Systemic risk-shifting in U.S. commercial banking

Review of Quantitative Finance and Accounting - This paper puts forward the proposition that U.S. commercial banks use dividends as a mechanism to shift systemic risk to debt-holders and the...     

Adjustment of US external imbalances: At what horizon?

The relative contribution of the trade and financial channels for correcting cyclical external imbalances of the US is decomposed by horizon. Valuation effects contribute for horizons up to a year, while trade flows for horizons up to 4 years.     

The evolution of cognitive radio technology in Europe: Regulatory and standardization aspects

Cognitive radio (CR) is considered a promising technology that could provide important benefits in the telecommunication domain. In Europe, the number of research projects, standardization activities and public consultations by the European Commission and regulatory authorities testify to the growing interest in CR. The introduction of CR in the telecommunication market may require new regulations or changes to the way spectrum is licensed and the conditions under which it can be used. The concepts of CR can be applied to various operational scenarios, which are described in this paper.This paper identifies the main challenges for the deployment of CR technology in Europe, provides an overview of the activities by European regulatory and standardization bodies to address the identified challenges and describes a roadmap with potential actions to support the adoption of CR technology.     

Investment decisions in manufacturing: assessing the effects of real oil prices and their uncertainty

We investigate the effects of real oil prices and their uncertainty on investment decisions. Making use of plant‐level data, we estimate dynamic, discrete‐choice models that allow modeling investment inaction, under different assumptions related to initial conditions and unobserved heterogeneity. We find that increases in real oil price changes and in real oil price uncertainty significantly reduce the likelihood of investment action, in line with the predictions of irreversible investment theory. We also document that investment decisions exhibit strong, pure state dependence and are also significantly affected by initial conditions. Copyright © 2012 John Wiley & Sons, Ltd.     

Financialization and the rise of atypical work

The current literature on financialization and the labour process focuses disproportionately on how corporate financialization induces the use of atypical work and largely overlooks the role of household financialization. This paper presents several mechanisms through which household debt and pension fund financialization increase the financial insecurity of employees, which, in turn, can curb their resistance to accepting such work contracts. To assess our arguments, we estimate the effects of corporate and household financialization on involuntary part-time and temporary employment, using a panel dataset of OECD economies. Our findings provide robust support that financialization increases significantly non-standard employment rates for the total workforce and women, but less for older employees.     

Foreign Direct Investment and Real Exchange Rate Interlinkages

This paper examines theoretically and empirically the relationship between Foreign Direct Investment and the real exchange rate. It is found that in large countries with freely floating currencies, such as the USA, the UK and Japan, causality runs from the real exchange rate to FDI. These results are consistent with the predictions of models of financial behavior. Causality runs both ways in small countries with fixed or quasi fixed currencies, such as the EU countries. These results are consistent with models, which emphasize on trade integration. It is shown that a weaker euro will not have uniform effects on FDI inflows across the unified Europe.