Finance Projects

The relative low interest rate in the first part of the new millennium spurred on demand for mortgage financing and by extension also fueled the housing market, primarily in the United States. Subprime loans were incorporated into and repackaged into ...

This paper investigates the market consequences of alliance formation among stock exchanges. These alliances enable brokers to match investors internationally at their local market, thereby eliminating the need for brokers to maintain memberships in foreign stock exchanges. We sort out ...

This document reports the currently used term structure estimation method at the Bank of Finland and discusses interpretation of the results it generates. We start by introducing two widely used term structure estimation methods: the Cubic Spline Function method and ...

We ask which part of the observed cross-country differences in the level of per capita income can be accounted for by monopoly rights in the labour market. We answer this question in a calibrated growth model with two final goods ...

It is well known that estimation of the labour supply function is complicated by the non-linearity of the individual’s budget constraint. Non-linearity may be caused by a number of factors such as the structure of the tax/benefit scheme or overtime ...

This paper deals with optimal payment systems. The issue boils down to how large are the costs of different payment media, which can be interpreted as a question of the efficiency of the means of payment. However, there are other ...

The image that media portrays today is that everyone has to go to China. Swedish companies go on a pilgrimage to China filled with ...

The purpose of this paper is to provide an explanation for relative pricing of futures contracts with respect to underlying stocks using a model incorporating short sales constraints and informational lags between the two markets. In this model stocks and ...

Whether or not banks are engaged in ex ante monitoring of customers may have important consequences for the whole economy. We approach this question via a model in which banks can invest in either information acquisition or market power (product ...

This paper investigates the views of electronic money operators and innovators on the possibilities and implications of e-money, especially with respect to replacing central bank money as well as technical issues regarding e-money, its implications for the financial industry and ...