Controlling Inflation: The Infinite Horizon Case

This paper studies the two-dimensional singular stochastic control problem over an infinite time-interval arising when the Central Bank tries to contain the inflation by acting on the nominal interest rate. It is shown that this problem admits a variational formulation which can be differentiated (in some sense) to lead to a stochastic differential game with stopping times between the conservative and the expansionist tendencies of the Bank. Substantial regularity of the free boundary associated to the differential game is obtained. Existence of an optimal policy is established when the regularity of the free boundary is strengthened slightly, and it is shown that the optimal process is a diffusion reflected at the boundary. Accepted 22 May 1998     

Amide–π interactions between formamide and benzene

High‐level ab initio calculations have been carried out using a formamide–benzene model system to evaluate amide–π interactions. The interaction energies were estimated as a sum of the CCSD(T) correlation contribution and the HF energy at the complete basis set limit, for the geometries of the model structures at the energy minimum obtained by potential energy surface (PES) scans. NH/π geometry in a face‐on configuration was found to be the most attractive among the various geometries considered, with interaction energy of ?3.75 kcal/mol. An interaction energy of ?2.08 kcal/mol was calculated for the stacked N/Center type geometry, where the nitrogen atom of formamide points directly toward the center of the aromatic ring. The weakest C?O/π geometry, where a carbonyl oxygen atom points toward the plane of the aromatic ring, was found to have energy minimum at an intermolecular distance of 3.67 Å from the PES, with a repulsive interaction energy less than 1 kcal/mol. However, if there are simultaneous attractive interactions with other parts of the molecule besides the amide group, the weak repulsion could be easily overcome, to give a C?O/π geometry interaction. © 2009 Wiley Periodicals, Inc. J Comput Chem, 2009     

Effects of heterogeneity on bank efficiency scores

Bank efficiency estimates often serve as a proxy of managerial skill since they quantify sub-optimal production choices. But such deviations can also be due to omitted systematic differences among banks. In this study, we examine the effects of heterogeneity on bank efficiency scores. We compare different specifications of a stochastic cost and alternative profit frontier model with a baseline specification. After conducting a specification test, we discuss heterogeneity effects on efficiency levels, ranks and the tails of the efficiency distribution. We find that heterogeneity controls influence both banks’ optimal costs and profits and their ability to be efficient. Differences in efficiency scores are important for more than only methodological reasons. First, different ways of accounting for heterogeneity result in estimates of foregone profits and additional costs that are significantly different from what we infer from our general specification. Second, banks are significantly re-ranked when their efficiency is estimated with a specification other than the preferred, general specification. Third, the general specification gives the most reliable estimates of the probability of distress, although differences to the other specifications are low.     

The use of dummy spheres in SCF Xα calculation

A representative SCF Xα calculation is presented for ClO₄^? using dummy spheres in an attempt to improve the formal interspherc region where the potential is taken to be a constant. Such spheres appear to have minimal effect on all derived quantities, however.     

Foreign versus domestic banks’ performance in the UK: a multicriteria approach

Although the banking sector in the UK is one of the most open and it is characterized by an increasing foreign bank presence, it remains relatively under-researched compared to studies for other countries. The objective of this paper is to investigate the performance of the UK banking sector focusing on the performance of the domestic banks as opposed to the performance of the foreign banks in order to test the hypothesis of higher performance of the domestic banks in a developed market. For this purpose, the UTADIS multicriteria methodology is employed to compare domestic and foreign banks performance over multiple criteria, such as profitability, liquidity, risk and efficiency, using a data sample covering 26 domestic and 32 foreign banks operating in the UK over the period 1998 to 2001. The results of the study, support the home advantage hypothesis, suggesting that the higher performance of domestic banks compared to foreign banks is also the case in the UK. The most important distinguishing performance factors between the two groups of banks are interest revenue to total earning assets, and profit before taxes to loans plus securities, which are higher for the domestic banks.AMS classification: 91B28     

Identification of novel HDAC8 selective inhibitors through ligand and structure based studies: Exploiting the acetate release channel differences among class I isoforms

