Pure and applied stochastic analysis and random fields form the subject of this book. The collection of articles on these topics represent the state of the art of the research in the field, with particular attention being devoted to stochastic models in finance. Some are review articles, others are original papers; taken together, they will apprise the reader of much of the current activity in the area.

This book is the outcome of the CIMPA School on Statistical Methods and Applications in Insurance and Finance, held in Marrakech and Kelaat M'gouna (Morocco) in April 2013. It presents two lectures and seven refereed papers from the school, offering the reader important insights into key topics. The first of the lectures, by Frederic Viens, addresses risk management via hedging in discrete and continuous time, while the second, by Boualem Djehiche, reviews statistical estimation methods applied to life and disability insurance. The refereed papers offer diverse perspectives and extensive discussions on subjects including optimal control, financial modeling using stochastic differential equations, pricing and hedging of financial derivatives, and sensitivity analysis. Each chapter of the volume includes a comprehensive bibliography to promote further research.

Usually associated with large bank failures, the phrase too big to fail, which is a particular form of government bailout, actually applies to a wide range of industries, as this volume makes clear. Examples range from Chrysler to Lockheed Aircraft and from New York City to Penn Central Railroad. Generally speaking, when a corporation, an organization, or an industry sector is considered by the government to be too important to the overall health of the economy, it will not be allowed to fail. Government bailouts are not new, nor are they limited to the United States. This book presents the views of academics, practitioners, and regulators from around the world (e.g., Australia, Hungary, Japan, Europe, and Latin America) on the implications and consequences of government bailouts.

Stochastic Finance provides an introduction to mathematical finance that is unparalleled in its accessibility. Through classroom testing, the authors have identified common pain points for students, and their approach takes great care to help the reader to overcome these difficulties and to foster understanding where comparable texts often do not. Written for advanced undergraduate students, and making use of numerous detailed examples to illustrate key concepts, this text provides all the mathematical foundations necessary to model transactions in the world of finance. A first course in probability is the only necessary background. The book begins with the discrete binomial model and the finite market model, followed by the continuous Black-Scholes model. It studies the pricing of European options by combining financial concepts such as arbitrage and self-financing trading strategies with probabilistic tools such as sigma algebras, martingales and stochastic integration. All these concepts are introduced in a relaxed and user-friendly fashion.

This book offers a comprehensive analysis of the problems that the current working of capital markets are generating on both developed and developing economies. It pays special attention to the reasons explaining the unstable and volatile working of international financial markets and to the consequences of that behaviour on both the economic performance of the involved countries and on the economic policies implemented.

This is the most comprehensive textbook available on the money demand function and its role in modern macroeconomics. The book takes a microeconomic- and aggregation-theoretic approach to the topic and presents empirical evidence using state-of-the-art econometric methodology, while recognizing the existence of unsolved problems and the need for further developments. The new edition is fully revised and includes new chapters.

First Published in 2005. This study uses the Baring archive to provide a professional and contemporary understanding of the foreign financial history of Continental Europe and the United States from the years 1815 to 1870. The material gathered in this book, for France, Russia, Austria, Spain and the United States, and the conclusions reached in all the chapters, go far towards supporting and confirming that the belief that capital exports give rise to growth is an inflated claim.

The management of operational risk in the banking industry has undergone explosive changes over the last decade due to substantial changes in the operational environment. Globalization, deregulation, the use of complex financial products, and changes in information technology have resulted in exposure to new risks which are very different from market and credit risks. In response, the Basel Committee on Banking Supervision has developed a new regulatory framework for capital measurement and standards for the banking sector. This has formally defined operational risk and introduced corresponding capital requirements.

Many banks are undertaking quantitative modelling of operational risk using the Loss Distribution Approach (LDA) based on statistical quantification of the frequency and severity of operational risk losses. There are a number of unresolved methodological challenges in the LDA implementation. Overall, the area of quantitative operational risk is very new and different methods are under hot debate.

This book is devoted to quantitative issues in LDA. In particular, the use of Bayesian inference is the main focus. Though it is very new in this area, the Bayesian approach is well suited for modelling operational risk, as it allows for a consistent and convenient statistical framework for quantifying the uncertainties involved. It also allows for the combination of expert opinion with historical internal and external data in estimation procedures. These are critical, especially for low-frequency/high-impact operational risks.

