Taxation, money, and credit, in a liberalizing socialist economy

Understanding the system of financial control in the pre-existing régime of classical socialism is a key to understanding what might go wrong in the transition. Accordingly, this paper proceeds in four steps by examining:

Optimality in a financial economy with outside money and restricted participation

We analyze an economy with inside financial assets and outside money. Households have differing restricted access on both types of assets and, according to a well-known approach, they use money to pay taxes. Since competitive equilibria are generically inefficient, we perform a Pareto improvability analysis through a monetary intervention. It results that, if the government modifies the amount of money endowments for just one consumer in period one, then Pareto improvements upon the market equilibrium are possible.     

Introducing financial frictions and unemployment into a small open economy model

Which are the main frictions and the driving forces of business cycle dynamics in an open economy? To answer this question we extend the standard new Keynesian model in three dimensions: we incorporate financing frictions for capital, employment frictions for labor and extend the model into a small open economy setting. We estimate the model on Swedish data. Our main results are that (i) a financial shock is pivotal for explaining fluctuations in investment and GDP. (ii) The marginal efficiency of investment shock has negligible importance. (iii) The labor supply shock is unimportant in explaining GDP and no high frequency wage markup shock is needed.     

The role of self-accounting and financial capability in consumer credit decisions

The role of financial capability in the consumers＇ financial behaviour has been widely analyzed by the literature. The same happened for the relationship between debt and financial capability. The consensus about the benefits of an increase in the levels of financial literacy collides with a diversity of opinions on what the best solutions to increase financial capability. While methods based on traditional teaching may not be an effective solutions and they could not provide results in the short term, solutions oriented to support consumers in important financial decisions （requests for funding, choice of retirement solutions, etc.） may show greater effectiveness. Studies in literature have shown the tendency of subjects with high levels of financial capability to adopt a long term view and to upgrade their daily financial behaviour with attitudes and practices related to self-finance （budget, financial check-up, saving for goals, etc.） The paper focuses on the relationship between financial capability and self-accounting practices, interpreting the latter as evidence of conduct financially aware. After a review of the literature designed to emphasize the role of self-accounting in the context of personal finance, a financial check-up based tool is proposed, pointing out how the financial accounts＇ schemes and logics （regular budget, estimates and forecasts checking targets） may find useful application in the context of personal finance.     

Asymmetric convergence in US financial credit default swap sector index markets

This study examines the asymmetric adjustments to the long-run equilibrium for credit default swap (CDS) sector indexes of three financial sectors – banking, financial services and insurance – in the presence of a threshold effect. The results of the momentum-threshold autoregression (M-TAR) models demonstrate that asymmetric cointegration exists for all pairs comprised of those three CDS indexes. The speeds of adjustment in the long-run are much higher in the case of adjustments from below the threshold than from above for all the pairs. The estimates of The MTAR-VEC models suggest that the dual CDS index return in each sector pair participates in the adjustment to equilibrium in the short- and long-run taken together. But in the long-run alone, only one of the two spreads in each pair participates. Policy implications are also provided.     

Interbank credit and the money manufacturing process: a systemic perspective on financial stability

Interbank lending and borrowing occur when financial institutions seek to settle and refinance their mutual positions over time and circumstances. This interactive process involves money creation at the aggregate level. Coordination mismatch on interbank credit may trigger systemic crises. This happened when, since summer 2007, interbank credit coordination did not longer work smoothly across financial institutions, eventually requiring exceptional monetary policies by central banks, and guarantee and bailout interventions by governments. Our article develops an interacting heterogeneous agent-based model of interbank credit coordination under minimal institutions. First, we explore the link between interbank credit coordination and the money generation process. Contrary to received wisdom, interbank credit has the capacity to remove the inner limits of monetary system capacitance. Second, we develop simulation analysis on imperfect interbank credit coordination, studying impact of interbank dynamics on financial stability and resilience at individual and aggregate levels. Systemically destabilizing forces prove to be related to the working of the banking system over time, especially interbank coordination conditions and circumstances.

     

Early warning indicators and macro-prudential policies: a credit network agent based model

Credit network configurations play a crucial role in determining the vulnerability of the economic system. Following the network-based financial accelerator approach, we constructed an agent based model reproducing an artificial credit network that evolves endogenously according to the leverage choices of heterogeneous firms and banks. Thus, our work aims at defining both early warning indicators for crises and policy precautionary measures based on the endogenous credit network dynamics. The model is calibrated on a sample of firms and banks quoted in the Japanese stock-exchange markets from 1980 to 2012. Both empirical and simulated data suggest that credit and connectivity variations could be used as early warning measures for crises. Moreover, targeting banks that are central in the credit network in terms of size and connectivity, the capital-related macro-prudential policies may reduce systemic vulnerability without affecting aggregate output.     

