Deposit Insurance and the Composition of Bank Suspensions in Developing Economies: Lessons from the State Deposit Insurance Experiments of the 1920S

Eight states established deposit insurance systems between 1908 and 1917. All abandoned the systems between 1921 and 1930. Scholars debate the costs and benefits of these policy experiments. New data drawn from the archives of the Federal Reserve Board of Governors demonstrate that deposit insurance influenced the composition of bank suspensions in these states. In typical years, suspensions due to runs fell. Suspensions due to mismanagement rose. During the penultimate year of each system, the bank failure rate rose to an unsustainable height and the system ceased operations.

The housing ladder and Hong Kong housing market\u27s boom and bust cycle

This paper presents evidence, based on the recent Hong Kong experience, for the existence of a “housing ladder effect.” An increase of housing equity at the bottom of the ladder tends to translate into a trading up activity that will both increase housing market turnover and buoy up the entire housing market. Based on a natural experiment through the introduction of a public housing privatization scheme, this papers presents evidence supporting this story using a logit model and a price-volume causality test

Three essays on housing market in Hong Kong : implications for public policy and macro economy

The thesis contains three papers on different areas of housing study in Hong Kong. The first paper focuses on government policy in public housing privatization on housing market and its effect on the overall economy. By comparing the negative impacts of two financial crises in 1997 and 2008 on housing market, the paper tries to offer explanation for the property downturn during 1997-2003. It aims to study how a public housing privatization program would produce adverse effects on housing transactions and the economy. The second one links up the housing market and macro economy. It is found that housing sector appears to serve as a link between exports and domestic expenditures. Housing prices are found to be driven by exports and interest rates over a long period, while housing prices in turn drive domestic expenditures. The last one attempts to investigate the dynamics of private housing market in Hong Kong. Using the cointegarting approach, the paper identifies two cointegrating relations, ie. a long run demand side relation between property price, prime rate, housing price expectation and GDP per capita, and supply side relation between private housing completion, property price, prime rate and land cost, which show a short run disequilibrium dynamics in demand and supply of private housing during 1985 – 2008

The effects of counterexplanation and audit groups on fraud detection

Prior studies have found that auditors\u27 fraud detection rates are relatively low (Bernardi 1994; Pincus 1991 ). The present study examines whether counterexplaining inaccurate judgments will increase fraud detection rates and whether audit groups can counterexplain more effectively compared to individual auditors. The possible negative effect of counterexplanation is examined by requiring audit groups and individual auditors to counterexplain accurate judgments. The purpose of this \u27inanipulatiori is to determine whether counterexplaining accurate judgments will lead to negative belief revision, and whether this negative belief revision will be mitigated by the use of audit groups. A 2 x 2 x 2 experiment which examined groups/individuals, initial judgment and explanation/ counterexplanation was carried out. The results support the hypotheses that counterexplaining inaccurate judgments leads to more accurate judgments and counterexplaining accurate judgments leads to less accurate judgments. The finding on whether audit groups could counterexplain more effectively than individual auditors requires further explanation

The effects of gender and task complexity on audit judgment

This study examines the interaction effect between gender and task complexity on audit judgment based on the selectivity hypothesis. This hypothesis states that males are selective information processors whereas females are detailed information processors. The study extends this hypothesis to an auditing context and hypothesizes that males will outperform females when task complexity is low while females will outperform males when task complexity is high. A two (males and females) by two (task complexity - high and low) full factorial experiment was carried out. The low and high task complexity conditions were created by manipulating the number of cues. The subjects were required to judge whether an inventory balance was fairly presented based on case materials that contained material misstatements. The results support the hypothesis

The financial clouds review

This paper demonstrates financial enterprise portability, which involves moving entire application services from desktops to clouds and between different clouds, and is transparent to users who can work as if on their familiar systems. To demonstrate portability, reviews for several financial models are studied, where Monte Carlo Methods (MCM) and Black Scholes Model (BSM) are chosen. A special technique in MCM, Least Square Methods, is used to reduce errors while performing accurate calculations. The coding algorithm for MCM written in MATLAB is explained. Simulations for MCM are performed on different types of Clouds. Benchmark and experimental results are presented for discussion. 3D Black Scholes are used to explain the impacts and added values for risk analysis, and three different scenarios with 3D risk analysis are explained. We also discuss implications for banking and ways to track risks in order to improve accuracy. We have used a conceptual Cloud platform to explain our contributions in Financial Software as a Service (FSaaS) and the IBM Fined Grained Security Framework. Our objective is to demonstrate portability, speed, accuracy and reliability of applications in the clouds, while demonstrating portability for FSaaS and the Cloud Computing Business Framework (CCBF), which is proposed to deal with cloud portability

Biogeochemical transformations and potential polyaromatic hydrocarbon degradation in macrofaunal burrow sediments

A variety of polyaromatic hydrocarbons (PAH) including naphthalene, phenanthrene, acenaphthene, and dibenzothiophene were degraded with little or no lag in oxic slurries of marine sediments from burrow walls constructed by benthic macrofauna. PAH degradation potentials of burrow sediments from the polychaetes Nereis virens and Clymenella torquata, the mollusc Mya arenaria and the enteropneust Saccoglossus bromophenolosus were generally greater than potentials for non-burrow sediments; relative rates of degradation varied among the burrow wall sediments depending on the PAH assayed. Comparisons of the effects of available electron acceptors (oxygen, nitrate, ferric iron, sulfate) indicated that significant degradation of benzene, hexadecane and PAH occurred only in the presence of molecular oxygen. However, the capacity for oxic phenanthrene degradation was stable during incubations with alternating oxic and anoxic conditions, suggesting significant anoxia tolerance. Although burrow wall sediments were biogeochemically distinct with respect to rates of sulfate reduction, potential denitrification and potential ammonia oxidation, these patterns were not related to those of PAH degradation

Privatization of public housing : did it cause the 1998 recession in Hong Kong?

This paper finds evidence that a public housing privatization program produced adverse effects on housing transactions and the economy in Hong Kong. A scheme announced in December 1997, offering tenants an opportunity to buy their units at deeply discounted prices, reduced public housing tenants’ bids for private homes and adversely affected home transactions. This effect is more pronounced than the effects of the Asian Financial Crisis. An effect on housing prices is also indirectly demonstrated though a demonstration that a structural break in the housing price relationship occurred at the time the privatization program is introduced. Declines in housing prices further eroded employment and set off a vicious circle