Interest on reserves and daylight credit

Banks and banking ; Interest

A model of stigma in the fed funds market

It is often the case that banks in the US are willing to borrow in the fed funds market (the interbank market for funds) at higher rates than the ones they could obtain by borrowing at the Fed's discount window. This phenomenon is commonly explained as the consequence of the existence of a stigma effect attached to borrowing from the window. Most policymakers and empirical researchers consider the stigma hypothesis plausible. Yet, no formal treatment of the issue has ever been provided in the literature. In this paper, we fill that gap by studying a model of interbank credit where: (1) banks benefit from engaging in intertemporal trade with other banks and with outside investors; and (2) informational frictions limit those trade opportunities. In our model, banks obtain loans in an over-the-counter market (involving search, bilateral matching, and negotiations over the terms of the loan) and hold assets of heterogeneous qualities which in turn determine their ability to repay those loans. When asset quality is not perfectly unobservable by outside investors, information about the actions taken by a bank in the credit market may influence the price at which it can sell its asset. In particular, under some conditions, discount window borrowing may be regarded as a negative signal about the quality of the borrower's assets. In such cases, some of the banks in our model, just as in the data, are willing to accept loans in the interbank market at higher rates than the ones they could obtain at the discount window.Interbank market, Private information, Signaling, Banking

Corey Ennis Honors Portfolio

Corey Ennis\u27 honors portfolio captured in December 2015

Rapid quantitative analysis of basic amino acids by ion exchange resin paper chromatography

In partition chromatography a solid is used to hold a film of liquid and the distribution of a substance is between the liquid phase and another immiscible liquid phase. Because most substances have slightly different distribution coefficient between two immiscible solvents, a series of successive extractions will cause a separation. This is the predominant factor in the paper chromatography. The paper itself is an inert support holding a stationary aqueous phase. As the immiscible solvent flows past an area containing the solute, by capillary flow, partition occurs. When the immiscible solvent reaches an area not containing any solute, partition again occurs resulting in a transfer of the solute, partition again occurs resulting in a transfer of the solute from its point of application to a point some distance down the paper. This method of separation, which has been developed to cover the separations of many organic and biological compounds, has some important limitations concerned with the fast separation and quantitative analysis of the separated products. The flow rate of the organic developing solvent is slow (2-3 sm./ hr.) and the organic developing solvent is commonly phenol, which presents problems in its use because of its corrosive nature. Also the amount of solute which can be separated per unit area of the paper is extremely small. This amount is usually in the order of 1 to 10 microliters of a 0.01 molar solution of the solute. Amounts of this size require special apparatus for the measuring and application of the solution. Because the amount of solute is so small, experimental error in its analysis is increased. The purpose of this project was to develop a method of analyzing amino acids quantitatively that could be performed by an undergraduate in introductory courses in quantitative analysis. The formost thought in developing the procedure was to keep it as simple and straight forward as possible. In connection with this was to use only apparatus which was easily obtained and simple to use. The use of ion exchange papers seemed to offer the best solution. They were proven effective in the separation of amino acids of the basic type (1) (4) and allowed a separation to be performed in a length of a lab period. The work done outlines a method of analysis and separation which could be performed in two lab periods with reproducible results

Standupable Desks - Ergonomic furniture for Primary Schools

Numerous studies have shown how prolonged sitting at school can have a negative effect on the physical health and is linked with obesity in primary school students. More physically active approaches to learning have been shown to not only improve physical wellbeing but increase attention and improve learning outcomes. There is also an increasing movement to sit/ stand desking for office worker for ergonomic reasons. This project is concerned with developing a sit/ stand school desk that would allow students to move between sitting and standing while in school. The desk should be suitable for primary school children aged between 5 and 12 years old. The project was undertaken as part of an Enterprise Ireland Innovation Voucher

Describing the universal cover of a compact limit

AbstractIf X is the Gromov–Hausdorff limit of a sequence of Riemannian manifolds Min with a uniform lower bound on Ricci curvature, Sormani and Wei have shown that the universal cover X˜ of X exists [C. Sormani, G. Wei, Hausdorff convergence and universal covers, Trans. Amer. Math. Soc. 353 (9) (2001) 3585–3602 (electronic)]; [C. Sormani, G. Wei, Universal covers for Hausdorff limits of noncompact spaces, Trans. Amer. Math. Soc. 356 (3) (2004) 1233–1270 (electronic). [15]]. For the case where X is compact, we provide a description of X˜ in terms of the universal covers M˜i of the manifolds. More specifically we show that if X¯ is the pointed Gromov–Hausdorff limit of the universal covers M˜i then there is a subgroup H of Iso(X¯) such that X˜=X¯/H. We call H the small action limit group and prove a similar result for compact length spaces with uniformly bounded dimension

A model of stigma in the fed funds market

It is often the case that banks in the US are willing to borrow in the fed funds market (the interbank market for funds) at higher rates than the ones they could obtain by borrowing at the Fed's discount window. This phenomenon is commonly explained as the consequence of the existence of a stigma effect attached to borrowing from the window. Most policymakers and empirical researchers consider the stigma hypothesis plausible. Yet, no formal treatment of the issue has ever been provided in the literature. In this paper, we fill that gap by studying a model of interbank credit where: (1) banks benefit from engaging in intertemporal trade with other banks and with outside investors; and (2) informational frictions limit those trade opportunities. In our model, banks obtain loans in an over-the-counter market (involving search, bilateral matching, and negotiations over the terms of the loan) and hold assets of heterogeneous qualities which in turn determine their ability to repay those loans. When asset quality is not perfectly unobservable by outside investors, information about the actions taken by a bank in the credit market may influence the price at which it can sell its asset. In particular, under some conditions, discount window borrowing may be regarded as a negative signal about the quality of the borrower's assets. In such cases, some of the banks in our model, just as in the data, are willing to accept loans in the interbank market at higher rates than the ones they could obtain at the discount window

Developing young authors: Collaborating in a supportive community

When a classroom provides an environment that promotes writing, students have the resources, time, and opportunity to create collaborative stories. In a third grade classroom, three girls unite to write a series of humorous stories through group negotiation and class prompting. The classroom\u27s instructional design and its sharing, encouraging climate promoted writing