In the context of the classical stochastic growth model, we provide a simple proof that the optimal capital sequence is strictly bounded away from zero whenever the initial capital is strictly positive. We assume that the utility function is bounded below and the shocks affecting output are bounded. However, the proof does not require an interval shock space, thus, admitting both discrete and continuous shocks. Further, we allow for finite marginal product at zero capital. Finally, we use our result to show that any optimal capital sequence converges globally to a unique invariant distribution, which is bounded away from zero. 相似文献
We compare risk premia (RP) inferred using the Ohlson-Juettner (RPOJ) and residual income valuation (RPRIV) models in three ways: (1) correlation with risk factors; (2) correlation with RP estimated by multiplying current realizations of risk factors by coefficients obtained from regressing prior-year RP on prior-year risk factors; and (3) correlation with ex post returns. RPOJ has expected correlations with risk factors, a modest correlation with RP estimated from prior-year regressions, and an economically significant association with ex post returns. RPRIV has generally higher correlations, but regression coefficients are sensitive to whether the industry median ROE is computed with or without loss firms. 相似文献
Despite widely documented criticisms, price-limit rules are present in many equity markets around the world. Using a game-theoretic model, we argue that, if the cost of monitoring a market is high, price-limit rules are beneficial. Empirical tests based on a cross section of 43 equity markets across five continents support our theoretical prediction. We find that the probability of the existence of price-limit rules is greater in markets that incur higher monitoring costs due to poorer business disclosure, more corruption and less efficiency in legal, regulatory and technological environments. 相似文献
It is a natural human instinct to wonder about the future. Some have long speculated about the various events that could potentially lead to the extinction of the human race. While a dark subject, the point of exploring factors that could drastically impact the ability to sustain life on our planet has utility in preparing for events of this nature. It is in the spirit of learning how to change before catastrophe strikes that such wondering occurs. 相似文献
The concept of subaltern urbanization is about vibrant smaller settlements—outside the metropolitan shadow—sustainably supporting a dispersed pattern of urbanization. We propose a theoretical framework which draws on an empirical research collective using both large statistical and land-use data sets and detailed case studies in non-metropolitan Indian geographies. Anchored in postcolonial urban studies, it looks beyond the logic of agglomeration and questions our understanding of settlement hierarchies and the location of social and economic innovation processes, opening up an alternative reading of urbanization that could be valuable for other regions. Local agency is core to this concept, transporting the arguments of the ordinary and the subaltern beyond large cities. Our findings, apart from emphasizing the agency of smaller settlements, highlight their multiple local and translocal flows, shaping an autonomous external engagement that could exist independently of relationships with large cities. Further, even though the rural and the urban seep into each other, they do so organically, unlike the process in planetary urbanization. Additionally, the rural-urban dichotomy remains performative, in that governance regimes influence the urbanization process. Appreciation of these dynamics can provide insights towards a better understanding of the system of human settlements, which is our goal in advancing this framework. 相似文献
Jagolinzer et al. (The information content of insider trades around government intervention during the financial crisis. Working paper, 2014) examine insider trading at banks that were bailed out by the U.S. taxpayers. They provide evidence that insiders of bailed-out banks profitably purchased their banks’ shares over a 9 month period after the Troubled Assets Relief Program (TARP) was announced in October 2008. They find that the purchases were profitable for up to 12 months after the purchases. However, Liu et al. (J Bank Finance 37:5048–5061, 2013) find that shareholder gains at the bailed out banks occurred only after the banks paid back the TARP funds, which in most cases occurred after 2010. In this paper we extend Jagolinzer et al.’s (2014) analysis to financial institutions that did not receive TARP funding as well as to non-financial firms. We find that insiders of the non-TARP financial and the non-financial firms traded their shares profitably after the TARP program was announced. Insider share purchases at these firms were highly profitable for up to 12 months after the purchases. However, insider purchases at the bailed-out banks were slightly profitable only for a month after the purchases, after which the shares that were bought declined in value. Our results for the TARP banks do not corroborate Jagolinzer et al.’s (2014) results, but are consistent with the evidence in Liu et al. (2013) and several other papers that examine the wealth effects of TARP program announcements and fund repayments.
The word “convexity” is ubiquitous in economics, but absent fromeconomics. In this paper we explain why, and show what differenceit
makes to economic analysis if ecosystem non-convexities aretaken seriously. A simple proof is provided of the connectionbetween
“self-similarity” and “power laws”. We also provide anintroduction to each of the papers in the Symposium and draw outthe
way in which they form a linked set of contributions. 相似文献