Banks in non-metropolitan areas compete in a spatially differentiated environment. Non-metro community banks have been insulated from increasing competition from metro banks due to their reliance on soft information in relationship lending. Proximity to borrowers, therefore, may be an important source of market power for non-metro community banks. This paper estimates a structural model of the ...

This paper considers the optimal time-consistent investment and reinsurance strategies for an insurer under Heston’s stochastic volatility (SV) model. Such an SV model applied to insurers’ portfolio problems has not yet been discussed as far as we know. The surplus process of the insurer is approximated by a Brownian motion with drift. The financial market consists of one risk-free asset and on...

Digital technologies have transformed the nature of production and the types of goods and services consumed in modern economies. Yet our measurement framework for economic growth has not fundamentally changed since the 1930s. In principle, a better approach is now feasible. Specifically, changes in consumer surplus (compensating expenditure) are superior to changes in GDP as a measure of change...

Procedures to divide a cake among n people with n-1 cuts (the minimum number) are analyzed and compared. For 2 persons, cut-and-choose, while envy-free and efficient, limits the cutter to exactly 50% if he or she is ignorant of the chooser’s preferences, whereas the chooser can generally obtain more. By comparison, a new 2person surplus procedure (SP’), which induces the players to be truthful ...

Total factor productivity is enhanced by e-collaboration’s ability to spread technical change. Economic surplus analysis allows business executives and policy-makers to assess the value of technical change. It can also be extended to assess e-collaboration in order to rationally steer investment opportunities. It is imperative for business executives and policy-makers to empirically assess the ...

In this paper we analyze how the primary surplus to GDP ratio in the US reacts to variations in the public debt-GDP ratio. In contrast to earlier studies we perform non-parametric and semi-parametric estimations. Our results show that the response of the primary surplus to GDP ratio is a positive nonlinear function of the debt-GDP ratio. Further, our estimations demonstrate that the coefficient...

This article is a survey on bargaining theory. The focus is the game theoretic approach to bargaining, both on its axiomatic and strategic counterparts. The application of bargaining theory to large markets and its connections with competitive allocations are also discussed. Journal of Economic Literature classification: C7. Bargaining In the simplest definition, we refer to bargaining as a soc...

It is well known that Karl Marx explained profit in capitalist economies as arising primarily from the exploitation of productive labor. Less generally understood is Marx’s theory as to the economic logic of capitalist exploitation, in particular the sense in and degree to which the latter depends on direct capitalist control of production, which Marx termed the subsumption of labor under capit...

as regards of supper efficiency models which increased thediscrimination power of the standard dea models, still infeasibility mayoccure. in literature there exists some models overcome this difficulty.in this paper a new procedure has been mooted in order to remove thisshortcoming in a way that both input savings and output surplus arebeing considered. this procedure deals with nonradial chang...