We give an elementary proof of the convergence of the point vortex method (PVM) to a classical weak solution for the two-dimensional incompressible Euler equations with initial vorticity being a finite Radon measure of distinguished sign and the initial velocity of locally bounded energy. This includes the important example of vortex sheets, which exhibits the classical Kelvin-Helmholtz instability. A surprise fact is that although the velocity fields generated by the point vortex method do not have bounded local kinetic energy, the limiting velocity field is shown to have a bounded local kinetic energy.

In this paper, we illustrate the wave character of the metrics and curvatures of manifolds and introduce a new understanding toolthe hyperbolic geometric flow. This kind of flow is new and very natural to understand certain wave phenomena in the nature as well as the geometry of manifolds. It possesses many interesting properties from both mathematics and physics. Several applications of this method have been found.

The leverage effect refers to the generally negative correlation between an asset return and its changes of volatility. A natural estimate consists in using the empirical correlation between the daily returns and the changes of daily volatility estimated from high frequency data. The puzzle lies in the fact that such an intuitively natural estimate yields nearly zero correlation for most assets tested, despite the many economic reasons for expecting the estimated correlation to be negative. To better understand the sources of the puzzle, we analyze the different asymptotic biases that are involved in high frequency estimation of the leverage effect, including biases due to discretization errors, to smoothing errors in estimating spot volatilities, to estimation error, and to market microstructure noise. This decomposition enables us to propose novel bias correction methods for estimating the leverage effect.

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