This article deals with the issue of how the market structure in banking affects the choice of the means of payment. In particular, the demand for cash is analysed from this point of view. The analysis is based on a simple spatial transactions model in which banks' optimization problem is...

We present a macro variable-based empirical model for corporate bank loans’ credit risk. The model captures the well-known positive relationship between probability of default (PD) and loss given default (LGD; i.e., the inverse of recovery) and their counter-cyclical movement with the business...

Using a simple model of the euro area economy, we explore whether EMU has been associated with changes in behaviour both in the run up to Stage 3 and since it started operating. We find that some behaviour has indeed changed; expectations formation, inflation, country dispersion of behaviour,...

New evidence on Finnish property criminality is presented. The analysis is based on Erlich′s model; the empirical analysis makes use of annual Finnish data for the period 1951‐1986. The estimation results strongly support the notion that both the apprehension rate and the severity of...

This paper analyses the economic determinants of suicide. More specifically, we test the hypothesis that suicide is related to shocks or news concerning income growth. Testing is based on an error correction model of suicide in which the long‐run part takes into account various demographic and...

The high quality papers of this volume present applications of financial modelling. Among the important features are practical applicability and European institutional framework. The attention is focused on peculiarities like "thin capital markets, frictions, rationing, 'irrationalities'". The...