infonet-economy

In this paper we set up a model of start-up finance under double moral hazard. Entrepreneurs lack own resources and business experience to develop their ideas. Venture capitalists can provide start-up finance and commercial support. The effort put forth by either agent contributes to the firm's success, but is not verifiable. As a result, the market equilibrium is biased towards...

If labour market policies aimed at people with disabilities are effective, we should observe no significant difference in labour market outcomes between disabled and non-disabled individuals. This Paper examines the impact of disability status on labour market outcomes using matching methods associated with treatment effect techniques for programme evaluation. Such techniques are...

In this study of tactical asset allocation, we use a genetic algorithm to implement a market timing strategy. The algorithm makes a daily decision whether to invest in the market index or in a riskless asset. The market index is represented by the S&P500 Composite Index, the riskless asset by a 3-month T-Bill. The decision of the genetic algorithm is based on fundamental...

Analysis of financial prices in macroeconomic models rests on two building blocks: the consumption-based asset pricing model and the structure of payoffs. This chapter studies how different modelling choices affect yield curves (real and nominal), risk premia on equity (levered or not), and options. The emphasis is on surveying existing models and to bring out the basic mechanisms...

The econometric literature on the effects of competition law on investment focuses almost exclusively on the consequences for inflows of foreign direct investment. What is more, the empirical papers in this literature can be counted on the figures of one hand and contain potentially contradictory findings. Precious little has been made of the potential effects of competition law...

With the move towards democracy and measures to liberalise domestic sectors and foreign trade, policymakers in Central America and elsewhere have taken a greater interest in the linkages between consumer protection policies and economic and sustainable development. This has manifested itself in a greater commitment to implementing and enforcing national consumer protection statutes...