H; DKC8;H E< KD?JI E< J>; =EE: J>7J ?I JH7DI J>; =EE: ?I JH7:;: 8;JM;;D J>; JME :?L?I?EDI E< J>; THC 8 IIKC; ;79> 9EKDJHO B;L?;I 7 J7H?\ 7J H7J;  :  2>7J M?BB DEM :;J;HC?D; J>; JH7DI ?I E\I;J ?< E  ;D H  H      H   J>; THC >7I 7D ?D9;DJ?L; JE     />; FHE878?B?JO I;J J>; JH7DI?=> M>?9> ?I E\I;J ?< E  ;H;7L; J>; I>7F; ?D T=KH;  

;H; ?I 7 TN;: MEHB: FEFKB7J?ED E< I?P; " J>7J 7BBE97J;I 8;JM;;D 9EKDJH?;I ED J>; 87I?I E< J>; KJ?B?JO B;L;BI E\;H;: 79> 9EDIKC;H ?I 9>7H79J;H?P;: 8O 7 F7H7C;J;H L J>7J C;7IKH;I J>;?H 7JJ79>C;DJ JE 9EKDJHO  7D: 8O   L M>?9> ?I J>;?H 7JJ79>C;DJ JE 9EKDJHO  />; F7H7C;J;H L ?I :?IJH?8KJ;: KD?; FEFKB7J?ED M?J> L7BK;I ?H?  IIKC; J>;H; 7H; JME ?:;DJ?97B 9EKD JH?;I >    7D: JME ?:;DJ?97B THCI ?D:;N;: =    !?HC  ?I BE97J;: ?D 9EKDJHO  7D: THC  ?D 9EKDJHO  />; THCI FHE:K9; >ECE=;D;EKI FHE:K9JI 7D: ;D=7=; ?D EKHDEJ 9ECF;J?J?ED ED 8EJ> C7HA;JI />; C7H=?D7B 9EIJ E< FHE :K9J?ED ?I TN;: 7J ?D 8EJ> 9EKDJH?;I />; 9EKDJH?;I B;L;B IF;9?T9 9ECCE:?JO J7N;I H 7D: H  7 .>EM J>7J J>; FHETJC7N?C?P?D= EKJFKJ B;L;BI M>;D J>; :;IJ?D7J?ED FH?D 1D  9?FB; EF;H7J;I 7H; L 9:  2  M>;H; L9: ?I J>; 7CEKDJ IKFFB?;: 8O J>; THC ?D 9EKDJHO = JE 9EKDJHO > 8 .>EM J>7J J>; EFJ?C7B :;IJ?D7J?ED J7N J>7J C7N?C?P;I D7J?ED7B M;B    #;D9; 9ECFKJ; J>; C7N?C?P;: B;L;B E< D7J?ED7B M;BEM J>; EKJFKJ B;L;BI 7H; L% 9:  1D D 2

;H?L; J>; EFJ?C7B J7N;I J>7J C7N?C?P; D7J?ED7B M;B; EFJ?C7B 9EEH:?D7J;: J7N;I J>7J C7N?C?P; J>; IKC E< M;B ; IEBKJ?EDI JE 8 7D: 9 7D: :?I9KII 3098.32  7 2>;D J>; :;IJ?D7J?ED J7N FH?D9?FB; ?I ?D EF;H7J?ED J>; FHETJ E< THC = ?I  

 9  D  H L9 D  H L9  =    />; A;O ; :;IJ?D7J?ED J7N ?I J>7J IKFFB?;I JE J>; C7HA;J ?D 9EKDJHO > 7H; IK8@;9J JE J>; J7N H: />; FHETJC7N?C?P?D= EKJFKJ B;L;BI 7H; L 9: 

5  H:  6

8 />; :;IJ?D7J?ED J7N;I 9>EI;D JE C7N?C?P; D7J?ED7B M;B;H; . : ?I C;7IKH;: 8O 9EDIKC;H IKHFBKI 0I?D= J>; IEBKJ?ED ; M;BEI;D J7N;I  :  

/>; H;IKBJ?D= M;B; MEHB: FH?9; ; FHE:K9J 8; D   7 IIKC; J>; 9EKDJHO ?I IC7BB 7B9KB7J; J>; B;L;BI E< 9EDIKC;H IKHFBKI 7D: FHE:K9;H IKHFBKI M>;D J>;H; ?I DE J7H?\ 8  J7H?\ E<    ?I DEM ?DJHE:K9;: 7B9KB7J; J>; B;L;BI E< FHE:K9;H IKHFBKI 9EDIKC;H IKHFBKI 7D: =EL;HDC;DJ H;L;DK; .>EM J>7J J>; J7H?\ 97KI;I 7 :;7:M;?=>J BEII 9 )EM 7IIKC; J>7J J>; 9EKDJHO ?I B7H=; #EM ; MEHB: FH?9; ;D J>; J7H?\ ?I ?DJHE:K9;: JE B;7: JE 7 M;B J>; MEHB: FH?9; E< D   J>; GK7DJ?JO :;C7D:;: E 4  ?I   

 E 4  IE E 4   EDIKC;H IKHFBKI ?I =?L;D 8O , 

  

     

/>; GK7DJ?JO IKFFB?;: 8O J>; >EC; THCI E C  ?I    E C 

 IE E C   />; B;L;B E< FHE:K9;H IKHFBKI ?I           

), 

8 />; J7H?\ E<    ?D9H;7I;I >EC; FH?9; JE  #;D9; E 4   E C   ,



),



  

                

7D: J7H?\ H;L;DK; ?I +



   E4  EC

 

    

/EJ7B M;BEKJ J>; J7H?\ ?I  , ) ,       2?J> J>; J7H?\ JEJ7B M;B; :?\;H;D9; 8;JM;;D J>; M;B; :;7:M;?=>J BEII E< J>; J7H?\ 9 />; IEBKJ?ED 78EL; 97D 8; =;D;H7B?P;: JE MH?J; J>; IEBKJ?ED 7I 7 ; MEHB: FH?9; DG />; GK7DJ?JO :;C7D:;: ?I DG   

 E   IE E  

@%  

/>; GK7DJ?JO IKFFB?;: 8O >EC; THCI ?I DG    E ) 

M>?9> =?L;I E )  DG  />; B;L;B E< M;B; M;B7J M?J> DE J7H?\ M>;D J>; MEHB: FH?9; IEBL;I     DG    DG    DG     />?I E99KHI M>;D DG   IE J>; MEHB: FH?9; >7I JE ; :;7:M;?=>J BEII  7D J>?I M?BB 97KI; 7 M;B; J7H?\



!  

"  !! !%!

7J J>; ?DJHE:K9J?ED E< 7 XIC7BBY J7H?\ M?BB 7B M7OI 8;D;TJ 7 B7H=; 9EKDJHO 4%)/ ?\;H;DJ?7J; M;B H;IF;9J JE J>; J7H?\ 7D: ;L7BK7J; M?J> J>; J7H?\ ;GK7B JE P;HE 5 3098.32  ';J E    E )    7D: DG   8; J>; GK7DJ?JO :;C7D:;:

GK7DJ?JO IKFFB?;: 7D: MEHB: FH?9; 7I 7 ; J7H?\ 7D: D E 7D: D) E 8; J>; ?DL;HI; :;C7D: 7D: IKFFBO ; B;L;B E< 9EDIKC;H IKH FBKI 97D 8; MH?JJ;D ) , 

A  



D E 8E  E    DG     

FHE:K9;H IKHFBKI ) ,  E )   DG      7D: H;L;DK;

)

A   

D) E 8E

  +   E     E )   

/>; B;L;B E< M;B; IKC E< J>;I; ) 0 

A  





D E 8E 

)

A   

  D) E 8E  DG   E     E )   

?\;H;DJ?7J?D= M;B H;IF;9J JE  =?L;I   E     )  )   E )    D E     DG    D E    DG        DG   )  E    E         KJ D E     DG     D) E )    DG    IE 80 8





     DG   E   E )   80    E     E )    8    L7BK7J?D= 7J   7D: E8I;HL?D= E     E )    7D:

@%   

 =?L;I

  DG   80   E     E )     8  />?I :;CEDIJH7J;I J>7J J>; ?DJHE:K9J?ED E< 7 IC7BB J7H?\ 8O 7 B7H=; 9EKDJHO 7BM7OI ?D9H;7I;I J>7J 9EKDJHOWI M;BEEI; M>;J>;H JE BE97J; ?D 9EKDJHO  EH 9EKDJHO  $J M?BB ;7HD FHETJ M>;H;L;H ?J BE97J;I 8KJ M?BB ;7HD 7D 7::?J?ED7B BE97J?ED IF;9?T9 H;DJ ?D  />; BE97J?ED IF;9?T9H;DJ ?I KD9;HJ7?D $J 7IIKC;I J>; L7BK;  M?J> FHE878?B?JO D 7D: L7BK; " M?J> FHE878?B?JO   D M?J>   "  EKDJHO  ;7HDI ?D9EC; 2  ?< J>; THC 9>EEI;I JE BE97J; J>;H; 7D: B;L?;I 7 J7N -  M>?B; 9EKDJHO  ;7HDI ?D9EC; 2  7D: B;L?;I 7 J7N -   />; 9EKDJH?;I 9>EEI; J>;?H J7N H7J;I 7D: J>; THC 9>EEI;I ?JI BE97J?ED 8;; BE97J?EDIF;9?T9 H;DJ ?I H;7B?P;: 7 !EH =?L;D L7BK;I E< J>; J7N H7J;I :;J;HC?D; J>; F7OE\ E< J>; THC ?D J>; JME 9EKDJH?;I ; JME L7BK;I E< J>; BE97J?EDIF;9?T9 H;DJ 8 2>;D M?BB J>; THC 9>EEI; JE BE97J; ?D 9EKDJHO  L7BK;I E< J>; H;DJ 2>;D M?BB ?J 9>EEI; JE BE97J; ?D 9EKDJHO  9 ;J;HC?D; J>; J7N H7J; J>7J  M?BB I;J 7D: :;H?L; 7 9ED:?J?ED J>7J ;DIKH;I BE97J?ED ?D  M?BB E99KH 3098.32  7 $D 9EKDJHO  J>; F7OE\ ; THC ?I  -   $D 9EKDJHO    J>; F7OE\ ?I ;?J>;H  -  " EH . -  -  . 8 />; THC M?BB BE97J; ?D  ?< D  -  "   D  -   

 -  EH  -   -   *J>;HM?I; ?J M?BB BE97J; ?D  9  M?BB I;J 7 J7N H7J; E< -   2  I?D9; ?J M?BB F7O KF JE J>; ?D9EC; JE 7JJH79J J>; THC "?L;D J>?I 9EKDJHO  M?BB I;J J>; J7N H7J; -     2   />?I M?BB 8; 7D ;GK?B?8H?KC FHEL?:;: J>7J 2  -    EH 2    2   #;D9; J>; THC M?BB BE97J; ?D  ?<   2   2  

;H; 7H; JME H;=?EDI  7D:  J>7J 7H; BE97J;: ED 7 B?D; E< B;D=J>  79> H;=?ED 9EL;HI  E< J>; B?D; EDIKC;HI 7H; KD? H;=?EDI M?J> :;DI?JO 9EKDJHO 7J J>; 8;; J7N H7J; ?D H;=?ED  ?I H 7D: ?D H;=?ED  ?I H  M?J> H  H 7 IIKC; 9EDIKC;HI 97D JH7DIFEHJ J>; =EE: 7J 9EIJ 7 F;H KD?J E< :?IJ7D9; ;J;HC?D; J>; I;J E< 9EDIKC;HI J>7J M?BB 9HEII8EH:;H I>EF 7D: J>; JEJ7B JH7DI FEHJ 9EIJI ?D9KHH;: 8 )EM 7IIKC; ?DIJ;7: J>7J THCI JH7DIFEHJ J>; =EE: 7J 7 JH7DIFEHJ 9EIJ E< 7 M?J>    ;J;HC?D; J>; I;J E< 9EDIKC;HI M>E 7H; IKFFB?;: M?J> 7 =EE: J>7J 9HEII;I J>; 8EH:;H ECFKJ; J>; JEJ7B JH7DIFEHJ 9EIJ 7D: 9ECF7H; M?J> J>7J ?D 8 9 E J>; 9EKDJH?;I =;D;H7J; CEH; J7N H;L;DK; M?J> 9HEII8EH:;H I>EFF?D= EH M?J> THCI JH7DIFEHJ?D= 3098.32  7 ';J 8 :;DEJ; J>; :?IJ7D9; E< J>; 9EDIKC;H ?D H;=?ED  M>E ?I ?D:?\;H;DJ 8;JM;;D 8KO?D= 7J >EC; 7D: 9HEII8EH:;H I>EFF?D= />; L7BK; E< 8 IEBL;I D H 78  D H 



!  

"  !! !%!

 IE 8  D D 3   JEJ7B DKC8;H EF IE JEJ7B JH7DIFEHJ 9EIJI 7H; -  < H  H  

/H7DIFEHJ 9EIJI 7H; ?D9H;7I?D= ?D J>; J7N :?\;H;DJ?7B 8 $< THCI JH7DIFEHJ 7J 9EIJ 7 7D: 8KO 7J J7N?D9BKI?L; FH?9;I J>; ?D:?< ?9> ?I B7H=;H J>7D M?J> 9HEII8EH:;H I>EFF?D=  JEJ7B DKC8;H 7I; 7 FHE:K9J JH7DIFEHJ;: ; 9>;7F;H C;J>E: E< JH7DIFEHJ H7?I;I J>; DKC8;H E< 9EDIKC;HI M>E 7H; FKH 9>7I?D= 7D ?CFEHJ;: FHE:K9J />?I ;N79JBO E\I;JI J>; 9>;7F;H JH7DIFEHJ 9EIJ 9 EKDJHO  FH;7L; THCI JH7DIFEHJ ?J I;BBI CEH; IE H7?I;I =H;7J;H H;L;DK; $D 9EDJH7IJ 9EKDJHO  FH;EFF?D= />; >?=>;H JH7DI FEHJ 9EIJ ?DLEBL;: M?J> 9HEII8EH:;H I>EFF?D= >;BFI IKIJ7?D J>; J7N :?\;H;DJ?7B EL;H 7 B7H=;H J7N 87I;

7I J>; FHE:K9J?ED 97F79?JO JE FHE:K9;   L;>? 9B;I 7 O;7H ?D />7?B7D: (K9> E< J>?I FHE:K9J?ED ?I ;NFEHJ;: JE .?D=7FEH; J>;D H;;NFEHJ;: O 3098.32  />7?B7D: FHEL?:;I IJHED= ?D9;DJ?L;I 7?B7D: 8KJ JE ;7HD FHETJ ?D .?D=7FEH; />?I 97D 8; 79>?;L;: KI?D= 7 BEM JH7DI; L;>?9B;I 7?B7D: JE /EOEJ7 .?D=7FEH; />; .?D=7FEH; =EL;HDC;DJ M?BB DEJ E8@;9J JE J>?I I?D9; J>;O H;9;?L; 9EHFEH7J; J7N H;L;DK; />; />7? =EL;HDC;DJ :E;I DEJ E8@;9J 8;97KI; />7?B7D: 8;D;TJI ; ;CFBEOC;DJ E\;H;: 8O /EOEJ7

EFF?D= $DJ;HD7J?ED7B JH7:;: =EE:I 97D 8; J7N;: ;?J>;H ?D J>; 9EKDJHO M>;H; J>;O 7H; 9EDIKC;: :;IJ?D7J?ED FH?D9?FB;

EH M>;H; J>;O 7H; FHE:K9;: EH?=?D FH?D9?FB; $D EF;D ;9EDEC?;I IK9> 7I K HEF;7D 0D?ED M>;H; 8EH:;H 9EDJHEBI >7L; 8;;D 78EB?I>;: 9EDIKC;HI 97D I>EF 7HEKD: ; BEM;IJ FH?9; 0D:;H "// HKB;I ?DJ;HD7J?ED7B 9ECCE:?JO JH7:; ?I =;D;H7BBO J7N;: KD:;H J>; :;IJ?D7J?ED FH?D9?FB; 7 2>7J 7H; J>; J7N ?CFB?97J?EDI ; =EE:I J>7J 7H; ;NFEHJ;: 7D: ; =EE:I J>7J 7H; ?CFEHJ;:

 8 EDI?:;H JME 9EKDJH?;I 7    7D: JME =EE:I =    M?J> 9ECCE:?J?;I J7N H7J;I H39 J>7J 97D 8; :?\;H;DJ?7J;: 79HEII =EE:I 7D: 9EKDJH?;I .>EM J>7J 9EDIKC;H 7H8?JH7=; KD:;H J>; :;IJ?D7J?ED FH?D9?FB; M?BB 7BM7OI =K7H7DJ;; ?DJ;H D7J?ED7B FHE:K9J?ED ;[9?;D9O ;L;D ?D J>; FH;I;D9; E< :?\;H;DJ?7J;: 9ECCE:?JO  J7N7J?ED H3  H3 7D: ?DJ;HD7J?ED7B :?\;H;D9;I ?D J7N H7J;I H 9  H9 3098.32  7 0D:;H J>; :;IJ?D7J?ED FH?D9?FB; ;NFEHJI 7H; J7N DE J7N />; =EE: ?I J7N;: 7; 9EKDJHO E< TD7B 9EDIKCFJ?ED 8 ;DEJ; J>; FHE:K9;H FH?9; E< =EE: = ?D 9EKDJHO 7 8O D39 />; FH?9;I 7 9EKDJHO ?D J>; :;IJ?D7J?ED H;=?C; 7H; 7I I>EMD "EE:  "EE: 

EKDJHO    D

 H   D   H

EKDJHO    D

 H   D   H

)EM 9EDI?:;H 7 9EDIKC;H ?D   9EKDJHO  />;O >7L; J>; EFJ?ED  E< 8KO?D= ?D    9EKDJHO  7J FH?9; D  H  EH 8KO?D= ?D  7J D  H H;9B7?C?D= J>;





J7N 7J J>; 8EH:;H 7D: F7O?D= J7N KFED ?CFEHJ7J?ED JE 9EKDJHO  />?I =?L;I 7            H D H  D  H  D  H  $< JH7DIFEHJ ?I 9EIJB;II D;J FH?9; E< D









IE J>7J J>; 9EDIKC;H 97D 7H8?JH7=; 8;JM;;D 9EKDJH?;I J>;D 8KO?D= ?D  7D: JH7DIFEHJ?D= 879A JE  I>EKB: DEJ 8; 8;D;T9?7B />?I H;GK?H;I J>7J        D

 H  D  H   EH D

 D  />; FHE:K9;H FH?9; CKIJ 8; J>; I7C; ?D 8EJ> 9EKDJH?;I M>?9> :;CEDIJH7J;I ?DJ;HD7J?ED7B FHE:K9J?ED ;[9?;D9O />; I7C; 7H=KC;DJ 97D 8; 7FFB?;: JE 9EDIKC;HI ?D 8EJ> 9EKDJH?;I 7D: JE 8EJ> =EE:I

; FH;L?EKI ;N;H9?I; 7D: IKFFEI; J>7J ;79> 9EKDJHO B;L?;I 7 KD? =EE:I H3  H3 7 $D J>?I 97I; I>EM J>7J D;?J>;H FHE:K9J?ED DEH 9EDIKCFJ?ED :;9?I?EDI 7H; :?IJEHJ;: ?DJ;HD7J?ED7BBO 8 .KFFEI; J>7J J7N H7J;I 7H; :?\;H;DJ?7J;: 79HEII =EE:I M?J>?D ;79> 9EKDJHO !EH ?DIJ7D9; ED; =EE: ; = =EE:  ?I KDJ7N;: 8O J>; JME 9EKDJH?;I .>EM J>7J ?D J>?I 97I; 9EDIKCFJ?ED :;9?I?EDI 7H; :?IJEHJ;: 8O 9ECCE:?JO J7N :?\;H;D9;I 3098.32  7 ;DEJ; H3  H3 8O H3  0D:;H J>?I 7IIKCFJ?ED ED J7N H7J;I J>; FH?9;I 8;9EC; "EE:  "EE: 

EKDJHO    D  H

   D   H

EKDJHO    D  H

   D   H

/>; 7H8?JH7=; 7H=KC;DJ 7FFB?;: ?D J>; FH;L?EKI ;N;H9?I; 97D 8; KI;: 7=7?D  JE 9B7?C D 9  D9  D9  =    />; FH?9; E< =EE:  H;B7J?L; JE =EE:  ;H $J C7O J>;D 8; :?[9KBJ JE C;7IKH; J>; 7CEKDJ E< J>; =EE: JH7:;:  TD7B FHE8B;C ?I J>7J ?J C7O DEJ 8; FEII?8B; JE :;TD; 7 FH?9; ; =EE: J>7J ?I IKFFB?;: />?I 97D 7H?I; M>;D JME EH CEH; I;HL?9;I D;;: JE 8; IKFFB?;: @E?DJBO JE 8; L7BK78B;

7J 7H; J>; E8@;9J?L;I E< :EK8B; J7N7J?ED 7=H;;C;DJI 3098.32  />; ?DJ;H79J?ED E< JME J7N IOIJ;CI ;79> 8;BED=?D= JE 7 :?< ; ?D9EC; =;D;H7J;: M?J>?D ?JI J;HH?JEHO ED J>; 87I?I E< ED; EH CEH; 9EDD;9J?D= 7I BE97J?ED E< J>; IEKH9; H;I?:;D9; E< J7N78B; ;DJ?JO C7?DJ;D7D9; E< F;HC7D;DJ ;IJ78B?I>C;DJ 7D: IE ED EK8B; J7N7J?ED E< J>; I7C; ?D9EC; ?D J>; >7D:I E< I7C; ;DJ?JO MEKB: =?L; H?I; JE >7HI> 9EDI;GK;D9;I 7D: ?CF7?H ;9EDEC?9 :;L;BEFC;DJ EK8B; /7N7J?ED =H;;C;DJI 8;JM;;D JME 9EKDJH?;I J>;H;; ?D9?:;D9; E< :EK8B; J7N7J?ED />; E8@;9J?L; E< 7 :EK8B; J7N7J?ED 7LE?:7D9; 7=H;;C;DJ ?I JE FHEL?:; ; J7N 9B7?CI E< JME =EL;HDC;DJI 8EJ> B;=?J?C7J;BO ?DJ;H;IJ;: ?D J7N?D= 7 F7HJ?9KB7H IEKH9; E< ?D9EC; ;?J>;H 8O 7II?=D?D= JE ED; E< J>; JME J>; M>EB; 9B7?C EH ;BI; 8O FH;I9H?8?D= J>; 87I?I ED M>?9> J7N 9B7?CI ?I JE 8; I>7H;: 8;JM;;D J>;C

7J C;J>E:I 7H; KI;: JE ;B?C?D7J; :EK8B; J7N7J?ED 3098.32  *D; IEBKJ?ED ; 9EKDJHO ?D M>?9> J>; ?D9EC; ?I =;D;H7J?ED BJ;HD7J?L;BO 7 J7N IF7H?D= 7=H;;C;DJ 7BBEMI J>; 9EKDJHO ?D M>?9> J>; =7?D 7H?I;I JE :;:K9J J7N7J?ED 7J IEKH9; 7D: JE =H7DJ J>; 9ECF7DO EH ?D:?L?:K7B 7 J7N 9H;:?J JE H;U;9J J>; 7J J7N >7I 7BH;7:O 8;;D F7?: />; J7N 9H;:?J H;:K9;I J7N B?78?B?JO ?D J>; 9EKDJHO E< H;I?:;D9;

?I ;N;H9?I; I;;AI JE ?BBKIJH7J; J>; EFJ?C7B 97F?J7B ?D9EC; J7N FHE8B;C 7D EF;D 97F?J7B C7HA;J 7D: JME JOF;I E< 97F ?J7B ED; E< M>?9> ?I FH?L7J; CE8?B; 7D: X:?H;9JBO FHE:K9J?L;Y ? ; =;D;H7J;I FHETJI M>?B; J>; EJ>;H ?I FK8B?9 ?CCE8?B; 7D: X?D:?H;9JBO FHE:K9J?L;Y ? ;

?D; FHE8B;C ?I >EM JE I;J 7 B;L;B E< J7N IE 7I JE ;D9;

    L

    L  F L &  L     F

& &  F   L      

       

