This paper addresses specifically leverage effects based on the irreversible nature of time and the Cognitive Time Distortion in economy. In service and information society, time has received an ever increasing importance, not from the perspective of faster production, but due to the fact that the major part of the economic value of Total Revenues and Total Costs is based on time. In this paper...

We review the theory of leverage developed in collateral equilibrium models with incomplete markets. We explain how leverage tends to boost asset prices and create bubbles. We show how leverage can be endogenously determined in equilibrium and how it depends on volatility. We describe the dynamic feedback properties of leverage, volatility, and asset prices, in what we call the leverage cycle, ...

In this article, we begin to lay out a framework and approach for studying how students come to understand complex concepts in rich domains. Grounded in theories of embodied cognition, we advance the view that understanding of complex concepts requires students to practice, over time, the coordination of multiple concepts, and the connection of this system of concepts to situations in the world...

the corporate income tax rate plays a worthwhile role in developing fiscal and tax policies for companies, lawmakers and analysts. so, one of the most important issues in tax field, is to determine effective tax rates. the study and scientific calculations of the effective tax rates provide an enhanced tax justice and a careful study of tax pressure on taxpayers would be possible. the objective...

The literature on endogenous leverage until now shows how an increase in volatility reduces leverage. However, in order to explain procyclical leverage it assumes that bad news increases volatility. This paper explains for the first time why bad news are associated with high volatility. We show that, in a model with endogenous leverage and heterogenous beliefs, most agents have the incentive to...