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Social and Behavioral Sciences Commons™
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- Asset price bubble (1)
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- Constrained efficiency (1)
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- Deep integration (1)
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Articles 1 - 5 of 5
Full-Text Articles in Social and Behavioral Sciences
Tackling Technology Disruption In The Financial Sector: Are The Current Singapore Government Incentives And Labour Force Preparations Adequate?, Swee Liang Tan
Tackling Technology Disruption In The Financial Sector: Are The Current Singapore Government Incentives And Labour Force Preparations Adequate?, Swee Liang Tan
Research Collection School Of Economics
No abstract provided.
Modeling Speculative Bubbles With Diverse Investor Expectations, Peter C. B. Phillips
Modeling Speculative Bubbles With Diverse Investor Expectations, Peter C. B. Phillips
Research Collection School Of Economics
We construct a model of asset market exuberance, collapse and recovery using subjective investor-based rational expectations about the impact of fundamentals on the market price. Investors are assumed to have heterogeneous market sentiments, allowing them to be exuberant, cautious, or fundamentalist via boundary conditions that describe their respective views of the market impact of the same economic fundamentals. Equilibrium solution paths of the model take varying forms, depending on the parameter settings that reflect the importance of each type of market participant. This rational expectations model of asset pricing is shown to be consistent with a simple explosive continuous time …
Lumpy Investment, Lumpy Inventories, Ruediger Bachmann, Lin Ma
Lumpy Investment, Lumpy Inventories, Ruediger Bachmann, Lin Ma
Research Collection School Of Economics
The link between the microenvironment (frictions and heterogeneity) and the macroeconomic dynamics of general equilibrium macromodels is influenced by exactly how general equilibrium closes the model. We make this observation concrete using the recent literature on how nonconvex capital adjustment costs influence aggregate investment dynamics. We introduce inventories into a two-sector lumpy investment model and find that nonconvex capital adjustment costs dampen and propagate investment impulse responses, more so than without inventories. With two means of transferring consumption into the future, fixed capital and inventories, the tight link between aggregate saving and fixed capital investment is broken.
Subsidies And Countervailing Duties, Gea M. Lee
Subsidies And Countervailing Duties, Gea M. Lee
Research Collection School Of Economics
This survey pays attention to a recent development of the literature that analyzes two important regulatory features found in the Agreement on Subsidies and Countervailing Measures (the SCM agreement): the restrictive treatment of domestic subsidies and the general prohibition of export subsidies. The WTO's restriction on domestic subsidies is challenged by the existing terms-of-trade theory that offers an efficiency foundation for the market-access focus of the GATT rules. On the other hand, against the backdrop of the SCM agreement and preferential trade agreements (PTAs), a recent literature attempts to provide a rationale for the WTO to restrict the use of …
Constrained Inefficiency And Optimal Taxation With Uninsurable Risks, Piero Gottardi, Atsushi Kajii, Tomoyuki Nakajima
Constrained Inefficiency And Optimal Taxation With Uninsurable Risks, Piero Gottardi, Atsushi Kajii, Tomoyuki Nakajima
Research Collection School Of Economics
When individuals' labor and capital income are subject to uninsurable idiosyncratic risks, should capital and labor be taxed, and if so how? In a two-period general equilibrium model with production, we derive a decomposition formula of the welfare effects of these taxes into insurance and distribution effects. This allows us to determine how the sign of the optimal taxes on capital and labor depend on the nature of the shocks and the degree of heterogeneity among consumers' income, as well as on the way in which the tax revenue is used to provide lump-sum transfers to consumers. When shocks affect …