Related papers: Negative interest rates: why and how?
It is argued that arguments for strict prohibition of interests must be based on the use of arguments from authority. This is carried out by first making a survey of so-called dialectical roots for interest prohibition and then…
This paper proposes a new measure of tail risk spillover. The empirical application provides evidence of significant volatility and tail risk spillovers from the financial sector to many real economy sectors in the U.S. economy in the…
We uncover a large and significant low-minus-high rank effect for commodities across two centuries. There is nothing anomalous about this anomaly, nor is it clear how it can be arbitraged away. Using nonparametric econometric methods, we…
Most of the existing literature on optimal trade execution in limit order book models assumes that resilience is positive. But negative resilience also has a natural interpretation, as it models self-exciting behaviour of the price impact,…
Diffusion in a linear potential in the presence of position-dependent killing is used to mimic a default process. Different assumptions regarding transport coefficients, initial conditions, and elasticity of the killing measure lead to…
Transport of an inertial particle advected by a two-dimensional steady laminar flow is numerically investigated in the presences of a constant force and a periodic potential. Within particular parameter regimes this system exhibits absolute…
Are expansions and recessions more likely to end as their magnitude increases? In this paper we apply parametric hazard models to investigate this issue in a sample of 16 countries from 1881 to 2000. For the total sample we find evidence of…
In the aftermath of the global financial crisis, much attention has been paid to investigating the appropriateness of the current practice of default risk modeling in banking, finance and insurance industries. A recent empirical study by…
A negative result is when the outcome of an experiment or a model is not what is expected or when a hypothesis does not hold. Despite being often overlooked in the scientific community, negative results are results and they carry value.…
The detection of dark matter is central to particle physics and cosmology. Current fashionable supersymmetric models provide a dark matter candidate, the lightest supersymmetric particle (LSP). When combined with fairly well understood…
Market expectations about AI's economic impact may influence interest rates. Previous work has shown that US bond yields decline around the release of a sample of mostly proprietary AI models (Andrews and Farboodi 2025). I extend this…
Humans judge each other's actions, which at least partly functions to detect and deter cheating and to enable helpfulness in an indirect reciprocity fashion. However, most forms of judging do not only concern the action itself, but also the…
The DAMA collaboration reported an annually modulated rate with a phase compatible with a Dark Matter induced signal. We point out that a slowly varying rate can bias or even simulate an annual modulation if data are analyzed in terms of…
In general, homeowners refinance in response to a decrease in interest rates, as their borrowing costs are lowered. However, it is worth investigating the effects of refinancing after taking the underlying costs into consideration. Here we…
Inflationary observables, like the power spectrum, computed at one- and higher-order loop level seem to be plagued by large infra-red corrections. In this short note, we point out that these large infra-red corrections appear only in…
A method for detecting possible non-deterministic dynamics underlying a time series is introduced. Non-deterministic dynamics may arise due to the failure of the Lipschitz condition in the equations of motion. At a singular point, the phase…
This study suggests a new decomposition of the effect of Foreign Direct Investment (FDI) on long-term growth in developing countries. It reveals that FDI not only have a positive direct effect on growth, but also increase the latter by…
When a financial institution declines an application for credit, an adverse action (AA) is said to occur. The applicant is then entitled to an explanation for the negative decision. This paper focuses on credit decisions based on a…
The twentieth century was a period of outstanding economic growth together with an unequal income distribution. This paper analyses the international distribution of growth rates and its dynamics during the twentieth century. We show that…
Accuracy of economic theories and efficiency of economic policy strictly depend on the choice of the economic variables and processes mostly liable for description of economic reality. That states the general problem of assessment of any…