Reversible Transient Nucleation in Ionic Solutions as the Precursor of Ion Crystallization

Molecular dynamics simulations for aqueous sodium chloride solutions were carried out at various concentrations. Supplementary to the Debye-H\"uckel theory, reversible transient nucleation of ions was observed even in dilute solutions. The average size of formed ion clusters and the lifetime of ion pairs increase with concentration until the saturation point, when ion clusters become stable and individual ions adjust their positions to form ordered lattice structures, leading to irreversible ion crystallization, which is beyond the description of the classical nucleation theory.Comment: 4 pages, 5 figures, and 46 reference

Partial Deposit Insurance and Moral Hazard in Banking

Abstract: Countries with deposit insurances differ significantly on how much protection their insurance provides. We study the optimal coverage limit in a model of deposit insurance with capital requirements and risk sensitive premia to prevent moral hazard. Depositors have incentives to monitor the bank’s risk taking behavior, thus threatening banks with withdrawals of deposits if necessary. We find that either banking regulations or market discipline is insufficient to reduce bank’s risk. In addition, our numerical example explains the differences in coverage cross countries which agrees with empirical evidence. We show that low income countries provide more generous insurance protection than higher income countries.Depositor’s monitoring; moral hazard; optimal coverage, partial deposit insurance.