Treasuries are not money-like financial assets, but the market based credit system is the financial infrastructure that uses safe and liquid assets like Treasuries as raw material to produce money-like financial claims, i.e. shadow money. The ratio of Treasuries useable by money dealers, i.e....

Safe and liquid assets like Treasuries are not a cash substitute. However, dealer banks may transform Treasuries into a money-like financial asset, i.e., a repurchase agreement collateralized with Treasuries. The ratio of Treasuries useable as repo collateral by dealer banks over demand for...

Dynamic average correlations of stock returns are predicted by the volatility of the market excess return and moving average returns of value, size and momentum portfolios. While the influence of market volatility on average correlation is well-known, the role of value, size and momentum appears...

The approach by Engelberg, Manski, and Williams (2009) to convert probabilistic survey responses into continuous probability distribution requires that the question intervals are equally wide. Almost all recently established household surveys have intervals of varying widths. Applying the...

Bayesian Updating is the dominant theory of learning in economics. The theory is silent about how individuals react to events that were previously unforeseeable or unforeseen. Recent theoretical literature has put forth axiomatic frameworks to analyze the unknown. In particular, we test if...

Bayesian Updating is the dominant theory of learning in economics. The theory is silent about how individuals react to events that were previously unforeseeable or unforeseen. Recent theoretical literature has put forth axiomatic frameworks to analyze the unknown. In particular, we test if...