The Wealth Effects of REIT Property Acquisitions and Dispositions: the Creditors’ Perspective

The Journal of Real Estate Finance and Economics - Prior studies of REIT property transaction activity focus on shareholder wealth effects. This study examines the effects of property acquisitions,...     

Gains from Trade in a Differential Game Model of Asymmetric Oligopoly

This paper revisits a classical topic of trade gains in a differential game model of oligopoly in which Home and Foreign firms differ in the number and cost. After deriving the feedback Nash equilibrium, we provide examples to consider how the difference in the number of firms or costs affects gainfulness of trade. We prove that feedback strategies can result in implications for trade gains which are sharply different from the open-loop case.     

MAURICE POTRON'S LINEAR ECONOMIC MODEL: A DE FACTO PROOF OF ‘FUNDAMENTAL MARXIAN THEOREM’

Maurice Potron was a French mathematician whose largely unknown contributions to economic analysis should be acknowledged as pioneering achievements. The purpose of this paper is to (1) reconstruct Potron's core model in terms of modern input–output analysis, (2) show that Potron proved de facto Fundamental Marxian Theorem (FMT) 48 years earlier than Morishima, Seton and Okishio by adapting the Perron–Frobenius theorems to economic problems, and (3) claim that Potron proved de facto FMT by considering heterogeneous labours 65 years earlier and even more generally than Bowles and Gintis.     

Moody's correlated binomial default distributions for inhomogeneous portfolios

This paper generalizes Moody's correlated binomial default distribution for homogeneous (exchangeable) credit portfolios, which was introduced by Witt, to the case of inhomogeneous portfolios. We consider two cases of inhomogeneous portfolios. In the first case, we treat a portfolio whose assets have uniform default correlation and non-uniform default probabilities. We obtain the default probability distribution and study the effect of inhomogeneity. The second case corresponds to a portfolio with inhomogeneous default correlation. Assets are categorized into several different sectors and the inter-sector and intra-sector correlations are not the same. We construct the joint default probabilities and obtain the default probability distribution. We show that as the number of assets in each sector decreases, inter-sector correlation becomes more important than intra-sector correlation. We study the maximum values of the inter-sector default correlation. Our generalization method can be applied to any correlated binomial default distribution model that has explicit relations to the conditional default probabilities or conditional default correlations, e.g. Credit Risk⁺, implied default distributions. We also compare some popular CDO pricing models from the viewpoint of the range of the implied tranche correlation.     

From Consolidation to Segment Reporting in Local Government： Accountability Needs,Accounting Standards,and the Effect on Decision-Makers

Consolidated Financial Statements （CFSs） in the public sector represent useful financial tools to improve transparency and accountability toward internal and external users. This aggregate view is only a part of the information needed in order to give politicians, managers, employees, financial institutions, rating agencies, and citizens a whole view of a local government＇s financial performance. It emerges the need to have segment information, covering specific policy areas for which it is appropriate to separately report financial and non-financial information. This paper, after having discussed the need for accountability and decision-making in a theoretical framework, gives account of a pilot project realized by the municipality of Reggio Emilia, which introduced CFSs and segment reporting. The empirical study is based on an action research as a methodological approach to solving practical problems. Finally, the paper also offers some practical suggestions to contribute to the applicability of the segment reporting in the public sector.     

首席执行官薪酬:千万别从日本找答案

由于美国对高管薪酬的辩论愈来愈激烈,于是一些人把日本当做控制不断膨胀的薪酬的楷模.据韬睿咨询公司(Towers Perrin)统计,日本100家最大公司的首席执行官的年均收入为150万美元,而美国大型公司领导人的收入要高达1330万美元.     

FREEDOM AND ACHIEVEMENT OF WELL‐BEING AND ADAPTIVE DYNAMICS OF CAPABILITIES

Extending D'Agata (2007, Journal of Socio‐Economics, 36, pp. 177–90), we consider adaptive dynamics of capabilities. In terms of the two‐way evaluation of well‐being à la Sen, we show the existence of a distribution of goods equalizing well‐being freedom (achievement) of each individual, the total amount of goods being fixed. On the other hand, by means of counter examples, we exemplify that two closely related focal variables can move in reverse directions (goods vs. well‐being, or freedom vs. achievement). In a dynamic context, one's well‐being achievement may decrease even with an increase in goods available, while, ceteris paribus, his/her well‐being freedom increases.     

Skills, agglomeration and segmentation

This paper studies the role of skill heterogeneity in “new economic geography” models of location. In our setting, products are both horizontally and vertically differentiated, and producing higher quality goods requires workers with higher skills. Selling to customers based in a different location entails iceberg-type transport costs and additional “communication costs” consisting of a fixed quality loss. We show that the presence of pecuniary externalities creates a mechanism which always promotes spatial sorting of workers according to their skill levels. In particular, in all stable equilibria, workers with higher skill choose to stay in the location where aggregate skill and income is higher, while the less skilled stay in the other.     

Market Integration and Competition in Environmental and Trade Policies

Recent empirics suggest the relevance of transport cost reductions for world trade growth along with eliminations in protectionist trade barriers. To address the welfare effects of trade cost reductions in a context of ??trade and the environment,?? we develop a two-stage game model where governments choose environmental and trade policies and firms play a Cournot-Nash game. We show that reductions in transport costs lead to lower emission taxes and higher tariffs. And, we find that the degree of pollution damage plays a central role in whether market integration is welfare-improving relative to autarky.