Financial liberalization and contagion with unobservable savings

How do market-based channels for the provision of liquidity affect financial liberalization and contagion? In order to answer this question, I extend the Diamond and Dybvig (1983) model of financial intermediation to a two-country environment with unobservable markets for borrowing and lending and comparative advantages in the investment technologies. I demonstrate that the role of hidden markets crucially depends on the level of financial integration of the economy. Despite always imposing a burden on intermediaries, unobservable markets allow agents to partially enjoy gains from financial integration when interbank markets are autarkic. In fully liberalized systems such effect instead disappears. Similarly, in autarky the distortion created by hidden markets improve the resilience of the system to unexpected liquidity shocks. With fully integrated interbank markets, such effect again disappears, as unexpected liquidity shocks always lead to bankruptcy and contagion.financial intermediation, financial liberalization, financial contagion, unobservable savings

Financial Liberalization with Hidden Trades

How does the availability of unregulated market-based channels for the circulation of liquidity in the financial system affect the process of financial integration? To answer this question, I develop a two-country model of banking, where the banks have access to country-specific investment technologies, and agents can borrow and lend liquidity in a hidden market. I characterize the competitive equilibria at different levels of integration (both in the banking system and in the hidden market) and show that the only level of integration which the two countries are able to coordinate is the one where the two banking systems are autarkic, but international hidden trades are possible. In contrast to the previous literature, I also find that the resulting consumption allocation is constrained efficient

Marketing and the Church

This paper attempts to take an in-depth look at the current state of the Church in America and how marketing has and will continue to play a key role in its position in society. The word marketing comes from the concept of the merchant buying and selling a product - in the market. From a Christian perspective, marketing tells the story of the redemptive work of Jesus Christ - who bought and redeemed mankind for a price, saved from sin, and set apart for service to the Lord. Churches have this story, the greatest story to tell, but people are not listening (Hendricks). The issue for the church in a word: communication. The story of Jesus and his impact on people’s lives need to be heard by more people and more often. In simple terms, the message of the church is that Jesus came, died, and rose again so that man can be restored in his relationship with God. The top companies in the world generally have two things in common: amazing marketing and an amazing product. The church has the best product to offer, the church should also have the best marketing to share that product. The role of marketing in the church is to help fulfill the “Great Commission. Marketing is not everything, but it can be a vital tool and incredibly effective when used properly. We are to be good stewards of the message given to us

The welfare costs of self-fulfilling bank runs

We study the welfare implications of self-fulfilling bank runs and liquidity require- ments, in a neoclassical growth model where banks, facing long-lasting possible runs, can choose in any period a run-proof asset portfolio. In this framework, runs distort banks’ insurance provision against idiosyncratic liquidity shocks, and liquidity requirements resolve this distortion by forcing a credit tightening. Quantitatively, the welfare costs of self-fulfilling bank runs are equivalent to a constant consumption loss of up to 2.5 percent of U.S. GDP. Depending on fundamentals, liquidity requirements might generate small welfare gains, but also increase the welfare costs by up to 1.8 percent.info:eu-repo/semantics/publishedVersio

Aerodynamic characteristics of aircraft with reference to their use

Economic and design characteristics are examined in the design of airplanes and airships

Experimental apparatus for the study of propellers

The apparatus consists of a universal balance with transmission at variable speeds from 300 to 5,000 rpm and a group directly coupled to the model for speeds of 5 to 30,000 revolutions. This new apparatus was also designed with a torsion meter for measuring the torque. Tests were conducted on the effect of the angle between the propeller axis and the wind direction. The results presented correspond to a first series of tests made without an interposed wing and in which the distance between the plane of the propeller disk and the tail was maintained constant

Wealth inequality, systemic financial fragility and government intervention

Does wealth inequality make financial crises more likely? If so, how can a government intervene, and how does this affect the distribution of resources in the economy? To answer these questions, we study a banking model where strategic complementarities among wealth-heterogeneous depositors trigger systemic self-fulfilling runs. In equilibrium, higher wealth inequality increases directly the incentives to run of the poor, and indirectly those of the rich via higher bank liquidity insurance, thus increasing the probability of a systemic self-fulfilling run overall. A government intervention on illiquid but solvent banks redistributes resources towards the poor and makes systemic self-fulfilling runs less likely