&      /E TD: >EM I7L?D= ?I 7\;9J;: 8O 9>7D=;I ?D F 7D:  M; 9ECFKJ; F7HJ?7B :;H?L 7J?L;I G   F G &        G

D ?D9H;7I; ?D J>; ?DJ;H;IJ H7J; >7I ?D9EC; ;\;9J 7D: IK8IJ?JKJ?ED ;\;9J ED I7L?D= />; ?D9EC; ;\;9J ?I FEI?J?L; 7 >?=>;H H;JKHD ED I7L?D=I ?D:K9;I J>; 9EDIKC;H JE I7L; CEH; />; IK8IJ?JKJ?ED ;\;9J ?I D;=7J?L; ; H;JKHD 7D: >;D9; ?=>;H IE J>; 9EDIKC;H ?I ?D:K9;: JE IK8IJ?JKJ; 9KHH;DJ 9EDIKCFJ?ED C?9 KJ?B?JO ; C7=D?JK:;I E< J>; JME ;\;9JI 7H; ;GK7B IE J>; JEJ7B 9>7D=; ?D I7L?D= ?I P;HE D ?D9H;7I; ?D  C;7DI >?=>;H M;?=>J FKJ ED J>; ?I ?D:K9;I J>; 9EDIKC;H JE I7L; CEH;

7J ?J 97D ;7HD 7J CEIJ P;HE FHETJ 0I; J>?I FHE:K9J?ED ; EKJFKJ B78EH H7J?E 7I 7 ; 97F?J7BB78EH H7J?E ?I9KII J>; FHEF;HJ?;I E< J>; ; FH?9; E< 97F?J7B ?I F 7D: J>; EKJFKJ ?I J>; DKC]H7?H; J>;D 7 THCWI FHETJ ?I

 $  %   K%  F$

 

IIKC?D= J>7J J>; THC 9>EEI;I ?DFKJI JE C7N?C?P; ?JI FHETJ J>; THIJEH:;H D;9;II7HO 9ED:?J?EDI ; EFJ?C?P7J?ED FHE8B;C 7H;  $  %



$  %   F  

 



   $  %   K  

 

 />;I; ?CFBO F



$  %   

2  $

 

2    % ;97KI; J>; E8@;9J?L; ; IEBKJ?ED JE J>; EFJ?C?P7J?ED FHE8B;C ?I 7 =BE87B C7N?CKC />; C7N?C7B L7BK; E< J>; THCWI FHETJ ?I K



   $  %    

 $  %      />; EKJFKJB78EH H7J?E ?I

2 2 %   $  2  2   % $

  $ 2   ?   : ? % %

 

 

M>;H; ? ?I J>; 97F?J7BB78EH H7J?E />; J J>; FKH9>7I; E< 97F?J7B ?DIJ;7: E< J>; H;DJ7B E< 97F?J7B 7\;9J 7 THCWI FHETJC7N?C?P7J?ED :;9?I?ED 3098.32  />; H;DJ7B E< 97F?J7B 7BBEMI J>; THC JE 7:@KIJ J>; 97F?J7B 9EIJ B;IIBO 7J J>; IJ7HJ E< ;79> F;H?E: />?I ;DIKH;I J>7J J>;H; 7H; DE ?DJ;HJ;CFEH7B B?DA7=;I 7I MEKB: E99KH ?< J>;H; M;H; 7:@KIJC;DJ 9EIJI />; ?CFB?97J?ED ?I J>7J J>; THC IEBL;I 7 I;GK;D9; E< IJ7J?9 EFJ?C?P7J?ED FHE8B;CI I?D9; ?J EDBO >7I JE 9>EEI; ?DFKJI EFJ?C7BBO ;D 7 THC FKH9>7I;I 97F?J7B ?J 7I JE J7A; ?DJE 799EKDJ J>; L7BK; E< J>; 97F?J7B ?D J>; ;H; 7H; 7:@KIJC;DJ 9EIJI EH ?CF;H; C7HA;J ; EMD;HI>?F E< 97F?J7B M?BB 7\;9J J>; THCWI FHETJC7N?C?P?D= :;9?I?ED H;B7J?L; JE J>; H;DJ7B E< 97F?J7B

; FHE:K9J?ED J;9>DEBE=O E< 7D ;9EDECO ?I =?L;D 8O MD  ?D  M?J>     7 1;H?7J J>; ;GK?B?8H?KC M7=; H7J; CKIJ 8; KD     ?D 7D: J>; ?DJ;H;IJ H7J; FD  ?D 8 .>EM J>7J 97F?J7B C7HA;J ;GK?B?8H?KC ?D 7 IJ;7:O IJ7J; H;GK?H;I L     ?    B ?   9 #;D9; KI; J>; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ JE I>EM L   B ?  ?  : 0I; J>;I; H;B7J?EDI>?FI JE 97B9KB7J; J>; 9EDIKCFJ?ED FEII?8?B?JO J>?I ; "EB:;D -KB; 97F?J7BB78EH H7J?E



!  !! &

3098.32  7 />; FHE:K9J?ED J;9>DEBE=O MD  ?D 9EHH;IFED:I JE 2D  !HEC ;N;H9?I;   J>; ;GK?B?8H?KC M7=; H7J; ?I $D %  D  $D KD     $D % 

       ?D   D %D 7D: J>; ;GK?B?8H?KC ?DJ;H;IJ H7J; ?I FD  $  %   



$D %D



 ?D 

 

8 $D ;GK?B?8H?KC F;H 97F?J7 I7L?D= GD  KD  LDD 

 

?I ;GK7B JE J>; IJE9A E< 97F?J7B ?D J>; D;NJ F;H?E: 7IIKC?D= 9ECFB;J; :;FH;9?7 J?ED      $D  GD %D  KD  LDD %D  ?L?:?D= 8EJ> I?:;I E< J>?I ;GK7J?ED 8O %D 7D: 7IIKC?D= J>7J J>; FEFKB7J?ED ?I =HEM?D= 7J 7 9EDIJ7DJ H7J; B M; E8J7?D KD  LDD 

$D

$D %D

  ?D  B  %D %D %D

$D J>; IJ;7:O IJ7J; 7D: >;D9;

 

K  L  ?  B 

 

L  K  ?  B     ?   ?  B 

 

9 />; 9EDIKC;HWI 8K:=;J 9EDIJH7?DJ ?I L

L  K  F

 

/>?I ?CFB?;I   L  K  L   F  ?  B  F  ?  B  ?  

 

: /E 97B9KB7J; J>; 9EDIKCFJ?ED FEII?8?B?JO ?I IOIJ;C E< ;GK7J?EDI 97D 8; H;MH?JJ;D 7I L L   B L    L

 

 B ?    B  B ?

   



x2

x1 !?=KH;   EDIKCFJ?ED FEII?8?B?JO KI

EH



L L  B



  B L    L 

 B  B

 

 



L L

 B  

   B L    L  B

 





+BEJJ?D= J>?I ; ; JME F;H?E:I E< B?EM J>7J J>; KJ?B?JOC7N?C?P?D= 9>E?9;I I7J?I?I H;IKBJ JE 97B9KB7J; J>; 97F?J7B B78EH H7J?E ?D J>; IJ;7:OIJ7J; ;GK?B?8H?KC =?L;D J>; 9EDIKCFJ?ED FEII?8?B?JO ; ;\;9J ED J>; 97F?J7BB78EH H7J?E E< 7D ?D9H;7I; ?D B 7D:  NFB7?D 3098.32   9EDIKC;H IEBL;I $) L L 

 

L G  K L   F G

 

H H 

IK8@;9J JE J>; 8K:=;J 9EDIJH7?DJI



!  !! &

/>; '7=H7D=?7D ; FHE8B;C ?I

L   L L K  L   F



 

!HEC J>; THIJEH:;H D;9;II7HO 9ED:?J?EDI

 L

 L  



L   



L 



M; E8J7?D

 

   F L K  L     F

   

L   F L

 

2?J> L L 7D: F ; FH;L?EKI ;N;H9?I; M; E8J7?D   ?  B  ? 

  ?  

   ?   ?  B

 

?L?:?D= 8EJ> J>; DKC;H7JEH 7D: J>; :;DEC?D7JEH ?D J>; B;7D: I?:; 8O ? 

M; E8J7?D   ?   B  ? 

  ?         ?   B />?I 97D 8; H;MH?JJ;D 7I      ?   B  ?    ?      ?   B  EH

  B ?      ?         B 

   

(KBJ?FBO?D= 8EJ> I?:;I E< J>?I ;GK7J?ED 8O ?  7D: :;DEJ?D= ?  8O N M; E8J7?D 7 GK7:H7J?9 ;GK7J?ED ?I ;GK7J?ED >7I JME IEBKJ?EDI N   7D: N       B #;D9; J>; 97F?J7BB78EH H7J?E ?I

      ?   B B;7HBO ? ?I 7 :;9H;7I?D= EMD 8O BE=7H?J>C?9 :?\;H ;DJ?7J?ED

  #&!    #&! ?     B IE

   ?           #&!   B ? 

      #;D9; ?D 7D ;9EDECO M?J> 7 >?=>;H H7J; E< =HEMJ> E<   B FEFKB7J?ED 7D: EH CEH; 97F?J7B?DJ;DI?L; FHE:K9J?ED CEH; B78EH ?I IK8IJ?JKJ;: ; BED=HKD ;GK?B?8H?KC I?D9;

; ?DJ;HJ;CFEH7B 8K:=;J 9EDIJH7?DJ =?L;I THIJEH:;H 9ED:?J?EDI LD

     D 7D: #;D9;

LDD 

    FD

LD

D   FD  LDD

 

 

 />; I;9ED:F;H?E: 8K:=;J 9EDIJH7?DJ ?I

IE EH

  FD  GD  LD

D

 

 FD  GD   FD  LDD

 

GD  LDD 

 

/>; THIJF;H?E: 8K:=;J 9EDIJH7?DJ ?I

IE J>7J

KD  LDD GD 

 

KD  

 

LDD  GD 

7F?J7B 7D: I7L?D=I 7H; H;B7J;: 8O ?D  KJ

 KD GD    B  B 

 

KD  : ?D   ?D : ?D   ?D  ?D ?D     ?D 

/>;H;; :OD7C?9I E< J>; 97F?J7B IJE9A 7H; =?L;D ?D J78B;   !EH B    J>; IJ;7:OIJ7J; B;L;B E< J>; 97F?J7BB78EH H7J?E ?I H;79>;: 7J H   />; ?D9H;7I; ?D B JE   H;:K9;I J>; IJ;7:OIJ7J; 97F?J7BB78EH H7J?E />; IJ;7:OIJ7J; L7BK; E< ? ?I :;J;HC?D;: 8O

    ?   B ? 

 

M>?9> 97D 8; IEBL;: JE =?L; ?

     B

  

 

!EH J>; =?L;D L7BK;I E< J>; F7H7C;J;HI ?    7D: M; I;; J>7J ?J ?I 79>?;L;: ?D 78EKJ  F;H?E:I D ?D9H;7I; ?D B H;IKBJI ?D 7 :;9H;7I; ?D ? ?   B 



     B

 

 

 



!  !! &

H

                   

B    ?D

 

 

 

 

  

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

B    H ?D

  

  

  

  

  

   

  

  

  

                                             

/78B;   OD7C?9I E< J>; 97F?J7B IJE9A



16 14 12 10

Interest rate

8 6 4 2

Population growth

0 50-55 55-60 60-65 65-70 70-75 75-80 80-85 85-90 90-95 95-00 00-05

!?=KH;   0. $DJ;H;IJ H7J; 7D: FEFKB7J?ED =HEMJ>

 7D: J>; H;7B ?DJ;H;IJ H7J; E;I J>; :7J7 ?D:?97J; :OD7C?9 ;[9?;D9O EH ?D;[9?;D9O 3098.32  !?=KH;   9ECFKJ;I TL; O;7HBO 7L;H7=;I E< J>; FEFKB7J?ED =HEMJ> H7J; 7D: J>; 87DA FH?C; BE7D H7J; ; 0D?J;: .J7J;I />; FH?C; BE7D H7J; ?I KI;: I?D9; J>?I =?L;I 7 H;7B?IJ?9 ?CFH;II?ED E< J>; H;JKHD J>7D 97F ?J7B CKIJ ;7HD JE 8; FHETJ78B; />; IEKH9;I ; :7J7 7H; J>; 0D?J;: )7 J?EDI ; FEFKB7J?ED :7J7 >JJF

;I7 KD EH= KDFF ?D:;N 7IFF7D;B 7D: 9EDEC7=?9 9EC ; ?DJ;H;IJ H7J; :7J7 >JJF

MMM ;9EDEC7=?9 9EC ;C 9=? :7J7 ;N; ; :7J7 :;CEDIJH7J; J>7J J>; ?DJ;H;IJ H7J; >7I H;C7?D;: 78EL; J>; FEFKB7J?ED =HEMJ> H7J; $D J;HCI E< J>; CE:;B J>?I ?I ?DJ;H FH;J;: 7I KD:;H97F?J7B?P7J?ED IE J>; 0. ;9EDECO ?I :OD7C?97BBO ;[9?;DJ @K:=;: ED J>?I C;7IKH;

?9> J>;H; ?I ED; 9EDIKC;H 8EHD 7J J>; IJ7HJ E< ;79> J?C; F;H?E: 79> 9EDIKC;H B?L;I ; 9EDIKCFJ?ED =EE: M>;D OEKD= J J>; IJ7HJ E< J>; ;9EDECO J>;H; ?I 7 9EDIKC;H M>E ?I 7BH;7:O EB: />?I 9EDIKC;H EMDI ED; KD?J E< CED;O 8KJ >7I DE ;D:EMC;DJ E< J>; 9EDIKCFJ?ED =EE: (ED;O >7I DE ?DJH?DI?9 L7BK; 7 7D CED;O 8; L7BK78B; ?D 7 TD?J; ;9EDECO ED; J>7J >7I 7 ADEMD ;D: FE?DJ  8 7D CED;O 8; L7BK78B; ?D 7D ?DTD?J; ;9EDECO



!  !! &

9 7D CED;O 7BBEM ;[9?;D9O JE 8; 7JJ7?D;: 3098.32  7 )E />; OEKD= 7=;DJ 8EHD ?D J>; B7IJ F;H?E: 97DDEJ 8KO 7DOJ>?D= M?J> J>?I CED;O 7D: J>;H;7D=; ?I ;D:EMC;DJ ; EB: 7=;DJ 7B?L; ?D J>; B7IJ F;H?E: />; B7JJ;H

ADEM?D= J>7J J>; CED;O M?BB 8; E< DE KI; M>;D >; ?I EB: M?BB DEJ 799;FJ ?J ?D J>; FH;L?EKI F;H?E: M>;D >; ?I OEKD= 2EHA?D= 879AM7H: JE J>; 8;=?DD?D= E< J?C; M; 97D I;; J>7J J>; THIJ EB: 7=;DJ M?BB DEJ 8; 78B; JE ;N9>7D=; >?I ED; KD?J E< CED;O ; 9EDIKCFJ?ED =EE: 7D: J>KI CED;O ?D 7 TD?J; ;9EDECO 97DDEJ 8; L7BK78B; 8 $D 7D ?DTD?J; ;9EDECO CED;O 97D 8; L7BK78B; ?< 7J ;L;HO FE?DJ H ?D J?C; J>; OEKD= 7=;DJ >7L; H7J?ED7B ;NF;9J7J?EDI J>7J J>; CED;O H;9;?L;: ; EB: 7=;DJ ?D ;N9>7D=; ; 9EDIKCFJ?ED =EE: M?BB >7L; J>; I7C; L7BK; 7J J?C; H  9 (ED;O 7BBEMI J>; 7JJ7?DC;DJ E< ;[9?;D9O ?D 7D ?DTD?J; ;9EDECO ?< ?J ?I 879A;: 8O J>; ;NF;9J7J?ED J>7J CED;O M?BB >7L; L7BK; ?D J>; ;BC J>; M;B;HI J>7J ?CC?=H7J?ED M?BB 7L;HJ 7 F;DI?EDI 9H?I?I 2>?9> L?;M :E OEK IKFFEHJ 7D: M>O 3098.32  />; 7H=KC;DJ J>7J ?CC?=H7J?ED M?BB EL;HM>;BC J>; M;B; 7IIKCFJ?ED J>7J ?CC?=H7DJI M?BB 9EDIJ?JKJ; 7 D;J 8KH :;D ; M;B?I JE 8; J>; 97I; H;GK?H;I J>;C JE 8; B;II ;CFBEO78B; B;II >;7BJ>O 7D: EB:;H J>7D J>; 7L;H7=; H;I?:;DJ />;H; ?I DEJ> ?D= ?D J>; ;L?:;D9; JE IK==;IJ J>7J J>?I ?I J>; 97I; I?D9; C?=H7J?ED ?I KIK7BBO :H?L;D 8O J>; :;I?H; JE I;;A ?CFHEL;C;DJ ?D F;HIED7B 9?H9KCIJ7D9; J>HEK=> J>; 7JJ7?DC;DJ E< 8;JJ;H ;CFBEOC;DJ />; EDBO ;B;C;DJ J>7J ?I ?D:?IFKJ78BO JHK; ?I J>7J 7:KBJ ?CC?=H7DJI M?BB ED 7L;H7=; >7L; 7 I>EHJ;H MEHA?D= B?;7: E< J>;C J>7D J>; JOF?97B H;I?:;DJ ;DJ;H?D= J>; MEHA?I 97HH?;I ?CFB?97J?EDI ;?H B?; F;DI?ED IOIJ;C 8KJ CKIJ 8; I;J 7=7?DIJ J>; HKB;I ; F;DI?EDI 9H?I?I ?I :H?L;D 8O J>; ?D9H;7I; ?D J>; :;F;D:;D9O H7J?E $< ?CC?=H7DJI 7H; FH;:EC?D7DJBO E< MEHA ?D= 7=; J>?I M?BB H;:K9; J>; :;F;D:;D9O H7J?E 8O ?D9H;7I?D= J>; FHEFEHJ?ED E< MEHA;HI H;B7J?L; JE H;J?H;: 7D: >;BF ;7I; J>; 9H?I?I ; 7DDK7B ?DJ;H;IJ H7J; 2?J> 7DDK7BBO 9ECFEKD:;: ?DJ;H;IJ 799KCKB7J?ED 7D: I7L?D= 7 9EDIJ7DJ ; ;D: E< J>; THIJ O;7H OEK M?BB >7L; ?D OEKH I7L?D=I 799EKDJ G2  F 7J J>; ;D: E< J>; I;9ED: O;7H G2  F  G2  F ;J9 J J>; ;D: E< J>; J> O;7H J>; 7CEKDJ M?BB 8; G2

(

D

 F  G2

D



. G2  F   F



 F   F 

 F   F

 

;DEJ; J>?I 7CEKDJ 8O 3 #7L?D= IF;DJ / ?D J>; THIJ O;7H E< H;J?H;C;DJ 7J J>; ;D: E< J>7J O;7H OEK M?BB >7L; 3  2   F B;; ;D: E< J>; I;9ED: O;7H E< H;J?H;C;DJ J>; 7CEKDJ B;; ;D: E< J>; J> O;7H E< H;J?H;C;DJ J>; 7CEKDJ B;?I ;GK7B JE P;HE M; >7L;





2  F   F 2  F   F 2

  F    F   F 0I?D= J>; ;NFH;II?ED  F;H9;DJ ?DJ;H;IJ H7J; OEK MEKB: D;;: JE I7L; 78EKJ   F;H9;DJ E< OEKH ?D9EC; />; H;GK?H;: I7L?D= H7J; 7I 7 ; ?DJ;H;IJ H7J; ?I FBEJJ;: ?D T=KH;  



s

r !?=KH;   .7L?D= H7J;

7J 7BB 9EDIKC;HI >7L; FH;; 8K:=;J 9EDIJH7?DJ ?I LDD  B# #   KD    B#  :;J;HC?D; D J>; H;B7J?EDI>?F 8;JM;;D J>; B;L;B E< I7L?D= 7D: J>; F7H7C;J;HI  7D:  E< J>; IE9?7B I;9KH?JO FHE=H7C IIKC?D= J>7J MD  ?D TD: J>; IJ;7:OIJ7J; B;L;B E< J>; 97F?J7BB78EH H7J?E .EBL; ; IE9?7B I;9KH?JO FHE=H7CI J>7J B;7: JE J>; "EB:;D -KB; .>EM J>7J DED; E< J>;I; FHE=H7CI ?I ; ; F7O7IOEK=E IOIJ;C J>7J 79>?;L;I J>; "EB:;D -KB; 3098.32  />; THIJF;H?E: 8K:=;J 9EDIJH7?DJ ?I LDD GD  KD   

 

7D: J>; I;9ED:F;H?E: 8K:=;J 9EDIJH7?DJ LD

  FD  GD  D

 

/E ;NFH;II J>; 9EDIKC;HWI :;9?I?ED FHE8B;C ?D J;HCI E< I7L?D= J>; THIJ E< J>;I; 97D 8; KI;: 7I 7 9EDIJH7?DJ ED J>; EFJ?C?P7J?ED 7D: J>; I;9ED: KI;: JE IK8IJ?JKJ; ; KJ?B?JO ?I =?L;I J>; EFJ?C?P7J?ED $) .  LDD

 FD  GD  I J KD  LDD GD  

H## C# 

 

/>; D;9;II7HO 9ED:?J?EDI 7H;

 FD  GD    

 



! 

7D:

 "!&

LDD  FD    

/>;I; ?CFBO LDD  GD

   FD

0I?D= J>; THIJF;H?E: 8K:=;J 9EDIJH7?DJ JE IK8IJ?JKJ; ; IE9?7B I;9KH?JO J7N  H;:K9;I I7L?D= 7I :E;I 7D ?D9H;7I; ?D J>; F;DI?ED  $D J>; IJ;7:O IJ7J; J>; 97F?J7B C7HA;J ;GK?B?8H?KC 9ED:?J?ED ?I G   B ?  ? C  

 

C

M>;H; ? ?I 97F?J7B >;B: 8O J>; IE9?7B I;9KH?JO FHE=H7C 0I?D= J>; IEBKJ?ED ; IJ;7:O IJ7J; 8;9EC;I

  K    B ?  ? C       F !HEC J>; FHE:K9J?ED E?9; 8O J>; H;FH;I;DJ7J?L; THC M; >7L; F  ?  7D: K     ?  #;D9; J>; 97F?J7B C7HA;J ;GK?B?8H?KC 9ED:?J?ED 97D 8; MH?JJ;D

  

   ?      B ?  ? C       ? 

/>?I 9ED:?J?ED :;J;HC?D;I ? 7I 7 ; F7H7C;J;HI E< J>; IE9?7B I;9KH?JO FHE=H7C

     />; 8K:=;J ?:;DJ?JO J J>; "EB:;D -KB; F  ?  B IE ?  B E< J>; IE9?7B I;9KH?JO FHE=H7C ?I    F  B ?C   B

 

(7A?D= IK8IJ?JKJ?EDI ; 97F?J7B C7HA;J ;GK?B?8H?KC 9ED:?J?ED 97D 8; IEBL;: JE MH?J; 

  

         B ? C

      B     B B />?I ?:;DJ?JO 9>7H79J;H?P;I J>; IE9?7B I;9KH?JO FHE=H7CI J>7J 79>?;L; J>; "EB:;D -KB;  )ED; E< J>;I; FHE=H7CI 97D 8; ;O M?BB 97D9;B ; 9EDIKC;HI 8K:=;J 9EDIJH7?DJ />; F7O7IOEK=E IOIJ;C J>7J 79>?;L;I J>; "EB:;D -KB; >7I ? C  IE 

  

     

         B   B B



; ;9EDECO :;I9H?8;: ?D ;N;H9?I;   H;B7J; J>; IJHK9JKH; E< IE9?7B I;9KH?JO FHE=H7CI 79>?;L?D= J>; "EB:;D -KB; JE :OD7C?9 ;[9?;D9O 7D: ?D;[9?;D9O 3098.32   F7O7IOEK=E IOIJ;C B;7:I JE 7D ?DJ;H=;D;H7J?ED7B JH7DI;?H 9EDIKCFJ?ED FB7DI 7D: I7L?D=I :;9?I?EDI #;D9; ?J 97D 8; :;I?=D;: IE 7I JE H;CEL; :OD7C?9 ?D;[9?;D9O 7D: 79>?;L; J>; "EB:;D -KB; 7BBE97J?ED 2?J> J>; F7O7IOEK=E IOIJ;C J>; IE9?7B I;9KH?JO J7N   ?I FEI?J?L; ?< 

  

     

          B  B B M>?9> I?CFB?T;I JE

    B $D J>; 78I;D9; E< IE9?7B I;9KH?JO J>; IJ;7:OIJ7J; 97F?J7B C7HA;J ;GK?B?8H?KC 9ED:?J?ED ?I 

   ?    B ?    IE J>; 97F?J7BZB78EH H7J?E ?I       B

?

