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Classical finance has undergone a major change in recent years. In our modern world, where risk becomes more complex and difficult to calculate, more sophisticated mathematical techniques and products are needed to quantify such new risks. The financial sector should have a solid structure in...
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Through an intertemporal budget constraint, jurisdictions may gain advantages in tax and spending competition by 'competing' on debt. While the existing spatial econometric literature focuses on tax and spending competition, very little is known about spatial interaction via public debt. This...
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. Using long-term panel data for Germany and the United Kingdom, we do not find robust evidence for a relationship between GDP …-income hypothesis: the United States, Germany, and the United Kingdom. …
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This paper sheds new light on the impact of information risk and market stress on herding of institutional traders from both, a theoretical and an empirical perspective. Using numerical simulations of a herd model, we show that buy and sell herding intensity should increase with information...
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"bad" times but upwardly flexible during "good". In this paper we use an administrative panel dataset from Germany to … establish that such asymmetries are very salient in Germany. We find that the semi elasticity of real wages with respect to … allow for search frictions and/or adjustment costs may rectify this deficiency. …
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