This paper derives the optimal LTV-ratio for a mortgagee that takes on deposits while it is supplying mortgages using housing as collateral. As the LTV-ratio represents the risk exposure of a mortgagee the optimal LTV-ratio varies according to moral hazard, funding, risk pricing, capital...

Do transition economies carry features distinct from those of mature economies? Exploring the relation between debt and inflation in mature and transition economies in a two-sector model with endogenous industrial structure, structural factors are shown to hinder achieving balanced performance...

This paper analyses the relation between the structure of GDP and a country's debt sustainability. A two-sector model with endogenous relative sector sizes is developed to formally show that under certain conditions the debt sustainability, measured as the limiting value of the debt-to-GDP...