   B

  

 

/>?I ?CFB?;I 7D ?DJ;H;IJ H7J; F

  B  

 

/>; ;9EDECO ?I :OD7C?97BBO ?D;[9?;DJ M>;D F  B EH       B

  B

 

#;D9; J>; IE9?7B I;9KH?JO J7N ?I IJH?9JBO FEI?J?L; M>;D J>; ;9EDECO ?I :OD7C?97BBO ?D;[9?;DJ 7D: D;=7J?L; M>;D ?J ?I :OD7C?97BBO ;[9?;DJ

7J J>; F;DI?ED ; BE=?9 8;>?D: J>?I FEB?9O 3098.32  />; ;CF?H?97B ;L?:;D9; FE?DJI JE J>;H; 8;?D= ?DIK[9?;DJ FH? L7J; I7L?D= JE IKFFEHJ H;J?H;C;DJ />; FEB?9O E< J7N :;:K9J78?B?JO ?I :;I?=D;: JE ;D9EKH7=; F;DI?ED 9EDJH?8KJ?EDI 7D: J>KI H7?I; J>; B;L;B E< FH?L7J; I7L?D=



! 

 "!&

2>;D 7 F;DI?ED ; I7L;H FKH9>7I;I 7 TD7D9?7B I;9KH?JO J>7J E\;HI 7 TN;: 7DDK7B EH CEDJ>BO F7OC;DJ KDJ?B J>; FE?DJ E< :;7J> DDK?J? P7J?ED =K7H7DJ;;I 7 F;DI?ED ; EKJ 7DDK?J?P7J?ED J>; =EL;HDC;DJ HKDI J>; H?IA J>7J J>; F;DI?ED J>; F;DI?ED;H J>;D JKHD?D= JE J>; IJ7J; ; =EL;HDC;DJ MEKB: TD: ?J >7H: DEJ JE FHEL?:; 7J B;7IJ IEC; C?D?CKC B;L;B E< 7II?IJ7D9;

; 0& =EL;HDC;DJ ?I H;:K9?D= J>; H;7B L7BK; E< J>; =K7H7DJ;;: IJ7J; F;DI?ED IIKC?D= J>7J CK9> E< J>; FEFKB7 J?ED ?I KD7M7H; E< J>?I ?I J>; FEB?9O 9H;:?8B; 3098.32  />; ; FEFKB7J?ED J>7J ?I KD7M7H; E< J>; ?=> ;?H 9KHH;DJ 9EDIKCFJ?ED B;L;B M?BB 8; JEE >?=> 7D: J>;O M?BB DEJ >7L; IK[9?;DJ B? JE TD7D9; J>;?H ;NF;9J;: 9EDIKCFJ?ED FB7D ?D H;J?H;C;DJ />?I C;7DI J>7J ;?J>;H J>;?H IJ7D:7H: E< B?L?D= ?D H;J?H;C;DJ M?BB 8; 8;BEM M>7J M7I FB7DD;: EH J>7J 8;GK;IJI M?BB >7L; JE 8; H;:K9;: $< DE 8;GK;IJ M7I FB7DD;: J>;D J>; ;DJ?H; I>EHJ7L; JE 8; C;J 8O 7 H;:K9J?ED ?D 9EDIKCFJ?ED />?I FHE9;II C7O FB79; IEC; F;EFB; 8;BEM J>; FEL;HJO J>H;I>EB: />; =EL;HDC;DJ M?BB J>;D TD: ?J :?[9KBJ DEJ JE IKFFB;C;DJ J>;?H ?D9EC;I M?J> J>; H;IKBJ J>7J J>; H;:K9J?ED ?D =EL;HDC;DJ ;NF;D:?JKH; I;9KH;: 8O H;:K9?D= J>; F;DI?ED ?I E\I;J 8O 7D ?D9H;7I; ?D M;B; FEFKB7J?ED 97D 8; 9EDL?D9;: JE FB7D ED J>; 87I?I E< 7 H;:K9;: F;DI?ED J>; FEB?9O 8;9EC;I J?C; ?D9EDI?IJ;DJ

 7 I?D=B; 9EDIKC;H />; =EL;HDC;DJ =?L;I J>; 9EDIKC;H 7 8ED: M?J> 7 ; M;7BJ> E< J>; 9EDIKC;H ?D9H;7I;: BJ;HD7J?L;BO J>; =EL;HDC;DJ B;L?;I 7 J7N E<   ED J>; 9EDIKC;H 7D: FHEC?I;I JE F7O 7 F;DI?ED #7I J>; M;7BJ> E< J>; 9EDIKC;H :;9H;7I;: 3098.32  />; =?; 9EDIKC;H 7FF;7HI JE 8; 7D ?D9H;7I; ?D M;7BJ> #EM;L;H J>; 8ED: CKIJ 8; H;:;;C;: 7J IEC; E 79J 799EH:?D= JE J>;I; COEF?9 FH;7J J>; ;GK?B?8H?KC ?DJ;H;IJ H7J; ?I FD  5  6GD

M>;H; GD ?I J>; JEJ7B B;L;B E< I7L?D=I ?D J>; ;9EDECO 7D COEF?7 ;L;H ?D9H;7I; J>; 9EDIKC;HIW JHK; KJ?B?J?;I : E;I J>?I J>; =?L;D COEF?9 FH;; 9>EEI;I 9EDIKCFJ?ED 7D: I7L?D=I JE C7N?C?P;  D   D   LD    LD



! 

IK8@;9J JE

 "!&

 GD  FD   LDD GD   LD

D

/>; '7=H7D=?7D ?I EFJ?C?P7J?ED FHE8B;C 97D 8; MH?JJ;D 7I

  D 

   LD  GD   LD GD    FD 

   

!HEC J>; THIJEH:;H D;9;II7HO 9ED:?J?EDI  LDD  GD   M; E8J7?D



 D 



GD     LD

 



 D   LD GD    

 



FD 



FD 



  LDD  GD   LDD  

GD    

   

#;D9; J>?I ; B;L;B E< I7L?D= $D:;;: J>; COEF?9 KJ?B?JO ; EFJ?C7B :;9?I?ED 8 />; B;L;B E< M;B; ?D:?L?:K7B I7L?D= :;9?I?ED #;D9; J>; JEJ7B B;L;B E< I7L?D=I ?D J>?I ;9EDECO ?I DEJ 7\;9J;: 8O J>; COEF?7 ;?J>;H 2>;D IEBL?D= J>; EFJ?C?P7J?ED FHE8B;C J>; 9EDIKC;HI J7A; J>; ?DJ;H;IJ H7J; 7I =?L;D 8;97KI; ;79> 9EDIKC;H 9>EEI;I >?I EMD B;L;B E< I7L?D= 7D: :E;I DEJ J7A; ?DJE 799EKDJ >EM J>; JEJ7B B;L;B E< I7L?D= 7\;9JI J>; ?DJ;H;IJ H7J; />;H;; 9EDIKC;HWI KJ?B?J?;I :E DEJ :;F;D: ED COEF?7  

          .D    FD

 5  6"    ; 9EDIKC;HI EL;H ;IJ?C7J; J>; =;D;HEI?JO E< J>; F;DI?ED I9>;C; 7D: 8;B?;L; J>; F;DI?ED  7D: J>; IE9?7B I;9KH?JO J7N   7H; H;B7J;: 8O      M>;H;   />;H; ?I DE FEFKB7J?ED =HEMJ> IE J>; JHK; L7BK; E< J>; F;DI?ED ?I    2>7J ;\;9J :E;I 7D ?D9H;7I; ?D  >7L; ED I7L?D=I E;I M;BEKB: M; >7L; J>; IE9?7B I;9KH?JO FHE=H7C M?J> COEF?7 E< J>?I 7J J>; 9EDIKC;HIW FH;C?9 KJ?B?JO

       #&! LDD #&! LD

   . LDD  LD

D D

 2?J> 7 F7O7IOEK=E F;DI?ED IOIJ;C J>; 8K:=;J 9EDIJH7?DJ ; 9EDIKC;H IEBL;I 

$)

H## H# #



    #&! LDD #&! LD

D

 

IK8@;9J JE J>; 8K:=;J 9EDIJH7?DJ />; '7=H7D=?7D ; 9EDIKC;HWI FHE8B;C ?I       LD

 D D  L  K        #&! LDD #&! LD

D D  FD

 FD

!HEC J>; THIJEH:;H D;9;II7HO 9ED:?J?EDI  LDD  LD

D

    LDD    D   F LD D

 

 



K

M; E8J7?D

 LD

D  LDD     FD

 FD

LD

D   FD  LDD

7D: >;D9; LDD



GD



   

 



   FD



  KD    K    LDD     FD

 

 

KD  

   

/>; JHK; L7BK; E< J>; F;DI?ED ?I  *   (OEF?9 9EDIKC;HI 7IIKC;  #     7D: J>;?H I7L?D= :;9?I?ED ?I J>;H;; ;\;9J E< 7D ?D9H;7I; ?D  ED I7L?D=I M; 9ECFKJ; J>; F7HJ?7B :;H?L7J?L;

GD         FD

 

/>; >?=>;H ?I J>; F;DI?ED J>; 9EDIKC;HI ;NF;9J JE H;9;?L; J>; B;II J>;O I7L; /E ;L7BK7J; J>; 9>7D=; ?D J>; M;B; B?E ;NF;9JI JE H;9;?L; 7 F;DI?ED      7D: C7A;I >?I I7L?D= :;9?I?ED



! 

 "!&

799EH:?D=BO 8KJ ?D ;H MEH:I J>; 9EDIKCFJ?ED F7J> E< 7 COEF?9 9EDIKC;H ?I

LDD



LD

D

 

 

KD  

    FD



 FD  GD  *   KD     FD         

 

 

+7HJ?7B :?\;H;DJ?7J?ED E< J>; KJ?B?JO ?=>;H F;D  FD

I?ED J>;O EL;H9EDIKC; ?D J>; THIJ F;H?E: E< B?; M;B; COEF?9 9EDIKC;HI M?J>EKJ J>; IE9?7B I;9KH?JO FHE=H7C ?I .  #&!

 KD 

#&!

 KD  FD   

 

7D: M?J> J>; IE9?7B I;9KH?JO FHE=H7C

, .

  

    #&! KD     FD

  KD     FD         #&! 

 

/>; IE9?7B I;9KH?JO FHE=H7C D;;:I JE 8; ?DJHE:K9;: ?< ?J ?D9H;7I;I J>; M;B;D J>?I MEKB: 8; J>; 97I; M; 9ECFKJ; J>; :?\;H;D9; 8;JM;;D .

 . , . .

  

   KD     FD

  KD     FD        #&! 

  KD #&! KD  FD   #&!  

     

KD   B 

KD     FD        # %  #&! $

  KD  FD       KD     FD        #&!     KD  FD  

#&!

/>?I :?\;H;D9; ?I FEI?J?L; M>;D 



 KD     FD       

KD  FD 

 

M>?9> 97D 8; I?CFB?T;: JE 

 FD K FD K        .?D9; J>; GK7DJ?JO ED J>; B;7D: I?:; ?I D;=7J?L; J>; ?D;GK7B?JO D;L;H >EB:I #;D9; M?J> J>?I ; IE9?7B I;9KH?JO FHE=H7C I>EKB: DEJ 8; ?D JHE:K9;:

;H; ?D:?L?:K7BI B?L; ;O >7L; KJ?B?JO ;H;  7D:  7H; F;H?E:  7D: F;H?E:  9EDIKCF J?ED B;L;BI H;IF;9J?L;BO />;O >7L; B78EH ?D9EC; E<  ?D F;H?E:  7D: B78EH ?D9EC; E<  ?D F;H?E:  />;O 97D I7L; 7I CK9> E< J>;?H ?D9EC; ?D F;H?E:  7I J>;O B?A; ?D 87DA 799EKDJI ;7HD?D= ?DJ;H;IJ H7J; E<  F;H9;DJ F;H F;H?E: />;O >7L; DE 8;GK;IJ CEJ?L; IE J>;O IF;D: 7BB J>;?H ?D9EC; 8;; ;D: E< F;H?E:  7 2>7J ?I ;79> ?D:?L?:K7BWI B?; ?D:?L?:K7BI 9>EEI; 9EDIKCFJ?ED ?D ;79> F;H?E: IE 7I JE C7N?C?P; J>;?H B?;?H B?7J ?I J>; EFJ?C7B 9EDIKCFJ?ED ?D ;79> F;H?E: #EM CK9> :E J>;O I7L; ?D J>; THIJ F;H?E: 8 .KFFEI; J>; =EL;HDC;DJ ?DJHE:K9;I 7 IE9?7B I;9KH?JO IOIJ;C J>7J M?BB J7A;  ?D:?L?:K7B ?D F;H?E:  FKJ ?J ?D 7 87DA 799EKDJ 7D: JH7DI;C M?J> ?DJ;H;IJ ?D F;H?E:  2>7J ?I J>; D;M B?7J ?I J>; ;\;9J E< J>?I IE9?7B I;9KH?JO IOIJ;C ED FH?L7J; I7L?D=I #EM :E;I J>; IOIJ;C 7\;9J JEJ7B I7L?D=I ?D IE9?;JO



! 

 "!&

3098.32  7 D ?D:?L?:K7B M?J> FH;; THIJ F;H?E: 7D: & ?D J>; I;9ED: F;H?E: IEBL;I J>; ; B?; '7=H7D=?7D ; EFJ?C?P7J?ED FHE8B;C ?I

&     #&!   #&!  &      F  F

 

 

7D: ; THIJEH:;H D;9;II7HO 9ED:?J?EDI

 

    M; E8J7?D 







G 

  

    

      F &  &       F  F



 & &     F    F & &     &   &    &        F

     

     

FHEL?:;: J>7J J>; GK7DJ?JO ED J>; H?=>J>7D: I?:; E< J>; B7IJ ;GK7B?JO ?I FEI?J?L; $< J>; F7H7C;J;HI   &  &  F 7H; IK9> J>7J J>?I GK7DJ?JO ?I D;=7J?L; J>;D J>; IEBKJ?ED ?I G    &   & 0I?D= J>; F7H7C;J;HI IJ7J;: ?D J>; FHE8B;C      &  

&   F    M; E8J7?D   G 

  

 

  

 

8 2?J> J>; IE9?7B I;9KH?JO IOIJ;C 7I :;I9H?8;: J>; D;M 8K:=;J 9EDIJH7?DJI ?D ;L;HO F;H?E: 7H;  G  &  ;    F G &  F ;

 M>;H; ; :;DEJ;I J>; 7CEKDJ :;:K9J;: 8O J>; =EL;HDC;DJ />; B??9> ?I ;N79JBO ?:;DJ?97B JE J>; ED; M?J>EKJ J>; IE9?7B I;9KH?JO IOIJ;C +H?L7J; I7L?D=I :;9H;7I; 8O ; ;GK7B JE  ?D J>?I ;N7CFB; 7D: FK8B?9 I7L?D=I ?D9H;7I; 8O ; $D EJ>;H MEH:I J>; IE9?7B I;9KH?JO IOIJ;C H;FB79;I FH?L7J; I7L?D=I 8O FK8B?9 I7L?D=I M?J>EKJ 9>7D=?D= J>; JEJ7B I7L?D=I ?D J>; IE9?;JO

; FH;L?EKI ;N;H9?I; 7D: IKFFEI; J>7J J>; ?DJHE:K9 J?ED E< IE9?7B I;9KH?JO ?D:K9;I J>; ?D:?L?:K7BI JE H;J?H; ?D F;H?E:  IE J>;O H;9;?L; DE B78EH ?D9EC; ?D F;H?E:  7 2>7J ?I J>; D;M EFJ?C7B 9EDIKCFJ?ED ?D ;79> F;H?E: #EM CK9> :E J>;O I7L; #EM :E;I ?J 9ECF7H; M?J> J>; FH;L?EKI ;N;H9?I; NFB7?D 8 )EM 8K?B:?D= ED J>?I ;N7CFB; I>EKB: J>; 79JK7B IE9?7B I;9KH?JO IOIJ;C B;7: JE ;7HBO H;J?H;C;DJ 2>O EH M>O DEJ 2>7J ?I J>; ;L?:;D9; ED J>; ?CF79J E< IE9?7B I;9KH?JO ED J>; H;J?H;C;DJ :;9?I?ED ?D J>; 0D?J;: .J7J;I 7D: ;BI;M>;H; 3098.32  7 D ?D:?L?:K7B M?J> FH;; KJ?B?JO B78EH ?D9EC; &  

?D J>; THIJ F;H?E: F7OI 7CEKDJ  JEM7H: J>; IE9?7B I;9KH?JO 9EDJH?8KJ?ED 7D: ?D J>; I;9ED: F;H?E: H;9;?L;I 7CEKDJ  7I J>; IE9?7B I;9KH?JO F7OC;DJ #?I 8K:=;J 9EDIJH7?DJI ?D J>; JME F;H?E:I

 G  &       F G 

 

97D 8; 9EC8?D;: ?DJE 7 B?; '7=H7D=?7D E< J>; KJ?B?JO C7N?C?P7J?ED FHE8B;C ?I

    #&!    #&!   &        F  F

 

 

7D: ; THIJEH:;H D;9;II7HO 9ED:?J?EDI  

   

  

    

      F   &         F  F

     



! 

M; E8J7?D J>; EFJ?C7B 9EDIKCFJ?ED ?D J>; JME F;H?E:I



  &        F

 F  &        F 7D: I7L?D=I C7:; ?D J>; THIJ F;H?E:



  &     G   F

 "!&

   

 

$< J>; IE9?7B I;9KH?JO IOIJ;C HKDI 87B7D9;: 8K:=;J 7D: ?< J>;H; ?I DE FEFKB7J?ED =HEMJ> J>;D    7D: >;D9;

 F &          F

 F F &          F

 F  &      G    F 2?J>EKJ J>; IE9?7B I;9KH?JO IOIJ;C 7D: M?J> B78EH ?D9EC; & ?D J>; I;9ED: F;H?E: EFJ?C7B 9EDIKCFJ?ED 7D: I7L?D=I M;H;

 & &        F

 F & &        F

&  &    G    F B;7HBO 9EDIKCFJ?ED ?D 8EJ> F;H?E:I 7I M;BB 7I I7L?D=I 7H; BEM;H KD:;H J>; IE9?7B I;9KH?JO IOIJ;C 2>;D J>; ?D:?L?:K7BI H;J?H; 7J J>; 8;=?DD?D= E< J>; I;9ED: F;H?E: J>;?H B?; THIJ F;H?E: 7D: JH7DI;?H THIJF;H?E: ?D9EC; ?DJE J>; I;9ED: F;H?E: J>HEK=> J>; IE9?7B I;9KH?JO IOIJ;C 8 7HBO H;J?H;C;DJ C;7DI B;II B78EH ?DFKJ ?D 7==H;=7J; FHE:K9J?ED />?I H;IKBJI ?D J>; 9>7D=; E< J>; BED=HKD ;GK?B?8H?KC L7BK; E< J>; 97F?J7BZB78EH H7J?E />?I C7O 8; :;I?H78B; ?< J>; 97F?J7BZB78EH H7J?E CEL;I JEM7H:I J>; IE9?7BBO EFJ?C7B B;L;B />; ;L?:;D9; ; 0D?J;: .J7J;I I>EMI 7 BED=J;HC :;9B?D; ?D J>; F7HJ?9?F7J?ED E< EB:;H C7B;I ?D J>; B78EH ?I :;9B?D; 8;=7D I>EHJBO 7; ?DJHE:K9J?ED E< IE9?7B I;9KH?JO ?D  ;IF?J; M>7J C?=>J 8; ;NF;9J;:

?J >7I FHEL;: :?[9KBJ 7J IE9?7B I;9KH?JO >7I 8;;D J>; 97KI; E< J>; :;9B?D; .EC; ;9EDEC;JH?9 IJK:?;I >7L; :;CEDIJH7J;: 7 B?DA 8KJ EJ>;HI >7L; DEJ

 -;;B7D   #EM IE9?7B I;9KH?JO 7D: (;:?97H; 7\;9J H;J?H;C;DJ 8;>7L?EH ?D 7 MEHB: E< ?D9ECFB;J; C7HA;JI *)*(!/-%  Z

; F;DI?EDI 9H?I?I 7H?I;I 8;97KI; J>; DKC8;H E< MEHA?D= F;E FB; ?I ; DKC8;H E< H;J?H;: F;EFB; (7DO FEB?J?9?7DI 7H=K; J>7J J>; 9H?I?I 97D 8; IEBL;: 8O 799KCKB7J?D= =H;7J;H F;DI?ED I7L?D=I M>;D MEHA?D= $I J>?I 7 H;7B IEBKJ?ED 3098.32  />; ;N;H9?I; ?I 87I;: ED J>; :?IJ?D9J?ED 8;JM;;D DEC?D7B 7D: H;7B L7H?78B;I $< J>; F;DI?ED 9H?I?I ?I JE 8; H;IEBL;: J>;H; D;;:I JE 8; 7D ?D9H;7I; H;7B EKJFKJ F;H F;HIED $< EKJFKJ :E;I DEJ ?D9H;7I; J>;D 7D ?D9H;7I; ?D F;DI?ED I7L?D=I M?BB C;H;BO 7BJ;H J>; 87B7D9; E< FKH9>7I?D= FEM;H 8;JM;;D J>; H;J?H;: FEFKB7J?ED 7D: J>; MEHA?D= FEFKB7J?ED $J M?BB 7II?IJ J>; H;J?H;: 8KJ M?BB :7C7=; J>; MEHA?D= I?D9; J>;O 7H; 9ECF;J?D= ; I7C; EKJFKJ !EH 7D ?D9H;7I; ?D F;DI?ED I7L?D=I JE H;7BBO IEBL; J>; F;DI?ED 9H?I?I J>;H; CKIJ 8; IEC; C;9>7D?IC J>HEK=> M>?9> J>; F;DI?ED I7L?D=I H7?I; ?I 9EKB: E99KH ?< J>; I7L?D=I 7H; ?DL;IJ;: FHE:K9J?L; 97F?J7B .EBL?D= J>; 9H?I?I ?I DEJ I?CFB; 7 97I; E< I7L?D= CEH;

E B?L;I 7I KJ?B?JO

#&!   M>;H;  7D:  7H; J>; E< B?; THIJ 7D: I;9ED: F;H?E: H;IF;9J?L;BO 7D:      :;DEJ;I J>; F;H F;H?E: :?I9EKDJ H7J; .KFFEI; J>; ?D:?L?:K7B >7I 7D ?D9EC; E< 2 ?D J>; THIJ F;H?E: 7D: DE ?D9EC; ?D J>; I;9ED: F;H?E: IE 2  #; 97D JH7DI; I;9ED: F;H?E: 7J 7 8;; THIJ F;H?E: =?L;I   F , />; =EL;HDC;DJ B;L?;I 7 97F?J7B J7N 7J H7J;  ED 97F?J7B ?D9EC; H;9;?L;: ?D J>; I;9ED: F;H?E: />; J7N FHE9;;:I 7H; F7?: 7I 7 BKCFIKC JH7DI; ; FH;I;DJ =;D;H7J?ED :E;I DEJ 97H; 78EKJ J>; D;NJ ED; 7 2>7J ?I J>; B??I ?D:?L?:K7B 2>7J ?I >?I B?7J ?I H;GK?H;: JE 9ECF;DI7J; J>; ?D:?L?:K7B ; M;B; 97F?J7B ?D9EC; J7N  9 2>7J ?I J>; ?CF79J E< 7 J7N H7J; 9>7D=; ED 9EDIKCFJ?ED B;L;B ?D J>; THIJ F;H?E: D: ?D J>; I;9ED: F;H?E: 2>7J 9ED9BKI?ED 78EKJ J>; M;B; JME F;H?E:I 7H;  ,  2 -    F ,   F,

 



! 