Histone deacetylases (HDACs) are key regulators of gene expression and have emerged as crucial therapeutic targets for cancer. Among the HDACs, inhibition of HDAC8 enzyme has been reported to be a novel strategy in the treatment of female-specific cancers. Most of the HDAC inhibitors discovered so far inhibit multiple HDAC isoforms causing toxicities in the clinic thus limiting their potential. Therefore, the discovery of isoform-selective HDAC8 inhibitors is highly desirable. In the present study, a combination of ligand and structure based drug design tools were utilized to build a statistically significant pharmacophore based 3D QSAR model with statistical parameters R²: 0.9964, and Q²: 0.7154, from a series of 31 known HDAC8 inhibitors. Top 1000 hits obtained from Virtual screening of Phase database were subjected to docking studies against HDAC8. Top 100 hits obtained were redocked into HDAC Class I (HDAC 1,2,3) and Class II isoforms (HDAC 4, 6) and rescored with XP Glide Score. Based on fitness score, XP glide score and interacting amino acid residues, five HDAC8 inhibitors (1–5) were selected for in vitro studies. The HDAC8 activity assay followed by enzyme kinetics clearly indicated Compounds 1, 2 and 3 to be potent HDAC8 selective inhibitors with IC₅₀ of 126 pM, 112 nM, and 442 nM respectively. These compounds were cytotoxic to HeLa cells where HDAC8 is overexpressed but not to normal cells, HEK293. Also, they were able to induce apoptosis by modulating Bax/Bcl2, cleavage of PARP and release of Cytochrome C. Molecular Dynamics simulations observed most favorable interaction patterns and presented a rationale for the activities of the identified compounds. Selectivity against HDAC8 was due to exploitation of the architectural difference in the acetate release channel among class I HDAC isoforms.     

Optimisation of short term commercial bank loans to corporates in terms of financing operating activities in Slovenia

This paper presents the mathematical model for determination of the optimal amount of short term commercial bank loans to corporate sector in Slovenia which is based on probabilistic inventory models. The goal of this paper is complete optimisation of cash inventories of corporate sector in the national economy. The results of optimisation are important for the corporate sector and for commercial banks. The optimal order quantity is an amount of short term commercial bank loan to corporates and defines a lending potential of commercial banks in a national economy. As such is important for the central bank when conducting monetary policy. Special emphasis has been given to determinants of optimal order quantity, which reflect market conditions in national economy.     

Bank branch sales evaluation using extended value efficiency analysis

This article results from our collaborative project with a Finnish bank aiming to evaluate the sales performance of bank branches. The management wishes to evaluate the branches’ ability to generate profit, which rules out the pure technical efficiency considerations. The branches operate in heterogeneous environments. We deal with the heterogeneity by subdividing the branches according to the bank specification into overlapping clusters and analyze each cluster separately. The prices of the branch outputs are hard to assess as the results from the sales efforts can only be observed with long delays. We employ benchmark units similarly as in value efficiency analysis (VEA). However, we extend VEA in two ways. First, in standard VEA the benchmark unit is assumed to yield the maximum profit among the set of feasible technologies; instead, our benchmark technology may or may not be in the feasible set. Second, we consider efficiency tests employing a benchmark with respect to both profit and return. We propose a solution strategy for these extensions. The bank uses the study to support decisions concerning new branches, changes in the operations of inefficient branches, and actions aiming to more flexible deployment of the staff.     

Identification of target-specific bioisosteric fragments from ligand–protein crystallographic data

Bioisosteres are functional groups or atoms that are structurally different but that can form similar intermolecular interactions. Potential bioisosteres were identified here from analysing the X-ray crystallographic structures for sets of different ligands complexed with a fixed protein. The protein was used to align the ligands with each other, and then pairs of ligands compared to identify substructural features with high volume overlap that occurred in approximately the same region of geometric space. The resulting pairs of substructural features can suggest potential bioisosteric replacements for use in lead-optimisation studies. Experiments with 12 sets of ligand–protein complexes from the Protein Data Bank demonstrate the effectiveness of the procedure.     

Blended skip entry guidance for low-lifting lunar return vehicles

A skip entry guidance algorithm blending numerical predictor-corrector and nominal trajectory tracking is presented for lunar return vehicles.The guidance is decoupled into longitudinal and lateral channels.A piecewise bank-vs-energy magnitude profile and a sign profile are adopted in the skip phase.A magnitude parameter is used to adjust the predicted downrange,and a pseudo-crossrange at the beginning of the final phase is selected as the lateral control variable.Prediction biases of both channels are nullified by a false position iteration algorithm.An on-line estimation and modeling method is introduced to compensate for aerodynamic and atmospheric uncertainties.A nominal trajectory for the final phase is generated based on actual reenter conditions,and the obtained nominal trajectory is tracked by a linear feedback law.A lateral corridor is used to manage the lateral state.The proposed guidance algorithm is assessed using three-degree-of-freedom Monte Carlo analyses,and the results show a satisfactory and robust performance under highly stressful dispersions.