On Financial Markets and Financial Regulation

On Financial Markets Trading

Starting from the observation of the real trading activity, we propose a model of a stockmarket simulating all the typical phases taking place in a stock exchange. We show that there is no need of several classes of agents once one has introduced realistic constraints in order to confine money, time, gain and loss within an appropriate range. The main ingredients are local and global coupling, ...

Essays on Financial Markets

Financial Intermediation, Markets, and Alternative Financial Sectors

We provide a comprehensive review of firms’ financing channels (internal and external, domestic and international) around the globe, with the focus on alternative finance—financing from all the nonmarket, non-bank external sources. We argue that while traditional financing channels, including financial markets and banks, provide significant sources of funds for firms in developed countries, alt...

Emerging Markets Financial Openness and Financial Development

We examine the effect of financial openness on the development of financial systems in a panel of 35 emerging markets during the period of 1976 to 2003. A group of indicators including variables from banking sector, stock market, and national capital accounts are used as measures of financial openness and financial development. In addition, aggregate index measures are developed to incorporate ...

On Rationality In Financial Markets

To many a casual observer, nancial markets look chaotic. Prices often change erratically, and large, unpredictable price swings are not uncommon. Why is this? Does this re ect the irrational side of human behavior, as is often suggested? Is this the e ect of the invisible hand of the addicted gambler? Already in 1688, Jos e de la Vega described the Amsterdam Stock Exchange as a \confusi on de c...