Showing 1 - 10 of 3,907
Persistent link: https://www.econbiz.de/10001702047
Persistent link: https://www.econbiz.de/10001711445
Persistent link: https://www.econbiz.de/10010476920
In a production economy with trade in financial markets motivated by the desire to share labor-income risk and to speculate, we show that speculation increases volatility of asset returns and investment growth, increases the equity risk premium, and reduces welfare. Regulatory measures, such as...
Persistent link: https://www.econbiz.de/10011436064
This paper examines empirically the nonlinear business cycle dynamics due to the presence of financial frictions. Using a threshold vector auto regression, the authors estimate the behavior of interest rate shocks in which a regime change occurs if the two respective threshold variables namely...
Persistent link: https://www.econbiz.de/10011609272
Financial market interactions can lead to large and persistent booms and recessions. Instability is an inherent threat to economies with speculative financial markets. A central bank's interest rate setting can amplify the expectation feedback in the financial market and this can lead to...
Persistent link: https://www.econbiz.de/10011781831
Persistent link: https://www.econbiz.de/10011579964
Persistent link: https://www.econbiz.de/10011709400
Persistent link: https://www.econbiz.de/10012590077
Persistent link: https://www.econbiz.de/10013440212