In this article we test the relationship between per capita income differential and exchange rate differential between two different economic background countries. Recent researches have been done on the testing of international Fisher effect, Interest rate, GDP growth rate and purchasing power...

The recent longstanding Global Crisis which seems to have no end has created a divisive debate on the utility of Academic research and in particular on the business of studying Economics and proffering solutions for alleviating world problems. The study , kickstarts an exercise in Critical...

This paper proposes that the global financial and economic crisis has a single cause underlying all other causes. The single cause is attributed to the economic paradigm which drives individual behaviour, business, government and education. We define the economic paradigm and explain its power...

One approach to analyzing inequality is to compare average economic choices from a classical theoretical framework. Another approach considers the impact of the formation of society, through statutes and institutions, on average economic outcomes. This paper studies the effects of slavery on...

Many developing countries are plagued by persistent inequality in income distribution. While a growing body of economic-demographic literature emphasizes differential fertility channel, this paper investigates differential child mortality - differences in child mortality across income groups -...

In his 2014 book, Thomas Piketty argues that wealth inequality is sharply increasing in r-g and refers to rg as ‘the central contradiction of capitalist economics', where r is asset returns and g is real income growth. To assess whether inequality is increasing in the (r-g)-gap this paper: 1)...

We introduce advanced idiosyncratic risk (“AI-Risk”), a parsimonious correlated residual correction to a predictive stress CAPM-like factor model, aimed to get more accurate stock-stock correlations. We find that AI-Risk can be significant for stock portfolios. Inclusion of AI-Risk gives a...

Previously we introduced Singular Spectrum Analysis SSA and its multivariate extension MSSA as a powerful tool for cleaning data. Here we compare MSSA with the data filling algorithm M-REM (Multivariate Regularized Expectation Maximization). We compare theoretical methodology, numerical...

We present an exact analytic solution to the two-dimensional correlated default structural Merton model in the form of a local volatility problem using a conformal square-root transformation of the exact solution to a 2D hybrid barrier problem. We also give an approximation and evaluate it...