In this paper a property rights model for electric transmission is proposed and its properties analyzed. The proposed rights, called “border flow rights,” support financial hedging of transmission risk and merchant transmission expansion through associated financial rights, called “contracts for differences of differences.” These financial rights allow for forward trading of both energy and tra...

In this paper we discuss a closed-form approximation of the likelihood functions of an arbitrary diffusion process. The approximation is based on an exponential ansatz of the transition probability for a finite time step ∆t, and a series expansion of the deviation of its logarithm from that of a Gaussian distribution. Through this procedure, dubbed exponent expansion, the transition probability...

In recent years, due to the expansion of financial institutions,as well as the popularity of the World Wide Weband e-commerce, a significant increase in the volume offinancial transactions observed. In addition to the increasein turnover, a huge increase in the number of fraud by user’sabnormality is resulting in billions of dollars in lossesover the world. T...

In recent years, due to the expansion of financial institutions,as well as the popularity of the World Wide Weband e-commerce, a significant increase in the volume offinancial transactions observed. In addition to the increasein turnover, a huge increase in the number of fraud by user’sabnormality is resulting in billions of dollars in lossesover the world. T...

To gain insights into the impact of Medicaid Expansion under the Affordable Care Act, this study assesses the enrollment, utilization, and financial performance measures of California Medicaid focused health insurers. The study compares these quarterly measures, during the expansion period of 2014 to the same quarterly measures in 2013 and 2012. During 2014, Medicaid focused insurers expanded e...

A widespread opinion before the credit crisis of 2007/8 was that securitisation enhances financial stability by dispersing credit risk. After the credit crisis, securitisation was blamed for allowing the hot potato of bad loans to be passed to unsuspecting investors. Both views miss the endogeneity of credit supply. Securitisation enables credit expansion through higher leverage of the financia...

During the recent financial crisis, huge fiscal stimulus packages were initiated and bold actions were taken by monetary authorities in many countries. Inspired by these, I explore the impact of fiscal stimulus when I take financial friction and liquidity trap into account. In particular, I investigate the fiscal multiplier in a dynamic stochastic general equilibrium model which is featured wit...

Are market-based or bank-based financial systems better at financing the expansion of industries that depend heavily on external finance? Are marketor bank-based financial systems better at facilitating the formation of new firms? We find evidence for neither the market-based nor the bank-based hypothesis. We find overwhelming evidence that industries that are heavily dependent on external fina...