Finance Commons^™

Why Cpf-Style Systems Generally Work Better, Hian Teck Hoon

Research Collection School Of Economics

The Central Provident Fund (CPF) has been in existence since 1955, and plays an important role in the lives of millions of Singaporeans. But this does not mean there is nothing to be learnt from asking some fundamental questions about its usefulness.

Sequential Investment, Hold-Up, And Ownership Structure, Juyuan Zhang, Yi Zhang

Research Collection School Of Economics

We construct a sequential investment model to investigate individual firms’ strategic choices of organizational forms when outsourcing their intermediate products. Our results indicate that as a result of the encouragement effect of sequential complementary investments, sequential investment alleviates the underinvestment caused by the hold-up problem. Thereafter, we analyze the impact of sequential investment on the choice of ownership structure. We show that contrary to the result of the standard property rights theory, strictly complementary assets could be owned separately.

Provincial Finances, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Most analysts still focus on the federal budget not realising that there has been a significant shift in the allocation of fiscal resources towards the provinces. This is what should have happened in the first place. After all, most interactions take place between citizens and the government and almost all basic services are delivered by the provincial governments. The question that needs to be examined is whether or not this shift has proved beneficial for the citizens and if the annual provincial budgets ought to be examined in this light.

These budgets have raised a number of issues that need …

A Backward Bending Supply Of Loanable Funds: An Examination Of The Interest Rate Elasticity Of Saving, Rachel M. Doehr Ms.

Undergraduate Economic Review

The market for loanable funds is presented as either a market with an upward sloping supply curve, or as one with a perfectly inelastic supply. This paper relates the supply of loanable funds to the supply curve in the labor market: backward bending. Once interest rates are high enough, people start to save less, creating the "backward bend.” This explains the discrepancies in previous literature that attempted to put a single value on the interest rate elasticity saving. The reason for the variation in values could be because the elasticity actually depends on the point on the curve.

Economic Impact Of Legalizing Retail Alcohol Sales In Craighead, Faulkner, And Saline Counties, Katherine A. Deck, Mervin Jebaraj

Publications and Presentations

Converting from dry county to wet county status would have a number of tangible and intangible economic benefits for Craighead, Faulkner, and Saline counties. Legal retail alcohol sales are a signal of a contemporary economic development environment. Quantifying the value of that perception is quite difficult, but it is entirely possible to estimate sales effects, tax collections, and other economic impacts of becoming a wet county. This study was conducted by the Center for Business and Economic Research to assess the magnitude of those economic effects.

Commercial Bank Risk Management And Financial Performance Case Study, Patricia R. Robertson

Faculty Articles

The case is ideal for an upper-level finance course with an emphasis on financial institution risk management and financial performance. It is unique in that it sources data from the Federal Financial Institutions Examination Council (FFIEC) website through a series of reports called the Uniform Bank Performance Report (UBPR). The UBPR is a report set created for bank supervisory, examination, and management purposes. It presents data and ratios for each bank in a concise and consistent format. This allows the course instructor to assign multiple banks confident that the data is available and consistently presented. The case can be used …

The Effects Of The Clock And Kickoff Rule Changes On Actual And Market-Based Expected Scoring In Ncaa Football, Kenneth Linna, Evan Moore, Rodney Paul, Andrew Weinbach

Finance and Economics

Clock rule changes were introduced in the 2006 season with the goal of reducing the average duration of the game; these changes were reversed in 2007. In addition, in 2007 the kickoff rule was changed to create more excitement and potentially more scoring. We examine what happened to actual and expected scoring during these National Collegiate Athletic Association (NCAA) football seasons. The clock rule change in 2006 led to lower scoring which was not fully encompassed in the betting market, leading to significant returns to betting the under. Multiple rule changes in 2007 led to volatility in the betting market …

Market Efficiency And Behavioral Biases In The Wnba Betting Market, Rodney J. Paul, Andrew P. Weinbach

