The paper attempts to assess to what extent the central bank or the government should respond to developments that can cause financial instability, such as housing or asset bubbles, overextended budgetary policies, or excessive public and household debt. To analyse this question we set up a...

The existence of takeover premia is well established in the finance literature. This research motivates the existence of premia by utilising the concept of economies of scope which are empirically proxied by the 'closeness' of industries, and subsequently provides a theoretical framework for the...

In this paper, linear and non-linear Granger causality tests are used to examine the dynamic relationship between daily Korean stock returns and trading volume. We find evidence of significant bidirectional linear and non-linear causality between these two series. ARCH-type models are used to...