Modeling the evolution of formal institutions in relation to the evolution of economic and informal institutionaldevelopment. Discrete time optimization; simulation. The punctuations and the evolution formal institutional quality depends on the extent of economic heterogenety.

Modelin the local and central government behaviours to assess the welfare/efficiency/equity impacts of fiscal decentralization. Static optimization; simulation The relative welfare and efficiency effects of fiscal decision mechanisms (defined as social planners optimum choice of fiscal...

The research and bank model developed in this paper for the case of Indonesia is motivated by the following: 1. A recent change in banking regulations in Indonesia, like the statutory reserve requirement and full implementation of Basel II in 2011, coupled with a lack of literature to document...

Gas from the Russian Federation accounts for a quarter of the consumption in the European Union and for more than 40% of its imports. In 2010 essentially all of these imports depended on transit through either Belarus or Ukraine, both being major importers of Russian gas themselves. On both...

In parliaments elected by proportional systems the seats are allocated to the political parties roughly proportionally to the shares of votes for the party lists obtained in elections. Assuming that members of the parliament representing the same party are voting together, it has sense to...

The Stern/Nordhaus controversy has polarized the widely disparate beliefs about what to do in order to tackle the climate challenge. Between Nordhaus' ``policy ramp'' which recommends gradual action to avoid costly premature low-carbon investments and Stern's ``early strong emissions cut'', the...

This paper builds a DSGE model in which future wage assignments are introduced as collateral for risky consumer and housing loans, in addition to standard BGG-type loans to entrepreneurs. Banks face matter-of-fact constraints in funding and lending markets, have liquidity targets, and are...

Governments’ behavior is expected to be non-neutral in terms of impacts on both welfare and inequality. In spite of their multivariate form, a tentative assessment of such inequality impacts can be provided by using a general equilibrium heterogeneous-agents model where distribution is...

Options should play an important role in asset allocation. They allow for kernel spanning and provide access to additional (priced) risk factors such as stochastic volatility and negative jumps. Unfortunately, traditional methods of asset allocation (e.g. mean-variance optimization) are not...

In the sequence of the recent financial and economic crisis, the level of government indebtedness has increased considerably in many European and Monetary Union (EMU) countries. Besides i) undermine the sustainability of public finances and ii) amplify steady-state distortions relative to the...