Wealth distribution has always been an important issue in our economic and social life, since it affects the harmony and stabilization of the society. Under the background of widely used financial tools to raise leverage these years, we studied the leverage effect on wealth distribution of a population in a controllable laboratory market in which we have conducted several human experiments, and...

We find over 30% of public U.S. non-financial companies have negative net-financial-obligation (NFO) during the sample period of 1965 to 2014. According to the modified DuPont analysis, NFO is defined as total debt minus excess cash and passive investments. The persistence of negative-NFO observations suggests that its occurrence is not random, raising the questions of why these firms hold such...

This study examines the relationship between firms' attributes and the market effects of SFAS No. 52. The accumulation of abnormal residuals during the eleven-day test period is used as a dependent variable and the firms' size and leverage as independent variables. The results suggest that the market effects of SFAS No. 52 depend on firm size and leverage. Stock price changes are directly attri...

Abstract The current financial crisis highlights the need to develop DSGE models with real-financial linkages and an active banking sector. This paper proposes a fully micro-founded framework that incorporates optimizing banks, the interbank market, and the credit market into a DSGE model, and evaluates the role of banks and financial shocks in the U.S. business cycles. We assume two types of h...