The Evolution of Exchange

Stochastic stability is applied to the problem of exchange. We analyze the stochastic stability of two dynamic trading processes in a simple housing market. In both models traders meet in pairs at random and exchange their houses when trade is mutually beneficial, but occasionally they make mistakes. The models differ in the probability of mistakes. When all mistakes are equally likely, the set of stochastically stable allocations contains the set of efficient allocations. When more serious mistakes are less likely, the stochastically stable states are those allocations, always efficient, with the lowest envy-level.stochastic stability, exchange, housing problem, efficiency, envy.

The Evolution of Exchange

The aim of the paper is to introduce the modern techniques of evolutionary game theory introduced into economics by Young (1993) and others to analyze exchange economies. We define a dynamic matching process on the simple housing problem introduced by Shapley and Scarf (1974) and analyze the stochastic stability of its allocations. Our main findings are: 1. All the efficient allocations are stochastically stable. 2. In three-person economies, all the stochastically stable allocations are efficient. 3. An example of a four-agent economy where an inefficient allocation is stochastically stable.

The evolution of the Philadelphia Stock Exchange

In "The Evolution of the Philadelphia Stock Exchange," one of our visiting scholars, Swarthmore College professor John Caskey, explains some of the factors that account for the PHLX's long life. Although Caskey focuses on the evolution of the PHLX, he also profiles some of the seismic shifts in U.S. securities markets in recent decades and illuminates the role of the largely overlooked regional stock exchanges.Stock exchanges

Reverse Shooting of Exchange Rates

Reverse shooting of the exchange rate has been put forward in this paper by scrutinizing the adjustment and evolution of the exchange rate towards its new long-run equilibrium level following a change in money supply. Joint and sequential effects of covered interest rate parity and the sticky price on the rise, from the short-term through the long-run horizon, result in a feature of reverse shooting of the exchange rate. Regardless of what the immediate response of the exchange rate to the change in money supply can be argued for, reverse shooting homogenizes the evolution path of exchange rate adjustment and movement from different views.exchange rate, reverse shooting

Bucharest Stock Exchange Evolution November 1995 - November 2005

Bucharest Stock Exchange was opened for transactions at the end of November 1995. Since than 10 years have passed – and the end of November 2005 marked the first decade of Bucharest Stock Exchange contemporaneous existence. But the event passed almost unnoticed, not even a press release on Bucharest Stock Exchange official site could be found. Despite this silent anniversary, the main Romanian stock market could be proud of most of its achievements in these 10 years. This paper tries to present the Bucharest Stock Exchange evolution during a decade, along with its potential for development in the years to come.stock exchange, evolution, capitalization, indexes

Monte Carlo study of the growth of L12L1_2 ordered domains in fcc A3BA_3B binary alloys

A Monte Carlo study of the late time growth of $L1_2$ ordered domains on a fcc $A_3B$ binary alloy is presented. The energy of the alloy has been modeled by a nearest neighbor interaction Ising hamiltonian. The system exhibits a fourfold degenerated ground-state and two kinds of interfaces separating ordered domains: flat and curved antiphase boundaries. Two different dynamics are used in the simulations: the standard atom-atom exchange mechanism and the more realistic vacancy-atom exchange mechanism. The results obtained by both methods are compared. In particular we study the time evolution of the excess energy, the structure factor and the mean distance between walls. In the case of atom-atom exchange mechanism anisotropic growth has been found: two characteristic lengths are needed in order to describe the evolution. Contrarily, with the vacancy-atom exchange mechanism scaling with a single length holds. Results are contrasted with existing experiments in $Cu_3Au$ and theories for anisotropic growth

Exchange Rates, Foreign Trade Prices and PPs in OECD Countries: An Analysis of the period 1960-2003

We analyse the evolution of Exchange Rates of Euro and previous national currencies of Euro Zone, as well as those corresponding to other currencies of OECD countries, with particular emphasis on the reaction of exchange rates to inflation differences, and the consequences of those changes on foreign trade and economic growth. We also compare the evolution of Exchange Rates and Purchasing Power Parities in those countries for the period 1960-2003. We present main comparative data and some econometric models which show the strong inverse relationships between the movements of relative domestic prices and exchange rates of domestic currencies to dollar, and test for homogeneity of this relationship among OECD countries.

EXCHANGE RATE POLICIES IN LATIN AMERICA AND ASIA, A COMPARATIVE STUDY

A recurrent issue in the empirical literature that relates real exchange rate levels and growth is the relatively undervalued level of the Asian currencies when compared to Latin American and African ones for the period 1970 to 1999. In most works, higher per capita growth rates and lower currency levels emerge for Asian countries, which appears to be a regional pattern. For the Latin American and African cases, the pattern seems to be the opposite. Appreciation cycles are constantly showing up together with stop and go growth episodes. Accordingly, a central issue to understand the East and Southeast Asian success, as compared to the Latin American and African failures, could be found in the way they managed their exchange rate policies and on the evolution of their real exchange rate levels. The objective of this paper is to compare the evolution of exchange rate policies and levels in Asia and Latin America from 1970 to 1999. The work reviews some aspects of exchange rate management for some of the countries in these regions based on a survey of case studies. It also presents an evolution of real exchange rate levels against the US dollar for a set of 20 countries based on World Bank data and on an exchange rate distortion index.

Real Output and Prices Adjustments under Different Exchange Rate Regimes

Exchange rate regimes evolution in the European transition economies refers to one of the most crucial policy decision in the beginning of the 1990s employed during the initial stages of the transition process. During the period of last two decades we may identify some crucial milestones in the exchange rate regimes evolution in the European transition economies. due to existing diversity in exchange rate arrangements in the European transition economies in the pre-ERM2 period there seems to be two big groups of countries - “peggers” (Bulgaria, Estonia, Latvia, Lithuania) and “floaters” (Czech republic, Hungary, Poland, Romania, Slovak republic, Slovenia). Despite the fact, there seems to be no real prospective alternative to euro adoption for the European transition economies, we emphasize disputable effects of sacrificing monetary sovereignty in the view of positive effects of exchange rate volatility and exchange rate based adjustments in the country experiencing sudden shifts in the business cycle. In the chapter we analyze effects of the real exchange rate volatility on real output and inflation in ten European transition economies. From estimated VAR model (recursive Cholesky decomposition is employed to identify structural shocks) we compute impulse-response functions to analyze responses of real output and inflation to negative real exchange rate shocks. Results of estimated model are discussed from a prospective of the fixed versus flexible exchange rate dilemma. To provide more rigorous insight into the problem of the exchange rate regime suitability we estimate the model for each particular country employing data for two subsequent periods 2000-2007 and 2000-2011