Finance and Economics

The betting market for the Women’s National Basketball Association (WNBA) is a thin financial market, which does not attract much interest from sports bettors. Given these characteristics, it is possible that profitable wagering strategies could exist for informed bettors of the WNBA. Using betting data on the WNBA from 2007–2012, we find that simple betting strategies do not earn statistically significant returns. WNBA bettors are like NBA bettors; however, in that they strongly prefer the best teams, particularly when they are on the road. Despite this clear bias, betting against the most popular public wagers is not found to earn …

Why Do Hedgers Trade So Much?, Ing-Haw Cheng, Wei Xiong

Dartmouth Scholarship

Futures positions of commercial hedgers in wheat, corn, soybeans and cotton fluctuate much more than expected output. Hedgers' short positions are positively correlated with price changes. Together, these observations raise doubt about the common practice of categorically classifying trading by hedgers as hedging while trading by speculators as speculation, as hedgers frequently change their futures positions over time for reasons unrelated to output fluctuations, arguably a form of speculation.

Is The Renminbi East Asia’S Dominant Reference Currency? A Reconsideration, Hwee Kwan Chow

Research Collection School Of Economics

Recent empirical studies show that the Chinese currency renminbi is either becoming or has become a dominant reference currency in Asia. However, the high correlation between the US dollar and renminbi movements hampers the identification of their individual effects on the Asian currencies. In particular, the application of Frankel-Wei regressions to determine the weights of the US dollar and the (unorthogonalized) renminbi in the implicit currency baskets could suffer from endogeneity problems that produce an upward bias in renminbi’s estimated weight. This paper reviews the evidence by applying country-specific VAR models to daily exchange rate data from nine Asian economies …

Policy Direction For The Budget, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The contours of the upcoming budget in terms of size, outlays, revenue collection targets, fiscal deficit etc. have been spelled out by the finance minister at various fora and by the IMF in its reports. So, it is not very interesting to speculate on whether the tax targets are ambitious, expenditures understated and subsidies underplayed.

The purpose here is to suggest that budgetary estimates and projections should be formulated in the context of a medium-term policy framework. The objectives of such a framework should be: to accelerate the rate of economic growth and job creation; to keep inflationary expectations under …

The Spanish Export Led Recovery, David Wagner

Undergraduate Economic Review

I researched the export-led recovery currently taking place in Spain. My thesis revolved around Mariano Rajoy and the Popular Party coming into power in 2011 and instituting reforms in three distinct categories; financial market reforms, fiscal measures, and labor market reforms. These reforms have had a significant impact in restoring credibility in Spain's capital markets and decreasing unit labor costs. In turn, Spain has shown impressive export growth in the past two years, especially compared to its neighbors Italy and France.

Market Frictions And The Efficiency Of Capital Allocation, William J. Hippler Iii

LSU New Orleans Theses and Dissertations

The following dissertation contains two unique empirical studies that contribute to the overall literature in the field of Financial Economics in the areas of mutual fund investing and financial intermediation and regulation. The first Chapter, entitled “The Impact of Macroeconomic Stress on the U.S. Financial Sector”, examines the relative impact of macroeconomic stress on financial and non-financial U.S. firms. Empirical results show that macroeconomic shocks appear to have a larger impact on financial firms. Additionally, the sensitivity of financial firms to macroeconomic events can be traced to the influence of non-depository institutions, or “shadow banks”, like finance and investment companies, …

Parallel Sessions (Consumer Behavior & Culture): An Investigation Of The Selection Criteria Of Islamic Banking In Pakistan: Customers’ Perspective, Zargham Ullah Khan

International Conference on Marketing

Banking system was firstly introduce in the era of Jews where large bankers use to do financial practices in the open market. In the past few decades‟ capitalistic economy gained momentum. Islamic banking was firstly introduced in Malaysia with the establishment of Islamic banks laid on the basis of SHARIAH compliance, during 1970-90 (Henry & Wilson, 2004; Iqbal &Mirakhor, 2007; Dusuki& Abdullah, 2007). Banking is as old as civilization found its way from barter economies towards market economy and price mechanism. At present the banks have an immense role in deciding the economic fate of any state. Strong banking system …

