We propose a new theoretical model of the large-scale banking system of an open economy. It is shown that distribution of relative sizes of individual banks is stable over time and does not depend on the volume of deposits. Our findings provide an additional argument in favor of use of the...

This article contributes to research dealing with the optimal dividend policy problem of a firm whose goal is to maximize the expected total discounted dividend payments before bankruptcy. We consider a model of a firm whose cash surplus exhibits regime switching, but unlike the existing...

We present a natural generalization of the Dixit-Stiglitz monopolistic competition model (DSM) -- we assume that there is a continuum of industries, each of them described as in DSM, and each characterized with its own elasticity of substitution. Although firms in all industries share the same...

We consider standard monopolistic competition models with aggregate consumer's preferences defined by two well-known classes of utility functions -- the Kimball utility function and the variable elasticity of substitution utility function. It is known that market equilibrium is efficient only...