investment and shock

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Endogenous Business Cycles And The Economic Response To Exogenous Shocks

This paper investigates the macroeconomic response to exogenous shocks, namely natural disasters and stochastic productivity shocks. To do so, an endogenous business cycle model was used in which cyclical behavior arises from the investment - profit instability; the amplitude of this instability is constrained by the increase in labor costs...

Tags: Shock, Stanford University, Instability, Investment, Finance

White papers 2006-08-08

A Latent Factor Model With Global, Country, and Industry Shocks for International Stock Returns

This paper estimates a latent factor model that decomposes international stock returns into global, country-, and industry-specific shocks and allows for stock-specific exposures to these shocks. It finds that across stocks there is substantial dispersion in these exposures, which is partly explained by the extent to which firms operate across...

Tags: Shock, Stock, Industry, Investment, Finance

White papers 2005-03-01

Uninsurable Investment Risks

This paper studies a general-equilibrium economy in which agents have the ability to invest in a risky technology. The investment risk cannot be fully insured with optimal contracts, because shocks are private information. The paper shows that the presence of these risks may lead to an under-accumulation of capital relative...

Tags: Shock, Contract, Bank Of Canada, Real Estate, Insurance, Financial Planning, Investment, Business Operations, Corporate Insurance, Finance

White papers 2004-08-01

International Diversification Strategies

Article talks about a model with country- and industry-specific shocks that extend the dummy variable model used in the portfolio diversification literature by relaxing the restriction that all stocks with exposure to a given shock have the same exposure to that shock. It is find that: i) This restriction is...

Tags: Finance, Management, Investment, Strategy, Industry, Stock, Exposure, Shock

White papers 2002-11-01

Endogenous Risk

Endogenous risk refers to the risk from shocks that are generated and amplified within the system. It stands in contrast to exogenous risk, which refers to shocks that arrive from outside the system. Financial markets are subject to both types of risk. However, the greatest damage is done from risk...

Tags: Finance, Shock, Investment, Financial Accounting, London School Of Economics

White papers 2002-09-21

Monetary Rules For Emerging Market Economies

This paper compares the performance of a currency board, inflation targeting, and dollarization in a small, open developing economy with a liberalized capital account. It focuses on the transmission of shocks to currency and country risk premia and on the role of fluctuations in premia in the propagation of other...

Tags: IMF, Shock, Marketing, Corporate Law, Business Operations, Finance, Marketing Research, Investment, Corporate Governance, Currency & Foreign Exchange, Welfare Analysis, Framework, Emerging Market, Financial Services

White papers 2002-02-01

Financial Markets in Times of Stress

This paper examines which markets are most synchronized internationally and exhibit the greater extent of co movement. It focuses on daily data for four asset markets: bonds, equities, foreign exchange, and domestic money market. The extent of co movement and responsiveness to external shocks is examined in different ways. To...

Tags: National Bureau Of Economic Research, Financial Market, Asset Management, Investment, Financial Services, Currency & Foreign Exchange, Operational Planning, Business Operations, Finance, Shock, Financial

White papers 2001-10-01

Credit, Prices, and Crashes

The emerging-markets crises were characterized by sudden reversals in inflows of foreign capital followed by unusually large declines in current account deficits, private expenditures, production, and prices of nontradable goods relative to tradables. This paper shows that these Sudden Stops can be the outcome of the equilibrium dynamics of a...

Tags: Debt, Investment, Finance, Liquidity, National Bureau Of Economic Research, Shock

White papers 2001-06-14

Credit, Prices and Crashes: Business Cycles with a Sudden Stop

This paper shows that sudden stops and declines in the foreign capital can be the outcome of the equilibrium dynamics of a flexible price economy with imperfect credit markets. Foreign debt is denominated in units of tradable and a liquidity constraint links credit market access to occur when real shocks...

Tags: Shock, National Bureau Of Economic Research, Liquidity, Debt, Asset Management, Investment, Operational Planning, Business Operations, Finance

White papers 2001-06-01

Interpreting Money-Supply and Interest-Rate Shocks as Monetary-Policy Shocks

In this paper two shocks are analysed using Canadian data: a money-supply shock ("M-shock") and an interest-rate shock ("R-shock"). A permanent increase in the nominal stock of M1 generates: a temporary fall in the interest rate, consistent with the liquidity effect; a temporary rise in real output; a permanent increase...

