The examples given in the introduction to this monograph provide persuasive arguments that the combination of inflation and the traditional mortgage instrument imposes burdens on households and thrift stitutions, burdens which are likely to have impacts in the housing market and ultimately on the construction sector. We are interested in whether or not the existing literature, summarizing empir...

In this paper, a production and pricing decision model for automakers under the dual-credit policy is formulated. Then, with consideration of demand credit price disruptions, nonlinear programming that maximizes automakers’ profit constrains fuel vehicles (FVs) new energy (NEVs) investigated. Furthermore, four strategies involve adjusting or FVs NEVs are proposed, optimal solutions each strateg...

Given the worldwide financial market confusion caused by the subprime mortgage problem and the increase in credit line contracts with relaxed covenants, there have been cases in which financial institutions are facing a demand to provide additional credit to securitized vehicles with heightened liquidity and credit risks. These are typical examples demonstrating the importance of risk managemen...

Demand considered in most of the classical inventory models is constant, while in most of the practical cases the demand changes with time. In this article, an inventory model is developed with time dependent two parameter weibull demand rate whose deterioration rate increases with time. Each cycle has shortages, which have been partially backlogged to suit present day competition in the market...

Some have argued that recent increases in credit risk transfer are desirable because they improve the diversification of risk. Others have suggested that they may be undesirable if they increase the risk of financial crises. Using a model with banking and insurance sectors, we show that credit risk transfer can be beneficial when banks face uniform demand for liquidity. However, when they face ...

The demand for risky investments in areas different from the stock markets has increased enormously due to their recent struggles. On possibility to achieve this, is to take credit risk in exchange for an attractive yield and as a result methodologies for pricing and hedging credit derivatives as well as for risk management of credit risky assets became very important. The efforts of the Basel ...

This paper provides an empirical examination of the frequency and determinants of two forms of non-price rationing in rural credit markets in northern Peru. Quantity rationing is the conventional form of non-price rationing whereby a household with positive demand for credit is denied access. Risk rationing, in contrast, occurs when a household voluntarily withdraws from the credit market for f...

We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Buyers can use cash or credit, with the former (latter) subject to the inflation tax (transaction costs). Frictions making the choice of payment method interesting also imply equilibrium price dispersion, and together these deliver closed-form solutions for money demand. The model can ...

Factoring services can be traced historically to Roman times. Closer to our own era, factors arose in England as early as the thirteenth century, as commissioned merchants for manufactures in distant, unfamiliar markets. These factors relieved manufacturers of selling and credit collection responsibilities and specialized in assessing the market's risk and collecting monies due. While demand fo...