 "!&

M>;H; - ?I J>; BKCFIKC JH7DI; B?KI 

  2 -  F    

7D: J>; '7=H7D=?7D ; THIJEH:;H 9ED:?J?EDI  

   

  

    

         F      2 -       F    

     

M; E8J7?D J>; B?; B??9> O?;B:I ; ?D:?H;9J KJ?B?JO EKJ J7N;I 7D: JH7DI ?D9EC; 2 ?D J>; THIJ F;H?E: J>; ?D:?H;9J KJ?B?JO ; H;B7J?EDI>?F 8;JM;;D 2 7D: 2 

    F    F 2     F   2  #&!   #&!   2

 

   F     2

  M>?9> ?CFB?;I     F   2    2

.EBL?D= ; H7J?E // ?I =H;7J;H J>7D ED; ; 97F?J7B ?D9EC; J7N B7J;H ?D B? 7D ;GK7B JH7DI J>; 9EDIKC;HI :E DEJ ?DJ;HD7B?P; J>; H;B7J?EDI>?F 8;JM;;D J7N F7?: ED 97F?J7B ?D9EC; 7D: J>; 7CEKDJ E< JH7DI; 9EDIKC;HIW H;IFEDI; ED J>; 9>7D=; ?D J>; J7N H7J; M; D;;: JE :?\;H;DJ?7J; 9EDIKCFJ?ED M?J> H;IF;9J JE  J7A?D= 7I =?L;D    

   F 2 -          #;D9; 7D ?D9H;7I; ?D J>; J7N H7J; >7I DE ?CF79J ED J>; 9EDIKCFJ?ED B;L;B ?D J>; THIJ F;H?E: 7D: D;=7J?L;BO 7\;9JI J>; 9EDIKCFJ?ED B;L;B ?D J>; I;9ED: F;H?E: 7F?J7B ?D9EC; J7N7J?ED 97KI;I 7D ?D:?L?:K7B M;B; EB: I?D9; J>;O :E DEJ H;9;?L; JH7DI;D OEKD= .?C?B7HBO 7 ED;J?C; ?D9H;7I; ?D J>; J7N H7J; 97KI;I 7D ?D:?L?:K7B M;BE 7H; EB: 7J J>; J?C; E< J>; 9>7D=; M>;H;7I 7BB J>; ; 9>7D=; ?D J>; 7==H;=7J; M;BEM M; :;TD; J>; 7==H;=7J; M;B 9ED IKC;H JE I7L; KF JE  F;H9;DJ ?D J>; THIJ F;H?E: ?D 7 J7N; B? 7D: M?J>EKJ J>; H;J?H;C;DJ I7L?D= FHE=H7C 9 ;H?L; J>; EFJ?C7B B? J>; H;J?H;C;DJ I7L?D= FHE=H7C NFB7?D J>; ?CF79J E< J>?I FHE=H7C ED FH?L7J; I7L?D=I : )EM IKFFEI; J>; H;J?H;C;DJ I7L?D= FHE=H7C ?D F7HJ 8 ?I H;FB79;: 8O 7 D;M I7L?D= FHE=H7C J7N?D= ?DL;IJC;DJ ?D9EC; ED J>; THIJ  F;H9;DJ E< I7L?D= 7D: ;N;CFJ?D= 7DO I7L?D= ?D ;N9;II E<  F;H9;DJ ; 8K: =;J I;J 7IIE9?7J;: M?J> J>?I FHE=H7C 7D: TD: J>; EFJ?C7B B?; :?\;H;D9; M?J> J>; FHE=H7C ?D F7HJ 8 ; $< J>; J>H;I>EB: ?I 7\;9J FH?L7J; I7L?D= #EM :E;I J>?I 7\;9J JEJ7B I7L?D=I ?D IE9?;JO 3098.32  7 />; 8K:=;J 9EDIJH7?DJI ?D J>; JME F;H?E:I 7H;  G  &        G  F 

 

#;D9; J>; B?; '7=H7D=?7D ; THIJEH:;H 9ED:?J?EDI  

   

  

    

      F  &       F

     

M; E8J7?D J>; EFJ?C7B B?; ?D9EC; J7N J>; B;L;B E< 9EDIKCFJ?ED ?D 8EJ> F;H?E:I ?I >?=>;H    7D:    8 />; 9EDIKC;HI M?BB 9>EEI; JE I7L; J>; C7N?C7B FEII?8B; 7CEKDJ ?D 7 J7N ?I J7N; I7C; H7J; E< H;JKHD 7I J>; H;=KB7H I7L?D=I 799EKDJ J>; D;M 8K:=;J 9EDIJH7?DJI ?D J>; JME F;H?E:I M?BB 8;  G  & &        G  F 

 

 7D: J>; D;M B?; H;IKBJI E< F7HJ 7 7D: H;FB79?D= J>; 7; B? J>; H;J?H;C;DJ I7L?D= FHE=H7C  

  F &        &       

 

7D: ?I CE:;B I7L?D=I 7H; ;GK7B JE 9EDIKCFJ?ED ?D J>; THIJ F;H?E: #;D9; J>; H;J?H;C;DJ I7L?D= FHE=H7C B;7:I I7L?D=I JE ?D9H;7I; G   9ECF7H;: JE G   M?J>EKJ J>; FHE=H7C Z 7 J7N ;N;CFJ?ED ; JEJ7B M;7BJ> CEH; J>; CEH; ?I I7L;: : 2?J> J>; D;M I7L?D= FHE=H7C J>; 8K:=;J 9EDIJH7?DJI ?D J>; JME F;H?E:I 7H;    G  &    G  F  - M>;H; J>; JEJ7B J7N F7?: ?I :;TD;: 7I  G F - 

&  F

G & 

& G & 

$D J>?I 97I; 

&     F  &  F  

&     F     

 & 

&  & 

 

 

/>; 8K:=;J I;J ?I A?DA;: 7J J>; FE?DJ   &  J>; IBEF; 9>7D=;I ?I ?I ?BBKIJH7J;: ?D T=KH;   2?J> J>; =?L;D FH;; EFJ?C7B 9EDIKCFJ?ED FB7D ?I BE97J;: ED J>; IJ;;F;H F7HJ E< J>; 8K:=;J I;J J>7J ?I J>; 9EDIKC;HI I7L; CEH; J>7D  F;H9;DJ E< J>;?H ?D9EC; .EBL?D= J>; EFJ?C?P7J?ED FHE8B;C M; E8J7?D

F     &      F

F    &    G  &      F

F  F   &        F M>;H;  ?I J>; J>H;I>EB: ; IJ;;F;H I;9J?ED E< J>; 8K:=;J 9EDIJH7?DJ >7I FHEL?:;: 7D ?D9;DJ?L; ; M;7BJ> IK8IJ?JKJ?ED ;\;9J I?D9; =EL;HDC;DJ ?I I7L?D= 7L; JE I7L; B;II />; H;J?H;C;DJ ;\;9J 79JK7BBO =E;I J>; EJ>;H M7O OEK 7H; H;J?H?D= ;7HB?;H IE OEK I7L; CEH; ; $D:?L?:K7B -;J?H;C;DJ 99EKDJI $- JE :E J>?I 0. ;L?:;D9; IK==;IJI J>7J $- >EB:;HI I7L; CEH; J>7D DED$- >EB:;HI 7 #EM 97D J>; J>;EHO ;NFB7?D J>7J $-I ?D9H;7I; I7L?D=I 2>7J 7H; J>; ?D9EC; ;\;9JI 7D: J>; IK8IJ?JKJ?ED ;\;9JI 2>7J 78EKJ J>; H;FB79;C;DJ ;\;9J E< IK8IJ?JKJ?D= $-I ; FHE=H7C 8 $I J>; ;L?:;D9;87I;: FH;:?9J?ED J>7J $-I ?D9H;7I; I7L?D=I D;9;II7H?BO 9EHH;9J 2>O EH M>O DEJ #EM C?=>J J>; :?IJ?D9J?ED 8;JM;;D FH?L7J; 7D: D7J?ED7B I7L?D=I 7\;9J J>; 7D7BOI?I 3098.32  7 />; J>;EHO 97DDEJ FH;:?9J J>7J $-I ?D9H;7I; I7L?D=I ;N9;FJ ?< $- I9>;C;I FHEL?:;I 8;JJ;H H;JKHDI ED I7L?D=I ; = J>HEK=> J7N :;:K9J?8?B?JO E< 9EDJH?8KJ?EDI JE $-I *J>;HM?I; $- I7L?D=I M?BB I?CFBO H;FB79; I7L?D= 7BH;7:O :ED; EKJI?:; J>; FHE=H7C 8 )E 7I BED= 7I F7HJ?9?F7J?ED JE $- I9>;C;I ?I LEBKDJ7HO />?I ?I 8;97KI; J>EI; M>E B?A; JE I7L; M?BB 9>EEI; JE ?DL;IJ ?D $-I 7D: J>EI; M>E :EDWJ M?BB DEJ ?DL;IJ ?D $-I />?I ?I I;B<I;B;9J?ED E< 9EDJH79J 87I;: ED ?D:?L?:K7B FH; FEB?9O MEHI; 8;97KI; E< J>; 7::?J?ED7B J7N 9EIJI E< J>; FEB?9O

7J 7H; J>; 7:L7DJ7=;I 7D: FHE8B;CI H;B7J;: M?J> 7 H;7J 9EDI?IJI E< IM?J9>?D= JE ?D:?L?:K7B 7DDK?J?P;: 799EKDJI 3098.32  +H?L7J?P?D= IE9?7B I;9KH?JO 8O IM?J9>?D= JE ?D:?L?:K7B 7DDK ?J?P;: 799EKDJI >7I L7H?EKI I?=D?T97DJ 7:L7DJ7=;I $D:?L?:K7B 799EKDJI MEKB: H;FH;I;DJ H;7B I7L?D=I .E J>; 9HEM:?D= EKJ E< I7L?D=I ?D:K9;: 8O IE9?7B I;9KH?JO MEKB: 8; ;B?C?D7J;: ;97KI; ?D:?L?:K7BI MEKB: 9B7?C 7BB 8;D;TJI J>7J 799HK;: JE J>; 799EKDJ J>; :?IJEHJ?ED JE B78EH IKFFBO 7D: H;J?H;C;DJ :;9?I?ED 97KI;: 8O IE9?7B I;9KH?JO MEKB: 8; ;B?C?D7J;: !?D7BBO ?J ?I B?A;BO J>7J ?D:?L?:K7BI MEKB: 8;



! 

 "!&

78B; JE ;7HD 7 >?=>;H H7J; E< H;JKHD J>7D IE9?7B I;9KH?JO E\;HI 7D: J>; FHE8B;CI 7IIE9?7J;: M?J> 9>EEI?D= M>;H; JE ?DL;IJ J>; IE9?7B I;9KH?JO JHKIJ ;H; 7H; I;L;H7B :?I7:L7DJ7=;I JE IM?J9>?D= JE ?D:?L?:K7B 7DDK?J?P;: 79 9EKDJI />; CEIJ I?=D?T97DJ ?I >EM JE JH7DI?J JE J>; D;M IOIJ;C M?J>EKJ :?I 9EDJ?DK?D= J>; F7OC;DJ E< F;DI?ED 8;D;TJI JE J>EI; 9KHH;DJBO H;J?H;: /E:7OWI ;B:;HBO MEKB: IJ?BB >7L; JE 8; =?L;D IE9?7B I;9KH?JO 2?J> J>; IE9?7B I;9KH?JO F7O HEBB J7N ;B?C?D7J;: ?D ; ; 8;D;TJI E< JE:7OWI ;B:;HBO ?I KD9B;7H /E FKJ ?J :?\;H;DJBO J>; EFFEHJKD?JO E< 7 >?=>;H H7J; E< H;JKHD M?J> F;HIED7B 799EKDJI 9EC;I ; C?IB;7:?D= 7J J>;O 9EC; M?J> DE E8B?=7J?ED JE H7?I; J>; F;DI?EDI E< J>; 9KHH;DJ ;B:;HBO />?I ?I J>; 7J 799EKDJI ; :?\;H;D9;I ?D H;JKHDI (EH;EL;H J>; >?=>;H ;NF;9J;: H;JKHD ?I E\I;J 8O 7J B;7IJ J>; F;H9;FJ?ED E< =H;7J;H H?IA />?I ?I DEJ JE I7O J>7J J>; H;JKHDI ?D J>; ;N?IJ?D= IOIJ;C 7H; H?IA; C7@EH H?IA ?D J>; FH;I;DJ IOIJ;C ?I FHE878BO J>7J F;DI?ED 8;D;TJI F7?: ?D J>; ; FEB?J?97B M>?CI E< ; D;M IOIJ;C MEKB: DEJ >7L; .E9?7B .;9KH?JOWI H;:?IJH?8KJ?L; ;B;C;DJ 7D: C?=>J 8; B;II ;[9?;DJ :K; JE CK9> >?=>;H 7:C?D?IJH7J?L; 9EIJI !?D7BBO ?J ?I DEJ 9B;7H J>7J 7BBEM?D= ?D:?L?:K7BI JE C7A; J>; ?DL;IJC;DJ :;9?I?EDI ;?H 7DDK?J?P;: 799EKDJI C7A;I I;DI; />; =EL;HDC;DJ MEKB: ?D ;\;9J 8; I7O?D= J>7J ?D:?L?:K7BI 7H; DEJ IC7HJ ;DEK=> JE I7L; ED J>;?H EMD

8KJ J>;O 7H; IC7HJ ;DEK=> JE F?9A J>;?H EMD FEHJ H7J; 7I B    '  ' !?=KH;I   7D:   ?D:?97J; 7 FEI?J?L; H;B7J?EDI>?F 8;JM;;D F;H 97F?J7 EKJFKJ 7D: J>; I7L?D=I H7J; M>;H;7I J>; H;B7J?EDI>?F 8;JM;;D F;H 97F?J7 EKJFKJ 7D: J>; FEFKB7J?ED =HEMJ> H7J; ?I B;II 9B;7HBO FHEDEKD9;: ';7IJ IGK7H;I B?D;7H H;=H;II?ED =?L;I J>; ?F  2 '     G   B     



 

+   7D: IJ7D:7H: ;HHEHI 7H; ?D F7H;DJ>;I;I />; 9E;[9?;DJ ED J>; I7L?D= H7J; ?I FEI?J?L; 7D: I?=D?T97DJ 7J  B;L;B />; 9E;[9?;DJ ED FEFKB7J?ED



!    $!

Y/N 50000 40000 30000 20000 10000 0 -0.015

-0.01

-0.005

n 0

0.005

0.01

0.015

0.02

0.025

0.03

!?=KH;   +;H 97F?J7 EKJFKJ 7D: FEFKB7J?ED =HEMJ>

=HEMJ> H7J; ?I IJ7J?IJ?97BBO ?DI?=D?T97DJ !EH J>?I 9HEIII;9J?ED E< 9EKDJH?;I 7 >?=>;H I7L?D= H7J; H7?I;I EKJFKJ F;H 97F?J7 8KJ :?\;H;D9;I ?D FEFKB7J?ED =HEMJ> :E DEJ I;;C JE >7L; 7DO ;\;9J

; .EBEM =HEMJ> CE:;B 7IIKC; J>; 7==H;=7J; FHE:K9J?ED ;H; 2 ?I JEJ7B EKJFKJ N ?I JEJ7B FHE:K9J?L?JO $ ?I J>; JEJ7B 97F?J7B ?DFKJ 7D: % ?I J>; JEJ7B B78EH ?DFKJ .KFFEI; J>; E88EK=B7I ; C7H=?D7B FHE:K9J E< 97F?J7B ?D9H;7I;I B;L;B E< 97F ?J7B =?L;D J>; B78EH ?DFKJ B;L;B 2>7J ?I J>; ;\;9J E< J>?I 97F?J7B FHE:K9J?L?JO ?D9H;7I; ED J>; 7==H;=7J; FHE:K9J?ED EM =H7F>?97BBO J>; ?CF79J E< J>?I FHE:K9J?L?JO ?D9H;7I; ED J>; IJ;7:OIJ7J; 97F?J7BB78EH H7J?E 7D: EKJFKJ F;H MEHA;H NFB7?D 8H?;UO 3098.32   7 "?L;D 7 FHE:K9J?ED ; ; ;NFH;II?ED ; EKJFKJ F;H MEHA;H ?I 2  N$  %  N M % M>;H; ? ?I J>; 97F?J7BB78EH H7J?E



$ %



 N?  

 

 Y/N 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 0

0.1

0.2

0.3

0.4

0.5

s 0.6

!?=KH;   +;H 97F?J7 EKJFKJ 7D: I7L?D=

8 D ?D9H;7I; ?D J>; FHE:K9J?L?JO E< 97F?J7B H;IKBJI ?D 7D ?D9H;7I; E< EKJFKJ F;H MEHA;H B;L;B E< 97F?J7B =?L;D J>; B78EKH ?DFKJ />;H;EMD =H7F>?97BBO ?D T=KH;   J>7J J>; IJ;7:O IJ7J; 97F?J7BZB78EH H7J?E ?D9H;7I;I />; H;7IED ?I J>7J M?J> 7 >?=>;H 97F?J7B FHE:K9J?L?JO ;L;HO KD?J E< B78EH EH ;L;HO MEHA;H FHE:K9;I CEH; EKJFKJ .?D9; ?D J>?I CE:;B I7L?D=I 7D: ?DL;IJC;DJ ?I 7 TN;: FHEFEHJ?ED E< EKJFKJ J>; 7CEKDJ E< ?DL;IJC;DJ F;H MEHA;H 7BIE ?D9H;7I;I FHEFEHJ?ED7BBO JE EKJFKJ #;D9; J>; IJE9A E< 97F?J7B F;H MEHA;H ?D J>; IJ;7:O IJ7J; ?D9H;7I;I

; .EBEM =HEMJ> CE:;B M?J> E88EK=B7I FHE:K9  J?ED ;H; 2 ?I JEJ7B EKJFKJ N ?I JEJ7B FHE:K9J?L?JO

$ ?I J>; JEJ7B 97F?J7B ?DFKJ 7D: % ?I J>; JEJ7B B78EH ?DFKJ 7 .>EM J>7J ?D J>; 9ECF;J?J?L; ;GK?B?8H?KC  ?I J>; 7J =E;I JE J>; H;CKD;H7J?ED E< 97F?J7B 7D:    ?I J>; 7J =E;I JE J>; H;CKD;H7J?ED E< B78EH 8 0I; J>; 7L;H7=; B78EH I>7H; ?D D7J?ED7B ?D9EC; ; L7BK; E<  9 0I; OEKH 7DIM;H JE F7HJ 8 JE 97B9KB7J; J>; X.EBEM H;I?:K7BY N KI?D= J>; 7==H;=7J; EKJFKJ 97F?J7B 7D: B78EH 2 $7D: % ; F;H?E:  #EM >7I J>?I C;7IKH; E< JEJ7B FHE:K9J?L?JO ;LEBL;: EL;H J?C; ?D OEKH 9EKDJHO $I J>;H; 7 FHE:K9J?L?JO IBEM:EMD NFB7?D J>; FEII?8B; H;7IEDI E< J>?I ;LEBKJ?ED ?DL;DJ?EDI =EL;HDC;DJ H;=KB7J?EDI FH?9;



!    $!

fˆ (k )

Output

f (k )

sfˆ (k ) sf (k )

[n + δ ]k k

kˆ Capital

!?=KH;   +HE:K9J?L?JO ?D9H;7I;

E< ;D;H=O ;J9 3098.32   7 $D 7 9ECF;J?J?L; ;GK?B?8H?KC THC = 9>EEI;I 97F?J7B 7D: B78EH ?DFKJI JE C7N?C?P; FHETJ J7A?D= J>; FH?9; E< 97F?J7B 7D: B78EH 7I =?L;D  F$9  K%9  $) 9  N$9 %  9

! " 

 

!HEC J>; THIJEH:;H D;9;II7HO 9ED:?J?EDI  9 $9  9 %9



N$9 %   F 9

 



   N$9 %  K 9

 

M; E8J7?D N$9 %  29 9   $9 $9 N$9 %  29 9          %9 %9

F



 N$9 %  9

 

K



   N$9 % 9

 

#;D9; THC = F7OI J>; ; 97F?J7B 7D: B78EH M; J7A; J>; IKC 79HEII J>; THCI ( ( ( ( $9   29  2 K %9     29    F 9

9

9

9

 & M>;H; J>; IKC E< J>; EKJFKJI 79HEII J>; THCI 9 29 ?I ;GK7B JE J>; D7J?ED7B ?D9EC; 2 8 #;H; M; KI; GK7HJ;HBO :7J7 ED 0. =HEII :EC;IJ?9 FHE:K9J 7D: M7=; 7D: I7B7HO :?I8KHI;C;DJ JJF

MMM 8;7 :E9 =EL 8;7 :D D?F7M;8 ?D:;N 7IF ; F;H?E:  />; B78EH I>7H; E< EKJFKJ M7I 9ECFKJ;: 7I J>; H7J?E E< M7=; JE "+ />; I7CFB; 7L;H7=; M7I 7 IJ7D:7H: ;HHEH E< 

 #;D9; J>; L7BK; E<  ;IJ?C7J;: ?I I7CFB; ?I ;GK7B JE       9 !EH J>; 97B9KB7J?ED E< J>; .EBEM H;I?:K7B M; KI; GK7HJ;HBO :7J7 ED 0. "+ ?DL;IJC;DJ 7D: ;CFBEOC;DJ ; .J 'EK?I !;:;H7B -;I;HL; :7J787I; !-  >JJF

H;I;7H9> IJBEK?I; :7J7 ED ?DL;IJC;DJ H;7B FH?L7J; DEDH;I?:;DJ?7B TN;: ?DL;IJC;DJ ?D 7 H;9KHI?L; H;B7 J?ED $D     $D #D M?J>     :;FH;9?7J?ED H7J; E< 97F?J7B F;H GK7HJ;H />; CEDJ>BO I;H?;I ; BE=7H?J>C E< .EBEM H;I?:K7B M7I J>;D 9ECFKJ;: KI?D= J>; ; .EBEM H;I?:K7B ;N>?8?JI 7 FEI?J?L; JH;D: J>7J ?I ?J ?I ED 7L;H7=; =HEM?D= EL;H J?C; M?J> KFM7H: 7D: :EMDM7H: :;L?7J?EDI ; JH;D: );=7J?L; :;L?7J?EDI C7O 8; ?DJ;HFH;J;: 7I J;CFEH7HO IBEM:EMDI ?D FHE=H;II />; EL;H7BB =HEMJ> E< JEJ7B FHE:K9J?L?JO C7O 8; :K; JE 7 DKC8;H E< ?=>;H EKJFKJ M?J> J>; KI; E< J>; I7C; GK7B?JO E< ?DFKJI "EL;HDC;DJ H;=KB7J?EDI ED J>; KI7=; E< F7J;DJI C7O 7\;9J J>; FHE:K9J?L?JO ?D 8EJ> M7OI ED ED; >7D: F7J;DJI IJ?CKB7J; ?DL;DJ?L; 79J?L?JO 8O =;D;H7J?D= CEDEFEB?IJ?9 FHETJI 7D: J>?I B;7:I JE J>; FHE:K9J?L?JO =HEMJ> ED J>; EJ>;H >7D: THCI J>7J 7H; DEJ KI?D= F7J;DJ;: J;9>DEBE=O H;C7?D ED J>; BEM;H FHE:K9J?L?JO B;L;B

M>?9> ?CF;:;I J>; 7==H;=7J; FHE:K9J?L?JO =HEMJ> D;H=O FH?9;I 7H; 7DEJ>;H ;NE=;DEKI #?=> ;D;H=O FH?9;I C7O DEBE=?;I 97KI?D= J>; IBEM:EMD J J>; I7C; J?C; >?=> E?B FH?9;I ; I;7H9> ; ?DL;DJ?ED E< D;M CEH; FHE:K9J?L; J;9>DEBE=?;I

 FEFKB7J?ED I?P; 'D 7J J?C; H 7D: DEBE=?97B FHE=H;II 7D: :;CE=H7F>?9 =HEMJ> 7H; =?L;D 8O D

'D

 

 ;  D 

 B'D 

7 ';J ?D  $D 'D 8; J>; 97F?J7B IJE9A F;H MEHA;H 7D: MD  2D 'D 8; J>; EKJFKJ F;H MEHA;H 7B9KB7J; J>; ;GK?B?8H?KC IJE9A E< 97F?J7B F;H MEHA;H ?D FD  EM J>7J J>; ;GK?B?8H?KC M7=; ?I =?L;D 8O KD

