CAPITAL FLIGHT, NORTH-SOUTH LENDING, AND STAGES OF ECONOMIC DEVELOPMENT

Article Abstract:

We present a two-country OLG economy in which international capital mobility exists in the presence of moral hazard in financial contracts. The difference in the extent of asymmetric information is a source of capital movement and capital flows from the South to the North. Even though there exists a unique steady state under autarky, multiple locally stable steady states may emerge in a world economy with an integrated capital market. However, the integration may drive the South down to further impoverishment. The South's government therefore should take into account seriously the timing of capital market liberalization as a conduit of economic development.

---

COMPLEMENTARITY AND SUBSTITUABILITY IN MULTIPLE-RISK INSURANCE MARKETS

Article Abstract:

We study imperfect competition between insurers in a multiple-risk environment. In the absence of asymmetric information, equilibria are efficient, and we determine the degrees of specialization under which the specialized insurers are able or unable to capture the surplus. We show in contrast that under adverse selection, specialization systematically prevents second-best efficiency. Concluding on the role of our notions of strategic complementarity/substituability on the tradeoff between efficiency and fairness of the allocation, we give indications on the desirable structure of the insurance industry.

---

MEASURING INFLATION AND GROWTH USING SPANNING TREES

Article Abstract:

It is shown how most methods of measuring inflation and growth have an underlying spanning tree. The spanning tree whose resulting inflation (growth) estimates are least sensitive to the choice of index number formula can be computed using Kruskal's minimum spanning tree algorithm. Applying this algorithm to American, British, and Australian data sets, chaining is shown to be the best possible way of linking annual data. For quarterly data, the optimal method of linking depends on the amount of seasonality in the data.

Similar abstracts:

• Abstracts: SPAIN: CODORNIU TO PRODUCE QUALITY WINES. SPAIN: EXPANSION PLANS OF CORDORNIU-FREIXENET. SPAIN: THE MANAGER DIRECTOR LEAVES OSBORNE
• Abstracts: SPAIN: BBVA'S BUSINESS IN ASSET MANAGEMENT. SPAIN: DRAGADOS TO INCREASE RESULTS IN 6%. SPAIN: NEW STRATEGY OF PLANETA
• Abstracts: Investment and the exchange rate: An analysis with firm-level panel data. Fiscal consolidation under fixed exchange rates
• Abstracts: Why real interest rates, cost of capital and price/earnings ratios vary across countries

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.