The Vasicek-Merton (VM) loss distribution function was derived using the Vasicek and the Merton models as an alternative to the AIRB approach. A loan was modeled as a portfolio of a risk-free bond, and a weighted combination of short European vanilla and binary put options written on the assets...

The paper studies the Krugman's CP model in the weakly explored case of asymmetric regions in two settings: international trade and agglomeration processes. First setting implies that the industrial labor is immobile, while second one consider mobile industrial labor and long-run equilibria....

The purpose of this paper is to investigate how the interplay between production, commuting and commuting and costs shapes the economy at intra-urban level. Specifically, we study how economic integration affects the internal stricture of cities and how decentralizing of production and...

The purpose of this paper is to investigate how the interplay between production, commuting and commuting and costs shapes the economy at intra-urban level. Specifically, we study how economic integration affects the internal stricture of cities and how decentralizing of production and...

The paper studies a simple microeconomic stochastic model of a bank operating in a competitive environment. The model allows us to describe the conditions on the model parameters that generate both the formation of bubbles in the credit market and the formation of stable banks with...

The paper studies a simple microeconomic stochastic model of a bank operating in a competitive environment. The model allows us to describe the conditions on the model parameters that generate both the formation of bubbles in the credit market and the formation of stable banks with...

The paper considers a bank, left to itself, outside of regulation and supervision. The stochastic model allows us to describe the parameters, which create conditions both for the formation of bubbles in the credit market and for the formation of stable banks with self-restrictive behavior that...

The paper considers a bank, left to itself, outside of regulation and supervision. The stochastic model allows us to describe the parameters, which create conditions both for the formation of bubbles in the credit market and for the formation of stable banks with self-restrictive behavior that...

The purpose of this paper is to provide a comparison of three types of competition in a differentiated industry: Cournot, Bertrand, and monopolistic competition. This is accomplished in an economy involving one sector and a population of consumers endowed with separable preferences and a given...

The main purpose of this paper is to provide a detailed comparison of two types of oligopolistic competition: quantity competition (Cournot) and price competition (Bertrand) with or without Ford effect: strategic allowing for firm's impact on consumer's income. This is accomplished in a simple...