   D

D FD





   MD 

2>7J 7H; J>; ;\;9JI E< 7 9>7D=; ?D J>; ?DJ;H;IJ H7J; FD 7D: J>; FHE:K9J?L?JO ; ;GK?B?8H?KC M7=; H7J; KD 7D: J>; ;GK?B?8H?KC IJE9A E< 97F?J7B ?D  9 .>EM J>7J EKJFKJ F;H 97F?J7 ?I =?L;D 8O MD  KD FD ?D  : EDI?:;H 7 IJ;7:O IJ7J; M?J> FD  F 7B9KB7J; J>; =HEMJ> H7J; E< 97F?J7B F;H MEHA;H ;;  ;#;#;#  7D: J>; =HEMJ> H7J; E< EKJFKJ F;H MEHA;H ;I  I# I# ;H?L; J>; =HEMJ> H7J; E< J>; M7=; I# ; .KFFEI; J>7J 7FFHEN?C7J;BO B;   0I?D= J>; 9EDIKCFJ?ED :;9?I?EDI =?L;D 78EL; 97B9KB7J; J>; 7==H;=7J; I7L?D= ,D E< J>; OEKD= =;D;H7J?ED 7J J?C;

  E< J>; EB: =;D;H7J?ED 7J J?C; H .>EM J>; ; :?II7L?D= ,D

;GK?L7B;D9;  ,D  ,D

 B ;  F

NFB7?D J>?I ;GK?L7B;D9; 3098.32   7 $D 7 9ECF;J?J?L; ;9EDECO J>; THIJEH:;H 9ED:?J?EDI ; FHETJ C7N?C?P7J?ED FHE8B;C

$) D  2D  FD $D  KD 'D 

!# $# 

=?L; FD 

2D 2D  KD   $D 'D

 

!HEC J>; THIJ ;GK7B?JO ?D   M; E8J7?D FD  D $D 'D   7D: J>;H;; I;9ED: ;GK7B?JO ?D   M; E8J7?D KD

  

 D $D 'D

  

 D ?D

     D

D FD

  



/>?I 97D 7BIE 8; H;MH?JJ;D 7I 'D  2D         MD  'D 'D   9 />?I 7J

MD  D ?D 

7D: IE  MD  D ?D

  ;

M>?9> ?CFB?;I





D  ; ?D    ; D ?D   ; MD   

MD  MD  ; MD !?D7BBO KI?D=   7D:   M; >7L; ;I 

KD     MD      ; MD   ; KD  7D: IE J>; =HEMJ> H7J; E< J>; M7=; ?I ;G 

KD  KD  ; KD

 

; 0I?D=   7D:   M; E8J7?D ,D

 ,D

 

GD 'D     KD 'D    F GD 'D   F    KD

'D 

7D: KI?D=  

,D

 ; B ;B    KD 'D  ;  B         ' ,D

 F    KD

 F  F D

IIKC?D= ;B  J>; B7IJ ;GK7B?JO ?CFB?;I J>7J ,D

   ; B  F  ,D

$DJK?J?L;BO 97F?J7B 799KCKB7J?ED E99KHI M>;D ?D ;L;HO F;H?E: 7==H;=7J; I7L?D=I ;N9;;: 7==H;=7J; :?II7L?D=I 7D: J>?I EDBO J7A;I FB79; ?< J>; JEJ7B =HEMJ> H7J; ?D J>; ;9EDECO ;N9;;:I J>; H7J; E< H;JKHD ED 97F?J7B

7J EKJFKJ F;H KD?J E< B78EH ?I H;B7J;: JE J>; 97F?J7BZ B78EH H7J?E 8O   MD   #&! ?D  7D: J>7J I7L?D= ?I 7 TN;: FHEFEHJ?ED G E< EKJFKJ 7 2>7J ?I J>; 97F?J7B 799KCKB7J?ED 9ED:?J?ED 8 ;H?L; J>; ;GK7J?ED 9>7H79J;H?P?D= J>; IJ;7:OIJ7J; 97F?J7BB78EH H7J?E 9 !EH J>; F7H7C;J;H L7BK;I ?   G       B   7D:    FBEJ J>; 97F?J7BZB78EH H7J?E 7D: J>; 9EDIKCFJ?EDZB78EH H7J?E 7I 7J ?I J>; ;\;9J E< 7D ?D9H;7I; ?D  ED J>; 97F?J7BZB78EH H7J?E ; -;F;7J F7HJ 9 IJ7HJ?D= J>; ;9EDECO 78EL; J>; IJ;7:OIJ7J; 97F?J7BZB78EH H7J?E NFB7?D J>; E8I;HL;: =HEMJ> F7J>

 3098.32   7 />; 97F?J7B 799KCKB7J?ED 9ED:?J?ED ?I

 B ?D  GMD    ?D  G #&! ?D    ?D 

 

M>?9> 97D 8; IEBL;: JE =?L; ?D 

G #&! ?D     ?D   B

8 $D J>; IJ;7:O IJ7J; ?D  ?D  ? 7D: J>;H;?I ;GK7J?ED 97D >7L; P;HE ED; EH JME IEBKJ?EDI 9 .;; T=KH;   : $< J>; L7BK;I E< J>; F7H7C;J;HI 7H; IK9> J>7J J>; ;GK7J?ED ; IJ;7:O IJ7J; 97F?J7BB78EH H7J?E ? >7I JME IEBKJ?EDI ? 7D: ? M>;H; ?  ? J>;D 7D ?D9H;7I; ?D  H;IKBJI ?D 7 :;9H;7I; ?D ? 7D: ?D 7D ?D9H;7I; ?D ? $< J>;H; M7I EDBO ED; IEBKJ?ED ? 7D ?D9H;7I; ?D  H;IKBJI ?D E8J7?D?D= JME IEBKJ?EDI ED; 8;BEM 7D: ED; 78EL; ? ; .;; T=KH;   2>;D J>; ?D?J?7B 97F?J7B ?I 78EL; ?JI IJ;7:OIJ7J; B;L;B

?JI C7H=?D7B FHE:K9J?L?JO ?I BEM #;D9; EL;H J?C; ?DL;IJC;DJ EKJFKJ 7D: 9ED IKCFJ?ED ; 97F?J7B IJE9A :;9H;7I;I ?JI C7H=?D7B FHE:K9J?L?JO H?I;I

7D: ;79> D;NJ :;9H;7I; ?I IC7BB;H J>7D J>; FH;L?EKI ED; #;D9; J>; FHE9;II E< :;9H;7I; ?D J>; 97F?J7BB78EH H7J?E 7D: 9EDIKCFJ?ED IBEMI :EMD 7D: J>; ;9EDECO 9EDL;H=;I JE J>; IJ;7:O IJ7J; ?

; FHE:K9J?ED ; IJ;7:OIJ7J; B;L;B E< 9EDIKCFJ?ED F;H KD?J E< B78EH 7I 7 EM J>7J ?J ?I C7N?C?P;: M>;D ;   3098.32   0I?D= J>; H;IKBJ E< J>; FH;L?EKI ;N;H9?I;

?

G #&! ?  B 

 

M; :;H?L; J>; ;NFH;II?ED ; 9EDIKCFJ?ED F;H KD?J E< B78EH ?D J>; IJ;7:O IJ7J; 7I 7    G M    G #&! ?    />; D;9;II7HO 9ED:?J?ED ; C7N?CKC E< 7 7I 7 ; ;GK7J?ED 78EL; =?L;I 87   G 8?   #&! ?  8G ? 8G

 



!    $!

k 6.5 6.25 6 5.75 5.5 5.25 5 4.75 4.5

t 1

3

5

7

9

11

13

15

17

19

21

1

3

5

7

9

11

13

15

17

19

21

c 0.38 0.37 0.36 0.35 0.34 0.33 0.32 0.31 0.3

!?=KH;   7F?J7B IJE9A 7D: 9EDIKCFJ?ED B;L;BI

t



k 16 15 14 13 12 11 10 1

3

5

7

9

11

13

15

17

19

21

t

c 0.55 0.54 0.53 0.52 0.51 0.5 0.49

t 1

3

5

7

9

11 13 15 17 19 21

!?=KH;   /H7DI?J?ED I?:;I E< J>; ;GK7J?ED H;IF;9J JE G  G  8? 8?  #&! ?  8G B  B  ? 8G

 

? 8?  #&! ?  8G

B  ?  G

 

.EBL?D= ?I ;NFH;II?ED ?DJE 878G 87 8G

 

G ?  #&! ? #&! ? ? B  ?  G      G   #&! ? 

B  ?  G

 

;97KI; #&! ?  J>; 9ED:?J?ED 878G  ?CFB?;I

  G   B  ?  G IE

  B  #;D9; 7J J>; L7BK; E< G J>7J C7N?C?P;I 7 M; >7L;

 

?

 

B     ? 

 

7D: M?J>    B    7D:    J>?I =?L;I ?   />; L7BK; E< G 97D 8; CE:;B 7I :;I9H?8;: ?D J>; FH;9;:?D= ;N;H9?I; 7D: ?D9BK:; =EL;HDC;DJ IF;D:?D= />; =EL;HDC;DJ FKH9>7I;I !  %; KD?JI E< 9EDIKCFJ?ED =EE: ?D J>; 9KHH;DJ F;H?E: M?J> ; 7 FEI?J?L; 9EDIJ7DJ />; =EL;HDC;DJ TD7D9;I ?JI FK8B?9 FKH9>7I;I M?J> 7 BKCFIKC J7N ED 9EDIKC;HI

M>;H; -  ! :;DEJ;I J>; 8K:=;J 87B7D9;: JEJ7B J7N;I .KFFEI; 9EDIKC;HI IF;D: 7 ;?H :?IFEI78B; ?D9EC; M>;H;  G   ?I J>; I7L?D=I H7J; IE J>7J     G 2  -  7 .>EM ?D 7 :?7=H7C >EM J>; 97F?J7BB78EH H7J?E ?I :;J;HC?D;: 7D: M>7J ?JI L7BK; ?I ?D 7 IJ;7:OIJ7J; 8 #EM C7DO IJ;7:O IJ7J;I 7H; FEII?8B;



c

k !?=KH;   EDIKCFJ?ED 7D: J>; 97F?J7BB78EH H7J?E

9 ED9;DJH7J; ED J>; IJ;7:O IJ7J; M?J> J>; >?=>;IJ 97F?J7BB78EH H7J?E 2>7J ?I J>; ?CF79J E< 7D ?D9H;7I; ?D FK8B?9 IF;D:?D= F;H MEHA;H ; ED J>; 97F?J7B B78EH H7J?E 7D: EKJFKJ F;H MEHA;H ?D J>; IJ;7:O IJ7J; 2>7J 7H; J>; ;\;9JI ED 7==H;=7J; EKJFKJ 9EDIKCFJ?ED 7D: ?DL;IJC;DJ 2>7J ?I J>; ;\;9J ED J>; =HEMJ> H7J; NFB7?D 8H?;UO 3098.32   7 2?J> J7N;I 7D: =EL;HDC;DJ IF;D:?D= J>; B7M E< CEJ?ED E< J>; 97F?J7B IJE9A ?I $D     $D G 2D  -D  

 

-D  !D  ;%D 

 

M>;H;

0FED :?L?:?D= J>; B7M E< CEJ?ED E< J>; 97F?J7B IJE9A 8O %D KD:;H J>; 7IIKCFJ?ED E< 7 9EDIJ7DJ H7J; E< =HEMJ> E< FEFKB7J?ED %D   B %D M; E8J7?D

 B ?D     ?D G MD  ; 

 

2?J> MD  #&! ?D  M; >7L; ?D 

G G;  ?D #&! ?D     B  B  B

 

7D: ?D J>; IJ;7:O IJ7J; ?

G; G #&! ?   B  B 

/>?I IJ;7:O IJ7J; ?I I>EMD ?D T=KH;  

 



!    $!

Output f (k ) = log(k )

[n + δ ]k sf (k )= s log(k ) sf (k )− sg = s log(k )− sg

k1

k2

Capital

!?=KH;   .J;7:O IJ7J;I

8 ;F;D:?D= ED J>; F7H7C;J;HI E< J>; ;9EDECO P;HE ED; EH JME IJ;7:O IJ7J;I 7H; FEII?8B; -;;H; ?I DE IJ;7:O IJ7J; ?< ; ?I IK< T9?;DJBO B7H=; J>7J G #&! ;  G; B?;I ;L;HOM>;H; 8;BEM B  ? />;H; ?I ED; IJ;7:O IJ7J; ?< B  ? ?I J7D=;DJ?7B JE G #&! ;  G; *J>;HM?I; J>;H; M?BB 8; J>; JME IJ;7:O IJ7J;I I>EMD 8O ? 7D: ? ?D T=KH;   9 I ED; 97D I;; ; :?7=H7C 7D ?D9H;7I; ?D ; H;IKBJI ?D 7 :;9H;7I; ?D J>; 97F?J7BZB78EH H7J?E 7D: EKJFKJ F;H MEHA;H 7J J>; IJ;7:O IJ7J; M?J> J>; >?=>;H 97F?J7BZB78EH H7J?E ? .?D9; J>; I?P; E< J>; FEFKB7J?ED H;C7?DI J>; I7C; 7==H;=7J; EKJFKJ 7BIE :;9H;7I;I ;97KI; J>; I7L?D=I H7J; ?D J>?I CE:;B ?I TN;: ;NE=;DEKIBO 7 :;9H;7I; ?D EKJFKJ H;IKBJI ?D 7 FHEFEHJ?ED7B :;9H;7I; ?D 8EJ> 9EDIKCFJ?ED 7D: ?DL;IJC;DJ />; =HEMJ> H7J; ?D J>; 7==H;=7J; L7H?78B;I ?I DEJ 7\;9J;: I?D9; ?J ?I ;GK7B JE J>; H7J; E< =HEMJ> E< FEFKB7J?ED />; 9EDL;HI; 7FFB?;I JE J>; IJ;7:O IJ7J; M?J> J>; BEM;H 97F?J7BZB78EH H7J?E

; .EBEM =HEMJ> CE:;B 799EKDJ ; F;HI?IJ;D9; ?D ?D9EC; ?D;GK7B?JO 79HEII 9EKDJH?;I :K; JE F;HI?IJ;DJ :?\;H;D9; ?D FEFKB7J?ED =HEMJ> H7J;I NFB7?D 7D: :?I9KII 3098.32   !EHC7BBO O;I #EM;L;H J>; FEFKB7J?ED =HEMJ> H7J; C7O 8; 7D ;D:E=;DEKI L7H?78B; :;J;HC?D;: ?D F7HJ?9KB7H 8O J>; B;L;B 7D: J>; =HEMJ> H7J; E< D7J?ED7B ?D9EC; $D J>; B?J;H7JKH; ED ;D:E=;DEKI E?9; 7CED= J>; L7H?78B;I J>7J 7\;9J J>; 7=;DJIW :;9?I?EDI ED J>; DKC8;H E< 9>?B:H;D 7D: >;D9; J>; FEFKB7J?ED =HEMJ> H7J; 7H; ;:K97J?ED FHE:K9J?L?JO E< B78EH ?D9EC;

7D: H;B7J;: FEB?9O L7H?78B;I />;H; ?I ;CF?H?97B ;L?:;D9; J>7J 97KI7B?JO HKDI ?D 8EJ> :?H;9J?EDI



; DKC8;H E< MEHA;HI />;H; 7H; JME =HEKFI E< MEHA;HI  7D:  M?J> 'D  'D 'D L;HO MEHA;H ?D;B7IJ?97BBO IKFFB?;I ED; KD?J E< B78EH L;HO MEHA;H ?D =HEKF  H;IF;9J?L;BO  79>?;L;I 7D ?D9EC; E< K H;IF;9J?L;BO K 7D: 'D KD 'D KD  'D KD 

 

/>; M7=; H7J?E ?I :;TD;: 7I KD KD   

  />; FHEFEHJ?ED E< =HEKF  ?D J>; FEFKB7J?ED ?I 

  7 .>EM J>7J J>; M7=; E< ;79> =HEKF ?I =?L;D 8O KD



KD



KD 

    KD 

   

8 IIKC; 7 E88EK=B7I FHE:K9J?ED ;H;  

  MD :;DEJ;I EKJFKJ F;H MEHA;H 7D: ?D ?I J>; 97F?J7B IJE9A F;H MEHA;H GK?B?8H?KC M7=; 7D: ?DJ;H;IJ H7J; 7H; I;J ;GK7B JE FHE:K9J?L?J?;I .>EM J>7J 7L;H7=; M7=; KD ?D9H;7I;I M?J> ?D 9 IIKC; J>7J J>; I7L?D= H7J;I 9 7H; 9EDIJ7DJ =HEKFI M?J>       />; 799KCKB7J?ED E< 97F?J7B ?I =?L;D 8O $D  ,D  M>;H; ,D ?I J>; 7==H;=7J; I7L?D= E< 8EJ> =HEKFI E< 9EDIKC;HI M>;D OEKD= .>EM J>7J J>; IJ;7:OIJ7J; IJE9A E< 97F?J7B F;H MEHA;H ?I ?  M>;H; 



  B



 

      

   

 

: .>EM J>7J J>; :?IJH?8KJ?ED E< ?D9EC; :E;I DEJ 7\;9J ?  ?<    NFB7?D J>?I H;IKBJ ; />; IE9?7B FB7DD;H I;;AI JE C7N?C?P; J>; 7L;H7=; IJ;7:OIJ7J; ?D9EC; K 8O H;:?IJH?8KJ?D= ?D9EC; JE 9>7D=;  2>7J ?I J>; EFJ?C7B H;:?IJH?8KJ?ED HKB; ?D J;HCI E<  7I 7 ; I7L?D= H7J;I     NFB7?D J>; H;IKBJ 3098.32   7 -;MH?J; ;GK7J?ED   7I 'D  'D  K K  KD  'D D 'D D



!    $!

H;FB79; KD M?J>

G#



KD   

KD  KD  

7D: IEBL; 9EDIJ7DJ H;JKHDI JE I97B; 7D: ?DFKJ FH?9;I I;J ;GK7B JE FHE:K9J?L?J?;I FD



'D KD 'D KD



8MD  ?D  8?D 2D  FD $D  MD  FD ?D  'D     ?D 'D 

EC8?D?D= J>?I M?J>   M; =;J KD     ?D  />KI J>; 7L;H7=; M7=; ?I 7D ?D9H;7I?D= ; 7==H;=7J; I7L?D=I 7H; =?L;D 8O ,D   KD 'D  KD 'D  7D: B7M E< CEJ?ED E< J>; 97F?J7B IJE9A F;H MEHA;H 97D 8; :;H?L;: 7I J>; ; IJ;7:O IJ7J;

,D  KD 'D  KD 'D $D

  'D

'D

'D

. ' D     KD KD    'D

  KD 



 

  

    B     ?   B D ?D  ?D  ?  

7D: 7L;  7D: J>;H; =HEKFI I7L; J>; I7C; ;?H ?D9EC; J>;D J>; 7==H;=7J; I7L?D=I ?I J>; I7C; ; 7==H;=7J; ?D9EC; 7D: ?J ?I J>?I 7J 7\;9JI J>; 97F?J7B IJE9A ?D J>; IJ;7:O IJ7J; H;=7H:B;II E< J>; :?IJH?8KJ?ED E< ?D9EC; ; />; 7L;H7=; ?D9EC; ?D J>; IJ;7:O IJ7J; ?I =?L;D 8O 

K 





       ?       B



     B

 



  

  



   

?\;H;DJ?7J?ED M?J> H;IF;9J JE  =?L;I    8K    8       B      8  8

7D: ?I C;7DI J>; 7L;H7=; ?D9EC; ?I :;9H;7I?D= ?D  7D: J>; IE9?7B FB7DD;H M?BB I;J  9BEI; JE P;HE $DJK?J?L;BO 8;97KI; J>; 7L;H7=; ?D9EC; ?D ?D9H;7I?D= ?D J>; 97F?J7B IJE9A J>; IE9?7B FB7DD;H M?BB M7DJ JE ?D9H;7I; J>; 7==H;=7J; I7L?D=I 7D:

J>;H;; =HEKF J>7J I7L;I >?=>;H FHEFEHJ?ED E< J>;?H ?D9EC;

; FH;L?EKI ;N;H9?I; 7D: IKFFEI; J>7J I7L?D= H7J;I E< J>; JME =HEKFI E< 9EDIKC;HI I7J?IEM J>7J J>;H; ;N?IJI 7 KD?GK; H;:?IJH?8KJ?ED HKB; KD KD   

  J>7J 79>?;L;I J>; "EB:;D -KB; IJE9A E< 97F?J7B 3EK 97D KI; 7 =H7F>?97B 7H=KC;DJ 3098.32   />; "EB:;D -KB; IJE9A E< 97F?J7B ?I =?L;D 8O : ?  B



!    $!

0I?D=   M; E8J7?D

?   B

EH ?B 

 -  . 

B



.;JJ?D= ?   ? B ?D  

 -  . 

B



     B

  



M; E8J7?D ; ; :;TD?J?ED   M; 97D DEM IEBL;      >   

 >   > 

/>?I GK7DJ?JO ?I FEI?J?L; 7I BED= 7I CE:;B M?J> KJ?B?JO ; 9ED:?J?EDI :;I9H?8?D= 7 IJ;7:O IJ7J; 8 .EBL; J>;I; 9ED:?J?EDI JE E8J7?D J>; IJ;7:OIJ7J; L7BK;I E<  $ 7D: % 9 2>7J ?I J>; ;\;9J ED J>; IJ;7:O IJ7J; E< 7D ?D9H;7I; ?D  3098.32   7 />; 9EDIKC;HWI EFJ?C?P7J?ED FHE8B;C ?I $)

(

 D #&! D #&!   %D 

D

I J D $D  KD %D    FD  $D 

 

 />; '7=H7D=?7D ; 9EDIKC;HWI FHE8B;C ?I 

(

 D #&! D  #&!   %D  D KD %D    FD  $D  D  $D  

D

 

7D: ; THIJEH:;H D;9;II7HO 9ED:?J?EDI

  D D





 D KD     %D  D  D    FD    

     

M; E8J7?D

D  D

 KD      FD    %D  D  9ECF;J?J?L; THC C7N?C?P;I FHETJ    FD $D  KD %D  $) $D %  D

 

 

!HEC J>; THIJEH:;H 9ED:?J?EDI M; >7L;  KD     $D %  FD  $D %  D

 

0FED ;B?C?D7J?ED E< J>; FH?9;I M; E8J7?D 7 IOIJ;C E< :OD7C?9 ;GK7J?EDI :; I9H?8?D= J>; ;GK?B?8H?KC ?D J>?I ;9EDECO D $D

D   %D

 D

   D



$D %     $D  D

 



   $D % 

 



  $D

%D 

 

$D J>; IJ;7:OIJ7J; ;GK?B?8H?KC D   $D  $ %D  % ;I; L7BK;I IEBL; J>; ; CE:;B !EH J>7J IK8IJ?JKJ; ?H: ;GK7J?ED ?DJE J>; THIJ JME JE =?L;

  $  $         

           %    



!    $!

