50 research outputs found
A Smoke Screen Theory of Financial Intermediation
This paper analyzes a stylized (two period) credit market where investors care about the appropriability of the information they produce when they engage in costly ex ante evaluation of borrowers quality. We show that diversified intermediation arises as a dissimulation mechanism allowing investors to extract informational rents in the second period, thereby mitigating the underlying appropriability problem.Financial intermediation ; informational rent ; asymmetric information ; free riding ; diversification
Robustness of equilibrium price dispersion in finite market games
We propose an approach to restricting the set of equilibria in a market game and use
it to assess the robustness of the price dispersion results obtained by Koutsougeras
[2003, J. Econ. Theory 108, 169â175] in the multiple trading posts setup. More
precisely, we perturb the initial game by the introduction of transaction costs and
our main results are the following. (i) No equilibrium with price dispersion of
the game with costless transactions can be approached by equilibria with positive
transaction costs as costs get arbitrarily small. (ii) When this type of perturbation
is considered the set of equilibrium outcomes is not affected by the number of
trading posts. In addition, the analysis hints at conditions required for non-zero
transaction costs to serve as a source of price dispersion in this class of exchange
economies
Currency union with or without banking union
We build a symmetric twoâcountry monetary model with credit to study the interplay between currency integration and credit markets integration. The currency arrangement affects credit availability through default incentives. We capture credit markets integration by the extra cost incurred to obtain credit for crossâborder transactions and, with the euro area context in mind, label as banking union a situation where this cost is low. For high levels of the crossâborder credit cost, currency integration may magnify default incentives, leading to more credit rationing and lower welfare. The integration of credit markets restores the optimality of the currency union.Cet article propose un modĂšle avec monnaie externe, banques et dĂ©faut endogĂšne sur les emprunts afin dâanalyser lâimpact du degrĂ© dâimperfection dumarchĂ© du crĂ©dit sur la dĂ©sirabilitĂ© -pour les populations- des unions monĂ©taires.Nous montrons que lorsque ces imperfections entraĂźnent un coĂ»t plus Ă©levĂ© pourles banques dâoctroyer un crĂ©dit sur lâĂ©tranger plutĂŽt que dans leur juridiction, le bien-ĂȘtre peut ĂȘtre rĂ©duit en rĂ©gime dâunion monĂ©taire. Nous montrons Ă©galement que la mise en place dâune union bancaire qui supprimeraitces barriĂšres Ă lâintĂ©gration des marchĂ©s du crĂ©dit restaure le rĂ©sultat habitueldâoptimalitĂ© des unions . Les implications empiriques de ces rĂ©sultats pourlâorganisation de lâunion bancaire sont discutĂ©es
Nature et origine de la monnaie : Reflexions à partir des modÚles récents.
Nature; origine; monnaie; Réflexions; modÚles; récents;
Does the âNew Economyâ Change the Frontiers of the Large Corporation?
This paper proposes a model of industrial innovation linked to financial liberalisation where agents are characterised by heterogeneous innovative abilities. Individual researchers may either be employed by a large firm and work together on the firm's innovative project, or they may alternatively set up an individual firm in order to commercialise their own innovation. The large firm's hiring decisions and the individual researcher's décision to set up his own firm depends on the researcher's innovative ability and on the financial conditions. Financial liberalisation leading to a lower cost of setting up a small firm will affect the size of the large firm and increase the number of small technology firms. A drop in the cost of starting a small firm may increase income inequality.Innovation, finance, industrial organisation
INGENUE : une modélisation intergénérationnelle et universelle.
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Economie et démographie mondiales au XXIe siÚcle : le nombre et le savoir
avec l'Ă©quipe INGENU