Available data on farmers’ socioeconomic or poverty status have focused on the use of money-metric measure of income and/or expenditure, an approach that has been criticized. An alternative, proposed to assessing households’ welfare has been to use asset indices; unfortunately, there is dearth of such study in Edo state. This study therefore assessed the socioeconomic status (SES) of farming ho...

The main criterion in investment decisions is to maximize the investors utility. Traditional capital asset pricing models cannot be used when asset returns do not follow a normal distribution. For this reason, we use capital asset pricing model with independent and identically asymmetric power distributed (CAPM-IIAPD) and capital asset pricing model with asymmetric independent and identically a...

This papers studies how the stabilization role of monetary policy in response to asset price shocks changes with the globalization of financial markets. Changes in asset prices affect production through a credit channel and monetary policy can stabilize the macro-economy with counter-cyclical interventions. The paper shows that, as financial markets become internationally integrated, stabilizat...

When the asset is not completely liquid, we cannot trade the asset continuously. To represent this we assume that the risky asset can be traded at the random times that are exponentially distributed. We solve the optimal portfolio problem of this asset. And the asymptotic character of the optimal strategy is discussed. Further we show the convergence of the value function when the liquidity bec...

The housing market plays a significant role in the economies of countries, and as an asset price channel, is considered as one of the main channels for monetary transmission mechanism. Considering the structure of the country's economy and the characteristics of housing as a capital commodity, the assessment of the impact of housing investment on inflation is important. This research evaluates ...

This article examines the interaction between the demand for deductible insurance and the demand for the asset that can be insured. A model where the decision-maker can choose both the insurance level and the amount of the risky asset to hold in the portfolio is used. Allowing simultaneous determination of the demand for an asset and the level of the deductible alters the comparative statics of...

——————————————————————————————————— We develop a model where agents can allocate their wealth between a liquid asset, which can be used to purchase consumption goods, and an illiquid asset, which represents a better store of value. Should a consumption opportunity arise, agents may visit a frictional “over-the-counter” secondary asset market where they can exchange illiquid for liquid assets. W...

We analyze the pricing of a productive asset in a class of dynamic exchange economies with heterogeneous, infinitely–lived agents, and self–enforcing intertemporal trades. Individual incomes fluctuate and are correlated; preferences, dividends and aggregate income are fixed. Almost all economies in this class have a unique stationary Markovian equilibrium with fluctuations in asset prices. As t...

This paper considers the asset allocation strategies for members of defined-contribution pension plans with exponential utility when there are three types of asset, cash, bonds and stocks. The portfolio problem is to maximize the expected utility of terminal wealth that uses the plan member’s final wage as a numeraire, in the presence of three risk sources, interest risk, asset risk and wage ri...