Contagion and risk-sharing on the inter-bank market

Increasing inter-bank lending has an ambiguous impact on financial stability. Two opposing effects have been identified: promoting stability through risk sharing and providing a channel through which contagion may spread. In this paper we identify the conditions under which each relationship holds. In response to large economy-wide shocks, greater numbers of inter-bank lending relationships are shown to worsen systemic events, however, for smaller shocks the opposite effect is observed. As such there is no optimal inter-bank market structure which maximizes stability under all conditions. In contrast, deposit insurance costs are always reduced under greater numbers of inter-bank lending relationships.Keywords: Systemic risk, Inter-bank lending, Contagion, Regulation, Network

An economic model of contagion in interbank lending markets

This paper considers the stability of a financial system in which heterogenous banks interact through a lending market. We analyse a discrete time model in which households and banks are located on a circular city. Households present banks with risky investment opportunities, which banks fund through deposits and interbank borrowing. In the event of bankruptcy, a bank defaults on its interbank loans potentially resulting in contagion and losses for other banks. Through simulation we examine the vulnerability of the financial system to systemic events, demonstrating the non-linear relationship between market concentration, shock severity and bankruptcies. The role and effect of regulatory actions such as reserve requirements, minimum bank capitalisation and constraints on the size of borrowing relationships, are considered in limiting these effects.Systemic risk; Interbank lending; Regulation; Network; Heterogeneity

Party Formation and Competition

In the majority of democratic political systems, districts elect representatives, who form coalitions, which determine policies. In this paper we present a model which captures this process: A citizen-candidate model with multiple policy dimensions in which elected representatives endogenously choose to form parties. Numerical analysis shows that in equilibrium this model produces qualitatively realistic outcomes which replicate key features of cross-country empirical data, including variation consistent with Duverger's law. The numbers of policy dimensions and representatives elected per district are shown to determine the number, size, and relative locations of parties. Whilst multi-member district systems are found to reduce welfare.Citizen-Candidate Model; Political Competition; Party Formation; Duverger’s Law; Computer Simulation

Who to listen to: Exploiting information quality in a ZIP-agent Market

Market theory is often concerned only with centralised markets. In this paper, we consider a market that is distributed over a network, allowing us to characterise spatially (or temporally) segregated markets. The effect of this modification on the behaviour of a market populated by simple trading agents was examined. It was demonstrated that an agent’s ability to identify the optimum market price is positively correlated with its network connectivity. A better connected agent receives more information and, as a result, is better able to judge the market state. The ZIP trading agent algorithm is modified in light of this result. Simulations reveal that trading agents which take account of the quality of the information that they receive are better able to identify the optimum price within a market

Splitting a pair: playing the gender card and the race card in American politics

More than any election before, the 2008 Presidential race revealed a persistent discussion of “race cards” and “gender cards.” In spite of the reported consensus that these alleged cards were everywhere, we know relatively little about those situations where the “card” label was applied, and even less about how this label influenced voters. In fact, among key electoral sources – political elites who use identity as a campaign tool, the journalists who cover and narrate elections, and researchers who make sense of elections-based behavior – there is no consensus regarding what a card is, how or when they are played, or who does the playing. This project seeks to begin to fill the gap in our knowledge of cards in campaigns by asking how were race and gender cards reported in news coverage of the 2008 presidential election, and how does labeling an appeal a “card” matter? Using content analysis and a two-part experiment, this study succeeds in drawing a much clearer picture of how card coverage, as an essential tool of narrating an election where women and racial minorities are present, affects American politics. While much of the research on cards defines their application and effects in terms of public policy issues, an examination of card coverage during the 2008 election reveals that much of the alleged cards were character-based. Moreover, the “card” label was not just used to categorize an appeal; cards were also invoked to maintain the identity narrative, even when identity was not a campaign issue. Using some of the most commonly reported cards from the 2008 race, the progressive experiments here revealed that, while the card label itself has little effect on how voters evaluate candidates, the addition of contextual information – for those with higher levels of racism and sexism – predicted increased support for white and male candidates, respectively. In short, these results show that how cards are covered defies our existing understanding of what a race card or a gender card is; moreover, in card coverage, the “card” label itself matters less than traditional cues like candidate sex and race in informing evaluations

The Treaty and democratic government

This is the first of a series of articles exploring current implications of the Treaty of Waitangi for New Zealand governance. Here, the objective is to locate the persistent Māori demand for some form of self government in its democratic context of government by- consent. The argument is that the issues are not conceptually difficult. In particular, fears about ‘sovereignty’ are unwarranted. The current burst of activity in ‘Treaty negotiation’ is not a threat to New Zealand’s democracy, but a sign of its strength – a positive and expected part of the constitutional system. As in any democracy, however, there are legitimate questions about the framework within which such negotiation takes place and its limits

Physiological and biochemical aspects of water deficits on Geum rivale L. and Geum urbanum L.

This study has shown that Geum urbanum can outsurvive Geum rivale during periods of water deficits imposed in the laboratory and in a semi-field situation. Laboratory work showed that there was no interpopulation differences in tolerance to water deficits in Geum urbanum and Geum rivale. It was considered that the difference in drought tolerance between the two Geum species was large enough to influence their ecological distributions. It was found that the major difference contributing to the greater drought tolerance of Geum urbanum over Geum rivale was the formers ability to osmoregulate by accumulating solutes to higher levels than Geum rivale. The osmoregulatory process was then shown to be a three stage process in both species throughout PEG induced water stress. Of the solutes shown to increase in other species during water deficits the two Geum species only accumulated hexose and diose sugars and a variety of amino acids. However various phenolic compounds were also shown to accumulate during water deficits. This study also showed that both species could mobilise stored carbohydrate from mature leaves and increase storage of carbohydrate in young leaves, a previously unreported phenomenon. The primary production of amino acids was shown to be maintained in roots and leaves of both species during water stress. However it was considered that a different mechanism of nitrogen assimilation occurred during water stress in roots as opposed to leaves when compared to unstressed plants

Learning to Navigate the Unknown: The Importance of Critical Reflection and Collaboration for Community College Faculty During a Pandemic

The COVID-19 pandemic caused sudden and dramatic shifts in educational systems worldwide, including colleges and universities. Students, faculty, and service staff found themselves navigating uncertain times and addressing challenges they had not faced previously. The use of critical reflection and collaboration became crucial for faculty as they struggled to engage students in different ways. Understanding students’ needs and addressing them effectively became priorities with reflection and collaboration both cost-effective and convenient methods. Following this time of uncertainty, faculty can continue using reflection and collaborative learning communities to address new challenges and obstacles, especially at community colleges where money, time, and resources are often precious and limited

Letter, 1863 January 21, C. Ladley [Catherine Ladley] to Son [Oscar Ladley]

Letter to Oscar Ladley from his mother in Yellow Springs, Ohio. Catherine writes about suffering from straining her arm, the recent snowstorm, and morehttps://corescholar.libraries.wright.edu/special_ms138/1069/thumbnail.jp

Letter, 1862 April 2, C. Ladley [Catherine Ladley] to Son [Oscar D. Ladley]

Letter to Oscar Ladley from his mother in Yellow Springs, Ohio. She writes about reading about the 44th Regiment in the newspaper, the weather, and more.https://corescholar.libraries.wright.edu/special_ms138/1027/thumbnail.jp