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Transparency in the Interbank Market and the Volume of Bank Intermediated Loans

Broll, Udo; Eckwert, Bernhard - 2004

In this paper we study the impact of more transparency in the interbank market on the volume of bank intermediated loans and on the profitability of the banking business. Transparency is modeled by means of the informational content of publicly observable signals correlated to the random...

Persistent link: https://www.econbiz.de/10010296785

Domestic labor, foreign capital and national welfare

Broll, Udo; Hansen, Sabine; Marjit, Sugata - 2004

The competitive allocation of labor across different sectors of an economy may not be socially optimal when one sector uses foreign capital. We argue that a suitably designed government intervention is required to restrict the sectors to their optimal size and maximize national welfare. Such a...

Persistent link: https://www.econbiz.de/10010296787

Dynamic Hedging of Real Wealth Risk

Schubert, Stefan; Broll, Udo - 2005

International and national investors are often exposed to real wealth risks, stemming from volatile asset prices and inflation uncertainty, making it difficult to stabilize consumption patterns. However, investors can enter futures markets to hedge against these risks. The paper develops a...

Persistent link: https://www.econbiz.de/10010296789

Optimale Fakturierung im Außenhandel

Fuchs, Frank; Broll, Udo; Wahl, Jack E. - 2006

Bei Unsicherheit über die zukünftige Entwicklung des Wechselkurses sind international tätige Unternehmen nicht indifferent in Bezug auf die Wahl der Währung ihrer Preissetzung. Denn die bei der Fakturierung festgelegte Währung kann die Ertragssituation des Unternehmens erheblich...

Persistent link: https://www.econbiz.de/10010296802

Differential Taxation and Corporate Futures-Hedging

Wahl, Jack E.; Broll, Udo - 2007

Using a two-moment decision model this paper analyzes corporate hedging behavior in the presence of unified and differential income taxation. We start with the well-known result that risk-taking may increase when income tax rates increase and, therefore, the incentive for hedging reduces. We...

Persistent link: https://www.econbiz.de/10010296818

The New Basel Accord and the Nature of Risk: A Game Theoretic Perspective

Siebe, Wilfried; Milde, Hellmuth; Broll, Udo; Bieta, Volker - 2007

– game theory is a useful set of tools for better understanding different risk settings. Embedded in a short history of the … Basel Accord in this article we introduce some basic ideas of game theory in the context of rating procedures in accordance … with Basel II. As well, some insight is given how game theory works. Here, the primary value of game theory stems from its …

Persistent link: https://www.econbiz.de/10010296819

Licensing by a monopolist and unionized labor market

Mukherjee, Soma; Broll, Udo; Mukherjee, Arijit - 2007

We show that a monopolist final goods producer may find it profitable to create competition by licensing its technology if the input market is imperfectly competitive. With a centralized union, we show that licensing by a monopolist is profitable under both uniform and discriminatory wage...

Persistent link: https://www.econbiz.de/10010296821

The Competitive Firm Under Price Uncertainty: The Role of Information and Hedging

Broll, Udo; Eckwert, Bernhard - 2007

We study the impact of transparency in a commodity market on the decision problem of a competitive firm under price uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable signals which are correlated with the random...

Persistent link: https://www.econbiz.de/10010296824

Barriers to Diversification and Regional Allocation of Capital

Broll, Udo; Roldán-Ponce, Antonio; Wahl, Jack E. - 2007

In order to evaluate the allocational effectiveness of regional policy when harmonizing regional economic conditions firms? preferences play a pivot role. If harmonization hinders risk diversification of the firm, then instead of regional diversification of capital agglomeration of capital...

Persistent link: https://www.econbiz.de/10010296826

Export production under exchange rate uncertainty

Broll, Udo; Gilroy, B. Michael; Lukas, Elmar - 2008

Given that a multinational enterprise can react flexibly upon exchange rate movements, international trade flows may be interpreted as an option. An enterprise will opt to export if the profits obtained from exporting under given exchange rate developments are greater than if foreign subsidiary...

Persistent link: https://www.econbiz.de/10010300614