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Rational expectations has been the dominant way to model expectations, but the literature has quickly moved to a more realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form their expectations. A standard assumption is that...
Persistent link: https://www.econbiz.de/10009640692
This study focuses on the assessment of index tools for agricultural insurances. Index insurances basically differ from traditional agricultural insurances in that they do not refer to the actual farm losses, but to the losses evaluated from an index. This index can be, for example, some area...
Persistent link: https://www.econbiz.de/10011439188
involved the collection of qualitative and quantitative evidence on both demand for and supply of insurance and explored … consumers’ interest in and barriers to purchasing insurance cross-border. In particular, the experiments tested the … cross-border insurance issues, such as the provision of information to consumers, the purchasing process, and levels of …
Persistent link: https://www.econbiz.de/10012036383
Persistent link: https://www.econbiz.de/10009640268
As part of their respective mandates to protect investors, depositors and policy holders, the three European Supervisory Authorities, the EBA, ESMA and EIOPA are concerned about the practices used by some financial institutions to comply with enhanced prudential requirements under the CRD/R IV,...
Persistent link: https://www.econbiz.de/10010392286
Societies provide institutions that are costly to use, but able to enforce long-run relationships. We study the optimal decision problem of using self-governance for risk sharing or governance through enforcement provided by these institutions. Third-party enforcement is modelled as a costly...
Persistent link: https://www.econbiz.de/10009635888
This paper reviews the key economic issues concerning the welfare costs of inflation and deflation, with a view to shedding light on the desirable properties of the inflation process. Our review of the evidence on the overall costs of inflation and deflation indicates that such costs could be...
Persistent link: https://www.econbiz.de/10009635897
When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are an integral part of financial marketsu0092 organization. We assess the degree of risk sharing that can be achieved through financial markets when enforcement is based on the...
Persistent link: https://www.econbiz.de/10009636542
Inflation expectations constitute a subject of particular contemporary interest to central banks, especially those pursuing a monetary policy based on a strategy of direct inflation targeting. Macroeconomic theory indicates that the transmission of monetary policy impulses and their impact on...
Persistent link: https://www.econbiz.de/10009635882