?L?:; J>; THIJ ;GK7J?ED ?D J>; IOIJ;C 78EL; 8O $ JE E8J7?D



                 $    

 

);NJ :?L?:; J>; I;9ED: ;GK7J?ED ?D J>; IOIJ;C 8O J>; ;GK7J?ED 78EL; JE ;B?C? D7J; 

  $          %            )EM M; 97D ;B?C?D7J; $ % $%   % $   %  />?I O?;B:I % #;D9;

$

7D: 

 

 

                          

      

       

             

 

 



%



         

        

 



       $ 

  

              

        

 



 

9 $J ?I ;7IO JE I;; J>7J 7D ?D9H;7I; ?D  97KI;I % JE ?D9H;7I; I?D9;        %          

 

(EH; FH;9?I;BO :?\;H;DJ?7J?ED E< J>; 8EJ> I?:;I E< J>?I H;B7J?ED M?J> H;IF;9J JE  O?;B:I 77J $ ?I 7D ?D9H;7I?D=  7D: % #;D9; 7D ?D9H;7I; ?D  M?BB 97KI; $ JE ?D9H;7I; />; I?=D E< J>; ;\;9J E< 7D ?D9H;7I; ?D  ED  ?I DEJ ?CC;:?7J;BO E8L?EKI I?D9;

          %       

 7D: M?J>  ?D9H;7I?D= J>; THIJ ; H?=>J>7D: I?:; :;9H;7I;I 7D: J>; J>?H: H;IF;9J JE  =?L;I 8 8



          

  % 8%    8         

 

M>?9> 97D 8; H;MH?JJ;D KI?D= J>; ;NFH;II?EDI E8J7?D;: 78EL; ;H;; ?DDEL7J?ED FHE9;II Y ?I9KII J>; ;NF;9J;: H;B7J?ED 8;JM;;D J7N7J?ED 7D: =HEMJ> ?D J>; B?=>J E< J>?I IJ7J;C;DJ 3098.32   BJ>EK=> J7N7J?ED H;:K9;I J>; ?D9;DJ?L;I JE ?DDEL7J; 7D: ?D 9H;7I; FHE:K9J?L?JO J>;H;8O IBEM?D= :EMD J>; ;9EDEC?9 =HEMJ> J>; J7N H;L;DK;I

 97D 8; KI;: 7I 7 FK8B?9 ?DFKJ ?D 799KCKB7J?ED E< >KC7D 97F?J7B ;:K97J?ED 7D: ?D J>; ?D?I 97D ?D9H;7I; FHE:K9J?ED ;[9?;D9O 7D: >7L; 7 FEI?J?L; ;\;9J ED =HEMJ>

;H; J>; THIJ   E< ?D9EC; ?I J7N ; D;NJ   ?I J7N;: 7J  F;H9;DJ 7D: 7BB ?D9EC; 78EL;   ?I J7N;: 7J  F;H9;DJ />;H; ?I 7 FEFKB7J?ED E< 9EDIKC;HI M?J> M>E ;7HD M7=;I 8;JM;;D  7D:  F;H >EKH 27=;I 7H; KD?; FEFK B7J?ED $< 7BB 9EDIKC;HI >7L; FH;; C;7D 7L;H7=; J7N H7J; ; FEFKB7J?ED 8 />; C;7D C7H=?D7B J7N H7J; ; FEFKB7J?ED #EM :E J>;I; C;7D H7J;I :?\;H ; 79JK7B H7J;I 3098.32   7 />; J7N ;: ?D T=KH;   7D: ?J 97D 8; I;;D J>7J ?J >7I JME A?DAI 7J ?D9EC;I   7D:   />; THIJ IJ;F ?I JE BE97J; 9EDIKC;HI JE FE?DJI ED J>; J7N ;?H 9>E?9; E< ?D9EC; B;L;B />; =;D;H7B ; 9>E?9; FHE8B;C ?I $) #&!  

"

% I J   5 6K% 

 

!EH 9EDIKC;HI 9>EEI?D= 7D ?D9EC; B;II   5  7D: 6   !EH ?D9EC;I 8;JM;;D   7D:   5   7D: 6   !EH ?D9EC;I 78EL;   5  

7D: 6   />; D;9;II7HO 9ED:?J?ED ; 9>E?9; FHE8B;C ?I   6K    5 6K% 

 

>;D9;



6K  5    6 />?I H;IKBJ ?CFB?;I J>7J 9EDIKC;HI M?J> 7 M7=; E< B;II J>7D  M?BB ;7HD B;II J>7D   7D: 8; BE97J;: JE J>; B;; THIJ A?DA /E I;; J>?I IK8IJ?JKJ; 5  7D: 6   ?D   7D: TD: J>; H7D=; E< K ?9> K%  

-;F;7J?D= J>?I ;N;H9?I; ; I;9ED: I;9J?ED KI?D= 5   7D: 6   I>EMI J>7J  9EDIKC;HI M?J> M7=;I 78EL;   8KJ 8;BEM  ;7HD ?D ;N9;II E<   8KJ B;II J>;D   !?D7BBO ED J>; J>?H: I;9J?ED 9EDIKC;HI M?J> 7 M7=; 78EL;  ;7HD ?D ;N9;II E<   #;D9; 9EDIKC;HI M?J> M7=;I 8;JM;;D  7D:   7H; 7J J>; THIJ A?DA 7D: ;7HD ;N79JBO   7D: J>EI; 8;JM;;D   7D:  7H; 7J J>; I;9ED: A?DA />?I ?D; 7L;H7=; J7N H7J; DEM >7I JE 8; 9EDIJHK9J;: I;9J?ED />?I ?I KD:;HJ7A;D 8O :;TD?D= J>; 7L;H7=; H7J; E< J7N 8O K% 

- + 

$D9EC; 77J J>; - + 97D 8; H;B7J;: JE J>; M7=; H7J; 7I

- + K 

 # # "

# # !

 K



 K







 

K     K    K    K 

 

/E 9ECFKJ; J>; C;7D E< J>?I J7N H7J; J>; - + >7I JE 8; M;?=>J;: 8O J>; FHEFEHJ?ED E< FEFKB7J?ED ;7HD?D= ;79> M7=; />; FEFKB7J?ED ?I 7IIKC;: JE 8; KD?; JEJ7B  FEFKB7J?ED ?I " J>; :;DI?JO ; C;7D +- +-  ?I J>;D :;TD;: 8O

- + 

 "

) 



+- K

" 8K 

 

 ECFKJ; J>; ?DJ;=H7B KI?D=   

)   K     8K 

 8K       

)  )     K  8K  8K         )

- +



 



 

/>; C;7D 7L;H7=; J7N H7J; ?I   F;H9;DJ 8 />; C7H=?D7B J7N H7J; M7=; ?I =?L;D 8O K     K    K 

"   & - + K  !  

 

ECFKJ?D= J>; C;7D C7H=?D7B J7N H7J; =?L;I ) &-+

 



 



 8K 

)





 8K   



)







 8K   

/>; C;7D C7H=?D7B J7N H7J; ?I   F;H9;DJ />; C;7D 7L;H7=; J7N H7J; ?I 8;BEM 7DO E< J>; 79JK7B J7N H7J;I EJ>;H J>7D J>; P;HE C7H=?D7B H7J; ; H7J; J>7J ?I ; C7@EH?JO E< J>; FEFKB7J?ED -;97BB J>7J C7H=?D7B 9>E?9;I JE MEHA 7D >EKH CEH; EH B;II :;F;D: ED J>; H;M7H: 7J >EKH M>?9> ?I :;J;HC?D;: 8O J>; C7H=?D7B J7N H7J; />; C;7D 7L;H7=; J7N H7J; ?D J>?I 97I; ?I 7 FEEH FHENO 7J L7BK; />; C;7D C7H=?D7B J7N H7J; ?I 9BEI; JE J>;  F;H9;DJ H7J; ; C?::B; ?D9EC; =HEKF ?D J>?I ;N7CFB; KJ J>?I ?I @KIJ 7D 7HJ?; DKC8;HI M>;H; J>; FEFKB7J?ED ?=>;H H7J; 7D: J>; FEFKB7J?ED D;?J>;H E< J>;I; DKC8;H =?L;I 7 H;7B ?CFH;II?ED E< J>; ;9EDEC?9 ?D9;DJ?L;I

; H;IKBJI E< J>; FH;L?EKI ;N;H9?I; TD: J>; C;7D B78EH IKFFBO H;IFEDI; JE 7D ?D9H;7I; ?D J>;  F;H9;DJ H7J; JE  F;H9;DJ )EM 9EDI?:;H 7 9EDIKC;H E< C;7D M7=; H7J; ; C;7D J7N H7J; 7J ?D9H;7I; ?D J>?I C;7D H7J; E< J7N >7I J>; I7C; ;\;9J 7I J>;  F;H9;DJ ?D9H;7I; ?D J>;  F;H9;DJ H7J; E;I J>; KI; E< J>; C;7D C7H=?D7B H7J; FHEL?:; 7 =EE: ?D:?97J?ED E< J>; B78EH IKFFBO H;IFEDI; 3098.32   J 7 J7D=;D9O IEBKJ?ED J>; B;L;B E< B78EH IKFFBO ?I =?L;D 8O %  



5  6K

 



!    $!

M>;H; 5 7D: 6 7H; :;TD;: 8O J>; 7FFHEFH?7J; I;9J?ED E< J>; J7N ;H; & ?I J>; ?D9EC; B;L;B 7J J>; 9EHD;H ;?J>;H   EH   !EH J>; J7N ; B78EH IKFFBO  # # 

K # # ! 

 

K

 K    K    K    K    K 

 

/>;I; B78EH IKFFBO ;O 7H; 9E?D9?:;DJ J>HEK=> 7 B7H=; F7HJ E< J>; H7D=; E< M7=;I 8KJ %>  %? 8;JM;;D J>; THIJ 7D: I;9ED: A?DAI E< J>; ?D9EC; J7N ; C;7D B78EH IKFFBO H;IFEDI; ?I :;TD;: 8O )





%?  %> 

 8K    

 

IE J>;  F;H9;DJ ?D9H;7I; ?D J>; C7H=?D7B H7J; E< J7N H;:K9;I B78EH IKFFBO J>?I ?I ?BBKIJH7J;: ?D T=KH;   )EM 7IIKC; J>7J J>; J7N IOIJ;C H;J7?DI 7D ;N;CFJ?ED ; THIJ   E< ?D9EC; 8KJ 7J FE?DJ ED J>; C7H=?D7B H7J; ?I & - +   F;H9;DJ />; 8K:=;J 9EDIJH7?DJ ; 9EDIKC;H M?J> C;7D ?D9EC;  8;9EC;I   



   %

 

7D: J>; KJ?B?JOC7N?C?P?D= B78EH IKFFBO ?I %  







      

 

2; DEM >7L; JE H;:K9; J>; EH?=?D7B B78EH IKFFBO E<  8O   M>?9> =?L;I D;M B78EH IKFFBO E<   #;D9; M; D;;: JE TD: J>; J7N H7J; H J>7J IEBL;I    





H     H

 

 Labor supply

new new

Wage

!?=KH;   27=;I 7D: B78EH IKFFBO

M>?9> =?L;I

H  

 

/>; C7H=?D7B J7N H7J; ; 9EDIKC;H M?J> C;7D M7=; H7J; CKIJ H?I;   F;H9;DJ JE ;GK7B J>; ;\;9J E< 7  F;H9;DJ H?I; ED C;7D B78EH IKFFBO $D J>?I 97I; J>; KI; E< J>; C;7D C7H=?D7B H7J; MEKB: 97KI; J>; B78EH IKFFBO ;\;9J JE 8; I?=D?T97DJBO EL;HIJ7J;:

; ;D:E=;DEKI =HEMJ> CE:;B ;NFB7?D M>O F;H 97F?J7 ?D 9EC; B;L;BI :E DEJ D;9;II7H?BO 9EDL;H=; 79HEII 9EKDJH?;I ;L;D M>;D 9EKDJH?;I 7H; ?D?J?7BBO ?:;DJ?97B ;N9;FJ KC7D 97F?J7B B;L;BI 3098.32   *D; E< J>; FH;:?9J?EDI E< J>; ;NE=;DEKI =HEMJ> CE:;B ?I J>7J 9EKDJH?;I M?BB 9EDL;H=; ?D ?D9EC; B;L;BI />?I ?I 7 9EDI;GK;D9; E< J>; 9EDIJ7D9O E< 9EDIKCFJ?ED 7D: ?D9EC; F;H 97F?J7 ?D J>; IJ;7:O IJ7J; +HEL?:;: J>7J 7BB 9EKDJH?;I >7L; 799;II JE J>; I7C; FHE:K9J?ED J;9>DEBE=O J>; 799KCKB7J?ED E< 97F?J7B M?BB ;L;DJK7BBO J7A; J>;C 7BB JE 7D ?:;DJ?97B IJ7J; J J>?I FE?DJ 9ED L;H=;D9; M?BB >7L; E99KHH;: (EH;EL;H J>; ?D?J?7B 7:L7DJ7=; E< 7 >?=>;H 97F?J7B IJE9A ?I =H7:K7BBO ;HE:;: ED J>; =HEMJ> F7J> />; :?\;H;D9; 97KI;: 8O J>; ?DJHE:K9J?ED E< ;D:E=;DEKI =HEMJ> ?I J>7J ?D9EC; F;H 97F?J7 M?BB DEJ 8;9EC; 9EDIJ7DJ ?D J>; BED= HKD 8KJ M?BB 9EDJ?DK; JE =HEM 7D: 9EKDJH?;I >7L; J>; 78?B ?JO JE 7\;9J J>; =HEMJ> H7J; J>HEK=> FEB?9O 9>E?9;I EKDJH?;I M?J> 7D ?D?J?7BBO >?=>;H B;L;B E< 97F?J7B IJ7HJ ?D 7D 7:L7DJ7=;EKI FEI?J?ED 7D: ?< 7BB 9EKDJH?;I I;B;9J J>; I7C; FEB?9?;I M?BB 7BM7OI H;J7?D 7D 7:L7DJ7=; $< 9EKDJH?;I I;B;9J :?< 7 >?=>;H ?D?J?7B B;L;B 8KJ 87: FEB?9O $D 7DO 97I; J>; :OD7C?9I E< ;D:E=;DEKI =HEMJ> =?L; DE H;7IED JE ;NF;9J 9EDL;H=;D9;

&68 $

!

-&48*6 

378?*2*>8 2&0=7.7 7I 7D ?D?J?7B 9EIJ E<  7D: O?;B:I 8;D;TJ E<  ;D >7I 7 :;9ECC?II?ED?D= 9EIJ E<  ?D O;7H  7 .>EKB: J>; FHE@;9J 8; ?CFB;C;DJ;: ?< J>; :?I9EKDJ H7J; ?I  F;H9;DJ 8 2>7J ?I J>; ?DJ;HD7B H7J; E< H;JKHD ; FHE@;9J 9 $I J>; FHE@;9J I;DI?J?L; JE J>; :;9ECC?II?ED?D= 9EIJ 3098.32   7 />; ' ) / 7J 7 :?I9EKDJ H7J; E<  F;H9;DJ ?I ' ) /  



 ( D

  D    

 

 

8 />; ?DJ;HD7B H7J; E< H;JKHD ?I J>; IEBKJ?ED JE

 



 ( D

  D  

 F

 F

+BEJJ?D= J>; ;GK7J?ED H;L;7BI J>7J #++    />?I I>EMI J>7J 7 IC7BB ?D9H;7I; ?D J>; :?I9EKDJ H7J; 97D C7A; J>; ' ) / D;=7J?L; 9 -7?I?D= J>; :;9ECC?II?ED?D= 9EIJ JE  =?L;I ' ) /  



 ( D

  D     

 

 

.E 7  F;H9;DJ ?D9H;7I; ?D J>; 9EIJ C7A;I J>; ' ) / D;=7J?L; 7D: 9>7D=;I J>; :; 9?I?ED ED J>; FHE@;9J />?I 97D 8; @K:=;: 7I I;DI?J?L; I?D9; J>; :;9ECC?II?ED?D= 9EIJ C7O 8; IK8@;9J JE ;HHEH ?D ;IJ?C7J?ED

H;; ?DL;IJC;DJ FHE@;9JI >7L; J>; 97I> UEMI :;J7?B;: ?D J>; J78B; $I ?J FEII?8B; JE H7DA J>;I; FHE@;9JI M?J>EKJ IF;9?; :?I9EKDJ H7J; 



!    !(! &  +;H?E: +HE@;9J  +HE@;9J  +HE@;9J 

   

   

   

   

   

3098.32   />; JEJ7B IKC E< KD:?I9EKDJ;: 97I> UEMI ?I J>; I7C; 7D: ;GK7BI 

H;; FHE@;9JI ECF7H; FHE@;9JI  7D:  8EJ> >7L; J>; I7C; ?D?J?7B 9EIJ FHE@;9J  >7I 97I> UEMI >?=>;H 8O 

?D O;7HI  7D:  7D: BEM;H 8O 

?D O;7HI  7D:  J>7D FHE@;9J  />;H;7L; 7 >?=>;H ' ) / ; D;=7J?L; :?\;H;D9; ?D ;7HD?D=I ;H ?D J>; ; FEI?J?L; :?\;H;D9; ?D ;7HD?D=I J>7J 9EC;I ;7HB?;H )EM 9ECF7H;  7D:  97I> UEMI ?D F;H?E:I  7D:  7H; J>; I7C; IE M; ; ?CC;:?7J; 9EIJ E< FHE@;9J  ?I >?=>;H 8O 

7D: J>; ?=>;H 8O 

9ECF7H;: JE FHE@;9J  #EM;L;H

J>;I; ?I FEI?J?L; :?\;H;D9; J>7J 9EC;I ;H ?D J>; ;: 8O J>; >?=>;H ?CC;:?7J; 9EIJ />KI FHE@;9J  M?BB >7L; >?=>;H ' ) / J>7D FHE@;9J  ; H7DA?D= ?I   

?I F;H?E: ?I   O;7HI 7D: ;79> FEKD: E< DK9B;7H ; 7DDK7B ;D;H=O FHE:K9;: JE C7A; J>; FHE9;II MEHJ>M>?B; M>;D J>; :?I9EKDJ H7J; ?I   F;H9;DJ 3098.32   />; FH;I;DJ :?I9EKDJ;: 9EIJ E< IJEH?D= J>; ; 7DDK7B L7BK; E< ;D;H=O EKJFKJ J>7J C7J9>;I J>?I T=KH; IEBL;I  ( D

 D  

 

.EBL?D= =?L;I    />?I T=KH; H?I;I :H7C7J?97BBO ?< J>; :?I9EKDJ H7J; ?I H;:K9;: 7D: J>; IJEH7=; F;H?E: ?I ?D9H;7I;: />; IJEH7=; F;H?E: ; FH;I;DJ :?I9EKDJ;: 9EIJ E< IJEH7=; 7I   (  D  

  D



7H; J>H;; ?CFEHJ7DJ 9>7H79J;H?I J?9I !?HIJ JE IEC; ;NJ;DJ J>;I; :;9?I?EDI C7O 8; ?HH;L;HI?8B; ED9; 9ECC?JJ;:

J>; H;IEKH9;I 97DDEJ 8; H;9EL;H;: .;9ED: J>; EKJ9EC; E< J>; ?DL;IJC;DJ C7O 8; KD9;HJ7?D 8;97KI; J>; ?DFKJ :7J7 7H; KD9;HJ7?D />?H: J>;H; C7O 8; IEC; B;;M7O M?J> H;IF;9J JE J>; J?C?D= E< J>; ?DL;IJC;DJ ?I9KII 8H?;UO 3098.32   />; THIJ 9>7H79J;H?IJ?9 C7A;I J>; ?DL;IJC;DJ 7 IKDA 9EIJ J>7J 97DDEJ 8; H;9EL;H;: ?< J>; FHE@;9J ?I B7J;H H;L;7B;: DEJ JE 8; :;B?L;H?D= IK[9?;DJ 8;D;TJI />?I ?CFB?;I J>7J J>; :;9?I?ED JE C7A; J>; ?DL;IJC;DJ I>EKB: EDBO 8; C7:; M>;D J>; 9EIJ8;D;TJ 97B9KB7J?ED ?I ?D ; FHE@;9J !EHC7BBO J>; KF7D J>; :?I9EKDJ;: L7BK; E< IK?J78B; 799EKDJ J7A;D E< J>; H?IA?D;II E< 8;D;TJI $D 9EDJH7IJ ?< J>; ?DL;IJC;DJ 9EKB: ;7I?BO 8; H;9EL;H;: ?D ;D J>; KF; H;9EL;HO E< ?DL;IJC;DJ ?< J>; FHE@;9J ?I ;D:;: 0D9;HJ7?DJO 97D ;DJ;H ;L;HO ; ?CFEHJ7DJ FE?DJ ?I JE J7A; 799EKDJ E< J>; H?IA?D;II ?D J>; 9EIJ 8;D;TJ 97B9KB7J?ED 2>;D J>;H; ?I H?IA 7L;HI?ED J>; ;NF;9J;: KJ?B?JO E< 7 H?IAO F7OE\ ?I B;II J>;D J>; KJ?B?JO E< J>; ;NF;9J;: F7OE\ />?I 97D 8; ?D9EHFEH7J;: ?DJE J>; 9EIJ8;D;TJ 97B9KB7J?ED 8O 7::?D= 7 H?IA FH;C?KC JE J>; :?I9EKDJ H7J; M?J> H?IA?;H F7OE\I >7L?D= 7 >?=>;H H?IA FH;C?KC />; TD7B 9>7H79J;H?IJ?9 ;CF>7I?P;I J>7J C7DO :;9?I?EDI ?DLEBL; 7 9>E?9; E< J?C?D= ?=> B;L;B E< KD9;HJ7?DJO 78EKJ ; KD9;HJ7?DJO C7O 8; H;:K9;: KDJ?B 7 FE?DJ ?I H;79>;: 7J M>?9> J>; J;IJ ?I F7II;: />; FHE@;9J 97D J>;D 8; KD:;HJ7A;D />;H; ?I 7DEJ>;H FE?DJ JE M>?9> J>;I; 9>7H79J;H?IJ?9I :H7M 7JJ;DJ?ED  FHE@;9J 97D E; THIJ 9>7H79J;H?IJ?9 ?BBKIJH7J;I J>; EFJ?ED JE 9EDJ?DK; J>; FHE@;9J EH JE I>KJ :EMD J>; FHE@;9J />; L7BK; E< J>?I EFJ?ED ?I 7\;9J;: 8O J>; ;NJ;DJ JE M>?9> J>; 9EIJI E< J>; ?DL;IJC;DJ 97D 8; H;9EL;H;: />; J>?H: 9>7H79J;H?IJ?9 ?BBKIJH7J;I J>; EFJ?ED E< IJ7HJ?D= J>; FHE@;9J EH :;B7O?D= J>; IJ7HJ />; EFJ?ED E< IJ7HJ?D= J>; FHE@;9J M?BB 8; 9>EI;D ED9; ?J 8;9EC;I FEI?J?L; />; I;9ED: 9>7H79J;H?IJ?9 ?I 7 H;C?D:;H J>7J J>; L7BK; E< ;79> EFJ?ED 7J 7 FE?DJ ?D J?C; :;F;D:I ED J>; H?IA?D;II E< J>; 9EDI;GK;D9;I E< 9>EEI?D= J>7J EFJ?ED />;H; 7H; C;J>E:I 7L7?B78B;  97BB;: XH;7B EFJ?ED J>;EHOY Z ;EHO E< 9EIJ8;D;TJ 7D7BOI?I

; ?DJ;HD7B H7J; E< H;JKHD $-- E< J>; FHE@;9JI :;I9H?8;: ?D J>; J78B; 2EKB: ;?J>;H FHE@;9J 8; 799;FJ;: ?< J>; H;GK?H;: $-- M7I   F;H9;DJ +;H?E: +HE@;9J  +HE@;9J 

  

  

  

  

  



!    !(! & 

3098.32   /E TD: J>; #++ M; ;GK7J; J>; ' ) / JE P;HE 7D: IEBL; ; ' ) / 97B9KB7J?EDI =?L; ' ) /







' ) /











 F 



 F







 F 



 F

  F   

  F   

/>; THIJ FHE@;9J M?BB 8; 799;FJ;: 8;97KI; ' ) / ?I 7 :;9H;7I?D= ; H;GK?H;: #++ ?J ?I IJH?9JBO FEI?J?L; ' ) /

   ' ) /

  

/>; I;9ED: FHE@;9J M?BB 7BIE 8; 799;FJ;: 8;97KI; ' ) / ?I 7D ?D9H;7I?D= ; H;GK?H;: #++ ?J ?I IJH?9JBO FEI?J?L; ' ) /

   ' ) /

  

7J 9EIJI  C?BB?ED 7D: ?DLEBL;I 8K?B:?D= 7 :7C 7D: 97D7B JE FHEL?:; M7J;H JE ?HH?=7J; :;I;HJ B7D: J>7J >7I DE EJ>;H KI; $< ?HH?=7J;: J>; B7D: M?BB 8; KI;: JE =HEM 9K9KC8;HI .KFFEI; J>; :;C7D: ; FH?9; E< 9K9KC8;HI ?D 9;DJI F;H FEKD: .KFFEI; J>7J J>; FHE@;9J FHE:K9;I   C?BB?ED FEKD:I E< 9K9KC8;HI F;H O;7H 2?J>EKJ J>; FHE@;9J J>; GK7DJ?JO E< 9K9KC8;HI 7L7?B78B; ?I  C?BB?ED FEKD:I F;H O;7H 2?J> J>; FHE@;9J J>; GK7DJ?JO ?I   C?BB?ED FEKD:I F;H O;7H .KFFEI; J>; EDBO ?DFKJ H;GK?H;: JE FHE:K9; 9K9KC8;HI 8;I?:;I J>; B7D: 7D: M7J;H M>?9> >7L; DE EFFEHJKD?JO 9EIJ ?I B78EH 7D: ;79>   FEKD:I E< 9K9KC8;HI H;GK?H;I  F;HIEDO;7H E< B78EH />?I C;7DI J>; FHE@;9JWI   C?BB?ED FEKD:I E< 9K9KC8;HI H;GK?H;  F;HIEDO;7HI E< B78EH .KFFEI; 7BIE J>7J J>; IKFFBO ; FHE@;9J ?I %   

