This study develops a stress-testing framework to assess liquidity risk of banks, where liquidity and default risks can stem from the crystallisation of market risk arising from a prolonged period of negative asset price shocks. In the framework, exogenous asset price shocks increase banks’ liquidity risk through three channels. First, severe mark-to-market losses on the banks’ assets increase ...

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What is the optimal rate of new housing supply? We answer this question with a simple model supply where choice variable lot sales. This informed by cost-side assumptions static equilibrium but allows for demand home-buying to vary over time. It differs from models production assuming that landowners hold land assets are sold in asset markets create supply. Landowners maximise present value the...

Constrained efficiency is characterized in an asset market, subject to search frictions, where sellers are privately informed about the type of their asset. The determines opportunity cost for and quality buyers. constrained-efficient allocation implemented using a sales tax schedule. optimal schedule has single-crossing property, requiring trading low-quality assets be subsidized high-quality ...

The tightening of the European Union climate and energy policy, directed to raising the resilience and effectiveness of the European Union Emissions Trading System, may influence on companies' economic performance. Polish energy companies, which mainly use coal in the energy production process, are particularly worried about the potential negative consequences associated with the implementation...

a r t i c l e i n f o Based on the underestimation model in bear markets and the overestimation model in bull markets, we propose two types of sentiment asset pricing models to study the effects of investor sentiment on stock prices and limit of arbitrage. The two sentiment asset pricing models demonstrate that investor sentiment has a systematic and significant impact on stock prices; furtherm...

This article examines the effect of microcredit on performance micro and small enterprises (MSEs) in Amhara National Regional State, Ethiopia. A total 340 MSEs were randomly selected, a survey method was used. Average Sales volume used to measure performances MSEs. The findings suggested that majority Ethiopia engaged manufacturing urban agriculture sectors with share 48.53% 26.76% total, respe...