Author: Sangwha ShinPublisher:
ISBN: 9781321068603
Category : Electronic dissertations
Languages : en
Pages : 84
Book Description
Three Essays on International Trade and Monetary Economics
Author: Sangwha ShinPublisher:
ISBN: 9781321068603
Category : Electronic dissertations
Languages : en
Pages : 84
Book Description
Three Essays on International Monetary Economics
Author: Jishnu SenPublisher:
ISBN:
Category : International finance
Languages : en
Pages : 168
Book Description
Three Essays in International Monetary Economics
Author: Arto Tapani KovanenThree Essays in International Trade and Uncertainty
Author: Richard Edward BaldwinPublisher:
ISBN:
Category :
Languages : en
Pages : 234
Book Description
Three Essays in International Finance
Author: Byong-Ju LeePublisher: Stanford University
ISBN:
Category :
Languages : en
Pages : 132
Book Description
This thesis consists of three essays on international finance. The first essay is "Exchange rates and Fundamentals". A new open interest rate parity condition that takes account of economic fundamentals is developed from stochastic discount factors (SDFs) of two countries. Through this parity condition, business cycles or fundamentals are linked to exchange rates. Key empirical findings from this parity condition are as follows. First, this model beats the random walk hypothesis: economic fundamentals explain exchange rate movements for high interest rate currencies. Exchange rates of low interest rate currencies act like a random walk because they are less correlated with fundamentals owing to their low risk. For example, U.S. business cycles explain the direction of changes in exchange rates against the dollar. The same thing is true for Japan. Second, this model resolves the forward premium puzzle: the forward premium puzzle is not a general characteristic as regarded in previous studies. It happens when the risk awareness of investors is low, during economic expansions and for low risk currencies. The second essay is "Carry Trade and Global Financial Instability". Carry trade, an opportunistic investment strategy that takes advantage of interest rate differential across countries, is identified the cause of the large-scale depreciations of peripheral currencies in the later half of 2008. A simultaneous equations model, which is derived from a conceptual partial equilibrium model for a local foreign exchange market, is estimated from a cross-sectional sample. The results suggest that the larger appreciation of the yen than the dollar was brought about by a lack of the local supply of the yen rather than a more severe crunch of yen credits. The third essay is "The Economic Origin of Letters of Credit". This essay discusses the economic origin of letters of credit, an instrument widely used in international trade. A game theoretical analysis shows that letters of credit improve efficiency in trade settlements, increasing returns in trade. A few notable facts on letters of credit are discussed. First, the new institution is adopted by merchant banks to maximize their profits and in the process, an improvement in efficiency of international transactions is obtained. Second, the organization established by the legacy institution, bills of exchange, played a critical role in adopting the new institution. Third, the legal enforcement is not essential in this economic institution. Finally, two drivers are identified that improve efficiency of transactions: concentration and projection.
Three Essays in International Economics
Author: Alan Glen IsaacThree Essays in International Trade and Finance
Author: Huancheng DuPublisher:
ISBN: 9780438718692
Category : Capital market
Languages : en
Pages : 133
Book Description
This dissertation explores the economic interactions and outcomes in the nexus of international trade and finance. The entire dissertation is divided into three chapters with each chapter addresses one specific economic problem that roots in the interaction of international trade and finance. In the first chapter, I attempt to draw theoretical implications on two particular questions. First, what is the trade liberalization effect on capital market outcomes? Second, how do trade liberalization and capital market conditions jointly affect labor market outcomes such as income inequality? The objective of this chapter is to integrate both labor market frictions and capital market imperfection into one coherent theoretical framework and study the important interactions of trade liberalization and financial market development, as well as their joint impacts on aggregate income inequality. In the second chapter, I aim to provide both theoretical foundation and empirical evidence in partially explaining country authorities' decisions on financial policies. In the third chapter, [w]e provide a novel way of extracting country-level fundamental news from the international trade network. Specifically, we show that sovereign CDS returns provide value-relevant information that slowly propagates through credit markets reflecting underreaction on a global scale.
Three Essays in International Macroeconomics and Finance
Author: Enrique Martinez-GarciaPublisher:
ISBN:
Category :
Languages : en
Pages : 198
Book Description
Essays in International Trade and Financial Economics
Author: Huiwen LaiPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This thesis includes three essays related to international economics and financial economics. The first essay presents a model of trade in the presence of multinationals, asymmetric trade barriers, and international differences in production costs. The first part of the essay presents the model's implications for bilateral trade. The estimation reveals more reasonable parameters for elasticity of substitution and trade costs than that suggested by previous research. The simulation indicates that tariff liberalization will shift trade from rich countries to poor countries and from preferential trading areas to inter-continental trading partners. The second part of the essay derives the multinational production and export equations implied by the model and estimates these equations simultaneously by recognizing the cross-equation restrictions on parameters and error terms. It suggests that the elimination of tariffs would substantially increase U.S. exports, but would not affect U.S. production abroad. The second essay models general equilibrium product price effects using the CES monopolistic competition model in international trade. We then estimate the model and, mimicking computable general equilibrium (CGE) models, use the model to estimate the compensating variation associated with trade liberalization. We find gains from trade liberalization that are much larger than those usually reported. In addition, extensive specification testing is conducted to evaluate the performances of this model and its alternatives. The results point to the types of model specifications needed before the model can usefully be applied to policy questions. The third essay studies the properties of Canadian interest rates relative to those of U.S. In sharp contrast to the U.S. evidence, the conditional variances of Canadian macroeconomics variables are found to be insignificant predictors of term premia in the Canadian T-bill term structure. However, the conditional variances of U.S. macroeconomic variables are found to be important determinants of Canadian premia.
Author: Inderjit Kohli