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Social and Behavioral Sciences Commons

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Articles 1 - 3 of 3

Full-Text Articles in Social and Behavioral Sciences

Government Induced Bubbles, Danilo Lopomo Beteto Wegner Jan 2018

Government Induced Bubbles, Danilo Lopomo Beteto Wegner

Danilo Lopomo Beteto Wegner

A model to study how the possibility of government intervention during market crashes impacts the investment decision of agents is developed. With crashes representing bubble burst episodes and a government policy rule based on their magnitude, it is shown that the possibility of intervention creates incentives for investors to inflate bubbles, as large bubbles (i) maximize capital gains if they do not burst and (ii) make intervention more likely, thus minimizing losses. Bubbles should be larger the less fragile the economy, the less costly the intervention and the more liquid the asset. Intervention increases welfare in extremely fragile economies.


International Reserves And Rollover Risk, Javier Bianchi, Juan Carlos Hatchondo, Leonardo Martinez Jan 2018

International Reserves And Rollover Risk, Javier Bianchi, Juan Carlos Hatchondo, Leonardo Martinez

Leonardo Martinez

No abstract provided.


A Political Theory Of Kulturkampf: Evidence From Imperial Prussia & Republican Turkey, Ioannis N. Grigoriadis, Theocharis Grigoriadis Jan 2018

A Political Theory Of Kulturkampf: Evidence From Imperial Prussia & Republican Turkey, Ioannis N. Grigoriadis, Theocharis Grigoriadis

Theocharis Grigoriadis

No abstract provided.