This paper analyzes the world economy model presented in Matsuyama (2002) with the help of numerical methods. We exhibit that his necessary and sufficient conditions for the asymmetric steady states do not cover all possible cases when the world interest rate is determined endogenously in the...

Since the start of the financial crisis, various forms of securitization have been criticized for causing the problems experienced. The amount of Asset Backed Commercial Paper outstanding fell drastically in the middle of 2007 drawing our attention to this market. Our study focuses on the use of...

The availability of a unique data set of financially distressed firms enabled this study to apply the dynamic capital structure adjustment model to a study of capital structure. In addition, the factors driving capital structure adjustment of financially distressed and of healthy firms were...

The paper measures the U.S. Farm Credit System’s technical efficiency from 2000 to 2009 using a stochastic frontier production function model with quarterly unbalanced panel data. The paper's results suggest that the FCS has not efficiently utilized their inputs. On an average, the system...

The role played by monetary policy in creating the conditions that culminated in the current crisis and the failure of the Fed’s efforts to end the credit freeze in 2008 are critical components of the analysis needed as a backdrop for reform. This paper argues that the link between excess...

We recently experienced a global financial crisis so severe that only massive rescue operations by governments around the world prevented a total financial market meltdown and perhaps another global Great Depression. One necessary precondition for the crisis was the perverse, bonus-driven...

This paper utilizes a sample of firms over the years 2000–2009 to test the effects of credit rating changes, the financial crisis, interest rates, and other variables on short-term, long-term, and total debt levels on the balance sheet. Each independent variable was created using a one year...

The financial crisis of 2008 had systemic implications in the financial services industry spilling over into sectors such as the leverage loan market. I use regression analysis between two data sets (before and after the crisis) to understand the determinants of loan spreads for corporate loans...

The intent of this paper is to analyze the structural composition of the European Monetary Union and its implications for the European Financial Crisis, specifically with respect to Greece. This analysis will be driven by a trend analysis of several economic variables from 1999-2010. These...

Many critics partially attribute the severity of the 2008 financial crisis to a lack of regulatory oversight over credit derivatives. This paper will examine the governmental and private regulatory systems that aided the proliferation of these complex “financial weapons of mass destruction”...