Tags: Shock, Bank Of Canada, Free Trade, Investment, Financial Planning, Financial Services, Finance

White papers 1996-07-01

Additional Resources

Transition coaching helps ensure success for global assignments: executives are challenged to rapidly adjust their leadership styles and family life to a global environment and new cultures. This article explains how transition coaching can improve assignment success rates, return on investment, employee satisfaction and retention, and contribute to smoother repatriation

[ILLUSTRATION OMITTED] THE BEST approach for corporations supporting executives on global assignments of all types is to address both the shift from one culture to another on long-term assignments and train everyone at a managerial level in an open-minded, culturally respectful mindset that values diversity. Executives...

Articles 2008-12-01

The rainy day's here: why didn't we save?

I SAW the first casualties of Black Monday as I came to work at Canary Wharf this week. They were young women from Lehman Brothers, sitting in a huddle in a cafe trying to figure out what the hell had hit them. ...

Articles 2008-09-21

North city crisis fears; FINANCE EXPERT GIVES POSITIVE VIEW OF REGION'S LONG-TERM ECONOMIC PROSPECTS DESPITE A SHARP RISE IN JOB LOSSES

THE US bank crisis could spell higher interest rates on loans and mortgages in the UK, experts warn. The collapse of Lehman Brothers coupled with the takeover of fellow investment bank Merrill Lynch by the Bank of America, caused shock waves in world money markets. Fresh...

Articles 2008-09-18

Homeowners Shocked by Frozen HELOCs Find Relief With a New Monthly Payment-Free Way to Tap Home Equity

REXTM Agreement is a safe, debt-free alternative for homeowners hurt by frozen HELOCs as lenders are increasingly skittish SAN FRANCISCO, Aug. 18 /PRNewswire/ -- For many homeowners, the bad news hit their mailboxes over the past few weeks. For others, the bad news is still to come....

Articles 2008-08-18

How Pax came to alter its investment rules

How could Pax World Funds, a family of socially responsible mutual funds whose very name means peace, end up investing tens of millions in contractors that do billions of dollars of business with the U.S. Defense Department? At the end of July, the Securities and Exchange Commission fined the...

Articles 2008-08-15

Politicians unite in fight for factory

Byline: By BARRY GIBSON A COUNCILLOR has called for unity as hundreds of jobs hang in the balance. Fox's Biscuits factory on Grange Road in Batley, which employs nearly 2,000 people, could close. OwnerNorthern Foods lastweek announced plans to merge it with its sister...

Articles 2008-08-07

STOCKS FOCUS: LLOYDS TSB

LLOYDS TSB shocked the City as fi rst-half pre-tax profits plunged 70per cent to GBP599 million (dollars1.18bn). Excluding the impact of a decline in financial markets on its investments, the bank said it had performed well, particularly in retail banking, but expected the slowing growth of the...

Articles 2008-08-03

Commentary: Client servicing, satisfaction and loyalty

Several surveys have been completed in the past few months regarding client servicing, client satisfaction and client loyalty. In many cases the results aren't just surprising, they're shocking. The May issue of Financial Advisor magazine's article entitled "Surprising Conclusions About Client Loyalty" included...

Articles 2008-07-30

Merrill shocks Wall Street with $8.5bn share sale

MERRILL LYNCH, the investment banking giant that has lost more than $40bn (20.1bn) on its mortgage investments since the start of the credit crisis, shocked Wall Street last night with plans to raise $8.5bn in new shares. As part of a sweeping financial restructuring, the company is...

Articles 2008-07-29

NAB stock slumps as it takes A$830m writedown on US debt

NATIONAL Australia Bank stunned investors yesterday by taking an extra A$830m (399m) provision against investments backed by US residential mortgages. Shares of Australia's biggest bank dropped 13.5 per cent, the biggest one-day slide since the stock market crash of October 1987. NAB took only a small A$181m...

Articles 2008-07-26