Empirical studies on many social issues show that numerous statistical distributions follow power laws, such as stock-price fluctuations, the probability distribution of the population of cities, the degree distributions in many networks and distribution of income or wealth. In particular, the wealth distribution which is an old topic has recently been renewed by a small band of econophysicists...

ship exists between the quantity of money and the general level of prices. Confidence This paper introduces a mechanism for in this relationship, expressed in terms of generating a series of rules that characterize long-run rates of money growth and inflation, the money-price relationship, defined as the along with an accumulation of evidence suprelationship between the rate of growth of portin...

based on the “aggregate demand” theory, monetary policies are designed with the aim of achieving desirable level of macroeconomic goals through affecting the stock of money supplyand income velocity of money. thus, the velocity (v)-as well as money supply - has significant impact, particularly on rate of inflation through expansionary or contractionary monetary policy. to focus on the velocity ...

Research on stock prices is an important aspect in the development of financial management studies, because it has impact scientific perspectives and able to become a practical study for investors making investment decisions. Interestingly, various studies show different results regarding effect macroeconomics prices, both by sector, country classification, period. This aims examine more genera...

This paper examines the role of collateralized money supply for short-run macroeconomic effects of monetary policy. We apply a simple sticky price model, where the central bank supplies money in exchange for securities that are discounted with the nominal interest rate. The central assumption is that only government bonds are eligible as collateral. If they are dominated in rate of return by pr...

We consider the problem of an executive that receives call options as compensation in a dynamic setting. She can influence the stock price return with her effort. In addition, she determines the level of volatility of the stock through the choice of projects. The executive is risk-averse and experiences disutility from the effort. In this framework, we introduce the problem of the company that ...

— Chinese enterprises have become extensively linked with the global economy, yet in a shallow manner. They remain stuck in commodity manufacturing, undifferentiated activities for which innovation is absent. Competition then revolves around cutthroat cost cutting. This outcome stems from three factors. First, it reflects the new challenges to development posed by globally networked production....

Understanding how capital flows within rural communities in sub-Saharan Africa can provide important insights on the nature of poverty and the effectiveness of financial intermediation interventions. In this paper, we use unique individual level savings and borrowing data to study the flow of funds within a sample of 104 Ugandan savings groups. We show that poor households borrow from wealthier...

We use mutual fund flows as a measure of individual investor sentiment for different stocks, and find that high sentiment predicts low future returns. Fund flows are dumb money–by reallocating across different mutual funds, retail investors reduce their wealth in the long run. This dumb money effect is related to the value effect: high sentiment stocks tend to be growth stocks. High sentiment a...