Since the late 1980s, most developing countries adopt a policy of attracting investments for Private Participation in Infrastructure (PPI) projects. With a perspective of sustainability, this paper offers a first attempt to examine whether the sustainable PPI investments promote financial market development. First, we demonstrate how the PPI policy enlargers the size of financial markets and th...

According to the Basel III regulatory framework, uniform minimum liquidity requirements have been imposed on all types of banks. Using an agent-based model of a banking system, we investigate the effects of liquidity requirements on banks' insolvency under two policy experiments in one of which the minimum liquidity requirements are applied uniformly and in the other differentially across banks...

This paper seeks to evaluate the effects of expansionary monetary policy by the central bank on inflation, output and employment in a limited-participation model for different parameters value of inter-temporal elasticity of substitution and the Frisch (inverse of the labor supply) elasticity. To this end, a modified cash in advance model in line with Lucas (1990), Christiano (1991) and F...

we have studied the relation between bank deposit rates and house prices in iran. for that, we have run some var models, using the following variables: real deposit rates (including 1 and 5 years deposit rates), money supply (including the high powered money and the liquidity), gdp, housing services index, and number of licenses for new houses. our results show that a reduction in the deposit r...

It is often argued that the provision of liquidity by the international institutions such as the IMF to countries experiencing balance of payment problems can have catalytic effects on the behavior of international financial markets, i.e., it can reduce the scale of liquidity runs by inducing investors to roll over their financial claims to the country. Critics point out that official lending a...

liquidity is the most important aspect of stock markets development. this research investigates the effect of share issue privatization (sip) on tehran stock exchange (tse) liquidity. regarding the three assessable measures in sip, three hypotheses based on the number of privatized firms, the volume and the value of the sold stocks were defined and tested. in this research, the tse liquidity is...

Much of the conventional wisdom stems from Friedman’s (1968a; 1968b) informal discussions and Cagan’s (1972) reduced-form evidence on how nominal interest rates respond to a permanent change in money growth. According to that wisdom, the interest rate response is broken into a “short-run,” a “medium-run,” and a “long-run” response. In the short run, when wages, prices, and portfolios do not adj...

This paper is in an attempt to examine the financial performance of privatelisted commercial banks in Bangladesh in terms of profitability. The study is based on cross-section data of annual financial statements of 15 listed commercial banks for the period 2008-2012. Five determinants have been chosen for this study. The Correlation matrix shows that profitability, asset quality, operating perf...

In this study, we examine the relations between the three keys variables of liquidity such as trading volume, bid-ask spread, and intraday price volatility. Hausman’s (1978) tests of specification confirmed that trading volume, bid-ask spread and intraday price volatility are jointly determined. Our study, leaded with a different approach to estimate the three parameters in a three-equation sim...