We present a model of the propagation process of bank runs. A bank failure alone is not sufficient to trigger a panic. In accord with the empirical evidence, runs become contagious only during periods of macroeconomic instability. In addition, we make a clear distinction between illiquidity and insolvency as possible causes of bank failures. We also show that, despite the possibility of runs, t...

Supplying power to remote areas may be a challenge, even for those communities already connected to the main grid. Power is often transmitted from long distances, under adverse weather conditions, and with aged equipment. As a rule, modernizing grid infrastructure in such areas to make it more resilient faces certain financial limitations. Local distribution may face stability issues and disrup...

We study an endowment economy with complete markets and heterogeneous agents that do not have rational expectations, but form their beliefs using adaptive learning algorithms that may differ across individuals. We show that market completeness allows agents to smooth consumption across states of nature, but not across time, and that the initial wealth distribution is not enough to pin down the ...

The article considers the results of long-term cooperation and explores prospects for development economic relations between Ukraine Vietnam. Special attention is paid to analysis major reasons changing priorities countries as well search effective ways its development. origins growing discrepancies in pace our countries, which were predetermined already by different approaches implementation n...

The paper analyzes the consequences of joining markets of government discount bonds between identical economies when, in each country, there exists a positive probability of the government to default. In autarky such economies of overlapping generations of consumers with capital accumulation converge to a unique positive steady state under certain conditions. When two identical economies of thi...