Deposit Insurance During EU Accession

The paper presents a brief review of the systems of deposit insurance in accession countries, comparing their level of harmonization with the perspective of their EU integration. Studying the different practices of deposit insurance in the context of developing financial safety nets in future Europe we have found that: (i) there is overinsurance of deposits in accession countries, and (ii) that this could lead to increasing moral hazard, incentives deformation and increasing costs of banking intermediation in the whole euro area.http://deepblue.lib.umich.edu/bitstream/2027.42/40003/3/wp617.pd

Nonparametric multivariate rank tests and their unbiasedness

Although unbiasedness is a basic property of a good test, many tests on vector parameters or scalar parameters against two-sided alternatives are not finite-sample unbiased. This was already noticed by Sugiura [Ann. Inst. Statist. Math. 17 (1965) 261--263]; he found an alternative against which the Wilcoxon test is not unbiased. The problem is even more serious in multivariate models. When testing the hypothesis against an alternative which fits well with the experiment, it should be verified whether the power of the test under this alternative cannot be smaller than the significance level. Surprisingly, this serious problem is not frequently considered in the literature. The present paper considers the two-sample multivariate testing problem. We construct several rank tests which are finite-sample unbiased against a broad class of location/scale alternatives and are finite-sample distribution-free under the hypothesis and alternatives. Each of them is locally most powerful against a specific alternative of the Lehmann type. Their powers against some alternatives are numerically compared with each other and with other rank and classical tests. The question of affine invariance of two-sample multivariate tests is also discussed.Comment: Published in at http://dx.doi.org/10.3150/10-BEJ326 the Bernoulli (http://isi.cbs.nl/bernoulli/) by the International Statistical Institute/Bernoulli Society (http://isi.cbs.nl/BS/bshome.htm

On the dimension of polynomial semirings

In our previous work, motivated by the study of tropical polynomials, a definition for prime congruences was given for an arbitrary commutative semiring. It was shown that for additively idempotent semirings this class exhibits some analogous properties to prime ideals in ring theory. The current paper focuses on the resulting notion of Krull dimension, which is defined as the length of the longest chain of prime congruences. Our main result states that for any additively idempotent semiring $A$, the semiring of polynomials $A[x]$ and the semiring of Laurent polynomials $A(x)$, we have $\dim A[x] = \dim A(x) = \dim A + 1$

Dual Inflation Under the Currency Board: The Challenges of Bulgarian EU Accession

The importance of analysing inflation sources and dynamics in Bulgaria is imposed by (i) the long run process of price and inflation convergence to the Euro area and (ii) by the Currency Board operating in the country. In this study we make an attempt to estimate Balassa - Samuelson (BS) effect in Bulgaria (after the introduction of the Currency Board). The BS explanation of inflation (or dual inflation) has acquired both academic recognition and popularity in practice in the recent years. The results of our empirical estimation do not provide a robust verification of the existence of BS effect in spite of the observed prerequisites and the accompanying economic indicators interrelations. Actually there are several factors that interfere with the BS effect lying in the wage convergence process in both sectors and others that influence productivity developments in the sectors. This prompts that the price movement in the country has other driving motions – above all wage setting and incomplete price liberalization, other factors productivity, imported inflation (pass trough) and inflation generated by the temporary gaps between money demand and money supply.http://deepblue.lib.umich.edu/bitstream/2027.42/39872/3/wp487.pd

Off the cliff and back? Credit conditions and international trade during the global financial crisis

Ministry of Education, Singapore under its Academic Research Funding Tier

Dual Inflation Under the Currency Board: The Challenges of Bulgarian EU Accession

The importance of analysing inflation sources and dynamics in Bulgaria is imposed by (i) the long run process of price and inflation convergence to the Euro area and (ii) by the Currency Board operating in the country. In this study we make an attempt to estimate Balassa - Samuelson (BS) effect in Bulgaria (after the introduction of the Currency Board). The BS explanation of inflation (or dual inflation) has acquired both academic recognition and popularity in practice in the recent years. The results of our empirical estimation do not provide a robust verification of the existence of BS effect in spite of the observed prerequisites and the accompanying economic indicators interrelations. Actually there are several factors that interfere with the BS effect lying in the wage convergence process in both sectors and others that influence productivity developments in the sectors. This prompts that the price movement in the country has other driving motions – above all wage setting and incomplete price liberalization, other factors productivity, imported inflation (pass trough) and inflation generated by the temporary gaps between money demand and money supply.inflation, currency board, EU accession, Bulgaria

Classifying Tweet Level Judgements of Rumours in Social Media

Social media is a rich source of rumours and corresponding community reactions. Rumours reflect different characteristics, some shared and some individual. We formulate the problem of classifying tweet level judgements of rumours as a supervised learning task. Both supervised and unsupervised domain adaptation are considered, in which tweets from a rumour are classified on the basis of other annotated rumours. We demonstrate how multi-task learning helps achieve good results on rumours from the 2011 England riots

Financial stability, monetary autonomy and fiscal interference: Bulgaria in search of its way, 1879-1913

The Bulgarian monetary system was established, immediately after independence. Having experienced it already under Ottoman rule, newly independent Bulgaria adopted the bimetallic standard. Without being a member of the Latin Monetary Union, it tried broadly to follow the principles of the convention, yet with some exceptions, the most important of which concerned the limit on silver coinage. The absence of such a clause in Bulgaria turned out to be crucial since the financial needs of the recently established state triggered excessive silver coinage which resulted in a persistent agio - a positive and variable difference between the legal and the commercial value of silver coins. The interference of fiscal authorities obstructed the Bulgarian National Bank's ability to manage money in circulation and to secure the monetary stability required by economic development). The attempts of the Bulgarian monetary authorities to eliminate the agio were unsuccessful until they acquired the right to issue silver-backed banknotes. Soon after that, in 1906, Bulgaria introduced a short-lived typical Gold standard.financial stability, monetary autonomy, fiscal interference, Bulgaria

Deposit Insurance During EU Accession

The paper presents a brief review of the systems of deposit insurance in accession countries, comparing their level of harmonization with the perspective of their EU integration. Studying the different practices of deposit insurance in the context of developing financial safety nets in future Europe we have found that: (i) there is overinsurance of deposits in accession countries, and (ii) that this could lead to increasing moral hazard, incentives deformation and increasing costs of banking intermediation in the whole euro area.deposits insurance, financial regulation, accession countries