Interest rate modeling and the pricing of related derivatives remain subjects of increasing importance in financial mathematics and risk management. This book provides an accessible introduction to these topics by a step-by-step presentation of concepts with a focus on explicit calculations. Each chapter is accompanied with exercises and their complete solutions, making the book suitable for advanced undergraduate and graduate level students.This second edition retains the main features of the first edition while incorporating a complete revision of the text as well as additional exercises with their solutions, and a new introductory chapter on credit risk. The stochastic interest rate models considered range from standard short rate to forward rate models, with a treatment of the pricing of related derivatives such as caps and swaptions under forward measures. Some more advanced topics including the BGM model and an approach to its calibration are also covered.

Global Bank Regulation: Principles and Policies covers the global regulation of financial institutions. It integrates theories, history, and policy debates, thereby providing a strategic approach to understanding global policy principles and banking. The book features definitions of the policy principles of capital regularization, the main justifications for prudent regulation of banks, the characteristics of tools used regulate firms that operate across all time zones, and a discussion regarding the 2007-2009 financial crises and the generation of international standards of financial institution regulation. The first four chapters of the book offer justification for the strict regulation of banks and discuss the importance of financial safety. The next chapters describe in greater detail the main policy networks and standard setting bodies responsible for policy development. They also provide information about bank licensing requirements, leading jurisdictions, and bank ownership and affiliations. The last three chapters of the book present a thorough examination of bank capital regulation, which is one of the most important areas in international banking. The text aims to provide information to all economics students, as well as non-experts and experts interested in the history, policy development, and theory of international banking regulation.

Intangible assets are of growing importance to corporate competitiveness and economic performance. They include R&D, human capital, innovation in products and in organisation, trademarks and patents, networking and software. This path-breaking book provides a theoretical and empirical analysis of intangible investment and its effect on public policy in Europe. The authors find that the growing importance of intangibles is transforming the direction of public policies in Europe, particularly industrial, R&D, competition and trade policies. They conclude that government policies must recognise the fact that intangible investment is becoming the key element in bringing about durable growth and accord at least the same priority to intangible factors as to physical investment. This work should be essential reading for students interested in this new field of economic analysis, national and international policymakers, and industrialists involved in the non-physical economy.

For the first time since the Great Depression, financial market issues threatened to derail global economic growth. This global financial crisis forced a reconsideration of systemic vulnerabilities with knowledge of numerous investment options and portfolio management strategies becoming more critical than ever before. A complete study of investment choices and portfolio management approaches in both the developing and developed worlds is required to achieve stability and sustainability. The Handbook of Research on Stock Market Investment Practices and Portfolio Management gives a thorough view on the recent developments in investment options and portfolio management strategies in global stock markets. Learning about the many investment options and portfolio management strategies available in the event of a worldwide catastrophe is critical. Covering topics such as AI-based technical analysis, marketing theory, and sharing economy, this major reference work is an excellent resource for investors, traders, economists, business leaders and executives, marketers, students and faculty of higher education, librarians, researchers, and academicians.

This study explores the international aspects of pension reform, private savings and volatile capital markets and clarifies how they relate to one another. It builds the case for the pension-improving benefits of global asset diversification, and analyses the implications of financial reform.

Flying into the Future explores the organization of air transport in the European Union. It analyses the nature of the industries supplying air transport services, the institutional structure of air transport services, and impediments to increased efficiency in the provision of air transport. The reduction in institutional barriers and regulations has led to a more efficient provision of air transport services in the EU. This book assesses the improvements in the efficiency of air transport services, and highlights institutional and physical problems impeding further efficiency gains. The authors examine airline operations, and the ability of two or more transport systems to operate effectively in tandem. They also consider how to make the boundaries between different transport networks invisible, as well as discussing issues of national organization and the juridical structures which impede operations. The analysis examines both the internal European Union market for air transport services and the links between it and the rest of the world. Other key issues discussed include: * EU air transport developments in the context of global markets * comparisons of recent developments in aviation policy between the EU and the United States * the problems of congestion in the air transport industry in Europe * the growth and significance of airline alliances. The authors not only consider the economics of European air transport but also legal, political, technical and geographical issues. They explore the problems of providing air transport in the context of inadequate information, institutional constraints, inherent market imperfections and imprecise objectives. Flying into the Future will be essential reading for industrialists, policymakers and academics interested in transport economics and transport policy.

Timeless Investing Strategies for Any Economy

For five decades, Warren Buffett has been making himself one of the wealthiest men in the world, amassing more than 30 billion dollars by investing in the stock market. Remarkably, he did it by spurning popular Wall Street trends, adhering instead to his own unique discipline, one the world has come to know as Buffettology. In The Buffettology Workbook, internationally acclaimed writer and lecturer Mary Buffett has again joined forces with David Clark, the world's leading authority on Warren Buffett's investment methods, to create an in-depth, step-by-step guide to the concepts and equations Warren Buffett uses to create fantastic wealth.

