Post-resolution treatment of depositors at failed banks: implications for the severity of banking crises, systemic risk, and too-big-to-fail

Bank failures are widely viewed in all countries as more damaging to the economy than the failure of other firms of similar size for a number of reasons. The failures may produce losses to depositors and other creditors, break long-standing bank-customers loan relationships, disrupt the payments system, and spillover in domino fashion to other banks, financial institutions and markets, and even to the macroeconomy (Kaufman, 1996). Thus, bank failures are viewed as potentially more likely to involve contagion or systemic risk than the collapse of other firms. The risk of such actual or perceived damage is often a popular justification for explicit or implicit government-provided or sponsored safety nets under banks, including explicit deposit insurance and implicit government guarantees, such as "too-big-to-fail" (TBTF), that may protect de jure uninsured depositors and possibly other bank stakeholders against some or all of the loss.Bank failures ; Deposit insurance

Chaos, Coherence and the Double-Slit Experiment

We investigate the influence that classical dynamics has on interference patterns in coherence experiments. We calculate the time-integrated probability current through an absorbing screen and the conductance through a doubly connected ballistic cavity, both in an Aharonov-Bohm geometry with forward scattering only. We show how interference fringes in the probability current generically disappear in the case of a chaotic system with small openings, and how they may persist in the case of an integrable cavity. Simultaneously, the typical, sample dependent amplitude of the flux-sensitive part $g(\phi)$ of the conductance survives in all cases, and becomes universal in the case of a chaotic cavity. In presence of dephasing by fluctuations of the electric potential in one arm of the Aharonov-Bohm loop, we find an exponential damping of the flux-dependent part of the conductance, $g(\phi) \propto \exp[-\tau_{\rm L}/\tau_\phi]$, in term of the traversal time $\tau_{\rm L}$ through the arm and the dephasing time $\tau_\phi$. This extends previous works on dephasing in ballistic systems to the case of many conducting channels.Comment: 8 pages, 4 figures in .eps format; Final version, to appear in Physical Review

DNA as a universal substrate for chemical kinetics

Molecular programming aims to systematically engineer molecular and chemical systems of autonomous function and ever-increasing complexity. A key goal is to develop embedded control circuitry within a chemical system to direct molecular events. Here we show that systems of DNA molecules can be constructed that closely approximate the dynamic behavior of arbitrary systems of coupled chemical reactions. By using strand displacement reactions as a primitive, we construct reaction cascades with effectively unimolecular and bimolecular kinetics. Our construction allows individual reactions to be coupled in arbitrary ways such that reactants can participate in multiple reactions simultaneously, reproducing the desired dynamical properties. Thus arbitrary systems of chemical equations can be compiled into real chemical systems. We illustrate our method on the Lotka–Volterra oscillator, a limit-cycle oscillator, a chaotic system, and systems implementing feedback digital logic and algorithmic behavior

Scalable, Time-Responsive, Digital, Energy-Efficient Molecular Circuits using DNA Strand Displacement

We propose a novel theoretical biomolecular design to implement any Boolean circuit using the mechanism of DNA strand displacement. The design is scalable: all species of DNA strands can in principle be mixed and prepared in a single test tube, rather than requiring separate purification of each species, which is a barrier to large-scale synthesis. The design is time-responsive: the concentration of output species changes in response to the concentration of input species, so that time-varying inputs may be continuously processed. The design is digital: Boolean values of wires in the circuit are represented as high or low concentrations of certain species, and we show how to construct a single-input, single-output signal restoration gate that amplifies the difference between high and low, which can be distributed to each wire in the circuit to overcome signal degradation. This means we can achieve a digital abstraction of the analog values of concentrations. Finally, the design is energy-efficient: if input species are specified ideally (meaning absolutely 0 concentration of unwanted species), then output species converge to their ideal concentrations at steady-state, and the system at steady-state is in (dynamic) equilibrium, meaning that no energy is consumed by irreversible reactions until the input again changes. Drawbacks of our design include the following. If input is provided non-ideally (small positive concentration of unwanted species), then energy must be continually expended to maintain correct output concentrations even at steady-state. In addition, our fuel species - those species that are permanently consumed in irreversible reactions - are not "generic"; each gate in the circuit is powered by its own specific type of fuel species. Hence different circuits must be powered by different types of fuel. Finally, we require input to be given according to the dual-rail convention, so that an input of 0 is specified not only by the absence of a certain species, but by the presence of another. That is, we do not construct a "true NOT gate" that sets its output to high concentration if and only if its input's concentration is low. It remains an open problem to design scalable, time-responsive, digital, energy-efficient molecular circuits that additionally solve one of these problems, or to prove that some subset of their resolutions are mutually incompatible.Comment: version 2: the paper itself is unchanged from version 1, but the arXiv software stripped some asterisk characters out of the abstract whose purpose was to highlight words. These characters have been replaced with underscores in version 2. The arXiv software also removed the second paragraph of the abstract, which has been (attempted to be) re-inserted. Also, although the secondary subject is "Soft Condensed Matter", this classification was chosen by the arXiv moderators after submission, not chosen by the authors. The authors consider this submission to be a theoretical computer science paper

