infonet-economy

A complete framework for applications of behavioral finance in private banking, Behavioural Finance for Private Banking considers client needs specific to private banking like personal circumstances, objectives, and attitude to risk. This book includes the theoretical foundations of investment decision-making, an introduction to behavioral biases, an explanation of cultural…

In the heart of the Great Crisis, amidst great uncertainty and concerns surrounding the future of capitalism, John Maynard Keynes launched his optimistic prophecy that growth and technological change would allow mankind to solve its economic problem within a century. He envisioned a world where people would work much less and be less oppressed by the satisfaction of material needs.…

Recently, a number of authors have argued that the standard search model cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies, given shocks of a plausible magnitude. We propose a new calibration strategy of the standard model that uses data on the cost of vacancy creation and cyclicality of wages to identify the two key parameters - the…

We describe a sparse grid collocation algorithm to compute recursive solutions of dynamic economies with a sizable number of state variables. We show how powerful this method may be in applications by computing the nonlinear recursive solution of an international real business cycle model with a substantial number of countries, complete insurance markets and frictions that impede…

The British Industrial Revolution triggered a socioeconomic transformation whereby the landowning aristocracy was replaced by industrial capitalists rising from the middle classes as the economically dominant group. We propose a theory of preference formation under financial-market imperfections that can account for this pattern. Parents shape their children’s preferences in response…

hort-run equilibrium of supply and demand. Assets pay dividends that are partially consumed and partially
reinvested. The traders use fixed-mix investment strategies (portfolio rules), distributing their wealth between
assets in fixed proportions. Our main goal is to identify globally evolutionarily stable strategies, allowing an
investor to “survive,” i.e., to…

The objective of this thesis is to consider different risk
management issues in relation to operational risk with a special emphasis on terrorism risk. Our motivation to implement research in this particularly challenging area of risk management is due to the increasing magnitude of operational losses over the last decade and their negative effect on financial industry. This…