Here you will learn:

• The difference between a great company and a great undervalued company
• How the short-sightedness of Wall Street pundits can work to your advantage
• Where to look for investments with long-term, consistent, and extraordinary growth potential
• To perform the same financial calculations Buffett uses, and apply them to stocks you'd like to buy

This book considers and assesses essential financial issues by utilizing data science and fuzzy multiple criteria decision making (MCDM) methods. It introduces readers to a range of data science methods, and demonstrates their application in the fields of business, health, economics, finance and engineering. In addition, it provides suggestions based on the assessment results on each topic, which can help to enhance the efficiency of the financial system and the sustainability of economic development. Given its scope, the book will help readers broaden their perspective on the assessment and evaluation of financial issues using data science and MCDM approaches.

How do we incorporate analytical thinking into public policy decisions? Stuart Shapiro confronts this issue in Analysis and Public Policy by looking at various types of analysis, and discussing how they are used in regulatory policy-making in the US. By looking at the successes and failures of incorporating cost-benefit analysis, risk assessment, and environmental impact assessment, he draws broader lessons on its use, focusing on the interactions between analysis and political factors, legal structures and bureaucratic organizations as possible areas for reform.Utilizing empirical and qualitative research, Shapiro analyzes four different forms of analysis: cost-benefit analysis, risk assessment, environmental impact assessment, and impact analysis. After interviewing nearly fifty individuals who have served in high levels of government, and who have made countless regulatory policy decisions in their careers, Shapiro argues that advocates must become less ambitious and should craft requirements for simpler and clearer analysis. Such analysis, particularly if informed by public participation, can do a great deal to improve government decisions. As this book details the relationship between analysis and institutional factors such as politics, bureaucracy, and law, it is appropriate for a variety of readers, such as scholars of policy, students, scholars of regulation, and congressional and state legislative staff looking to create new analytical requirements.

This book explores whether foreign direct investment (FDI) can contribute to the competitiveness of industries in Central Europe and to narrowing the gap between these transition economies and countries within the European Union. The Czech Republic, Hungary, Slovakia and Slovenia have attracted substantial FDI since the beginning of their transition to a market economy. Using exhaustive empirical data, the authors demonstrate that foreign investment enterprises in Central Europe have higher allocative efficiency, promote macro- and microeconomic restructuring and foster the restructuring of the manufacturing sector in accordance with the host countries' comparative advantages. The case of Austria is used to demonstrate the possible benefits of FDI. On the other hand, high foreign penetration leads to the concentration of production and exports and makes the economy more vulnerable to external shocks. In addition, there may be unwelcome pressures on economic policy in order to maintain the country's position as a frequented investment target. However, the analysis in this book suggests that, on the whole, economies in transition can become more competitive more rapidly and more profoundly with the help of foreign direct investment. This book will be of interest to students and scholars of international economics, European studies, economies of transition and international business.

This book provides a critical analysis of the evolution of corporate disclosure. Building upon prior academic literature, it assesses the most important changes in mandatory corporate disclosure, the growing relevance of social and environmental disclosure, and revolutionary new forms of corporate communication, in particular social media. It also includes empirical analyses that shed further light on the impact of voluntary communication, i.e. social and environmental reporting and corporate social media communication, on managerial and investment decisions. Lastly, it discusses new directions for accounting and corporate governance research on the theoretical and empirical challenges of corporate disclosure. Offering a wealth of relevant and timely advice, the book will help regulators design policies that allow businesses to overcome current and emerging economic, social, and technological challenges.

Economics is an integral aspect to every successful society, yet basic financial practices have gone unchanged for decades. Analyzing unconventional finance methods can provide new ways to ensure personal financial futures on an individual level, as well as boosting international economies. Alternative Decision-Making Models for Financial Portfolio Management: Emerging Research and Opportunities is an essential reference source that discusses methods and techniques that make financial administration more efficient for professionals in economic fields. Featuring relevant topics such as mean-variance portfolio theory, decision tree analysis, risk protection strategies, and asset-liability management, this publication is ideal for academicians, students, economists, and researchers that would like to stay current on new and innovative methods to transform the financial realm.

This book analyzes the impact of Basel Accord in Bangladesh. More specifically, it focuses on the credit risk homogenization under standardized approach of Basel Accord where External Credit Rating Agencies (ECAIs) are allowed to rate the exposures, the potential risk of allowing sub-ordinated debt (Sub-debt) as Tier 2 capital, and multiple bank distress cases as a real-world scenarios. In doing so, the book explores why the ECAIs rating fail to capture the real credit risk of exposure and to what extent sub-debt is reliable as regulatory capital. With that, the book's scope is categorized into three tracts (i) analyzes the ECAIs incentive and sanction issues from institutional economics perspective (ii) discusses the ill-impact of Naive adoption of sub-ordinated debt as regulatory capital and its associated risk on financial system, and (iii) providing readers an empirical illustrations of bank distress when an economy tapped into institutional failures in the above-mentioned tracts (i) and (ii).

