Capital Regulation, Liquidity Requirements and Taxation in a Dynamic Model of Banking

This paper formulates a dynamic model of a bank exposed to both credit and liquidity risk, which can resolve financial distress in three costly forms: fire sales, bond issuance and equity issuance. We use the model to analyze the impact of capital regulation, liquidity requirements and taxation on banks' optimal policies and metrics of efficiency of intermediation and social value. We obtain three main results. First, mild capital requirements increase bank lending, bank efficiency and social value relative to an unregulated bank, but these benefits turn into costs if capital requirements are too stringent. Second, liquidity requirements reduce bank lending, efficiency and social value significantly, they nullify the benifits of mild capital requirements, and their private and social costs increase monotonically with their stringency. Third, increases in corporate income and bank liabilities taxes reduce bank lending, bank effciency and social value, with tax receipts increasing with the former but decreasing with the latter. Moreover, the effects of an increase in both forms of taxation are dampened if they are jointly implemented with increases in capital and liquidity requirements.Capital requirements;liquidity requirements;taxation of liabilities. JEL Classifications

Test of a simple and flexible molecule model for alpha-, beta- and gamma-S8 crystals

S8 is the most stable compound of elemental sulfur in solid and liquid phases, at ambient pressure and below 400K. Three crystalline phases of S8 have been clearly identified in this range of thermodynamic parameters, although no calculation of its phase diagram has been performed yet. alpha- and gamma-S8 are orientationally ordered crystals while beta-S8 is measured as orientationally disordered. In this paper we analyze the phase diagram of S8 crystals, as given by a simple and flexible molecule model, via a series of molecular dynamics (MD) simulations. The calculations are performed in the constant pressure- constant temperature ensemble, using an algorithm that is able to reproduce structural phase transitions.Comment: RevTex,7 pages, 5 figures,to appear in J. Chem. Phy

Toward an anisotropic atom-atom model for the crystalline phases of the molecular S8 compound

We analize two anisotropic atom-atom models used to describe the crystalline alpha,beta and gamma phases of S8 crystals, the most stable compound of elemental sulfur in solid phases, at ambient pressure and T<=400 K. The calculations are performed via a series of classical molecular dynamics (MD) simulations, with flexible molecular models and using a constant pressure-constant temperature algorithm for the numerical simulations. All intramolecular modes that mix with lattice modes, and are therefore relevant on the onset of structural phase transitions, are taken into account. Comparisons with experimental data and previous results obtained with an isotropic atom-atom molecular model are also performed.Comment: Major changes, new simulations and figures added, revtex4, to appear in J. Chem. Phy

TS-1 from First Principles

First principles Studies on periodic TS-1 models at Ti content corresponding to 1.35% and 2.7% in weight of TiO2 are presented. The problem of Ti preferential siting is addressed by using realistic models corresponding to the TS-1 unit cell [TiSi95O192] and adopting for the first time a periodic DFT approach, thus providing an energy scale for Ti in the different crystallographic sites in nondefective TS-1. The structure with Ti in site T3 is the most stable, followed by T4 (+0.3 kcal/mol); the less stable structure, corresponding to Ti in T1, is 5.6 kcal/mol higher in energy. The work has been extended to investigate models with two Ti's per unit cell [Ti2Si94O192] (2.7%). The possible existence of Ti-O-Ti bridges, formed by two corner-sharing TiO4 tetrahedra, is discussed. By using Cluster models cut from the optimized periodic DFT structures, both vibrational (DFT) and electronic excitation spectra (TDDFT) have been calculated and favorably compared with the experimental data available on TS-1. Interesting features emerged from excitation spectra: (i) Isolated tetrahedral Ti sites show a Beer-Lambert behavior, with absorption intensity proportional to concentration. Such a behavior is gradually lost when two Ti's occupy sites close to each other. (ii) The UV-vis absorption in the 200-250 nm region can be associated with transitions from Occupied states delocalized on the framework oxygens to empty d states localized on Ti. Such extended-states-to-local-states transitions may help the interpretation of the photovoltaic activity recently detected in Ti zeolites

Octonic Electrodynamics

In this paper we present eight-component values "octons", generating associative noncommutative algebra. It is shown that the electromagnetic field in a vacuum can be described by a generalized octonic equation, which leads both to the wave equations for potentials and fields and to the system of Maxwell's equations. The octonic algebra allows one to perform compact combined calculations simultaneously with scalars, vectors, pseudoscalars and pseudovectors. Examples of such calculations are demonstrated by deriving the relations for energy, momentum and Lorentz invariants of the electromagnetic field. The generalized octonic equation for electromagnetic field in a matter is formulated.Comment: 12 pages, 1 figur

Water in acid boralites: Hydration effects on framework B sites

Properties and behavior of protonated boron-containing zeolites at different hydration degree have been investigated by means of periodic DFT approaches. Geometry optimization and room-temperature Car-Parrinello molecular dynamics results, in line with experimental findings, indicate that the BO3-bound silanolic acid site typical of dry boralites should convert to a solvated H3O+ hydrogen bonded to tetrahedral BO4 at moderate water content. By increasing the water loading, the tetrahedral structure of the B site is stabilized and the physicochemical properties of the water molecules solvating the acid proton gradually approach the liquid-phase ones. A relevant role of structural and vibrational properties of the zeolite framework in the water-induced trigonal-to-tetrahedral transition at the B site is highlighted by simulation results