Endogenous Relationship Banking to Alleviate Excessive Screening in Transaction Banking

This paper analyzes how learning a borrower's creditworthiness, from past lending decision by a rival bank that is publicly observable through private or public credit reporting systems, affects the performance of subsequent lending competitions. Our analysis of twicerepeated lending competitions demonstrates that such ex post information sharing causes inefficient and excessive screening of new borrowers when banks undertake transaction banking since each bank expects future disadvantages to result from the information revelation. Relationship banking arises endogenously as a defense against such anticipated disadvantage, and improves the economic efficiency by alleviating the excessive screening.relationship banking, informational externality, interbank competition, commonvalue, repeated auction

A New Current Regularization of Thirring Model

We study an ambiguity of the current regularization in the Thirring model. We find a new current definition which enables to make a comprehensive treatment of the current. Our formulation is simpler than Klaiber's formulation. We compare our result with other formulations and find a very good agreement with their result. We also obtain the Schwinger term and the general formula for any current regularization.Comment: 7 pages, some comments and references added, to appear in Prog. Theor. Phy

The examination of the validity of the Divisia price index for the almost ideal demand system model: Some Monte Carlo results

In this paper, we have investigated about the validity of an exact price index suggested by Feenstra and Reindorf (2000) in the almost ideal demand (AID) system model. This index can express by the use of the Divisia index with the weighted shares, and it has been evaluated using data on the expenditure shares and prices at two data points. Our Monte Carlo experiments show that the Divisia index does not perform so suitable estimates in any design. And then we find that the Divisia index would yield the poor estimates against the AID price index.Demand system AID model Divisia price index