The Australian Government Guarantee Scheme

The Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding (the Guarantee Scheme) was announced in October 2008 amid extraordinary developments in the global financial system. Given that funding conditions have subsequently improved significantly, and that a number of similar schemes in other countries have closed, the Australian Government has announced that the Guarantee Scheme will also close to new borrowing from 31 March 2010.government guarantee; bank funding; deposit protection; wholesale funding

A Survey of Housing Equity Withdrawal and Injection in Australia

Over the past decade or so, aggregate data suggest a trend increase in housing equity withdrawal in Australia, potentially stimulating household spending. However, there has been little disaggregated information on how equity is being withdrawn and injected, the characteristics of households altering housing equity, and how funds from withdrawn equity are being used. This paper uses a survey of 4 500 households commissioned by the Reserve Bank of Australia (RBA) to address these questions. The results suggest that, during 2004, the most common method of withdrawing equity was for a household to increase the level of debt secured against a property they already owned. In contrast, most of the value of equity withdrawn was associated with property transactions, with the typical property transaction resulting in a net equity withdrawal. Turnover in the property market is therefore likely to be an important driver of cycles in aggregate housing equity withdrawal. Bivariate and logit analysis suggests a significant life-cycle influence, with the bulk of equity withdrawal being undertaken by older households, while younger households typically inject, primarily through mortgage repayments or deposits for property purchase. Finally, the results suggest that the bulk of the value of withdrawn equity was used to increase non-housing assets, although a significant proportion of households used the funds for consumption expenditure.housing equity withdrawal; housing turnover; household debt

Analysis of the Penney-Ante Game Using Difference Equations: Development of an Optimal and a Mixed-Strategies Protocol

Penney-Ante is a well known two-player (Player I and Player II) game based on an information paradox. We present a new approach, using difference-equations, to analyzing the outcome for each player. One strategy yields a winning outcome of 75% for Player II, the player playing second. The approach also permits investigation of non-optimal strategies, and demonstrates how mixing of such strategies can be used to tune the winning edge of either player. We generalize the analysis to accommodate the possibility of a biased coin

Computational Models of Chemical Systems Inspired by Braess’ Paradox

Systems chemistry is a new discipline which investigates the interactions within a network of chemical reactions. We have studied several computational models of chemical systems inspired by mathematical paradoxes and have found that even simple systems may behave in a counterintuitive, non-linear manner depending upon various conditions. In the present study, we modeled a set of reactions inspired by one such paradox, Braess’ paradox, an interesting phenomenon whereby the introduction of additional capacity (e.g. pathways) in some simple network systems can lead to an unexpected reduction in the overall flow rate of “traffic” through the system. We devised several chemical systems that behaved in this counterintuitive manner; the overall rate of product formation was diminished when an additional pathway was introduced and, conversely, there was an enhancement of product formation when the same interconnecting pathway was removed. We found that, unlike a traffic model, the chemical model needed to include reversible pathways in order to mimic “congestion”—a condition necessary to produce Braess-like behavior. The model was investigated numerically, but a full analytical solution is also included. We propose that this intriguing situation may have interesting implications in chemistry, biochemistry and chemical engineering

Kinetic Models of the Prebiotic Replication of dsRNA under Thermal Cycling Conditions

We present computational models for the replication of double stranded RNA (dsRNA) or related macromolecules under thermal cycling conditions that would reflect prebiotic (i.e. non-enzymatic) environments. Two models of the replication of dsRNA are represented as multi-step chemical systems. The objective of this investigation was to better understand the kinetic features of such chemical systems. It is shown that thermal cycling in a chemical system is advantageous (relative to a fixed temperature) if there are two competing reactions, one favored at high temperature and one favored at low temperature. For the prebiotic replication of dsRNA, a high temperature favors formation of the two single stranded RNA (ssRNA) templates and a presumptive catalysis or catalytic surface is active at low temperature at which the ssRNA template is copied. Our models may facilitate understanding possible prebiotic conditions for the replication of dsRNA

Computational Models of Thermal Cycling in Chemical Systems

Computational models of chemical systems provide clues to counterintuitive interactions and insights for new applications. We have been investigating models of chemical reaction systems under forced, thermal cycling conditions and have found that some hypothetical processes generate higher yields under thermal cycling than under single, fixed temperature conditions. A simple kinetic model of an actual process, the two-temperature polymerase chain reaction that replicates DNA, is used to simulate the important features of a chemical system operating under thermal cycling. This model provides insights into the design of other chemical systems that may have important applications in chemistry, biochemistry and chemical engineering

Systems Chemistry and Parrondo’s Paradox: Computational Models of Thermal Cycling

A mathematical concept known as Parrondo’s paradox motivated the development of several novel computational models of chemical systems in which thermal cycling was explored. In these kinetics systems we compared the rates of formation of product under cycling temperature and steady-sate conditions. We found that a greater concentration of product was predicted under oscillating temperature conditions. Our computational models of thermal cycling suggest new applications in chemical and chemical engineering systems

Analysis of a Chemical Model System Leading to Chiral Symmetry Breaking: Implications for the Evolution of Homochirality

Explaining the evolution of a predominantly homochiral environment on the early Earth remains an outstanding challenge in chemistry. We explore here the mathematical features of a simple chemical model system that simulates chiral symmetry breaking and amplification towards homochirality. The model simulates the reaction of a prochiral molecule to yield enantiomers via interaction with an achiral surface. Kinetically, the reactions and rate constants are chosen so as to treat the two enantiomeric forms symmetrically. The system, however, incorporates a mechanism whereby a random event might trigger chiral symmetry breaking and the formation of a dominant enantiomer; the non-linear dynamics of the chemical system are such that small perturbations may be amplified to near homochirality. Mathematical analysis of the behavior of the chemical system is verified by both deterministic and stochastic numerical simulations. Kinetic description of the model system will facilitate exploration of experimental validation. Our model system also supports the notion that one dominant enantiomeric structure might be a template for other critical molecules