The Basel committee proposes making regulatory capital requirements more risk sensitive. Cost-benefit assessment suggests that this yields greater efficiency in the use of regulatory capital, but has substantial enforcement and compliance costs and may well increase the severity of banking crises. Better if the new accord sets risk-insensitive regulatory minimum capital standards and encourages...

Human capital, in the form of embodied knowledge or skills, is under threat of automation. To examine the effect of it on a macroeconomy, I develop the Uzawa-Lucas model in which the accumulation of human capital follows the stochastic process. With two equality constraints, the closed-form solution gets obtainable. It shows that increase in uncertainty about the human capital accumulation redu...

Using China’s provincial economic and pollution data from 1992 to 2008, we employ data envelope analysis (DEA) and econometric analyses to explicitly estimate technical efficiency and examine the role of technical efficiency, pollution control instruments (pollution levy and pollution quantity control), and prices of production inputs on pollution intensity. We find that an increase of labor wa...

This paper measures the technical efficiency, super-efficiency, slacks, and input/output targets for large Indian pharmaceutical firms according to ownership by applying Data Envelopment Analysis (DEA) approach. The paper uses raw material, salaries & wages, advertisement & marketing and capital usage cost as input variables and net sales revenue as output variable. The super-efficiency model i...

This paper investigates whether different types of regulation may have a direct or indirect (through market power) impact on bank’s efficiency. We use a set of data containing European banks to consider the impact of regulations related to capital requirements, official supervisory power, restrictions on bank activities, and private monitoring on bank efficiency. Our results suggest that offici...

When does efficiency in the household imply specialization? For example, if we recognize two sectors, “market” and “household,” when does efficiency imply that one spouse specializes in the market and the other in the household? If efficiency did imply specialization, then egalitarian marriages would be inefficient and an equity-efficiency tradeoff inescapable. This paper clarifies the roles th...

Traditionally, optical networks have been designed with the objective of minimizing the capital expenditure (CAPEX) without considering the operative costs (OPEX), due for instance to energy consumption. However, the increase of energy consumption and corresponding costs and the challenges imposed by the environmental issues (such as the global warming and the limited oil reserves) are demandin...

Computational Grids are a promising platform for executing large-scale resource intensive applications. This paper identifies challenges in managing resources in a Grid computing environment and proposes computational economy as a metaphor for effective management of resources and application scheduling. It identifies distributed resource management challenges and requirements of economy-based ...

Testing the CAPM boils down to testing the mean/variance efficiency of the market portfolio. Numerous studies have examined the mean/variance efficiency of various market proxies by employing sample parameters, and have concluded that these proxies are inefficient. Shrinkage methods do not seem to help. These findings cast doubt about one of the cornerstones of modern finance. This study adopts...

islamic venture capital is one of the new methods of islamic finance which despite gaining approval of many professionals about its special advantages and efficiency, it has not been adequately considered by islamic finance experts. hence, most studies conducted so far have only introduced mudharabah and musharakah for financing in the process of islamic venture capital while it is possible to ...