Search Results
Journal Article
Inflation, financial markets and capital formation
Discussion Paper
Bank regulation and the efficiency of financial intermediation
Report
Ex-dividend price behavior of common stocks
This study examines common stock prices around ex-dividend dates. Such price data usually contain a mixture of observations?some with and some without arbitrageurs and/or dividend capturers active. Our theory predicts that such mixing will result in some nonlinear relation between percentage price drop and dividend yield?not the commonly assumed linear relation. This prediction and another important prediction of theory are supported empirically. In a variety of tests, marginal price drop is not significantly different from the dividend amount. Thus, over the last several decades, one-for-one ...
Conference Paper
Crises in competitive versus monopolistic banking systems
We study a monetary, general equilibrium economy in which banks exist because they provide inter-temporal insurance to risk-averse depositors. A "banking crisis" is defined as a case in which banks exhaust their reserve assets. This may (but need not) be associated with liquidation of a storage asset. When such liquidation does occur, the result is a real resource loss to the economy and we label this a "costly banking crisis." There is a monetary authority whose only policy choice is the long-run, constant rate of growth of the money supply, and thus the rate of inflation. Under ...
Conference Paper
Moral hazard under commercial and universal banking
Working Paper
Ex-dividend price behavior of common stocks
This study examines common stock prices around ex-dividend dates. Such price data usually contain a mixture of observations - some with and some without arbitrageurs and/or dividend capturers active. Our theory predicts that such mixing will result in a nonlinear relation between percentage price drop and dividend yield - not the commonly assumed linear relation. This prediction and another important prediction of theory are supported empirically. In a variety of tests, marginal price drop is not significantly different from the dividend amount. Thus, over the last several decades, ...
Journal Article
A primer on the International Monetary Fund