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Liquidity, risk, and return: Specifying an objective function for the management of foreign reserves

Romanyuk, Yuliya - 2010

An objective function is a key component of a strategic portfolio management model used to determine the optimal allocations of assets and, possibly, their associated liabilities over some investment horizon. The author discusses investment philosophies and perspectives for the management of...

Persistent link: https://www.econbiz.de/10010289670

Prospects for global current account rebalancing

Beaton, Kimberly; De Resende, Carlos; Lalonde, René; … - 2010

domestic demand in emerging Asia, is needed to ensure that the counterpart of the decrease in the U.S. current account deficit …

Persistent link: https://www.econbiz.de/10010289703

What to do about bilateral credit limits in the LVTS when a closure is anticipated: Risk versus liquidity sharing among LVTS participants

O'Connor, Sean; Caldwell, Greg - 2008

The authors examine the effect of a trade-off between shared credit risk and liquidity efficiency, among participants in Tranche 2 of the Large Value Transfer System (LVTS T2), on their decisions to leave open, or close, their bilateral credit limits (BCLs) to a participant at risk of imminent...

Persistent link: https://www.econbiz.de/10010289717

Labor market effects of unemployment insurance design

Tatsiramos, Konstantinos; van Ours, Jan C. - 2012

With the emergence of the Great Recession unemployment insurance (UI) is once again at the heart of the policy debate. In this paper, we review the recent theoretical and empirical evidence on the labor market effects of UI design. We also discuss policy issues related to UI design, including...

Persistent link: https://www.econbiz.de/10010289841

Stochastic choice and consideration sets

Manzini, Paola; Mariotti, Marco - 2012

We model a boundedly rational agent who suffers from limited attention. The agent considers each feasible alternative with a given (unobservable) probability, the attention parameter, and then chooses the alternative that maximises a preference relation within the set of considered alternatives....

Persistent link: https://www.econbiz.de/10010289884

Profit sharing and relative consumption

Goerke, Laszlo - 2012

Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to...

Persistent link: https://www.econbiz.de/10010289892

Household search or individual search: Does it matter? Evidence from lifetime inequality estimates

Flabbi, Luca; Mabli, James - 2012

are frequently taken at the household level. We fill this gap by developing and estimating an household search model with … ignoring the household as unit of decision-making has relevant empirical consequences. In estimation, the individual search … specification implies gender wage offers differentials 200% larger than the household search specification. In the application, the …

Persistent link: https://www.econbiz.de/10010289896

Rational students and resit exams

Kooreman, Peter - 2012

Resit exams - extra opportunities to do an exam in the same academic year - are widely prevalent in European higher education, but uncommon in the US. I present a simple theoretical model to compare rational student behavior in the case of only one exam opportunity versus the case of two exam...

Persistent link: https://www.econbiz.de/10010289897

To see is to believe: Common expectations in experimental asset markets

Cheung, Stephen L.; Hedegaard, Morten; Palan, Stefan - 2012

We challenge the recent claim that mispricing in the experimental asset markets introduced by Smith, Suchanek, and Williams (1988) is merely an artefact of confusion over declining fundamental value, and can be eliminated through appropriate training. We instead propose that when training is...

Persistent link: https://www.econbiz.de/10010289899

Frontier issues of the political economy of migration

Epstein, Gil S. - 2012

Migration has a strong economic impact on the sending and host countries. Since individuals and groups do not benefit equally from migration, interest groups emerge to protect and take care of their narrow self-interests and compete for rents generated by migration. Narrow self-interests may be...

Persistent link: https://www.econbiz.de/10010289901