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Gambling for dollars: Strategic hedge fund manager investment

Bernhardt, Dan; Nosal, Ed - 2013

Hedge fund managers differ in ability and investors want to distinguish good ones from bad. Via the design of their investment strategies, better fund managers want to ease this inference problem while worse fund managers want to complicate it. We impose only the minimal restrictions on the...

Persistent link: https://www.econbiz.de/10010352178

Payment system settlement and bank incentives

Kahn, Charles M.; Roberds, William - 1996

In this paper we consider the relative merits of net versus gross settlement of interbank payments. Net settlement economizes on the costs of holding non-interest-bearing reserves but increases moral hazard problems. The "put option" value of default under net settlement can also distort banks'...

Persistent link: https://www.econbiz.de/10010397416

A simultaneous equations analysis of analysts’ forecast bias and institutional ownership

Ackert, Lucy F.; Athanassakos, George - 2000

In this paper we use a simultaneous equations model to examine the relationship between analysts' forecasting decisions and institutions' investment decisions. Neglecting their interaction results in model misspecification. We find that analysts' optimism concerning a firm's earnings responds...

Persistent link: https://www.econbiz.de/10010397439

Financial fragility and the exchange rate regime

Chang, Roberto; Velasco, Andres - 1997

We study financial fragility, exchange rate crises, and monetary policy in an open economy version of a Diamond-Dybvig model. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails,...

Persistent link: https://www.econbiz.de/10010397526

The major supervisory initiatives post-FDICIA: Are they based on the goals of PCA? Should they be?

Eisenbeis, Robert A.; Wall, Larry D. - 2002

The prompt corrective action provisions in FDICIA 1991 provide the supervisors with an unambiguous goal: "to resolve the problems of insured depository institutions at the least possible long-term cost to the deposit insurance fund." Yet performance of the regulators in achieving this goal has...

Persistent link: https://www.econbiz.de/10010397540

Measuring dynamic connectedness with large Bayesian VAR models

Korobilis, Dimitris; Yılmaz, Kamil - 2018

We estimate a large Bayesian time-varying parameter vector autoregressive (TVP-VAR) model of daily stock return volatilities for 35 U.S. and European financial institutions. Based on that model we extract a connectedness index in the spirit of Diebold and Yilmaz (2014) (DYCI). We show that the...

Persistent link: https://www.econbiz.de/10012060204

Money in finance

Wray, L. Randall - 2011

This paper begins by defining, and distinguishing between, money and finance, and addresses alternative ways of financing spending. We next examine the role played by financial institutions (e.g., banks) in the provision of finance. The role of government as both regulator of private...

Persistent link: https://www.econbiz.de/10010281714

The great reversal

Chrimes, Tommy; Gootjes, Bram; Kose, M. Ayhan; Wheeler, … - 2024

The shock of the pandemic and subsequent overlapping crises has led to a reversal in development by exacerbating the challenges facing the most vulnerable 75 economies eligible for concessional loans and grants from the World Bank's International Development Association (IDA). Over 2020-24, per...

Persistent link: https://www.econbiz.de/10015209808

Price Level Convergence Among United States Cities: Lessons for the European Central Bank

Cecchetti, Stephen; Mark, Nelson C.; Sonora, Robert - 1998

estimate the half life of convergence to be approximately 9 years. The following hypotheses are investigated as explanations … for the slow convergence: (i) Arbitrage impediments induced by transportation costs, and (ii) and the inclusion of … upper bound on convergence rates that participants in European Monetary Union may experience. …

Persistent link: https://www.econbiz.de/10013369949

Growth, Convergence and EU Membership

Cuaresma, Jesus Crespo; Dimitz, Maria Antoinette; … - 2002

present study suggests an asymmetric, convergence-stimulating impact of EU membership on long-term growth. …

Persistent link: https://www.econbiz.de/10013369979