The objective of this note is to show that the positively valued excess supplies which Aiyagari (1992) connects with Pareto inefficiency for overlapping generations economies represent an economic opportunity that can potentially be exploited by government or by a private financial intermediary through the issuance of unsecured debt. We demonstrate that, when unsecured debt is issued, Walras’ L...

The international development community has turned its attention recently to social impact bonds (SIBs), a financing innovation that is being piloted in several high-income countries. In this innovation, governments pay social service organizations only if those organizations achieve predetermined outcomes. A financial intermediary helps social service organizations raise private capital to imp...

Online P2P lending marketplaces match individual lenders and borrowers for unsecured loans via real-time auction without financial institutions as an intermediary. This paper aims to build up a theoretical framework from the perspectives of informational social influence and herding behavior to explain how individual investors’ participation of online financial community influence their credit ...

in this article, i try to find out what are the effects of financial variablessuch as ratio of private sector deposits to gdp and ratio of bank credit toprivate sector to gdp and value of stocks trade in tehran stockexchange to total current value of stocks and private sector liquidity togdp on total investment.we use two models to test our hypothesis the first is a model for iranand the second...

I develop a framework of the build-up and outbreak of financial crises in an asymmetric information setting. In equilibrium, two distinct economic states arise endogenously: normal times – periods of modest investment, and booms – periods of expansionary investment. Normal times occur when the intermediary sector realizes moderate investment opportunities. Booms occur when the intermediary sect...

this study investigates the effects of  macroeconomic variables and their role in development of foreign exchange market. the foreign exchange market is the mechanism by which a person of firm transfers purchasing power form one country to another, obtains or provides credit for international trade transactions, and minimizes exposure to foreign exchange risk. the foreign exchange transaction i...

this study investigates the effects of financial management practices and their role in economical development and organizational performance. economic environment is changing rapidly and this change is characterised by such phenomena as the globalization, changing customer and investor demands, ever-increasing product-market competition. to compete successfully in this environment organization...

We design an experiment to examine behavior and welfare in a multi-level trust game representing a pass through investment in an intermediated market. In a repeated game, an investor invests via an intermediary who lends to a borrower. A pre-experiment one-shot version of the game serves as a baseline and to type each subject. We alter the transparency of exchanges between non-adjacent parties....