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The Welfare Cost of Business Cycles with
The Welfare Cost of Business Cycles with

... over time but also across all idiosyncratic features of the population. In other words, this welfare measure acts as if people were asked ex ante which economy they would like to be born in. Hence, the measure of business cycles can be thought of as the amount of consumption compensation newborns sh ...
NBER WORKING PAPER SERIES ADVANTAGE? Jiandong Ju
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... economies can also be called endowment binding. On the other hand, for economies with low-quality institutions, the view that finance is a key driver of the real economy is essentially correct. Finance is a source of comparative advantage, and factor endowments may fail to determine equilibrium out ...
Download paper (PDF)
Download paper (PDF)

... economies can also be called endowment binding. On the other hand, for economies with low-quality institutions, the view that finance is a key driver of the real economy is essentially correct. Finance is a source of comparative advantage, and factor endowments may fail to determine equilibrium out ...
Engineering Economics - Inside Mines
Engineering Economics - Inside Mines

... programs, and/or major environmental expenditures, particularly at the end of project life. Because of the possibility of multiple rates and the reinvestment assumption when using-the IRR to rank projects, the evaluator must carefully consider the exclusive use of this technique for decision-making. ...
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Day-of-the-Week Effects in the Indian stock market
Day-of-the-Week Effects in the Indian stock market

... The efficient market hypothesis (EMH) postulates that stock prices must efficiently reflect all available information about their intrinsic value. According to the EMH, stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervalued stock ...
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... the last trade and bid-ask spread every 10 minutes during Election Day until the winner was determined in the early hours of the following morning. We pair these data with the price of the last transaction in the same 10 minute period for the December 2004 futures contract of various financial varia ...
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... individuals with additional tax incentives for pension savings. This is a reinforcement of »saving for old age for everyone«, which would also be partly linked to investments in Slovenian stocks and bonds, and could provide a decisive boost to the domestic capital market. Pension accounts (“P accoun ...
A Theory of Salient Economic Fluctuations
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... workers too much. They thus make a lower profit than they expected. By contrast, if the downside payoff is more salient, the demand for workers will be too low, so will be the equilibrium wage and investors will make a higher profit than they expected. A delicate issue is to define what payoffs inve ...
Prepare for Rising Rates - JP Morgan Asset Management
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... in foreign direct investment by the U.S. in Mexico. Facilitating these benefits were provisions in the NAFTA treaty providing for the rights of investors.36 Chapter Eleven outlines two options for an international investor who has suffered expropriation or a breach of a NAFTA obligation by a member ...
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The Cross-Section and Time Series of Stock and Bond Returns

... the macro-economic cycle. For example, over the course of the average NBER recession, dividends on value stocks fall 21% while dividends on growth stocks increase by 3%. The 24% average gap hides interesting differences across recessions. During the Great Recession of 2007-2009, the fall in value-mi ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconomics 2007
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... goods and claims to futuregoods- which should bring similarbenefits as liberalizationof trade of regulargoods. These volatile swings, however, raise concernsabout the potential costs of capital accountliberalization. In a recent book, Obstfeld and Taylor(2004) analyze the flows and ebbs of internati ...
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Knowledge in a nutshell - UBS

... buys in-the-money call options on a stock for 20 Swiss cent each. We hedge our position by buying the stock for 10 Swiss francs. That way, we can deliver the stock if the client demands it at expiration. If the client decides to sell the call prior to expiration because the stock has gone up, we wil ...
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Why are Housing Prices so Volatile? Income Shocks in a Stochastic
Why are Housing Prices so Volatile? Income Shocks in a Stochastic

... of dwellings: starter homes (“flats” hereafter) and larger dwellings (“houses” hereafter). Both types of dwelling are available in fixed quantities, S F and S H , respectively.5 In addition to living in a flat or house, agents may remain with a parent at no cost to the parent. This is where all age ...
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Financial economics

Financial economics is the branch of economics characterized by a ""concentration on monetary activities"", in which ""money of one type or another is likely to appear on both sides of a trade"". Its concern is thus the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing (or ""investment theory"") and corporate finance; the first being the perspective of providers of capital and the second of users of capital.The subject is concerned with ""the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment"". It therefore centers on decision making under uncertainty in the context of the financial markets, and the resultant economic and financial models and principles, and is concerned with deriving testable or policy implications from acceptable assumptions. It is built on the foundations of microeconomics and decision theory.Financial econometrics is the branch of financial economics that uses econometric techniques to parameterise these relationships. Mathematical finance is related in that it will derive and extend the mathematical or numerical models suggested by financial economics. Note though that the emphasis there is mathematical consistency, as opposed to compatibility with economic theory.Financial economics is usually taught at the postgraduate level; see Master of Financial Economics. Recently, specialist undergraduate degrees are offered in the discipline.Note that this article provides an overview and survey of the field: for derivations and more technical discussion, see the specific articles linked.
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