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In the past twenty-five years, derivatives markets have grown exponentially. Large, modern derivatives markets increasingly enable investors to hold economic interests in corporations without owning voting rights, and vice versa. This leads to both empty voters — investors whose voting...
Persistent link: https://www.econbiz.de/10010891163
In exchange economies where moral hazard affects the distribution of individual risks, we study the viability of linear nonexclusive contracts. It is shown that the linearity in prices and payoffs is compatible with the presence of moral hazard when coupled with a simple participation fee. More...
Persistent link: https://www.econbiz.de/10005011585
We propose an empirically motivated financial market model in which speculators rely on trend-following, contrarian and fundamental trading rules to determine their orders. Speculators' probabilistic rule-selection behavior - the only type of randomness in our model - depends on past and future...
Persistent link: https://www.econbiz.de/10012023996
A highly successful investment- and export-led growth strategy has positioned China as the second largest economy and … as the largest exporter in the world. Households' consumption has played a minor role in its growth strategy, which is … expenditure is the result of the pervasiveness of the state in the economy, which aimed at impairing the growth of middle classes …
Persistent link: https://www.econbiz.de/10009321203
China’s expected growth slowdown - from 10.3 per cent yoy in 2010 to 8.9 per cent this year and 8.3 per cent in 2012 …, potential speed bumpers ahead that might lead to lower-than-expected growth in China and an assessment of how this could in turn …
Persistent link: https://www.econbiz.de/10009321459
This paper explores the concept of global liquidity, its measurement and macro-financial importance. We construct two sets of indicators for global liquidity: a quantity series distinguishing between core and noncore liabilities of financial intermediatires and a corresponding price series....
Persistent link: https://www.econbiz.de/10010790397
Statement by Dr. Raghuram Rajan on taking office on September 4, 2013. [RBI Press release].
Persistent link: https://www.econbiz.de/10010945264
studying an environment in which a trade-off between risk sharing and growth arises endogenously. Financial intermediaries …-sharing and growth. We show the mix of intermediaries and market that maximizes welfare depend on parameter values …
Persistent link: https://www.econbiz.de/10004970349
explores implications for growth, innovation, inflation, financial markets, fiscal policy, and several socio-economic outcomes …
Persistent link: https://www.econbiz.de/10014374494
development and growth, where the relationship changes once a threshold level of inflation is reached. Robust statistical support … relationship between growth and financial market development occurs before the threshold, and a strong negative relationship … between growth and inflation occurs after the threshold. When an interaction variable between inflation and financial market …
Persistent link: https://www.econbiz.de/10008462869