The London Assurance Company (LA), which incorporated during the bubble of 1720, experienced more dramatic price movements in its shares than South Sea Company. This paper examines how incorporating affected long run performance. We show that Company's share was partly attributable to changes market structure issuance process. As a result bubble, original subscribers, who had been curated for e...

We show that both real indeterminacy and asset price bubble may appear in an infinite-horizon exchange economy with infinitely lived agents imperfect financial market. explain how the structure heterogeneity (in terms of preferences endowments) affect existence dynamics bubbles as well equilibrium indeterminacy. Moreover, this paper bridges literature on models overlapping generations models.

We develop a II(!lV procedllre to forecast flltllre casbjlolVsfrom ajillallcial asset alld tbell lise tbe presellt vallie of ollr casb jlOlV forecasts to calCIIlate tbe asset's f,mdamelltal price. As all example, we COllstrllct a 1I0lllillear AJljfA.-ARCHArtificial Nellral Network model to obtaill Ollt-Ofsample dividelldforecastsf01'1920 alld beyolll/, tlsillg OIlly ill-sample dividelld data. T...

This paper investigates whether Japanese banks followed herd behavior in lending in local financial markets during 1980—1999. By using loan data from Japanese banks, arranged by geographical area, we find leader-follower relationships between lending behavior of different types of banks. Specifically, herding is mostly caused by local banks. Local banks follow major banks in urban cities, while...

In the current conditions of over-supply, firms are paying high attention to pricing decisions in order to defend their competitive positioning. Modern pricing strategies are able to take into account changed market conditions or, in other words, demand characterised by strong volatility and non loyal behaviour flanking known loyalty mechanisms. Moreover, suppliers are also looking for innovati...

International equity markets linkages are characterized by nonlinear dependence and asymmetries. We investigate shifts in long run comovements in stock markets by means of an ‘interrupted’ Markov switching cointegration specification. This flexible approach allow us to study to what extent documented changes in global integration are permanent, or whether market linkages are subject to changes....