网络经济下企业管理的发展趋势

网络经济作为一种全新的经济形态,正在深刻地影响着世界经济的进程。文章分析了网络经济下企业管理的核心内容,并对网络经济时代的企业组织形式,企业管理的特点进行了探讨。     

Business fluctuations and bankruptcy avalanches in an evolving network economy

We analyze the properties of a three-sector network economy characterized by credit relationships connecting downstream and upstream firms (inside credit) and credit relationships connecting firms and banks (outside credit). The network topology changes over time due to an endogenous process of partner selection (the preferred-partner choice rule). The output of simulations shows that a business cycle at the macroeconomic level can develop as a consequence of the complex interaction of the heterogeneous financial conditions of the agents involved. In this paper we focus on the emergence of bankruptcy crises: the bankruptcy of one agent can bring about the bankruptcy of one or more other agents in a snowball effect of more or less large size, depending on the network structure and the incidence of non-performing loans on balance sheets of agents involved.     

Central bank disclosure as a macroprudential tool for financial stability

The Basel Capital Accord (pillar 3) states that disclosure of information (transparency) is essential to financial stability. This study analyzes, through inflation reports, the disclosure of information from the Central Bank of Brazil concerning the credit market. We consider credit risk and capital buffers as measures of financial stability in this analysis. Furthermore, in order to measure the perception of the monetary authority on the credit market, we built two indices based on the central bank’s communication on credit development. We performed a panel data analysis based on a sample of 125 banks for the period from June 1999 to September 2014 (7000 observations). The findings suggest that central bank communication regarding expectations concerning the credit market contributes to financial stability. Therefore, this kind of communication of central banks (about credit development) may constitute an important macroprudential tool to improve financial stability.     

The weighted cross-shareholding complex network: a copula approach to concentration and control in financial markets

Journal of Economic Interaction and Coordination - In this work, we focus on the cross-shareholding structure in financial markets. Specifically, we build ad hoc indices of concentration and...     

Bankruptcy and optimality in a closed trading mass economy modelled as a non-cooperative game

In this paper we establish the existence of (a) an optimal bankruptcy rule which enables us to describe the Walrasian trading economy as a game with trade in fiat money; and (b) non- cooperative equilibrium points of this game which (in terms of prices and the final allocation yielded) include the competitive equilibrium points, and the accompanying money rate of interest (induced by borrowing at a central bank), when the bankruptcy rule is different from optimal.     

网络会计目标的转变对企业财务报告的影响

文章对网络时代会计目标的转变对财务报告的质量要求、内容、模式等方面的影响作了初步探讨,并对在线财务报告这一网络时代重要的财务报告模式进行了介绍。     

Optimal annuitisation in a deterministic financial environment

Decisions in Economics and Finance - The global reforms to public pension schemes over the last thirty years have progressively reduced individuals’ post-retirement social security income. In...     

Planning a mature economy in the USSR

Conclusion Few of the techniques of planning we have now been considering were available to the Soviet economist during the period of intensive industrialisation; those which were available were worked out only in elementary form. In any case, the gap between the goals of the politicians and the assumptions of the economists was so great that little dialogue was possible. The politicians, and the politically-minded economists, undertook the elaboration of their own system of planning and their own ruleof-thumb methods of quantifying their goals to make them operational. In doing this, they acquired a rich fund of valuable experience about the problems of development through central planning; the lessons from this experience, both successful and unsuccessful, could save resources in other economies where central planning is being used for development. Unfortunately, it is information about formal mechanisms for planning and financial control which has until now tended to be communicated from the Eastern bloc to the developing countries, rather than a realistic account of problems and achievements. For the developing countries, the further question exists: now that the new techniques for planning are available, can they be coupled with planning for a high rate of growth in conditions of rapid social change? If so, some of the successes of Soviet-type central planning may be achieved at less cost.For previous articles in this series, see Economics of Planning, Vol. 5, 1965, No. 1–2, pp. 74–86, Vol. 6, 1966, No. 1, pp. 53–67.     

Indeterminacy in a finance constrained unionized economy

We introduce labor unions and unemployment in a finance constrained monetary economy with heterogenous agents and productive labor externalities. We find that unions, introducing endogenous markup variability, influence the dynamics of the model. Although a lower bound for labor externalities is always required for indeterminacy, this lower bound decreases with union power when the elasticity of substitution between capital and labor is above one. For values of this elasticity below one, this result is reversed. We also show that Hopf bifurcations may occur as union bargaining power crosses a critical value. Finally, we find that unions increase simultaneously steady state employment, capital accumulation and welfare iff the (equilibrium) marginal productivity of labor is decreasing in employment.