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The PGBM model for a couple of counteracting, exponentially growing capital flows is presented: the available capital stock $X(t)$ evolves according to a variant of inhomogeneous geometric Brownian motion (GBM) with time-dependent drift, in particular, to the stochastic differential equation...
Persistent link: https://www.econbiz.de/10011234833
In December 2008, as the nancial and economic crisis continued on its devastating course, a new scandal erupted. After the 1998's failure of Long-Term Capital Management, Madoff's fraud once again discredits the hedge funds industry. This scandal is however of a dierent kind. Indeed, Madoff's rm...
Persistent link: https://www.econbiz.de/10009493274
A first order linear differential equation is used to describe the dynamics of an investment fund that promises more than it can deliver, also known as a Ponzi scheme. The model is based on a promised, unrealistic interest rate; on the actual, realized nominal interest rate; on the rate at which...
Persistent link: https://www.econbiz.de/10005619865
-2012, and tests the efficacy of the Securities and Exchange Commission’s (SEC) January 2010 reforms. To accomplish this, we … outlook of banks in the Asia-Pacific region. Finally, we find evidence that the SEC’s 2010 liquidity and weighted average life …
Persistent link: https://www.econbiz.de/10011108102
This paper provides an introduction to the concept of social capital, and carries out a critical review of the empirical literature on social capital and economic development. The survey points out six main weaknesses affecting the empirics of social capital. Identified weaknesses are then used...
Persistent link: https://www.econbiz.de/10005835508
heterogeneity, and human capital have an effect upon neighborhood trust, which is ordinarily considered as a kind of particularized … trust. The major findings are as follows: (1) Income inequality is associated with low trust for both young and the old … generations. (2) Age homogeneity and education have a detrimental effect on trust. However, this tendency is not observed when the …
Persistent link: https://www.econbiz.de/10005835787
We study experimentally the effect of expectations on trustworthiness. Most subjects respond with untrustworthy behavior if they find out that little is expected from them. This suggests that guilt aversion plays an important role in inducing trustworthiness.
Persistent link: https://www.econbiz.de/10005836248
suggested a model proposing that interpersonal commitment mediates the effect of trust and reciprocity on interorganizational … demonstrated that the relationship between trust and interorganizational commitment is in fact mediated by interpersonal commitment … commitment through trust, thereby ultimately helping to strengthen interorganizational commitment. …
Persistent link: https://www.econbiz.de/10005836673
buyers). We describe two kinds of models of trust for such networked environments, absolute and relativized models, and use …
Persistent link: https://www.econbiz.de/10005836924
to synthesize 10 essays on relationships between five constructs – reciprocity, trust, cooperation, interorganizational …, interpersonal commitments, reciprocity and trust. The ultimate outcome of this process is stability and maturity, which means … influence the content of their relationships. Another practical implication is that trust and reciprocity should be viewed …
Persistent link: https://www.econbiz.de/10005837201