In the last decade, both developed nations and emerging economies have been rocked by the effects of global financial crises precipitated by a baffling range of causes, from sub-prime mortgage rates to outbreaks of virulent disease. Financial and governmental bodies have acknowledged the pressing need for algorithmic models capable of predicting such crises in order to inform interventionary measures, yet to date, no single model has emerged that is robust and agile enough to sufficiently meet that task while maintaining a useful signal-to-noise ratio, making them little more reliable than a carnival fortune-teller. The Handbook of Research on Financial and Banking Crisis Prediction through Early Warning Systems addresses the inequity of developed and developing nations from the bottom up through an exploration of current literature, specific case-studies, and data-based recommendations for new crisis indicators. Touching on such topics as the Greek debt crisis, electronic banking, and financial crises in developing economies, this publication targets an audience of academics, financial analysts, researchers, post-graduate students, and policymakers working in the fields of international finance and liability management.

Islamic finance distinguishes itself from conventional finance with its strong emphasis on the moral consequences of financial transactions; prohibiting interest, excessive uncertainty, and finance of harmful business. When it comes to risk mitigation, it is unique in its risk sharing approach. This authoritative book tracks the evolution of the takaful industry over the course of the last four decades and makes a major attempt to highlight the importance of risk sharing through a discussion of various models of cooperation and critical analysis of their performance, including illuminating case studies and a critical assessment of the Islamic insurance model and the role of alternate financing mechanisms. Its high level discourse on shari'ah compliance and its nuances places emphasis on the importance of solidarity, cooperation, mutuality and reciprocity. Scholars and practitioners working in Islamic Finance will appreciate the context and nuance of this important book, and it will be essential reading for anyone interested in alternative forms of shari'ah compliant cooperative finance. The book is equally vital for academics and researchers interested in understanding various takaful models and their shari'ah considerations. Contributors include: A. Abozaid, A.U.F. Ahmad, A. Akhtar, S.N. Ali, H. Allam, M. Ayub, M. Al Bashir Al Amine, A. Bhatty, J.W. Bradford, S.E.B. Carmody, M.A. El-Gamal, M. Faisal, M.F. Haq, I. Bin Mahbob, A. Nana, V. Nienhaus, S. Nisar, U.A. Oseni, M. Rahman, A. Rehman, M.A. Samad, B. Shafiq, H. Sultan, A.-R. Syed, T.A. Uddin

In the past, practical applications motivated the development of mathematical theories, which then became the subject of study in pure mathematics where abstract concepts are studied for their own sake. The activity of applied mathematics is thus intimately connected with research in pure mathematics, which is also referred to as theoretical mathematics. Theoretical and Applied Mathematics in International Business is an essential research publication that explores the importance and implications of applied and theoretical mathematics within international business, including areas such as finance, general management, sales and marketing, and supply chain management. Highlighting topics such as data mining, global economics, and general management, this publication is ideal for scholars, specialists, managers, corporate professionals, researchers, and academicians.

The study of urban political economy needs no justification, for cities are the heart (and arguably the soul) of our civilization, and their political and economic conditions are the linchpins of its existence. But how should we study urban political economy? Urban Political Economy deals with different nations - Belgium, Denmark, France, Norway, the UK. and the USA - and with different problems - expenditure patterns, service provision, economic development, fiscal strain, budgetary cuts, and borrowing systems - but they all agree on two fundamental points about the study of their subject matter: first, that the urban economy cannot be understood outside its political context, just as urban politics cannot be understood without its economic background; and second, that the local and the national are knitted together so closely and so tightly that it is necessary to think of them as forming a single system. Urban Political Economy explores the idea of the fusion of factors by demonstrating the extent to which local and national conditions react upon one another to analyze the urban political economy.

"Multi-Asset Risk Modeling" describes, in a single volume, the latest and most advanced risk modeling techniques for equities, debt, fixed income, futures and derivatives, commodities, and foreign exchange, as well as advanced algorithmic and electronic risk management. Beginning with the fundamentals of risk mathematics and quantitative risk analysis, the book moves on to discuss the laws in standard models that contributed to the 2008 financial crisis and talks about current and future banking regulation. Importantly, it also explores algorithmic trading, which currently receives sparse attention in the literature. By giving coherent recommendations about which statistical models to use for which asset class, this book makes a real contribution to the sciences of portfolio management and risk management.
Covers all asset classes Provides mathematical theoretical explanations of risk as well as practical examples with empirical dataIncludes sections on equity risk modeling, futures and derivatives, credit markets, foreign exchange, and commodities

The Handbook of Finance and Development provides a thorough assessment of the existing research on the relationship between the financial system and economic growth. Containing chapters on theory, empirical work and historic accounts, this is the first Handbook to provide a comprehensive overview of the fields of finance and development. As leading researchers in the field the contributors analyse the emergence of, and innovations in, financial instruments, markets, and intermediaries, providing commentary on how these components of financial systems shape resource allocation, poverty, income inequality and aggregate economic growth. They also explore the causes and consequences of financial fragility, the historic development of financial systems and the regulatory and supervisory underpinnings of financial sector development. Further chapters examine financial development at both the aggregate and country levels and assess the degree to which individuals and firms can access financial services. Recent literature on the financial inclusion of households and enterprises is also analysed. The Handbook will be of great value to scholars and researchers who are interested in the fields of finance, development and financial inclusion. Throughout the chapters the contributors highlight how insights drawn from research inform policy debates on the topics at hand making this work a useful resource for policy makers and regulators. Contributors include: F. Abraham, P. Aghion, F. Allen, M. Ayyagari, J. Barth, T. Beck, A. Berger, H. Bodenhorn, C. Burhop, J. Caprio, R. Cull, A. Demirguc-Kunt, S. Frame, X. Gu, T. Guinnane, P. Honohan, P. Howitt, L. Klapper, O. Kowalewski, T. Lambert, R. Levine, N. Loayza, V. Maksimovic, R. Morck, J. Morduch, A. Ouazad, A. Popov, R. Ranciere, R. Roman, S. Schmukler, D. Singer, M. Soledad Martinez Peria, W. Summerhill, R. Tilly, J. Verrier, P. Volpin, H.-J. Voth, B. Yeung

