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Voting With Time Commitment for Decentralized Governance : Bond Voting as a Sybil-Resistant Mechanism

Mohan, Vijay; Khezr, Peyman; Berg, Chris - 2022

Blockchain applications are increasingly experimenting with novel governance mechanisms that address issues that are important for their community: resistance to voter fraud in the form a Sybil attack; resistance to the formation of a plutocracy within the community; and, the ability to express...

Persistent link: https://www.econbiz.de/10014237282

Credit Rating and Pricing : Poles Apart

Bloechlinger, Andreas - 2018

Corporate ratings remove the information asymmetry between lenders and borrowers to find an equilibrium price. Structured credit ratings, however, are informationally insufficient because the systematic risk of equally rated assets can vary substantially. As I demonstrate, highly-rated...

Persistent link: https://www.econbiz.de/10012937290

Faith-Based Financial Regulation : A Primer on Oversight of Credit Rating Organizations

Fitzpatrick, Thomas James; Sagers, Chris - 2011

During the past forty years, the simultaneous, symbiotic growth of financial innovation, disintermediation and deregulation has created an environment with extremely complex, opaque investment instruments. That system has now collapsed. At the very center of the crisis are a small group of...

Persistent link: https://www.econbiz.de/10014209183

Sunspots in global games: Theory and experiment

Heinemann, Frank; Moradi, Homayoon - 2018

We solve and test experimentally a global-games model of speculative attacks where agents can choose whether to read, at a cost, a payoff irrelevant (sunspot) announcement. Assuming that subjects exogenously believe some others to follow sunspots, we provide conditions for a unique equilibrium...

Persistent link: https://www.econbiz.de/10011985279

Financial Engineering Coupled with Regulatory Incentives : Is There a Strong Market Case for Sovereign Bond-Backed Securities (SBBSs) in the Euro-Area? A Brief Analysis of the Euro...

Gortsos, Christos - 2018

The aim of this paper is to present and briefly analyse the provisions of the recent (24 May 2018) European Commission's proposal for a Regulation of the European Parliament and the Council, whose objective is to lay down a general framework for sovereign bond-backed securities (SBBSs). It is...

Persistent link: https://www.econbiz.de/10012911693

Strategic Trading and Unobservable Information Acquisition

Banerjee, Snehal - 2019

We allow a strategic trader to choose when to acquire information about an asset's payoff, instead of endowing her with it. When the trader dynamically controls the precision of a flow of information, the optimal precision evolves stochastically and increases with market liquidity. However,...

Persistent link: https://www.econbiz.de/10012897901

Financial Markets Where Traders Neglect the Informational Content of Prices

Eyster, Erik - 2018

We model a financial market where some traders of a risky asset do not fully appreciate what prices convey about others' private information. Markets comprising solely such "cursed" traders generate more trade than those comprising solely rationals. Because rationals arbitrage distortions caused...

Persistent link: https://www.econbiz.de/10012928331

Potential output and fiscal rules in a monetary union under asymmetric information

Marattin, Luigi; Meraglia, Simone - 2015

We analyze fiscal rules within a Monetary Union in the presence of (i) asymmetric information about member states' potential output and, therefore, output gap and (ii) bail-out among member states. In our framework, bail-out lowers the scope for signalling (discrimination) by member states...

Persistent link: https://www.econbiz.de/10011714310

Potential output and fiscal rules in a monetary union under asymmetric information - 2nd ed

Marattin, Luigi; Meraglia, Simone - 2016 - 2nd edition

We analyze fiscal rules within a Monetary Union in the presence of (i) asymmetric information on member states' potential output and (ii) bail-out among member states. The first-best deficit is contingent on the cycle, that is, on member states' output gap. In the presence of asymmetric...

Persistent link: https://www.econbiz.de/10011705510

Currency Redenomination Risk

Kremens, Lukas - 2019

on two types of CDS contracts. I use the measure to assess how the event of a French or Italian eurozone exit is priced … in the cross-section of eurozone sovereign bonds. Yields across the eurozone hardly covary with Italian redenomination … findings are consistent with the interpretation that an Italian exit from the eurozone would remain isolated, while a French …

Persistent link: https://www.econbiz.de/10012899902