Indonesia is extensively promoting Public-Private Partnership (PPP) for infrastructure projects, including in the water sector. However, it is found that it takes two to eight years for water supply system (WSS) PPPs to be procured, likely prompting for higher transaction costs. This research...

This article provides evidence from the Congo that social relationships with state officials can decrease one social cost of corruption, in the context of public transport. We first document that police stops can lead to long bribe negotiations. In response, some drivers and officers have built...

When returns are partially predictable and trading is costly, CARA investors track a target portfolio at a constant trading speed. The target portfolio is optimal for a frictionless market, where asset returns are scaled back to account for trading costs and volatilities are adjusted to proxy...

This paper studies a finite-horizon portfolio selection problem with non-concave terminal utility and proportional transaction costs. The commonly used concavification principle for terminal value is no longer valid here, and we establish a proper theoretical characterization of this problem. We...

This research paper analyzes, at a high level, key issues for investors seeking investment opportunities in emerging economies using the instrumentality of Mergers & Acquisitions. It factors, from an international outlook, step-by-step progress in getting the deal through. The fulcrum of the...

This paper applies finite element modelling to solve nonlinear Heston PDE with transaction costs. The modeling results show that Finite Element Method can provide accurate option price and Greeks under Heston’s stochastic volatility model. The accuracy of the finite element solution depends on...

We study the determinants of transaction fees in Bitcoin and Ethereum blockchains, particularly focusing on the recent Merge – Ethereum's shift from a Proof of Work to a Proof of Stake consensus method. Through multivariate regression analysis, we find that blockchain fees in USD increase with...

We investigate the effect of the regime-switching transaction costs and dividends on liquidity premium and investor’s optimal strategy. With reasonably calibrated parameters, we show that counter-cyclical transaction costs substantially raise liquidity premium while procyclical dividends...

Covering strategies use information stored in past daily returns to improve the performance of momentum portfolios, which use information stored in past monthly returns to outperform the stock market. However, covering strategies for momentum portfolios have three shortcomings: they have...

A smart contract is an agreement enforced by blockchain technology. It supposedly allows the parties involved to conduct transactions more efficiently than a traditional contract, which is based on legal (costly) enforcement. This chapter challenges this claim. Given the need for an...