Research Discussion Paper – RDP 2015-10 The Life of Australian Banknotes

Contents

• Introduction
• Background
• Traditional Steady-state or Turnover Method
• ‘Feige’ Steady-state Method
• Limitations of the Steady-state Methods
• Survival Modelling
• Back-testing the Models
• Conclusion
• Appendix A: Deriving the Feige Steady-state Equation
• Appendix B: Survival Model Functions
• Appendix C: Other Survival Model Specifications
• References

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I thank Michele Bullock, Christopher Kent, Michael Andersen, John Simon, Thomas Rohling, Peter Tulip, James Hansen and Matthew Read for valuable comments and contributions.