The Sukuk market has become the fastest growing segment of the Islamic financial services industry. Governments and other corporate entities have started tapping the local and international Sukuk markets in order to raise the required funds. The investor base is also expanding and Sukuk has now become a popular and obvious choice for retail investors in a number of jurisdictions. However, becau...

we describe a simple model that fits well with iranian economy, and extends a methodology which chary at el. (2007) demonstrated. in addition to four traditional wedges, we introduce additional trade wedge. we then evaluate the contribution of these wedges to the fluctuations in iran during last three years. because of international sanction, trading cost increases, and firms have difficulty to...

In this paper I deal with a number of issues related to financial instability in Latin America. I first discuss, from a macroeconomic research perspective, what I believe are some of the most important policy issues faced by the Latin American nations. These include the effectiveness of controls on capital inflows, the effect of exchange rate depreciation on output, and the international transm...

This paper analyzes the role of nonseparable utility and nontradables in business cycles and portfolio choice using a two-country, two-sector production economy model with a fairly general utility function. I find that nonseparability in utility can change the optimal portfolio choice significantly. Unlike the results of Stockman and Dellas (1989) or Baxter, Jermann and King (1998), the optimal...

This paper models flows of foreign direct investment (FDI) in a two country, two sector DSGE framework. The allocation of capital to production capacity abroad is subject to a search-and-matching friction with endogenous capital reallocation. The model is calibrated on observed inflows and outflows of FDI and leads to dynamics of foreign direct investment consistent with the empirical evidence ...

Economic theory suggests that the magnitude and direction of a company’s currency risk exposure depends crucially on its fundamental involvement in international trade. For US industries, we find that the stock performance of an import-oriented company moves positively with the performance of the dollar, but the stock performance of an export-oriented company tends to move against the dollar. B...

Based on a study of knowledge transfer within more than 15 industries, across three forms of governance, and between both domestic and international R&D partners, knowledge transfer success was found to be associated with several key variables, and to hinge upon (a) both R&D units’ understanding where the desired knowledge resides within the source, (b) the extent to which the parties share sim...

We examine three noncooperative “global warming games” where carbon dioxide emissions and transfers are determined. An international agency implements transfers from rich to poor nations. In each game, the transfer mechanism obeys a predetermined equity principle – horizontal, proportional or “green GNP.” Participation in each transfer scheme is voluntary. We find that implementable horizontal ...

This paper studies how international real interest rate shocks can drive business cycles in an emerging economy. We first present evidence that, in emerging economies, real interest rates and real estate prices are negatively correlated and real interest rates are countercyclical. Motivated by this evidence, we develop a model of a small open economy, where entrepreneurs are borrowing constrain...