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We examine the profitability of cross-ownership in an oligopolistic industry where firms compete as Cournot rivals. We consider a symmetric cross-ownership structure in which a subset of k firms engage in cross-shareholding and each firm has an equal silent financial interest in the other firms,...
Persistent link: https://www.econbiz.de/10012824811
How can tax policy improve financial stability? Recent studies suggest large stability gains from eliminating the debt bias in corporate taxation. It is well known that this reform reduces bank leverage. This paper analyzes a novel, complementary channel: risk taking. We model banks’ portfolio...
Persistent link: https://www.econbiz.de/10013250732
might be infrastructure investment. This paper provides a dual profit theoretical framework of measuring the effects of …
Persistent link: https://www.econbiz.de/10013316826
anomalies give rise to profit opportunities by applying a trading simulation approach. The results suggest the presence of the …
Persistent link: https://www.econbiz.de/10013323081
. Differences are also found in the results by asset class. The implications of these findings for private equity management, profit …
Persistent link: https://www.econbiz.de/10014080230
We characterize a measure of social welfare for linear production economies in which individuals differ in productive skills and preferences. The key feature of our measure is that it aggregates fairness gaps, defined as the difference between the money-metric utility that the individual...
Persistent link: https://www.econbiz.de/10014262033
root of different inflation rates in Europe including the EU-27. Among others, we study the structural and cyclical factors … descriptive statistics. Subsequently, we set out the possible mismatches between price level convergence and inflation rates … factors on observed inflation rates first in an accounting framework and then by relying on panel estimations. Our estimation …
Persistent link: https://www.econbiz.de/10010264234
is shown that the firm's optimal adjustment strategy may involve stockouts. At low inflation rates, output is inversely … related to the inflation rate, and the length of time demand is satisfied increases with the demand elasticity but decreases …
Persistent link: https://www.econbiz.de/10010264322
seigniorage finance. This leads to an increase in inflation which, in turn, reduces capital accumulation and growth. At the …
Persistent link: https://www.econbiz.de/10010264401
This paper estimates a time-varying AR-GARCH model of inflation producing measures of inflation uncertainty for the … policy regime change associated with the start of EMU in 1999. The main findings are as follows. Steady-state inflation and … inflation uncertainty have declined steadily since the inception of EMU, whilst short-run uncertainty has increased, mainly …
Persistent link: https://www.econbiz.de/10010271965