A reassessment of Antarctic plateau reactive nitrogen based on ANTCI 2003 airborne and ground based measurements

The first airborne measurements of nitric oxide (NO) on the Antarctic plateau have demonstrated that the previously reported elevated levels of this species extend well beyond the immediate vicinity of South Pole. Although the current database is still relatively weak and critical laboratory experiments are still needed, the findings here suggest that the chemical uniqueness of the plateau may be substantially greater than first reported. For example, South Pole ground-based findings have provided new evidence showing that the dominant process driving the release of nitrogen from the snowpack during the spring/summer season (post-depositional loss) is photochemical in nature with evaporative processes playing a lesser role. There is also new evidence suggesting that nitrogen, in the form of nitrate, may undergo multiple recycling within a given photochemical season. Speculation here is that this may be a unique property of the plateau and much related to its having persistent cold temperatures even during summer. These conditions promote the efficient adsorption of molecules like HNO3 (and very likely HO2NO2) onto snow-pack surface ice where we have hypothesized enhanced photochemical processing can occur, leading to the efficient release of NOx to the atmosphere. In addition, to these process-oriented tentative conclusions, the findings from the airborne studies, in conjunction with modeling exercises suggest a new paradigm for the plateau atmosphere. The near-surface atmosphere over this massive region can be viewed as serving as much more than a temporary reservoir or holding tank for imported chemical species. It defines an immense atmospheric chemical reactor which is capable of modifying the chemical characteristics of select atmospheric constituents. This reactor has most likely been in place over geological time, and may have led to the chemical modulation of some trace species now found in ice cores. Reactive nitrogen has played a critical role in both establishing and in maintaining this reactor. © 2007 Elsevier Ltd. All rights reserved

Development of the Mozart Song

This paper explores the lesser known songs Wolfgang Mozart composed for voice and keyboard and examines developments in harmony, melody, and style. Timothy G. Seelig traces the history of these songs, their structure and interpretation, and promotes study of the pieces

Interaction-induced dephasing of Aharonov-Bohm oscillations

We study the effect of the electron-electron interaction on the amplitude of mesoscopic Aharonov-Bohm oscillations in quasi-one-dimensional (Q1D) diffusive rings. We show that the dephasing length L_phi^AB governing the damping factor exp(-2piR / L_phi^AB) of the oscillations is parametrically different from the common dephasing length for the Q1D geometry. This is due to the fact that the dephasing is governed by energy transfers determined by the ring circumference 2piR, making L_phi^AB R-dependent.Comment: 4 pages, 2 figures. Minor changes, final version published in PR

Probe-Configuration-Dependent Decoherence in an Aharonov-Bohm Ring

We have measured transport through mesoscopic Aharonov-Bohm (AB) rings with two different four-terminal configurations. While the amplitude and the phase of the AB oscillations are well explained within the framework of the Landaur-B\"uttiker formalism, it is found that the probe configuration strongly affects the coherence time of the electrons, i.e., the decoherence is much reduced in the configuration of so-called nonlocal resistance. This result should provide an important clue in clarifying the mechanism of quantum decoherence in solids.Comment: 4 pages, 4 figures, RevTe

The stratorotational instability of Taylor-Couette flows with moderate Reynolds numbers

In view of new experimental data the instability against adiabatic nonaxisymmetric perturbations of a Taylor-Couette flow with an axial density stratification is considered in dependence of the Reynolds number (Re) of rotation and the Brunt-Väisälä number (Rn) of the stratification. The flows at and beyond the Rayleigh limit become unstable between a lower and an upper Reynolds number (for fixed Rn). The rotation can thus be too slow or too fast for the stratorotational instability. The upper Reynolds number above which the instability decays, has its maximum value for the potential flow (driven by cylinders rotating according to the Rayleigh limit) and decreases strongly for flatter rotation profiles finally leaving only isolated islands of instability in the (Rn/Re) map. The maximal possible rotation ratio μmax only slightly exceeds the shear value of the quasi-uniform flow with Uφ≃const. Along and between the lines of neutral stability the wave numbers of the instability patterns for all rotation laws beyond the Rayleigh limit are mainly determined by the Froude number Fr which is defined by the ratio between Re and Rn. The cells are highly prolate for Fr > 1 so that measurements for too high Reynolds numbers become difficult for axially bounded containers. The instability patterns migrate azimuthally slightly faster than the outer cylinder rotates