The Nature Of Lessons Learned From Argentina’S 2001 Financial Crisis, Emma Van Wagenberg

Renée Crown University Honors Thesis Projects - All

This paper makes the argument that though Argentina’s 2001 financial crisis was influenced by several factors, it is the 1991 Convertibility Plan that most strongly pushed the nation to the point of needing outside financial assistance. Its implementation led to and worked in combination with a multitude of unexpected factors. Together, these created economic conditions that chipped away at the stability of Argentina’s economy.

Given the nature of this project, information was gathered solely through research in texts published by both supporters and critics of organizations like the International Monetary Fund. In my readings, I found that there is generally …

Analysis Of Market Reactions To Tarp Loans Repayment Evidence From Banks, Le You

All Theses

This research presented here mainly focuses on analyzing investors' reactions toward banks' announcement of TARP repayment. Considering huge difference among sample banks, I split the result of abnormal return into subgroups based on banks size and financial performance. And then I conduct comparisons of each group to reveal the possible effects on market reactions casted by size and financial performance. To confirm my results on market reactions to TARP repayment, I perform two regression analyses on both full sample and subsample with cumulative abnormal return (CAR) as dependent variable and controlled variables as independent variables. Data over the period from …

A Closer Look At The Necessity Of Managing Monetary Policy Expectations, Vanessa Annoni-Fuertes

HIM 1990-2015

Monetary policy changes that are unexpected by the investing public can generate great volatility and illiquidity in the equities market, and therefore may severely compromise the Federal Reserve’s ability to control the economy. Given the investing public’s power, their fear of uncertainty, and their impulsive nature to create and act upon uninformed expectations, it is imperative that the Federal Reserve uses any and all communication about monetary policy with the purpose of further advancing the their stability objectives. Initially, the Federal Reserve felt that changes in monetary policy were most effective if decided and implemented in private however over 50 …

The Viability Of Mercosur In The Face Of The Euro Crisis, Philip A. Murry

Economics Undergraduate Honors Theses

This research examines the successes and challenges of the European Union, especially in the face of the crisis of 2008 and 2009. Based on the current structures of the European Union and Mercosur, this paper looks to assess the viability of further integration of Mercosur using the evolution of the European Union as a model of reference. Analysis of key economic measures provides the framework for assessment, with a special focus on the asymmetries between member countries within Mercosur. Differences in debt-to-GDP ratios, regional trade levels, and exchange rate fluctuations are the primary indicators used to provide policy recommendations for …

Lattice Methods For The Valuation Of Options With Regime Switching, Atul Sancheti

UNLV Theses, Dissertations, Professional Papers, and Capstones

In this thesis, we have developed two numerical methods for evaluating option prices under the regime switching model of stock price processes: the Finite Difference lattice method and the Monte Carlo lattice method.

The Finite Difference lattice method is based on the explicit finite difference scheme for parabolic problems. The Monte Carlo lattice method is based on the simulation of the Markov chain. The advantage of these methods is their flexibility to compute the option prices for any given stock price at any given time. Numerical examples are presented to examine these methods. It has been shown that the proposed …

Three Essays On The Economics Of Controlling Invasive Species, Yanxu Liu

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Invasive species have caused notable economic damages in agriculture, fisheries, forestry, and other industries over the past several decades. Invasive species control must therefore be designed to prevent the both the introduction and spread of invasive species. This dissertation examines the efficiency and efficacy of tariffs and inspections as a joint control mechanism at a home (i.e., importing) country's border. I find that a traditional tariff can be optimal in the short run when the invasive species level is directly related to a foreign (i.e., exporting) country's shipment size. However, in the long run a traditional tariff results in a …