Since the early 1990s the countries of the European Union and Central and Eastern Europe have been involved in the process of reforming their retirement income systems. The principal objective of these reforms is to contain the cost of pay-as-you-go public pensions in the face of ageing populations. Many of the reforms involve greater reliance on personal saving and the development of capital markets to fund private pension arrangements. The distinguished contributors from Europe and the United States demonstrate the complexity of pension provision and reform, and highlight the dangers of focusing on one particular model. They consider critical issues and debates about how to finance pensions, present evidence on the effects of pension reform on the incomes of the elderly, set out objectives to ensure intergenerational equity in public pensions, and examine different pathways to pension coverage. They also argue that recent reforms in Europe may have the effect of reducing the incomes of future pensioners while exposing them to uninsurable risks associated with private pensions. This book addresses a pervasive and increasingly important issue by identifying differences in pension systems throughout the EU and Europe as a whole, and proposing various reforms and solutions to the emerging problem of pension provision. It will prove essential reading and a valuable source of reference for academics, economists, policymakers and government agencies concerned with the evolution and reform of pensions, and with social and economic development in general.

The book describes the different tools and techniques available to anyone who is engaged in providing funding or advice to a project. Project finance is ultimately about applying three basic principles to a funding situation and from these three, all the other ideas flow including contracts. First, there needs to be a cash flow coming from the project that is capable of being captured by finance providers. Second, there needs to be a group of assets that can be segregated and contained by making sure they cannot be taken away by other parties and thirdly there needs to be a risk envelope that is well understood and managed dynamically during the project's life. To do this, a network of contracts must exist to support the rights of the different stakeholders and their legal claims on the project. In this book the authors examine all of these aspects and provide some examples/mini-cases of project structures and approaches. The book begins and ends with a longer case study of two projects that were standalone examples of project financing and controversial for different reasons at the time of their fundraising.Bundle Set: Project Financing (Analyzing and Structuring Projects & Financial Instruments and Risk Management)

This book takes a theoretical and practical look at some of the latest and most important ideas behind derivatives pricing models. In each chapter the author highlights the latest thinking and trends in the area. A wide range of topics is covered, including valuation methods on stocks paying discrete dividend, Asian options, American barrier options, Complex barrier options, reset options, and electricity derivatives. The book also discusses the latest ideas surrounding finance like the robustness of dynamic delta hedging, option hedging, negative probabilities and space-time finance.

The accompanying CD with additional Excel sheets includes the mathematical models covered in the book.

The book also includes interviews with some of the world's top names in the industry, and an insight into the history behind some of the greatest discoveries in quantitative finance. Interviewees include:

Nassim Taleb on Black Swans

Edward Thorp on Gambling and Trading

Alan Lewis on Stochastic Volatility and Jumps

Emanuel Derman, the Wall Street Quant

Peter Carr, the Wall Street Wizard of Option Symmetry and Volatility

Clive Granger, Nobel Prize winner in Economics 2003, on Cointegration

Stephen Ross on Arbitrage Pricing Theory

Bruno Dupire on Local and Stochastic Volatility Models

Eduardo Schwartz the Yoga Master of Quantitative Finance

Aaron Brown on Gambling, Poker and Trading

Knut Aase on Catastrophes and Financial Economics

Elie Ayache on Modeling

Paul Wilmott on Paul Wilmott

Andrei Khrennikov on Negative Probabilities

David Bates on Crash and Jumps

Peter Jackel on Monte Carlo Simulation

This innovative book employs the social studies of finance approach, which aims to enhance the dialogue between finance and sociology by addressing the blind spots of economic and financial theories. In so doing, it challenges the accusations made towards financial models in the aftermath of the last economic crisis and argues that they cannot be condemned indiscriminately. Their influence on markets and society is not straightforward, but determined by the many ways in which models are created and then used. Ekaterina Svetlova analyses the various patterns of the application of models in asset management, risk management and financial engineering to demonstrate that their power is far more fragile than widespread criticism would indicate.This unique and stimulating book furthers our understanding of the influence of financial models on markets and society more broadly. It will be of value to academics in the social studies of finance, economic sociology, philosophy of economics and political economy. It will also useful to practitioners who design and apply models within financial markets, regulators and policy-makers involved in the stability of financial markets, as well as any readers with a general interest in these areas.

From the early forms of loans to farmers to present day credit cards, consumer credit has always been part of human life and economics. However, ever since the Bible, controversy has reigned as to its legitimacy. It is the history of this controversy that is presented here by the authors. Outlining significant developments in different aspects of consumer credit from the Hammurabi Code through to current questions such as household overindebtedness, they shed some historical light on modern debates.

An introduction to the fast growing $1.5 billion foreign exchange trading marketplace, showing you how the markets work, how to trade them successfully and how to mitigate risk.

"The Financial Times Guide to Foreign Exchange Trading"is the authoritative primer, the first port of call for anyone interested in foreign exchange trading and wants to know what it is all about before taking the plunge.