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The paper deals with unintended consequences of the monetary union for the level of debt in the member countries of the … the low inflation ones (e.g. Germany). Different rates of growth of private or total domestic debt in individual countries … were closely connected to inflation differentials. Thus the debt was rising very rapidly in high inflation countries …
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The aim of the paper is to set the agency problem into a broad context of New Institutional Economics with an emphasis on historical connections. In the first section, I explain the historical evolution of basic theoretical concepts like the theory of firm, the theory of market process and the...
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This paper analyses problems within the asymmetric information models (principal agent models) where we replace standard assumption of maximisation of expected income by maximisation of probability of economic survival. This paper concentrates on two basic models- adverse selection model and...
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This paper shows results of comparison of the original theoretical conception of modeling human decisions under risk with two well known models. In the paper the demand function for insurance is constructed for the model of maximization of the probability of agent’s (economical) survival. This...
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