This original book is the first serious study investigating the crowdfunding phenomenon, which has developed deep meaning for various stakeholders benefiting from this funding collection mechanism and its innovative new role, especially in the processes of business creation and spread of entrepreneurship. The actors involved -promoters, supporters, and the platforms through which the campaigns are launched - constitute an ecosystem in continuous evolution, which has grown dramatically and allows for its further development. Irini Liakopoulou has conducted with the "multiple paper thesis" method in which original and innovative contributions are presented, applying new techniques and methodologies. The book's goal is to foster debate about crowdfunding, an under-researched topic whose implications are not fully understood but will be a vital part of social and economic life in the future.

Richard Musgrave is one of the most eminent public finance economists of our time. In this third volume of essays, Professor Musgrave once more takes a broad view of fiscal institutions, their nature and functions. Traditions of fiscal theory and their impact on the author's work are discussed and their linkage to theories of the state and of distributive justice are examined. Selected topics include: the foundations of public finance, equity in taxation, tax reform, federalism and budget growth. Public Finance in a Democratic Society will be of interest to scholars and students of public finance, political economy and public policy.

This highly topical book focuses on a particularly interesting area of post-1989 social policy. Existing public pension systems in Central-Eastern Europe underwent fundamental change as Latin-American style pension reforms were adopted. Such radical change in retirement provision defied conventional wisdom among scholars of the political economy of pension reform, suggesting a need for fresh research. This unique study accepts the challenge, focusing on the divergent pension reform experiences of Poland, Hungary and the Czech Republic. This study was granted the EACES Award 2000, a bi-annual prize awarded in the area of comparative economic systems and economics of transition. It has also been awarded the Ed. A. Hewett Prize by the AAASS (American Association for the Advancement of Slavic Studies).

This book aims to bring the insights gained through this process to the public. It not only promotes the idea of fair wealth itself but also to gives a holistic view on how Chinese based companies are doing regarding various aspects of Fair Wealth. It also explains the theory foundation, methodology and rating system to help people better understand the evaluation system itself.

In most capital markets, insider trading is the most common violation of securities law. It is also the most well known, inspiring countless movie plots and attracting scholars with a broad range of backgrounds and interests, from pure legal doctrine to empirical analysis to complex economic theory. This volume brings together original cutting-edge research in these and other areas written by leading experts in insider trading law and economics. The Handbook begins with a section devoted to legal issues surrounding the US's ban on insider trading, which is one of the oldest and most energetically enforced in the world. Using this section as a foundation, contributors go on to discuss several specific court cases as well as important developments in empirical research on the subject. The Handbook concludes with a section devoted to international perspectives, providing insight into insider trading laws in China, Japan, Australia, New Zealand, the United Kingdom and the European Union. This timely and comprehensive volume will appeal to students and professors of law and economics, as well as scholars, researchers and practitioners with an interest in insider trading. Contributors: K. Alexander, S.M. Bainbridge, L.N. Beny, S.F. Diamond, J. Fisch, J.M. Heminway, M.T. Henderson, N.C. Howson, H. Huang, K. Kendall, S.H. Kim, T.A. Lambert, K. Langenbucher, D.C. Langevoort, H.G. Manne, M. Nelemans, A. Padilla, A.C. Pritchard, J.M. Ramseyer, M.C. Schouten, H.N. Seyhun, A.F. Simpson, J.W. Verret, G. Walker

Indirect taxes have become an increasingly important revenue-raising tool for governments in developed countries. In this book, John Creedy applies his wealth of experience and expertise to the analysis of indirect taxes and, in particular, concentrates on the modelling of indirect tax reform and its distributional implications.Initially, he examines the implications of alternative indirect tax systems and provides an introductory survey of various measures of welfare change and excess burden in the context of indirect taxes. He pays particular attention to the measurement issues involved and uses partial equilibrium models to uncover various aspects of tax reform. Specifically, he: addresses the questions of measuring welfare changes arising from price changes examines the built-in flexibility of various forms of consumption taxation calculates the possible redistributive effects of indirect taxes and illustrates his methods using case study examples of the indirect tax system in Australia examines the horizontal inequity of different consumption taxes considers the optimal direction of small changes in indirect tax rates analyses the positive and negative effects of a carbon tax Modelling Indirect Taxes and Tax Reform will be useful to scholars and policymakers interested in public economics and finance and modelling taxes.