Rent extraction by large shareholders: evidence using dividend policy in the Czech Republic
Using cross-sectional analysis of corporate dividend policy we show that large shareholders extract rents from firms and expropriate minority...
Imperfect common knowledge in first generation models of currency crises
First generation models assume that the level of reserves of a Central Bank in a fixed exchange rate regime is common knowledge among consumers, and...
Towards a measure of financial fragility
This paper proposes a measure of financial fragility that is based on eco- nomic welfare in a general equilbrium model calibrated against UK data. The...
Comparing downside risk measures for heavy tailed distribution
Using regular variation to define heavy tailed distributions, we show that prominent downside risk measures produce similar and con- sistent ranking...
Rare events and annuity market participation
We investigate whether a rare event (like the default of the annuity provider) can explain the annuity market participation puzzle. High risk aversion...
The Dynamics of venture capital contracts
We analyze the degree of contract completeness with respect to staging of venture capital investments using a hand-collected German data set of...
Subadditivity re–examined: the case for value-at-risk
This paper explores the potential for violations of VaR subadditivity both theoretically and by simulations, and finds that for most practical...
On modelling endogenous default
Not only in the classic Arrow-Debreu model, but also in many mainstream macro models, an implicit assumption is that all agents honour their...
The Future of Central Banking
A central bank will usually be primarily concerned about three aspects of stability. These are the maintenance of: (1) domestic price stability, (2) external stability of the value of the currency, and (3) overall systemic stability in the financial system.
Politics and the Creation of a European SEC: The Optimal UK Strategy – Constructive Inconsistency
This paper analyses the factors influencing whether a European Securities and Exchange Commission (ESEC) will be created and confirms the primary role...
An Essay on the interactions between the Bank of England's forecasts, the MPC's policy adjustments, and the eventual outcome
There are long, (and often variable), lags between a change in interest rates and its effect on real output and inflation. Hence policy should be...
Minority blocks and takeover premia
This paper analyses takeovers of companies owned by atomistic shareholders and by one minority blockholder, all of whom can only decide to tender or...
Reforming public pensions in the US and the UK
This essay describes the current debate on reforming Social Security in the US, along with a brief description of how the program works. Along the way...