K M>;H; % ?I F;HIEDO;7HI E< B78EH IKFFB?;: 7D: K ?I J>; M7=; H7J; ?D :EBB7HI F;H F;HIEDO;7HI 2?J>EKJ J>; FHE@;9J J>; 7CEKDJ E< B78EH KJ?B?P;: ?I  F;HIEDO;7HI 2?J> J>; FHE@;9J J>; B78EH :;C7D: ?I  F;HIEDO;7HI 7 2>7J ?I J>; =HEII 8;D;TJ E< J>; FHE@;9J 8 2>7J ?I J>; D;J 8;D;TJ E< J>; FHE@;9J 9 2>7J ?I J>; ?CF79J E< J>; FHE@;9J ED 9EDIKC;H 7D: FHE:K9;H IKHFBKI 3098.32   7 !?HIJ M; D;;: JE TD: J>; C7HA;J FH?9; E< 9K9KC8;HI M?J>EKJ J>; FHE@;9J !HEC J>; C7HA;J9B;7H?D= 9ED:?J?ED

  D





D D

 

 9;DJI F;H FEKD:

 :EBB7HI F;H FEKD:

 );NJ M; D;;: JE TD: J>; C7HA;J9B;7H?D= M7=; ?D J>; 7H;7 M?J>EKJ J>; FHE@;9J  

K





K





:EBB7HI F;H F;HIEDO;7HI

/>; FHE:K9J?ED E<  C?BB?ED FEKD:I E< 9K9KC8;HI H;GK?H;I  F;HIEDO;7HI E< B78EH />;H;; FHETJ EKJ J>; FHE@;9J ?I

    C?BB?ED  

 

  C?BB?ED :EBB7HI EDIKC;H IKHFBKI M?J>EKJ J>; FHE@;9J ?I , 

      C?BB?ED   C?BB?ED :EBB7HI



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

;D 7B?L; ?I . & 5  #% &  7D: J>7J KJ?B?JO ?D J>; 97I; E< :;7J> ?I . & 8  #% # 3  M>;H; 7   !?D: J>; 0 - ) JE 7LE?: :;7J> 7D: I>EM J>7J J>; / ,% ?I / ,% 

8  #% 7 &    8D

IIKC?D= J>7J 7   7D: D  

 ;L7BK7J; J>; / ,% ;J>;H ?J ?I 7DDK7B ?D9EC; EH B?7J I>EKB: ;DJ;H J>?I 97B9KB7J?ED

 3098.32   />; 0 - )  ?I :;TD;: 8O . &   5    D . & 5 D. & 8 0D:;H J>; 7IIKCFJ?EDI E< J>; ;N;H9?I; #% &  



  D #% &  D #%



 #% &   D #% 7

&  7

/7A?D= J>; JEJ7B :;H?L7J?L; =?L;I    8   8D  #% 7  &  -;7HH7D=?D= =?L;I J>; H;GK?H;: ;NFH;II?ED />; 0 - ) 97D 8; ?I ?CFB?;I & M>?9> =?L;I

&  7@

 & / ,%  #% 7 @  7 

!EH J>; DKC8;HI =?L;D 

/ ,% 



/ ,% 



/ ,%  



  

    

  



#%       

  



   

 #%   

#% 

/>;I; EH:;HI E< C7=D?JK:; IK==;IJ J>7J ?J I>EKB: 8; B?KC8 ?D EH:;H JE FHE:K9; 7D EF;H7J?ED7B C;J>E:EBE=O

; 1;D?9; E< J>; (?:B7D:I L?I?JEH 9;DJ;H BE97J;: ED J>; 97D7B IOIJ;C ?D -KCC?:=; :E;I DEJ 7JJH79J C7DO L?I?JEHI $D J>; F7IJ O;7H DE CEH; J>7D   L?I?JEHI L?;M;: J>; ;N>?8?J?ED 7J J>; 9;DJ;H 2>;D J>; 1;D?9; E< J>; (?:B7D:I 9;DJ;H M7I FKH9>7I;: 8O J>; =EL;HDC;DJ ;C; F7HA 9ECF7DO ?J 9EIJ  C?BB?ED 7 2>7J ?I J>; L7BK; E< 8;D;TJ L?I?JEH ?< J>;  C?BB?ED 9EHH;9JBO H;U;9JI J>; :?I9EKDJ;: L7BK; E< J>; 7DDK7B UEM E< 8;D;TJI ; 9;DJ;H 7D: J>; :?I9EKDJ H7J; ?I  F;H9;DJ $I J>?I 7 H;7B?IJ?9 L7BK; 7J ;79> L?I?JEH E8J7?DI 8;D;TJI E<  ; 9;DJ;H $I ?J IE9?7BBO 8;D;T9?7B ; 9;DJ;H JE B7O ED 7D ;DJ;HJ7?DC;DJ FHE=H7C J>7J H7?I;I L?I?JEH DKC8;HI JE   F;H O;7H 8KJ >7I 7D 7DDK7B 9EIJ E<   9 #EM MEKB: J>;I; 7DIM;HI 9>7D=; ?< J>; 9;DJ;H 7BIE FB7O;: 7 A;O HEB; ?D FH;I;HL?D= J>; >?IJEH?97B B;=79O E< 97D7BI ?D -KCC?:=; 3098.32   7 />;  C?BB?ED ?I 9EHH;9J ?< J>; L7BK; E< 8;D;TJI 6 F;H L?I?JEH I7J?IT;I

( 

6 





 D

  D .EBL?D= J>?I ;GK7J?ED =?L;I 6    />?I I;;CI 7D KDH;7B?IJ?97BBO >?=> T=KH; ; 8;D;TJ :;H?L;: ?8?J?ED 9;DJ;H 8 />; 8;D;TJ E8J7?D;: ; 9KHH;DJ DKC8;H E<   L?I?JEHI ?I

( 

  D

D

 

   



-7?I?D= J>; DKC8;H E< L?I?JEHI JE   8KJ M?J> 7D 7DDK7B 9EIJ E<   :;B?L;HI D;J 8;D;TJI E<

( 

   

D

D

 

 





$J ?I IE9?7BBO 8;D;T9?7B JE B7O ED J>; ;DJ;HJ7?DC;DJ FHE=H7C

 9 />;I; 7DIM;HI MEKB: 9>7D=; J>HEK=> J>; 7::?J?ED E< 7 ;H 8;D;TJ H;U;9J?D= J>; FH;I;DJ :?I9EKDJ;: L7BK; E< J>; >?IJEH?97B B;=79O />?I MEKB: H;:K9; J>; L7BK; E< J>; 8;D;TJ 6 ?D F7HJ 7 J>7J @KIJ?T;I J>; FKH9>7I; FH?9; $J MEKB: H7?I; J>; 8;D;TJI 97B9KB7J?EDI ?D F7HJ 8 ;GK7BBO IE MEKB: DEJ 9>7D=; J>; H7DA?D=

;I; E8 I;HL7J?EDI 3098.32   />; XM;?=>JIY ?D J>?I GKEJ7J?ED 7H; J>; M;BJI 7I I?=D;: JE J>; M;B7D=;I E< ?D:?L?:K7BI ?D J>; 9EIJZ8;D;TJ 97B9KB7J?ED />; IJ7D:7H: BE=?9 ?I J>7J J>; IE9?7B M;B KJ?B?JO ?I 7 9EDI;GK;D9; E< >?=> ?D9EC; J>;D J>; IE9?7B C7H=?D7B KJ?B?JO E< ?D9EC; J>; FHE:K9J E< FH?L7J; 7D: IE9?7B C7H=?D7B KJ?B?J?;I M?BB 8; 7 :;9H;7I?D= ?=>?D9EC; F;HIED />; M;?=>JI I>EKB: H;U;9J J>;I; ?D9H;7I;I ?D M;BEKB: >7L; >?=>;H M;?=>JI />; 9;DJH7B FE?DJ 7J :?IFKJ; ?D J>; GKEJ; ?I M>;J>;H J>; 8;D;TJI E< 7 FHE@;9J I>EKB: 8; C;7IKH;: KI?D= 7 CED;J?P;: L7BK; E< IE9?7B M;BEKB: 8; I?CFBO ?D CED;J7HO J;HCI />; 9;DJH7B F7HJ E< J>; J>;EHO M; FH;I;DJ;: M7I J>; :;CEDIJH7J?ED J>7J J>; 9EIJ8;D;TJ J;IJ M7I ;GK?L7B;DJ JE 7 IE9?7B M;B;D J>; 9EHH;9J I>7:EM FH?9;I M;H; KI;: />; I>7:EM FH?9;I ?D JKHD

7H; :;F;D:;DJ ED J>; ; IE9?7B M;B; ?D:?L?:K7B C7H=?D7B KJ?B?JO E< ?D9EC; ?I 9EDIJ7DJ 7D: ?:;DJ?97B ;I; 7IIKCFJ?EDI J>; IE9?7B C7H=?D7B KJ?B?JO ?I ?:;DJ?97B ; M;?=>JI 7H; ?:;DJ?97B DO J;IJ 87I;: ED 7==H;=7J; D;J 8;D;TJI MEKB: =?L; J>; I7C; 7DIM;H M>;J>;H ?J M7I ;NFH;II;: ?D CED;J?P;: IE9?7B M;B;H 7IIKCFJ?EDI CED;J?P;: IE9?7B M;B?9> ?I J>; 9EHH;9J I;J E< 7IIKCFJ?EDI ?I J>; :;=H;; E< 7J ?I KD:;H J>; 9EDJHEB E< J>; :;9?I?ED C7A;H

-&48*6 

(3231.(7 3+ 0.1&8* 30.(= ; 9ECC?II?ED?D= E< DK9B;7H FEM;H IJ7J?EDI JE H;FB79; ;N?IJ?D= FEM;H IJ7J?EDI KI?D= =7I 7D: 9E7B M?BB H;:K9; 97H8ED ;C?II?EDI 7D: >;BF 9EC87J =BE87B M7HC?D= />; :EMDI?:; ?I J>7J DK9B;7H FEM;H B;7L;I 7 B;=79O E< M7IJ; J>7J M?BB 8; H7:?E79J?L; KD:H;:I E< O;7HI D7BOP; J>; JH7:;E\I ?D J>; 9>E?9; 8;JM;;D J>;I; 7BJ;HD7J?L;I ; H;B7J?L; L7BK; FB79;: ED J>; M;B; EFJ?EDI >7L; 8;D;TJI 7D: 9EIJI J>7J 7H; ; ; IK8IJ?JKJ?ED ; ;\;9J E< =BE87B M7HC?D= />?I >7I FEJ;DJ?7B 8;D;TJI J>7J M?BB 8;=?D IK8@;9J JE 7 =H;7J :;=H;; E< KD9;HJ7?DJO FHE878BO M?J>?D 7 :;97:; />; FHE8B;C E< M7IJ; 8;=?DI ?CC;:?7J;BO 7D: 8H?D=I 9EIJI KD:H;:I E< O;7HI />; 9>E?9; J>;H;J?D= J>; M;B; 9KHH;DJ 7D: ?CC;:?7J;BO EKI; ;\;9J 7=7?DIJ J>; 9EIJI ?CFEI;: ED C7DO ; L7BK; =?L;D JE ; FH;7D  D;NJ O;7H />; :H7M879A E< :?I9EKDJ?D= ?I J>7J 7DO H;7IED78B; L7BK; M?BB H;IKBJ ?D 7 L;HO BEM M;?=>J 8;?D= 7II?=D;: JE J>; M;BEI; B?L?D=  EH  O;7HI ?D J>; 7J J>?I H;IKBJI ?D 7D KD:;HIJ7J;C;DJ E< J>; JHK; 9EIJ E< DK9B;7H M7IJ; 7D: :?IH;=7H:I J>; 9EIJ ?CFEI;: ED 7J 7BB J>; ; >EBO 8HEJ>;H>EE: E< 9B?C7J; CE:;B ;NF;HJI 7D: J>; 9HEM: E< :;BK:;: 9?J?P;DI M>E 8;B?;L; J>; DKC8;HI FH;:?9J;: 8O J>; 9B?C7J; CE:;BI *< 9EKHI; J>;O I7O $ >7L; DE :;=H;; ?D C;J;EHEBE=O 7D: B 7C J>;H;7L; IJK:?;: J>; 9B?C7J; CE:;BI 7D: 



!    ! &

$ ADEM M>7J J>;O 97D :E />; CE:;BI IEBL; J>; ;GK7J?EDI E< UK?: :OD7C?9I

7D: J>;O :E 7 L;HO =EE: @E8 E< :;I9H?8?D= J>; UK?: CEJ?EDI E< J>; 7JCEIF>;H; 7D: J>; E9;7DI />;O :E 7 L;HO FEEH @E8 E< :;I9H?8?D= J>; 9BEK:I J>; :KIJ J>; 9>;C?IJHO 7D: J>; 8?EBE=O E< T;B:I 7D: ; H;7B MEHB: J>7J M; B?L; ?D Y !H;;C7D OIED J>;EH;J?97B F>OI?9?IJ

 ?I9KII J>; H;B;L7D9; E< J>;I; L?;MI ; L;HO B;7IJ J>; L?;MI ;NFH;II;: ?D J>; GKEJ; H;U;9J J>; 7J J>; FH;:?9J?EDI 7J J>; E< J>; ;9EDECO ?I :?[9KBJ JE FH;:?9J 7D: J>7J ;9EDEC?9 CE:;BI :E 7 ; 9B?C7J; ?I 7J B;7IJ 7I >7H: JE FH;:?9J IE ?J ?I DEJ H;7B?IJ?9 JE ;NF;9J J>; CE:;BI JE F;H; GKEJ; Z 7D: ED; J>7J ?I FHE878BO JE J>7J ?DJ;D:;: 8O J>; 7KJ>EH Z ?I J>7J 7I 8;;D =;D;H7J;: ?D J>; FH;:?9J?EDI E< J>; 9B? C7J; CE:;BI 7D: KI;: JE @KIJ?7J C7JJ;HI ?I J>7J M; >7L; KD9;HJ7?DJO 78EKJ J>; ; MEHB: />; 9B?C7J; CE:;BI 7:: JE EKH ADEMB;:=; 8KJ J>; KD9;HJ7?DJO ?D J>;?H FH;:?9J?EDI I>EKB: DEJ 8; EL;HBEEA;: />; KD9;HJ7?DJO I>EKB: 8; ?D9EHFE H7J;: ?DJE J>; ;9EDEC?9 FEB?9O 7J ?< 7DJ>HEFE=;D?9 9B?C7J; 9>7D=; 97KI;: 8O ;9EDEC?9 79J?L?JO ?I J7A?D= FB79;

J>;D 7 7 EHJ9EC?D=I E< J>; CE:;BI 7H; J>;D CKBJ?FB?;:

; O;7H  />?I 9EIJ ?D9BK:;I H;:K9;: 7=H?9KBJKH7B FHE:K9J?L?JO ;I

:7C7=;I JE 8K?B:?D=I ?D9H;7I;: 7?H 9ED:?J?ED?D= 7D: J>; BEII E< ;DL?HEDC;DJ7B 7II;JI />; .J;HD -;L?;M ?I CK9> B;II EFJ?C?IJ?9 J>7D ;7HB?;H IJK:?;I ED J>?I GK;IJ?ED !EH ;N7CFB; )EH:>7KI  ;IJ?C7J;: J>; 9EIJ E< 9B?C7J; 9>7D=; 7J XEDBOY  F;H9;DJ E< =BE87B "+ 7D: 7 =HEKF E< ;9EDEC?IJI 7IIE9?7J;: M?J> 7B; %EH=;DIED FH;:?9J;: 7 D;J 8;D;TJ E< =BE87B M7HC?D= ; 0. ;9EDECO J>7J 9EKB: 8; 7I CK9> 7I  F;H9;DJ E< "+ ?D IEC; I9;D7H?EI #EM :E OEK ;NFB7?D IK9> B7H=; :?\;H;D9;I ?D J>; ;9EDEC?9 ;L7BK7J?EDI E< J>; 9EIJ E< =BE87B M7HC?D= 3098.32  />;H; 7H; I;L;H7B ;NFB7D7J?EDI ; :?\;H;D9;I />; THIJ ?I I?CFBO J>7J J>; 7J 

     M>;H;7I 

      7D ?D9H;7I; E<   ?D J>; =HEMJ> H7J; ?D9H;7I;I J>; EKJ9EC; 8O 7 ?I F;HIF;9J?L; ?J ?I 79JK7BBO IKHFH?I?D= J>7J J>; CE:;BI =;D;H7J; H;IKBJI M?J> J>; I7C; EH:;H E< C7=D?JK:;

 CED= J>; F7H7C;J;HI J>7J 97D :?\;H 7H; J>; :?I9EKDJ H7J;I 7D: J>; 7IIKCF J?EDI 78EKJ 9B?C7J; I;DI?J?L?JO />; I;9ED: H;7IED ; :?\;H;D9; 97D 8; 7J ?I ?D9BK:;: ?D J>; :7C7=; />; )EH:>7KI $ CE:;B 9EDI?: ;HI EDBO :7C7=; :?H;9JBO ; 7D7BOI?I E< J>; .J;HD -;L?;M 9EDI?:;HI 7 M?:;H H7D=; E< IEKH9;I E< :7C7=; ?D9BK:?D= 9?L?B KDH;IJ 7D: :?IFB79;C;DJ E< FEFKB7J?ED !?D7BBO J>; M7O ?D M>?9> J>; H;IKBJ 7H; FH;I;DJ;: ?I :?\;H;DJ IE J>; 9ECF7H?IED ?I DEJ H;7BBO B?A;7KI FH;I;DJI I?CFBO J>; H;:K9J?ED ?D "+ $D 9EDJH7IJ .J;HD FH;I;DJI J>; H;:K9J?ED ?D J>; X87B7D9;: =HEMJ> ;GK?L7B;DJ Y />?I >7I J>; ;\;9J E< 7D=; ; ; D;NJ O;7H H  #EM;L;H J>; 9EDI;GK;D9;I M?BB 8; I;L;H; ;DL?HEDC;DJ7B :7C7=; ?D  O;7HI H  

/>; FH;I;DJ L7BK; E< J>?I :7C7=; ;L7BK7J;: 7J H  

?I ;IJ?C7J;: JE 8;  JH?BB?ED  ;H; 7H; DE 9EIJI EH 8;D;TJI 8;JM;;D J>;I; JME :7J;I 7 $I ?J MEHJ> KD:;HJ7A?D= J>; FHE@;9J 7J 7  F;H9;DJ :?I9EKDJ H7J; 8 $I ?J MEHJ> KD:;HJ7A?D= J>; FHE@;9J 7J 7  F;H9;DJ :?I9EKDJ H7J; 9 $<  F;H9;DJ ?I J>; ?DJ;H;IJ H7J; ED FH?L7J; 97F?J7B C7HA;JI ?I J>?I J>; H7J; J>7J I>EKB: 8; KI;: : 2>7J 7H=KC;DJI 97D 8; C7:; ;I; A?D:I E< 97B9KB7J?ED J>; 9EHH;9J M7O JE 7D7BOP; J>; FHE8B;C 3098.32  7 J 7 :?I9EKDJ H7J; E<  F;H9;DJ J>; FHE@;9J ?I MEHJ> KD:;H J7A?D= ?< 







  



 

  />; ?D;GK7B?JO I>EMI J>7J J>; FHE@;9J ?I MEHJ> KD:;HJ7A?D= 8 J 7 :?I9EKDJ H7J; E<  F;H9;DJ J>; FHE@;9J ?I MEHJ> KD:;HJ7A?D= ?< 















  

 



/>; ?D;GK7B?JO ?I ; FHE@;9J ?I DEJ MEHJ> KD:;HJ7A?D= 9 />;H; 7H; 7H=KC;DJI 8EJ> ?I FEI?J?ED />; 7H=KC;DJ 7J J>; C7HA;J H7J; C;7IKH;I J>; ;GK?B?8H?KC L7BK; E< ?D:?L?:K7B J?C; FH;; 7H=KC;DJ 7=7?DIJ ?I J>7J :?I9EKDJ?D= =?L;I J>; 9KHH;DJ =;D ;H7J?ED 7 FH;O 7 IE9?7B FB7DD;H I>EKB: 7B?=D ?DJ;HJ;CFEH7B FH; ?D:? L?:K7B FH;;I; JE 7LE?: :?I9H?C?D7J?D= 7CED= =;D;H7J?EDI $< 7BB =;D;H7J?EDI M;H; ;GK7BBO JH;7J;: J>;D J>; :?I9EKDJ H7J; I>EKB: 8; P;HE ?I9EKDJ?D= ?I E; 87I?I E< 7 :;9B?D?D= C7H=?D7B KJ?B?JO 7I ?D:?L?:K7BI 8;9EC; H?9>;H EL;H J?C; $< J>; :7C7=; ?I I?= D?T97DJ J>;D 7D J>; 9KHH;DJ =;D;H7J?ED IE J>?I 7H=KC;DJ ; 97B9KB7J?EDI 7H; 7 L;HO I?CFB; 7FFB?97J?ED E< J>; C;J>E: E< 9EIJ 8;D;TJ 7D7BOI?I $D FH?D9?FB; J>7J C;J>E: 9>EEI?D= FHE@;9JI M?J> 7 FEI?J?L; D;J FH;I;DJ L7BK; M?BB 9>EEI; J>; 9EHH;9J EKJ9EC; />; IK99;II E< J>; C;J>E: ?I :;F;D:;DJ ED KI?D= J>; 9EHH;9J :?I9EKDJ H7J; 7D: I>7:EM FH?9;I #;D9; J>; :;87J; ?I DEJ 78EKJ J>; C;J>E: 8KJ 78EKJ J>; :;J7?BI E< ?JI ?CFB;C;DJ7J?ED

; IE9?7BBO ;[9?;DJ :?I9EKDJ H7J; ?CFB?;: 8O J>; 7D7BOI?I E< J>; .J;HD -;L?;M MEKB: 8; 7HEKD:   F;H9;DJ F;H O;7H   2EKB: OEK TD: IK9> :?I9EKDJ H7J; 799;FJ78B; 3098.32  />?I GK;IJ?ED 97D 8; 9EDI?:;H;: ?D J>; 9EDJ;NJ E< FH?L7J; :;9?I?ED C7A?D= EH ?D J>; 9EDJ;NJ E< IE9?7B :;9?I?EDC7A?D= $J ?I KDB?A;BO J>7J J>; H7J; E<   F;H9;DJ MEKB: 8; 799;FJ78B; ?D FH?L7J; :;9?I?ED C7A?D= />;H; 7H; JME H;7IEDI ?I !?HIJ J>; H7J; ?I 8;BEM 9KHH;DJ C7HA;J H7J;I 7D: 8;BEM >?I JEH?97B H7J;I IE MEKB: DEJ 8; 799;FJ;: 7I 7 H;JKHD ED I7L?D=I .;9ED: J>; ;L?:;D9; ?I 9B;7H J>7J ?D:?L?:K7B 8;>7L?EH ?I 9EDI?IJ;DJ EDBO M?J> 7 CK9> >?=>;H H7J; E< :?I9EKDJ?D= #;D9;   F;H9;DJ ?I D;?J>;H 799;FJ78B; 7I 7 H;JKHD EH 7I 7 ;CF?H?97BBO L7B?: L7BK; />; 7H=KC;DJ ?I :?\;H;DJ 7J J>; IE9?7B B;L;B />; IE9?7B FB7DD;H 97D B;=?J?C7J;BO >7L; ?DJ;HJ;CFEH7B FH;7J :E DEJ 7B?=D M?J> ?D:?L?:K7B ?DJ;HJ;CFEH7B FH;; I;DI; E< HHEMW $CFEII?8?B?JO />;EH;C E< ?D:?L?:K7B FH;?I :E;I DEJ ?CFBO ?J 97DDEJ 8; ?CFEI;: KFED IE9?;JO