This book is aimed at practitioners in risk management, academic researchers in financial mathematics, banking industry regulators and advanced graduate students in the area. It is a must-read for anyone who works, teaches or does research in the area of financial risk.

This book showcases a large variety of multiple criteria decision applications (MCDAs), presenting them in a coherent framework provided by the methodology chapters and the comments accompanying each case study. The chapters describing MCDAs invite the reader to experiment with MCDA methods and perhaps develop new variants using data from these case studies or other cases they encounter, equipping them with a broader perception of real-world problems and how to overcome them with the help of MCDAs.

Until not too many years ago, the Italian government bond market, though the third largest in the world in terms of size, was characterised by numerous inefficiencies and problems regarding both policy in managing the public debt and the operation of the market. These aspects tended to isolate the Italian market from the international fmancial community and to keep large, international investors away from our market. As the situation with Italy's public finances grew worse and with financial markets being deregulated and expanding internationally, several direct measures were taken in recent years to encourage an even greater recourse to the Italian government securities market and to improve it's efficiency. Innovations in techniques for issuing government bonds, the creation of an automated trading system for Italian state securities, and the launch of a futures market in Italy, too, have all been useful measures in getting the Italian market closer to international standards. The measures adopted by economic policy authorities have often been inspired by the works developed by various study groups instituted by the treasury Ministry as well as by research coming from the academic world. Likewise, many measures aimed at improving the government bond market have been realised thanks to the important contribution of the trade associations and the main financial intermediaries operating in Italy, whose studies, suggestions and proposals have been based on operating expertise built up over decades.

This book offers comprehensive examination of research on the relevance of individual behavior and technology to financial innovations. The chapters cover current topics in finance including integrated reporting, people finance, crowdfunding, and corporate networks. It provides readers with an organized starting point to explore individual behaviors and new technologies used in financial innovations. The explicit and growing speed of the spread of new technologies has hastened the emergence of innovation in the field of finance. Topics like the Internet of Things, semantic computing and big data finance are motivating the construction of financial tools that translate into new financial mechanisms. This book strives help readers better understand the dynamic of the changes in financial systems and the proliferation of financial products. Individual Behaviors and Technologies for Financial Innovations is organized in 16 chapters, organized in three parts. Part I has eight chapters that review the research on gender differences in attitudes about risk and propensity to purchase automobile insurance, financial literacy models for college students, wellness and attitude of university students in the use of credit cards, impact of programs income distribution and propensity to remain in employment, financial literacy and propensity to resort to informal financing channels, risk behavior in the use of credit cards by students. Part II reviews the research on financing for startups and SMEs, exploring funding through crowdfunding platform, operating credit unions, and using networks of friends to finance small businesses outside the domestic market. The four chapters of Part III describe contexts of financial innovation in listed companies, including society's demands on their behavior - we discuss motivations for companies to participate in corporate sustainability indexes, corporate performance through their profile of socially responsible investments, influence of networks of social relations in the formation of boards, and management of companies, and also the precariousness of financial decisions in large companies, as well as the role of the internet in corporate communication with the market.

Well-known for its engaging, conversational style, this text makes sophisticated concepts accessible, introducing students to how markets and institutions shape the global financial system and economic policy. Principles of Money, Banking & Financial Markets incorporates current research and data while taking stock of sweeping changes in the international financial landscape produced by financial innovation, deregulation, and geopolitical considerations. It is easy to encourage students to practice with MyEconLab, the online homework and tutorial system. New to the Twelfth Edition, select end-of-chapter exercises from the book are assignable in MyEconLab and preloaded problem sets allow students to practice even if the instructor has not logged in. For more information about how instructors can use MyEconLab, click here.

