Shadow banking is a term that came out of the financial crisis of 2007-2009. There is a belief that shadow banking was one of the crisis reasons. Because the excessive expansion of shadow banking endangers the financial stability of countries, this paper examines the impact of shadow banking on financial stability using data from 14 countries of the G20 during 2002-2018. We divided countries in...

Listed: Karacharovskiy, Vladimir (HSE University, Moscow, Russian Federation) Vakulenko, Elena Registered: Karacharovskiy S. Vakulenko

A random life expectancy and a positive relationship between the probability of dying and the degree of addiction are incorporated into a model of rational addiction. The BeckerMurphy equality between the addictive commodity’s full price and marginal utility is modified by discounting the market price and marginal utility of the addictive commodity by the probability of survival. The individual...

We model the realignment risk in a two-factor exchange rate target zone model using a Cox process framework. The first factor is the current exchange rate evolving inside the target zone, and the second factor is a shadow exchange rate depicting the free floating exchange rate in the absence of a target zone. By using a Cox process, as opposed to a standard Poisson process, the realignment inte...

General Equilibrium asset pricing models have a difficult time simultaneously delivering a sizable equity premium, a low and counter-cyclical real risk free rate, as well as cyclical variation in return volatility. To explain these stylized facts, this paper introduces occasionally binding financing constraints that impede producers’ ability to invest in an otherwise standard real business cycl...

Abstract A failure of the price mechanism in gas market cannot be ruled out. The article explains how a collapse can occur and what effects even possibility such have. It essential elements that an economic framework should have shadow possible collapse.