type="main" xml:id="sjpe12057-abs-0001" <title type="main">Abstract</title> <p>A global game framework of bank runs is used to analyse a bank's choice of its reserve level and short-term interest rate. Higher level of reserves and a lower short-term interest rate would decrease the probability of bank runs. When the bank's...</p>

Purpose – In recent years, there has been an expanding literature on the socio-economic determinants of religiosity. The purpose of this paper is to contribute to this stream of the literature by studying the impact of life expectancy on religiosity through a theoretical decision-making...

Purpose – In recent years, there has been an expanding literature on the socio‐economic determinants of religiosity. The purpose of this paper is to contribute to this stream of the literature by studying the impact of life expectancy on religiosity through a theoretical decision‐making...

In this paper, we consider a model where producers set their prices based on their prediction of the aggregated price level and an exogenous variable, which can be a demand or a cost-push shock. To form their expectations, they use OLS-type econometric learning with bounded memory. We show that...

We study optimal monetary policy in a New Keynesian model at the zero bound interest rate where households use cash alongside house equity borrowing to conduct transactions. The amount of borrowing is limited by a collateral constraint. When either the loan to value ratio declines or house...

This article examines the determinants of tax non-compliance when we recognise the existence of an imperfectly competitive "tax advice" industry supplying schemes which help taxpayers reduce their tax liability. We apply a traditional industrial organisation framework to model the behaviour of...

We develop a simple and intuitive approach for analytically deriving unconditionally optimal (UO) policies, a topic of enduring interest in optimal monetary policy analysis. The approach can be employed in both general linear-quadratic problems and in the underlying non-linear environments. A...

Social welfare objectives are investigated when changing prices is costly (Rotemberg, 1982). A quadratic welfare function is derived, with a distorted steady state, implying inflation and output stabilization goals. Economic distortions influence inflation aversion in a way that differs from...