The original impetus for this research was provided several years ago by a request to assist Counsel for Fidelity Management and Research Corporation in analyzing the mutual fund industry, with particular emphasis on money market mutual funds. We were asked to focus our efforts on the mechanism by which the advisory fees of mutual funds are determined. This request arose out of litigation that challenged the level of advisory fees charged to the shareholders of the Fidelity Cash Reserve Fund. Subsequently, we were asked to provide similar assistance to Counsel for T. Rowe Price Associates regarding the fees charged to shareholders of their Prime Reserve Fund. 1940, advisers of Under the Investment Company Act of mutual funds have a fiduciary duty with respect to the level of fees they may charge a fund's shareholders. Since the passage of the Investment Company Act, there have been numerous lawsuits brought by shareholders alleging that advisory fees were excessive. In these lawsuits, the courts have failed to provide a set of standards for determining when such fees are excessive. Instead, they have relied on arbitrary and frequently ill-defined criteria for jUdging the reasonableness of fees. This failure to apply economic-based tests for evaluating the fee structure of mutual funds provided the motivation for the present book, which undertakes a comprehensive analysis of the economics of the mutual fund industry.

This volume is designed to present a conceptual and practical illustration for the contemporary developing role of Islamic Banking and Finance components including Islamic Banking, Non Islamic Banking (Takaful and Financial Markets Tools and Products.) with stronger focus directed to the regulatory aspects, country, regional case studies and International Financial Crisis impacts. Consequently this Volume aimed at a fruitful contribution while defining how public policies, governance, legal framework and field studies' lessons can help decision makers to identify the major factors that may shape the attitude of both Islamic Financial Institutions and customers towards safe and sound services and through defining main determinants for successful, strategic inclusion of the Islamic Financial System into the real sustained development nationally, regionally and internationally.

As over half the assets of many major companies are now intangible assets, there is an increasing need to assess more accurately the value of intellectual property (IP) from a wider interdisciplinary perspective. Re-evaluating risk and understanding the true value of intellectual property is a major problem, particularly important for business practitioners, including business analysts and investors, venture capitalists, accountants, insurance experts, intellectual property lawyers and also for those who hold intellectual property assets, such as media, publishing and pharmaceutical companies, and universities and other research bodies. Written by the foremost authorities in the field from Britain, Japan and the US, this book considers the latest developments and puts forward much new thinking. The book includes thorough coverage of developments in Japan, which is reviewing the value of IP at a much quicker pace than any other country and is registering ever-increasing numbers of patents in the course of inventing its way out of economic inertia.

This is a blind refereed serial publication published on an annual basis. The objective of this research annual is to present state-of-the-art studies in the integration of mathematical programming into financial planning and management. The literature and techniques in financial planning and management are becoming increasingly complex. It is hoped that the monographs aid in the dissemination of research efforts in quantitative financial analysis. The topics will normally include cash management, capital budgeting, financial decisions, portfolio management and performance analysis, and financial planning models. The analyses generally include mixed integer programming, goal programming, biased regression techniques and simulation models, application of forecasting methodologies to such areas as sales, marketing, and strategic decision making (an accurate, robust forecast is critical to effective decision making). It is the hope of the editors that the majority of the papers will simulate questions and possible solutions that are of interest to financial planners.

Contents:
1. Policy dialogue, surveillance and financial cooperation in East Asia Gordon de Brouwer and Yunjong Wang 2. Policy dialogue in East Asia: Principles for success Stephen Grenville 3. IMF and ADB perspectives on regional surveillance in East Asia Gordon de Brouwer 4. Structures to support stability and growth: Some observations based on UK experience Andrew Kilpatrick 5. The complex political economy of coooperation and integration C. Randall Henning 6. A Stocktake of institutions for regional cooperation Takatoshi Ito and Koji Narita 7. Strengthening regional financial cooperation in East Asia Haruhiko Kurado and Masahiro Kawai 8. The management of financial crises: Theory and Policy Prasanna Gai 9. Instruments and techniques for financial cooperation Yunjong Wang 10. The compatibility of capital controls with the development of financial markets Menzie D. Chinn 11. Unilateral regional and multilateral options for East Asia Ramkishen S. Rajan 12. The role of regional financial arrangements in the international financial architecture Martin Parkinson, Phil Garton and Ian Dickson 13. The Basel Process and regional harmonisation in an Asian context Shinichi Yoshikuni