In this article, we analyze risk premia and time varying risk of US closed-end bond funds markets. Pessimism or optimism may drive prices far-away from their fundamental. An arbitrageur buying or selling an asset has to be cautious and limited about his investment positions. Noise traders could...

The Keynesian support the view that changes in aggregate demand results in large increase in real output but a small increase in the price level. In contrast, the monetarists support the opposite view that an increase in demand results in a small increase in real output and a significant...

In this article, we analyze the utility function, the different indifference curves, currency portfolio management and how to balance their thoughts under the Greek Christian Orthodox approach. We are focusing on how irrational investors form investment decisions. According to the Orthodox...

In this article, we examine the money supply and reserves based on open market operation and foreign exchange operation with intention to help the low income persons. At the initial stage, the government will buy bonds and reserves on open market operation in affordable interest rates to...

In this article, we test the implied volatility of a credit risk of a bond, an interest rate swap and a swaption of well known Swedish bank such as the Nordea bank. To minimize the interest and the credit risk of the contract the interest rate swap is linked to an option. The integration of an...

Environmental Economics considers the effects of the benefits and costs that are reflected in the society of each country. It is an efficient discipline of allocating efficiently scarce resources among alternatives. In this article, we debate the root of the problem and suggest solutions based...

In this article, we test a linear Gaussian space model and the Kalman filter ARMA(1,3) model to estimate logarithmic monthly returns of US corporate bonds. The purpose of this article is to estimate expectations that arise from the interaction of arbitrageurs and noise traders. An arbitrageur...

In this article, we analyze the put call parity formula on a 3 month OMX Stockholm 30 index option contract to show any evidence of arbitrage. The put – call parity shows the relationship between a call and a put option with the same expiration, strike and share prices. Price differentials...

In this article, we examine how the LM and BP schedule affect the Greek economy. The model assumes total capital mobility of the balance of payments. The BP curve represents the equilibrium of the balance of payments. The balance of payments shows the international financial position of the...

In this article, we measure technical, allocative and overall cost efficiency of Chinese, Brazilian and Indian general and life insurance companies by applying Data Envelopment Analysis, DEA. DEA estimates efficiency in firms with multiple inputs and outputs. In our case, we are testing one...