; .J;HD -;L?;M 7IIKC;I J>7J M; 7H; H?IA7L;HI; ?D J>7J ; H?IA E< 7 BEII ?I 7BM7OI MEHI; J>7D ?D9KHH?D= J>; C;7D BEII M?J> 9;HJ7?DJO />; :?\;H;D9; 8;JM;;D J>; JME ?I J>; H?IA FH;C?KC ? ; J>; M?BB?D=D;II JE F7O JE ;B?C?D7J; J>; H?IA $D J>; ;NF;9J;: KJ?B?JO 7J J>; 9>7D9; E< 7 B7H=; FEI?J?L; :;L?7J?ED ; C;7D BEII >7I 7 CK9> B7H=;H D;=7J?L; ;\;9J ED M;B7D J>; 9EHH;IFED:?D= 9>7D9; E< 7 B7H=; D;=7J?L; :;L?7J?ED 2>7J E8@;9J?EDI MEKB: OEK C7A; JE J>; BE=7H?J>C?9 KJ?B?JO E< ?D9EC; JE :;J;HC?D; J>; H?IA FH;C?KC KI;: ?D J>; .J;HD -;L?;M 3098.32  />; BE=7H?J>C?9 KJ?B?JO 7J

 -- C;7DI ?I J>7J J>; M?BB?D=D;II JE J7A; ED 7 X=7C8B;Y J>7J ?I 7 TN;: FHEFEHJ?ED E< ?D9EC;  FHE878?B?JO E< ED; >7B< EH BEI;  F;H9;DJ E< ?D9EC; M?J> FHE878?B?JO ED; >7B< :E;I DEJ 9>7D=; 7I ?D9EC; ?D9H;7I;I J>; =7C8B; M?BB 8; ;?J>;H 799;FJ;: 7J 7BB ?D9EC; B;L;BI EH H;@;9J;: 7J 7BB ?D9EC; B;L;BI />; =;D;H7B ; 9E;[9?;DJ E< H;B7J?L; H?IA 7L;HI?ED +(  # +   />; BE=7H?J>C?9 KJ?B?JO ; IF;9?7B 97I; E< -- M?J> 9E;[9?;DJ E< H;B7J?L; H?IA 7L;HI?ED    CF?H?97B ;IJ?C7J;I E< H?IA 7L;HI?ED >7L; FHE:K9;: 7 M?:; H7D=; E< L7BK;I  L7BK; 7HEKD:  I;;CI JOF?97B J>EK=> 8EJ> BEM;H 7D: CK9> >?=>;H DKC8;HI ?DJE :EK8B; :?=?JI >7L; 8;;D H;FEHJ;: ?D IEC; IJK:?;I />; ;GK?JO FH;C?KC FKPPB; M>O H?IA 7L; H;JKHDI J>7J 7H; IE CK9> BEM;H J>7D J>; H;JKHDI ED ;GK?J?;I ?CFB?;I 7 L7BK; E< 7FFHEN?C7J;BO    JE 8; H;IEBL;: />; BE=7H?J>C?9 ; H7D=; E< ;IJ?C7J;: L7BK;I 8KJ ?I 7J J>; ;NJH;C; BEM ;D: />; BE=7H?J>C?9 ;H;7D ;IJ?C7J;: FH;?I M?BB 8; ?CFEHJ7DJ M>;D ;L7BK7J?D= 9B?C7J; H?IA EHH;IFED:?D=BO J>; C7H=?D7B KJ?B?JO E< ?D9EC; M?BB :;9B?D; ; @KIJ?T97J?EDI ; ;CF?H?97B FH;?=>;H :?I9EKDJ H7J; J>7D BE=7H?J>C?9 FH;; ;GK?JO FH;C?KC ?JWI IJ?BB 7 FKPPB; *0-)' *" *)*(% %/!-/0-!  Z

D

; :?I9EKDJ ;I; 9ECFKJ7J?EDI I>EM J>7J J>; 9>E?9; E< :?I9EKDJ ;J>;H JE ?CFB;C;DJ 7 9EIJBO FEB?9O DEM J>7J M?BB EDBO FHEL?:; 8;D;TJI ?D J>; :?IJ7DJ ; L7BK;I 7H; =?L;D ?D J>; J78B; />;I; DKC8;HI ;CF>7I?P; >EM ?CFEHJ7DJ J>; :?I9EKDJ H7J; ?I 7J 799HK; ?D J>; :?IJ7DJ ; ;7L?BO :?I9EKDJ;:  JE:7O ?I MEHJ>  H;9;?L;: ?D  O;7HI />; 9EDI;GK;D9;I E< 9B?C7J; 9>7D=; 9EKB: ;7I?BO >7L; 7 J?C;I97B; HKDD?D= ?DJE >KD:H;:I E< O;7HI L7BK7J?D= FEB?9?;I J>7J M?BB 7\;9J ;L;DJI ; ; .J;HD -;L?;M FHEFEI;I JE :?I9EKDJ 7J 7 L;HO BEM H7J; 8KJ J>;D J>?I FHEL?:;I 7 9EDU?9J M?J> EJ>;H FEB?9?;I J>7J 7H; 87I;: ED IJ7D:7H: 9EIJ8;D;TJ 97B9KB7J?EDI C;7D?D= F    ?D J>; 0& 7D: 9ECC;H9?7B :;9?I?EDI 87I;: ED C7HA;J H7J;I



!    ! &

H   H   H  

F   



 



F   

 



  

F   



 





7J 7H; J>; ?CFB?97J?EDI E< J>; 78I;D9; E< I9?;DJ?T9 9;HJ7?DJO 78EKJ J>; ?CF79JI E< 9B?C7J; 9>7D=; ED J>; EFJ?C7B J?C?D= E< J>; ;\EHJ JE 9KH8 ;C?II?EDI 3098.32  />; FHE8B;C 97D 8; L?;M;: 7I ; :;9?I?ED JE ?CFB;C;DJ FEB?9O ?I ?HH;LE978B; 7D: ?HH;L;HI?8B; ED9; C7:; J ;79> FE?DJ ?D J?C; J>; FEB?9OC7A;H >7I JME EFJ?EDI ? ?CFB;C;DJ J>; FEB?9O EH ?? :E DEJ ?CFB;C;DJ 7D: 9EDI?:;H 7=7?D ?D J>; D;NJ F;H?E: >EEI?D= ?? M?BB 9ED; FEB?9OC7A;H M?J> ;N79JBO J>; I7C; FHE8B;C 7=7?D ED; F;H?E: B7J;H />; FEB?9O M?BB 8; ?CFB;C;DJ;: 7J J>; FE?DJ M>;H; J>; ;NF;9J;: :?I9EKDJ;: L7BK; E< ? ;N9;;:I J>; ;NF;9J;: :?I9EKDJ;: L7BK; E< ?? 0D9;HJ7?DJO 97D 9>7D=; J>; ;NF;9J;: :?I9EKDJ;: L7BK; E< ;79> EFJ?ED 8KJ J>; :?H;9J?ED ?D M>?9> ?J 9>7D=;I J>; L7BK;I ?I DEJ ?CC;:?7J;BO E8L?EKI />?I A?D: E< GK;IJ?ED ?I E; ;\;9J E< 7 C;7DFH;I;HL?D= IFH;7: ?D J>; :?IJH?8KJ?ED E< J>; H7D:EC L7H?78B; />?I 9EKB: =?L; IEC; ?DI?=>J 8KJ J>;H; ?I DE H;7IED 7J J>; 9B?C7J; KD9;HJ7?DJO 97D 8; CE:;B;: 7I 7 C;7DFH;I;L?D= IFH;7: $J >7I 8;;D 7H=K;: J>7J J>; FEJ;DJ?7B 9EIJI E< 9B?C7J; 9>7D=; C?=>J 8; ;DEHCEKI IE J>7J ?CC;:?7J; 79J?ED ?I H;GK?H;: />?I ?I DEJ D;9;II7H?BO 9EHH;9J J>; 7FFHEFH?7J; FHE878?B?JO >7I JE 8; 7JJ79>;: JE J>; 9EIJI 7D: J>?I C7O C7A; J>; ;NF;9J;: :?I9EKDJ;: L7BK; E< M7?J?D= =H;7J;H J>7D J>7J E< 79J?D=

7J :E OEK ;NF;9J MEKB: >7FF;D JE J>; FH?9; E< B7D: EKB: J>?I 8; 9EKDJ;: 7I 7 8;D;TJ E< 9B?C7J; 9>7D=; 2>7J ?< J>; H?I; ?D I;7 B;L;B M7I  C;J;HI 3098.32  />; I7C; 7H=KC;DJ I>EKB: 7FFBO M7J;H 7D: H;:K9; J>; 7CEKDJ E< B7D: 7L7?B78B; L;HOJ>?D= ;BI; 8;?D= ;GK7B J>; FH?9; E< B7D: M?BB H?I; I?D9; IKFFBO M?BB >7L; ?I M?BB 8;D;TJ J>; EMD;HI E< B7D: 7D: I>EKB: 8; ?D9BK:;: 7I 7 8;D;TJ ?D 7 9EIJ8;D;TJ 97B9KB7J?ED #EM;L;H J>; GK7DJ?JO E< B7D: >7I =ED; :EMD IE J>; 9>7D=; ?D J>; 7==H;=7J; L7BK; E< B7D: 9EKB: =E ;?J>;H M7O L;D ?< J>; 7==H;=7J; L7BK; E< B7D: ?D9H;7I;I J>; BEII E< B7D: CKIJ C7A; IE9?;JO 7I 7 M>EB; MEHI; E\ 7D ;9EDECO 97DDEJ =7?D J>HEK=> J>; BEII E< 7 L7BK78B; H;IEKH9;

 7D=; ?DLEBL;I ?DJ;H=;D;H7J?ED7B :?I9EKDJ?D= JE JH7:; E\ 9EIJI 7D: 8;D;TJI 7J :?\;H;DJ FE?DJI ?D J?C; />; J>;EHO E< :?I9EKDJ;: KJ?B?JO ?I J>; CEIJ M?:;BO KI;: 7FFHE79> JE C7A; J>EI; ?DJ;H=;D;H7J?ED7B JH7:;E\I />; 9ECCEDBO KI;: :?I9EKDJ?D= CE:;B 7IIKC;I J>7J JEJ7B KJ?B?JO 97D 8; :;9ECFEI;: ?DJE 7 M;?=>J;: IKC E< KJ?B?JO ?D ;79> F;H?E: E< J?C; -7CI;O   .D 

(

8  ID 

 

M>;H; .D ?I J>; JEJ7B KJ?B?JO :?I9EKDJ;: ; F;HIF;9J?L; E< J>; 9KHH;DJ J?C; H 8   ?I J>; :?I9EKDJ ; ?DIJ7DJ7D;EKI KJ?B?JO ?D F;H?E: H 

7D: J>; UEM E< KJ?B?J?;I ?I EL;H 7D ?DTD?J; >EH?PED ?I ?DJ;H=;D;H7J?ED7B CE:;B /?C; FH;; H7J; 7J M>?9> J>; :?I9EKDJ ; IJ7D:7H: :?I9EKDJ ; ;NFED;DJ?7B :?I9EKDJ     $D J>?I 97I; J>; :?I9EKDJ ; J?C; >EH?PED .>EM J>7J J>; ;NFED;DJ?7B :?I9EKDJ H7J; I7J?IT;I J>; FHEF;HJO E< :OD7C?9 9EDI?IJ;D9O J>7J ?I FH;7D=; M?J> J>; F7II7=; E< J?C; /E C7A; OEKH FE?DJ 9EDI?:;H 7 FHE@;9J J>7J 9EIJI  7J F;H?E: H   7D: FHE:K9;I 7 8;D;TJ  7J F;H?E: H   .>EM J>7J ?< J>; ' ) / E< J>; FHE@;9J ?I FEI?J?L; 7J H  J>;D ?J M?BB 8; FEI?J?L; 7J H   8 />; ;NFED;DJ?7B :?I9EKDJ ; EDBO :?I9EKDJ 7J FHE:K9;I :OD7C?97BBO 9EDI?IJ;DJ FH;; ' ) / 7J J?C; ?I =?L;D 8O ' ) /       M>?9> ?I =H;7J;H J>7D  ?< />; ' ) / 7J J?C;  ?I

     ' ) /     

M>?9> ?I =H;7J;H J>7D  ?<      />; I7C; 9ED:?J?ED :;J;HC?D;I M>;J>;H J>; )+1 ?I FEI?J?L; H;=7H:B;II E< J>; :7J; 7J M>?9> J>; ' ) / ?I ;L7BK7J;: />; 9>E?9; M?BB DEJ 9>7D=; M?J> J>; F7II7=; E< J?C; />; =;D;H7B FE?DJ 97D 8; C7:; 8O 9EDI?:;H?D= 7 FHE@;9J J>7J ?I ?CFB;C;DJ;: 7J J?C;   - />; KJ?B?JO 7J J?C; H ?I



( (   ID   *   * ID  .D   *

 *

/>; / E< J>; FHE@;9J M?BB 8; FEI?J?L; EH D;=7J?L; :;F;D:?D= ED M>;J>;H & ' ) *  ID ?I FEI?J?L; EH D;=7J?L; 7D: J>?I M?BB DEJ 9>7D=; ;H; 7H; C7DO ;N7CFB;I +;EFB; 7H; L;HO ?CF7J?;DJ EL;H I>EHJ J?C; >EH?PEDI 8O H;B7J?L;BO CEH; F7J?;DJ EL;H BED=;H >EH?PEDI +;EFB; E; F7IJ IK9> 7I M?I>?D= J>7J J>;O >7: I7L;: CEH; M>;D OEKD= (7DO F;EFB; 7BIE H;=H;J J>; :;9?I?ED JE IJ7HJ ICEA?D= M>;D J>;O TD: J>;O 7H; KD78B; JE GK?J />;H; ?I 7BIE ;CF?H?97B ;L?:;D9; J>7J F;EFB; :?I9EKDJ B7H=;H F7OE\I 7J 7 BEM;H H7J; 9ECF7H;: JE IC7BB;H 7CEKDJI !?D7BBO

IEC; ;L?:;D9; FE?DJI JE J>; I?=D E< J>; F7OE\ 7I 8;?D= H;B;L7DJ =7?DI FEI?J?L; F7OE\I 7H; :?I9EKDJ;: CEH; >;7L?BO J>7D BEII;I D;=7J?L; F7OE\I

;D C7A?D= ?DJ;HJ;CFEH7B JH7:;E\I F;EFB; I;;C JE 8; CEH; ?CF7J?;DJ M>;D C7A?D= I>EHJHKD JH7:;E\I JE:7O L;HIKI JECEHHEM J>7D M>;D C7A?D= BED=HKD JH7:;E\I :7O  L;HIKI :7O  /E C7J9> J>?I ;CF?H?97B H;=KB7H?JO J>; OF;H8EB7Y :?I9EKDJ 7I 8;;D FHEFEI;:  8        7 .>EM J>7J J>?I :?I9EKDJ ?=>;H :?I9EKDJ H7J; ?D J>;

I>EHJ HKD J>7D ?D J>; BED= HKD !EH J>; IF;9?7B 97I; E<    IE 8     FBEJ J>; :?I9EKDJ ; FH;L?EKI ;N;H9?I; JE I>EM J>7J IK9> FH;; ' ) / E< 7 FHE@;9J 7J 8   ?I 7 :;9H;7I?D= ; :?I9EKDJ ; ?CFB?;: :?I9EKDJ H7J; 7I 7 =?L;I F      



 

$J ?I DEM D;9;II7HO JE I>EM J>7J F   ?I 7 :;9H;7I?D= ; :;H?L7J?L; ?I =?L;D 8O    8F   #%            8     M>?9> ?I D;=7J?L; ?
; ?D;GK7B?JO 7H; ;GK7B />; :;H?L 7J?L; E< J>; B;7D: I?:; ?I  M>?B; J>; :;H?L7J?L; E< J>; H?=>J>7D: I?:; ?I



!?=KH;   #OF;H8EB?9 7D: ;NFED;DJ?7B :?9EKDJ ?I I>EMI J>7J ; T=KH; FBEJI J>; >OF;H8EB?9 :?I9EKDJ ; ;NFED;DJ?7B :?I9EKDJ ;: OF;H8EB?9 7D: F    ; ;NFED;DJ?7B $J 97D 8; I;;D J>7J J>; >OF;H8EB?9 7D J>; ;NFED;DJ?7B ?D?J?7BBO 8KJ 7; ' ) / ?D O;7H  KD:;H ;NFED;DJ?7B 7D: >OF;H8EB?9 :?I9EKDJ?D= ; D;J FH;I;DJ L7BK;I ; J78B; !EH ;NFED;DJ?7B :?I9EKDJ?D= ' ) /5 ?I 7BM7OI FEI?J?L; J>; FHE@;9J ?I @K:=;: JE 8; MEHJ> ?C FB;C;DJ?D= $D 9EDJH7IJ ' ) /8 8;=?DI FEI?J?L; 8KJ 8;9EC;I D;=7J?L; ?D O;7H  />; :;9?I?ED ED J>; FHE@;9J M?BB J>;H;7D=; ?I 9>7D=; ?D L7BK; ?I J>; ;NF;9J;: EKJ9EC; O F;H8EB?9 :?I9EKDJ?D= 2>;D ?CFB;C;DJ7J?ED E< J>; FHE@;9J ?I ; ; >OF;H8EB?9 :?I9EKDJ ; T=KH; 8KJ ?D J>; D;7H ; :?I9EKDJ ; 8;D;TJ ?I FHE@;9J ?I >;7L?BO :?I9EKDJ;: H;B7J?L; JE J>; 9EIJ ' ) /5 ' ) /8





 



 



  

 

    

   



!    ! &

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

 

 



 

 



   

7J -  .   >7FF;DI JE J>; L7BK; E< '# 7I H ?D9H;7I;I 2>7J M?BB >7FF;D JE J>; B;L;B E< KJ?B?JO 7I H ?D9H;7I;I  7D: '  8 )EM 9EDI?:;H   2H?J; J>; KJ?B?JO ; B;L;B E< KJ?B?JO M?BB =HEM 7J J>; # I7C; H7J; 7I 9EDIKCFJ?ED E< J>; FHE:K9;: =EE:



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

 H;7IED78B; JE 9B7?C ?I J>7J H7F?:BO ?D:KIJH?7B?P?D= 9EKDJH?;I ; = >?D7 ?D J>; I M?JD;II 7 ; EKJI;J E< ?D:KIJH?7B?P7J?ED 8KJ ;L;DJK7BBO I;; 7 H?I; ?D GK7B?JO  EH 7J B;7IJ 7D ?D9H;7I; ?D 9ED9;HD ; ;DL?HEDC;DJ J>7J 97D 8; ;NF;9J;: JE ;L;DJK7BBO B;7: JE 7 H?I; ?D GK7B?JO 8 />; 7DIM;H :;F;D:I ED M>;J>;H J>; 9EKDJHO KD:;H=E;I 87B7D9;: =HEMJ> 79HEII I;9JEHI EH M>;J>;H IEC; I;9JEHI B;7: EJ>;HI $J ?I L;HO KDB?A;BO J>7J 7BB FEBBKJ7DJI M?BB 8; 7J J>; I7C; FE?DJ ED J>; 9KHL; !EH ;N7CFB; J>; C7@EH?JO E< 9EKDJH?;I J>7J KI; DK9B;7H FEM;H IJ7J?EDI JE =;D;H7J; ;B;9JH?9?JO >7L; EDBO 7:EFJ;: J>; J;9>DEBE=O 7J 7D 7:L7D9;: IJ7=; ?D :;L;BEFC;DJ #;D9; J>; EKJFKJ E< H7:?7J?ED FEBBKJ?ED ?I 7J 7 :?\;H;DJ FE?DJ ED J>; 9KHL; ;I; 9EKDJH?;I J>7D J>; EKJFKJ E< FEBBKJ?ED 7J :;C7D: ?=>;H 7I "+ ?D9H;7I;I />?I :;C7D:I?:; ;\;9J M?BB 7BM7OI 8; 7 ?=>;H GK7B?JO 7J >?=>;H ?D9EC;I J>KI B;7:?D= JE J>; 0I>7F;: 9KHL; 9 />; ;N?IJ;D9; E< 7 H;B7J?EDI>?F :E;I DEJ ?CFBO J>7J ?CFHEL;: ;DL?HED C;DJ 9EC;I 7J DE 9EIJ .EC;J>?D= M?BB >7L; JE 8; =?L;D KF JE 79>?;L; ?J />?I XIEC;J>?D=Y 9EKB: 8; H;IEKH9;I :;LEJ;: JE H;I;7H9> 7D: :;L;BEFC;DJ JE :?I9EL;H 9B;7D;H C;J>E:I E< FHE:K9J?ED EH ?J 9EKB: 8; J>; KI; E< CEH; 9EIJBO C;J>E:I E< FHE:K9J?ED JE H;:K9; ;DL?HEDC;DJ7B :7C7=; />; ; 9EIJI J>7J H;=KB7J?EDI ?CFEI; $J I>EKB: 8; 7::;: J>7J J>; 9EIJI 7H; EEHJJ;HC 7D: J>; 8;D;TJI L;HO BED=J;HC ; = ;DL?HEDC;D J7B H;=KB7J?EDI ED 97HI ?CFEI;: ?D J>; I ?D 7B?; 97J7BOJ?9 9EDL;HJ;H 7D: CEL; JE B;7:?I >7I :;B?L;H;: 8;D;TJI MEHB:M?:; J>7J 9EDJ?DK; JE J>; FH;I;DJ $J CKIJ TD7BBO 8; DEJ;: J>7J J>; ;L?:;D9; ?F 8;JM;;D "+ 7D: ;DL?HEDC;DJ7B GK7B?JO ?I IJHED=BO 9EDJ;IJ;: .;; ; DKC8;H E< F;HC?JI =?L;D JE J>; CEDEFEB?IJ 7D: JE J>; 9ECF;J?J?L; THCI +HETJ 7J J>?I EKJFKJ ; CEDEFEB?IJ 7D: ; ?D:KIJHO E< 9ECF;J?J?L; THCI ?I

9  5  639  39  739  =    />; B;L;B E< 9EDIKC;H IKHFBKI ; B;L;B E< IE9?7B M;B7J J>; =?L;I J>; I7C; C7HAKF EL;H C7H=?D7B 9EIJ ?D 8EJ> ?D:KIJH?;I />; H;IJH?9J?ED ED EKJFKJ B;L;BI 97KI;: 8O J>; F;HC?J B;7L; J>; CEDEFEB?IJ 7D: J>; 9ECF;J?J?L; ?D:KIJHO ?D 7D ?:;DJ?97B FEI?J?ED 4)EJ; J>7J J>; FHETJ C7N?C?P?D= EKJFKJ E< J>; CEDEFEB?IJ ?I M9  13 2  IE J>?I IEBKJ?ED ?I L7B?: M>;D 9  6 ::?J?ED7B 7D7BOI?I ?I D;9;II7HO M>;D 9  65 8 BBEM?D= JH7:; E< F;HC?JI M?BB 97KI; JME ;\;9JI ? 7 9>7D=; ?D EKJFKJ B;L;BI 7D: ?? 7 JH7DI; CEDEFEBO 7D: J>; 9ECF;J?J?L; ?D:KIJHO .?D9; J>; FHETJ B;L;BI ;DJ;H M;B; I;9ED: ;\;9J 97DDEJ 9>7D=; M;B; EDBO =7?D ; :?IJH?8KJ?ED ?D 7 2?BB J>;H; 8; 7DO JH7:?D= />; L7BK; E< 7D 7::?J?ED7B F;HC?J JE J>; CEDEFEB?IJ ?I 

3



5  7  63



5  7 9  6  9

KJ J>?I ?I FH;9?I;BO J>; I7C; 7I J>; L7BK; JE 7DO E< J>; 9ECF;J?J?L; THCI IE

?< J>; ;[9?;DJ 7BBE97J?ED ?I ?CFB;C;DJ;: J>;H; M?BB 8; DE JH7:?D= />; ;[9?;DJ 7BBE97J?ED I>EKB: J>;H;; EKJ9EC; M?BB 8; ;N79JBO 7I ?D 7 9 D 7K9J?ED M?BB H;IKBJ ?D J>; JH7DI; =EL;HDC;DJ .E9?7B M;B; JH7DI; =EL;HDC;DJ M?BB DEJ ?D9H;7I; M;B; CEDEFEB?IJ 7D: J>; 9ECF;J?J?L; ?D:KIJHO 7H; ?D J>; I7C; FEI?J?ED H;B7J?L; JE J>; 7K9J?ED IE M?BB 8?: ; EKJ9EC; M?BB 7=7?D 8; J>; I7C; 7I 7 7D: 8 8KJ M?J> 7 :?\;H;DJ 7BBE97J?ED 8;JM;;D FHETJ 7D: 7K9J?ED H;L;DK;