1,721,018 research outputs found
Firm value, illiquidity risk and liquidity insurance
No full textOur interest here concerns liquidity supply to firms. We first examine the relation between firm value and access to liquidity supply, and then we investigate the existence conditions and efficiency properties of financial contracts with a liquidity covenant in a continuous-time, infinite-horizon stochastic model of a repeated firm-investors relationship where the key problem is the mutual commitment between the two parties. To model this problem we consider liquidity supply as a stochastic "regulator mechanism" that prevents the firm's ability to pay from falling below a predefined threshold (here the market fixed coupon), and we then apply recent developments in dynamic programming techniques for "regulated processes" to obtain a close form solution for the firm's value. Our main finding is that efficient, i.e. actuarially fair and renegotiation-proof contracts emerge in the absence of perfect commitment as the firm and the investor can exert mutual threat of termination
It's not austerity. Or is it? Assessing the effect of austerity on growth in the European Union, 2010-15
No full textClimate Change and Event Uncertainty in a Dynamic Model with Overlapping Generations
No full textIn this paper the climate change effect is an unforeseen earth temperature level above which a negative externality on technology and hence on society's welfare is exerted. We use a dynamic overlapping generations model to develop a positive analysis of the growth path of an economy with the negative temperature spillover leading to a structural breakdown in capital productivity. Two scenarios for the impact of climate change on intergenerational equity are analyzed: the first is consistent with a state-of-nature framework in which atomistic agents cannot influence the probability that a particular event (productivity collapse) will occur. In the second, according to the maxim "that everybody does what I am doing...«, agents recognize that their choices may influence the probability of productivity collapse occurring in their lifetime
Does an inflation target zone help or hinder price stability?
No full textA significant number of central banks pursuing price stability operate an inflation target zone (ITZ) by letting inflation float within a band. The available literature is not conclusive on whether ITZs contribute to price stability. We elaborate and simulate a novel symmetric stochastic ITZ model inspired by the literature on exchange-rate agreements. Our new finding is that the performance of ITZs depends on whether the central bank sets the boundaries with certainty. In this case, it can accommodate larger shocks and set a lower interest rate at the point of intervention, with inflation remaining within the band and close on average to the central target. However, these benefits are reversed if the bandwidth is uncertain. Our simulations also show that a wider band leads to higher mean and variance of inflation, but it is still to be preferred to a narrow one if it is recognized as better defensible
Balanced-budget fiscal stimuli of investment and welfare value
Full text linkIs a fiscal stimulus of investment a viable complement to, or substitute for, monetary policy? We address this issue by means of real option valuation of a private investment which generates private as well as public benefits. A surge in uncertainty about private profitability delays investment to an extent that may not be offset by monetary policy (conventional or not). Turning to fiscal policy, we examine the welfare effects of different policy schemes: (i) a simple subsidy on investment, (ii) a balanced-budget stimulus where the subsidy is covered by profit taxation, and (iii) by taxing public benefits as well. We show that, under a balanced-budget stimulus, investment acceleration may come at the expense of decreased total (private and public) welfare and that the higher is uncertainty about private returns, the more likely is a net efficiency loss. However, the risk of such negative outcome strongly declines when the government spending is balanced by taxing both private and public returns on investment
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
Variations on the Author
Full text link“Variations on the Author” discusses two of Eduardo Coutinho’s recent films (Um Dia na Vida, from 2010, and Últimas Conversas, posthumously released in 2015) and their contribution to the general question of documentary authorship. The director’s filmography is characterized by a consistent yet self-effacing form of authorial self-inscription: Coutinho often features as an interviewer that rather than express opinions propels discourses; an interviewer that is good at listening. This mode of self-inscription characterizes him as an author who is not expressive but who is nonetheless markedly present on the screen. In Um Dia na Vida, however, Coutinho is completely absent form the image, while Últimas Conversas, on the contrary, includes a confessional prologue that moves the director from the margins to the center of his films. This article examines the ways in which these works stand out in the filmography of a director who offers new insights into the notion of cinematic authorship
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