Institution Building and Spillovers

Institution Building and Fdi

Building Specifications in an Arbitrary Institution

A set of operat ions for construct ing a lgebra ic specif icat ions in an arbi t rary logical system is presented. This builds on the f ramework provided by Goguen and Burstal l 's work on the not ion of an inst i tut ion as a formal isat ion of the concept of a logical system for wri t ing specif icat ions. We show how to introduce free variables into the sentences of an arbi t rary institutio...

Post-socialist Bank Crises and the Problems of Institution-building

Bank crises are usually the result of dramatic swings in the value of assets held by the banking system. When asset values fall relative to liabilities, banks net worth is eroded, resulting in crisis. Minsky (1977) argues that such asset devaluations are a normal feature of the business cycle in market economies. As confidence builds during the business cycle, more and more agents engage in spe...

Speculation Spillovers Speculation Spillovers

This paper demonstrates that investor irrationality can be contagious across markets. Supplementing existing studies on resale option theory, we illustrate that warrant speculation could spill over to the underlying stock market. Our findings indicate that high turnover of underlying stocks is associated with previous day’s high unexpected turnover of warrants, or previous day’s larger price de...

Building Effective Online Marketplaces with Institution-Based Trust

Despite the inherent risk arising from separating buyers and sellers, networked online marketplaces are proliferating. We describe how online auction marketplaces take advantage of institutional structures to build buyer trust in auction sellers, mitigate risk, increase satisfaction, and promote transaction intentions. It is hypothesized, based on institutional trust (Zucker 1986), that buyer t...