Effects of Securities Transaction Taxes on Depth and Bid-Ask Spread

This paper investigates the effects of transaction taxes on depth and bid-ask spread under asymmetric information. The paper uses a static model where a monopolistic market maker faces liquidity and informed traders. Introducing transaction taxes could, surprisingly, lead to increase in depth. Under some distributional assumptions, when market conditions are favorable to the dealer, the spread responds less than proportionally to an increase in the transaction tax while the depth actually increases. In contrast, when market conditions are unfavorable to the dealer, the spread widens more than proportionally and the depth decreases, potentially to zero, in response to an increase in the transaction tax. Our model sheds light on the disagreement in the empirical literature on the relative magnitude of transaction costs on trading volume.Asymmetric information, Securities transaction taxes, Liquidity

Free energy of formation of clusters of sulphuric acid and water molecules determined by guided disassembly

We evaluate the grand potential of a cluster of two molecular species, equivalent to its free energy of formation from a binary vapour phase, using a nonequilibrium molecular dynamics technique where guide particles, each tethered to a molecule by a harmonic force, move apart to disassemble a cluster into its components. The mechanical work performed in an ensemble of trajectories is analysed using the Jarzynski equality to obtain a free energy of disassembly, a contribution to the cluster grand potential. We study clusters of sulphuric acid and water at 300 K, using a classical interaction scheme, and contrast two modes of guided disassembly. In one, the cluster is broken apart through simple pulling by the guide particles, but we find the trajectories tend to be mechanically irreversible. In the second approach, the guide motion and strength of tethering are modified in a way that prises the cluster apart, a procedure that seems more reversible. We construct a surface representing the cluster grand potential, and identify a critical cluster for droplet nucleation under given vapour conditions. We compare the equilibrium populations of clusters with calculations reported by Henschel et al. [J. Phys. Chem. A 118, 2599 (2014)] based on optimised quantum chemical structures

A Continuous-Discontinuous Second-Order Transition in the Satisfiability of Random Horn-SAT Formulas

We compute the probability of satisfiability of a class of random Horn-SAT formulae, motivated by a connection with the nonemptiness problem of finite tree automata. In particular, when the maximum clause length is 3, this model displays a curve in its parameter space along which the probability of satisfiability is discontinuous, ending in a second-order phase transition where it becomes continuous. This is the first case in which a phase transition of this type has been rigorously established for a random constraint satisfaction problem

The N = 1 Supersymmetric Wong Equations and the Non-Abelian Landau Problem

A Lagrangian formulation is given extending to N = 1 supersymmetry the motion of a charged point particle with spin in a non-abelian external field. The classical formulation is constructed for any external static non-abelian SU(N) gauge potential. As an illustration, a specific gauge is fixed enabling canonical quantization and the study of the supersymmetric non-abelian Landau problem. The spectrum of the quantum Hamiltonian operator follows in accordance with the supersymmetric structure.Comment: 10 page