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Abstract This paper applies Contingent Claims model a la Dixit and Pindyck (1994), on bank investment. Banks are indifferent between investing their assets on their own and extending loans to investors. The critical decision faced by the banker is the timing of the investment decision and its...
Persistent link: https://www.econbiz.de/10005621981
This paper is a supplement to Ghossoub [11]. In this supplement, some of the results of Ghossoub [11], as well as the techniques used to obtain these result are extended to a more general problem of demand for contingent claims with belief heterogeneity. Moreover, a general problem of monotone...
Persistent link: https://www.econbiz.de/10011109512
credit market. Informational asymmetries may be mitigated by posting collateral or by building relationships with lenders … (relationship lending). However, in some cases, due to a lack of collateral or of a long credit history, small enterprises may still …
Persistent link: https://www.econbiz.de/10005835569
Business Finance, the empirical model show that bank concentration may adversely affect the amount of credit supplied to small …-to-asset ratio of small firms that includes loans from nonbank institutions, suggesting that credit from non-bank institutions do not …
Persistent link: https://www.econbiz.de/10005622191
The paper examines marketing patterns when interest and storage loss rates are greater in rural zones, representing informal sector storage usually on-farm, than in urban zones, representing formal sector storage off-farm. Empirical results indicate that divergences in interest and storage loss...
Persistent link: https://www.econbiz.de/10011212583
credit. The optimal consumer decision represents the trade-off between the propensity to search for beneficial insurance or … consumer credit, and marginal savings on insurance policy or consumer credit. Under price dispersion the indirect utility … insurance or the complete consumer credit. The comparative static analysis of the saddle point of the utility function discovers …
Persistent link: https://www.econbiz.de/10011267888
in which the banks learn the central bank’s true model and adjust their credit policies to existing regulatory regime …. However this adjustment also creates changes in the choice of credit. …
Persistent link: https://www.econbiz.de/10011271323
The paper looks at the impact of the exchange rate regime and the household’s choice of debt. One of the characteristics of economic transition in eastern European countries was an increase in overall debt holding. Standard economic theory assumes the relationship S=I. According to this...
Persistent link: https://www.econbiz.de/10011259026
building block of no-arbitrage pricing theory. Nowadays, in the modern financial world after the credit crunch, some Libors are …
Persistent link: https://www.econbiz.de/10011259157
Access to finance by the poor is a sine qua non for poverty reduction through economic development thereby driving inclusive growth which can further lead to sustainable growth. This study using adequate data covering pre and postliberalisation period from 1974-75 to 2007-08 in the Indian...
Persistent link: https://www.econbiz.de/10011259337