BALANCE OF PAYMENTS. First quarter Balance of payments

Size: px
Start display at page:

Download "BALANCE OF PAYMENTS. First quarter 2008. Balance of payments"

Transcription

1 BALANCE OF PAYMENTS DATE: PUBLISHER: Balance of Paymens and Financial Markes (BFM) Lena Finn , Camilla Bergeling , Malin Sundeby , Nex quarerly publishing Produced by Saisics Sweden on behalf of he Riksbank. Firs quarer 2008 Balance of paymens The balance of paymens for he firs quarer of 2008 resuled in a surplus in he curren accoun of SEK 81.1 billion, a sligh negaive capial accoun and a surplus of SEK 19 billion in he financial accoun. I was primarily he srong rade in goods in February ha conribued o he surplus in he curren accoun of SEK 81.1 billion. The rade in goods amouned o SEK 39.4 billion for he quarer, and is a resul of high levels of impors and expors of goods. Following he weak expor of goods in December, expors have again begun o increase in he beginning of The financial accoun resuled in a surplus of SEK 19 billion. Ineres for buying Swedish companies has again risen and during he firs quarer many direc invesmen deals were finalised. The larges single acquisiion was made by Nasdaq, which acquired he Swedish sock exchange OMX during he quarer. Share rade once again resuled in a significan ne ouflow during he firs quarer. Foreign invesors made ne sales of Swedish shares while Swedish invesors coninue o purchase shares abroad. During he firs quarer, Swedish invesors made ne purchases of shares abroad for SEK 45.4 billion, a significan increase compared o he previous quarer. 1

2 Curren accoun Curren accoun, ne (see Table A) The balance of paymens for he firs quarer of 2008 shows a surplus of SEK 81.1 billion in he curren accoun. This is an increase of SEK 1.6 billion compared o he corresponding period in 2007, and i is above all a surplus in he rade of goods ha conribues o he increase. The quarer shows a sronger rade of goods compared o he same period in 2007, while rade in services was weakened. Curren ransfers increased during he quarer by SEK 1.6 billion compared o he firs quarer of Trade in goods Trade in goods (see Table A) 60 The rade in goods reached SEK 39.4 billion, an improvemen of SEK 3.3 billion compared o he corresponding period in However, his marks an improvemen of SEK 9.5 billion compared o he previous quarer. This improvemen is above all explained by he high ne rade surplus for February. During he firs quarer, expors of goods amouned o SEK 3.3 billion while impors amouned o SEK 271 billion

3 Trade in services The firs quarer resuled in a weaker rade in services compared o he same period in The rade in services amouned o SEK 23.9 billion, a deerioraion of SEK 1.4 billion. Transporaion generaed a surplus of SEK 5.4 billion while ouris paymens resuled in a defici of SEK 5.3 billion. The expor of ranspor services amouned o SEK 18.4 billion, a decrease of SEK 3.2 billion compared o he previous quarer. Compared o he previous quarer however, his is an increase of SEK 3 billion. Impors amouned o SEK 13 billion, a decrease of 0.6 billion compared o he previous quarer. However, in comparison wih he firs quarer of 2007, impors have increased by 1.6 billion. Trade in services (see Table G) The flow of ravel increased by abou SEK 1 billion compared o he firs quarer of 2007 and amouned o SEK 19.3 billion. A he same ime he ouflow increased by SEK 3.6 billion and amouned o SEK 24.7 billion. This resuled in a ne ouflow of SEK 5.3 billion, comparable o a ne ouflow of SEK 2.7 billion during he firs quarer of Boh expors and impors of oher services decreased during he firs quarer compared wih he fourh quarer of The iem resuled in a surplus of abou SEK 23.9 billion, which is a weak decrease compared o he corresponding quarer in 2007, bu a decrease of SEK 2.3 billion compared o he previous quarer. On he expor side, services such as licences and royalies, merchaning, research and developmen as well as echnical services decreased, while legal services and commission for goods increased. On he impor side, services such as licences and royalies, markeing, research and developmen as well as echnical services decreased. Concerning oher business services, merchaning accouned for SEK 13.6 billion of he combined surplus, a decrease of SEK 2.8 billion compared o he fourh quarer bu a sligh increase compared o he same quarer in This iem consiss of Swedish companies' purchases and sales of goods abroad wihou such goods passing Swedish borders. Merchaning is defined as he rade margin, i.e. he difference beween he purchase price and he sales price. 3

4 Income Income, consising of compensaion of employees and capial income, showed a surplus of SEK 25.8 billion during he firs quarer, which is SEK 2.2 billion lower han he quarer before. The surplus was mosly made up of earnings on capial from direc invesmens ha amouned o SEK 24.5 billion. The salary iem is nearly unchanged compared o he previous quarer. Income (see able H) Direc invesmen income, ne Income on direc invesmen showed a ne inflow of SEK 24.5 billion during he firs quarer of This was a decrease of SEK 2.1 billion compared o he corresponding period he year before. Direc invesmen income, ne (see Table H) Income from direc invesmens abroad amouned o SEK 66.4 billion, while income on corresponding foreign direc invesmen in Sweden oalled SEK 41.9 billion. 5 This iem mainly consiss of profis in direc invesmen companies, and, o a lesser exen, of ineres on loans wihin a direc invesmen relaionship. 4

5 Porfolio invesmen income, ne Porfolio invesmen income, ne(see Table H) 5 Income from porfolio invesmens, consising of ineres and share dividends, resuled in a capial inflow of SEK 2.6 billion ne during he firs quarer of As a resul, ne income on porfolio invesmens wih oher counries increased by SEK 2.1 billion compared o he corresponding period he year before. Dividends on Swedish shares in he firs quarer produced an ouflow of SEK 0.1 billion during he year, while dividends in foreign shares resuled in an inflow of SEK 12.5 billion Ineres coss for Swedish deb securiies amouned o SEK 19.7 billion, while holdings of inernaional bonds and money marke insrumens generaed an income of SEK billion. Oher invesmen income, ne Income on oher invesmen gave rise o a ne ouflow of SEK 0.8 billion during he firs quarer of 2008, which is lower han in previous quarers. Ne ineres has decreased by over 50 percen compared o he same quarer in Compared o he firs quarer of 2007, income from oher invesmen abroad increased from SEK 14.6 billion o SEK 17.4 billion. During he same period, he ouflow of income from oher invesmen income in Sweden increased from SEK 16.6 billion o SEK 18.2 billion. The income values for debs and asses were abou he same in he firs quarer of 2008 as in he firs quarer of A he same ime, ineres raes have gone up. Income from oher invesmen consiss of earnings on loans and bank deposis ec. The larges conribuions o his iem come from Swedish banks' income on heir asses and liabiliies owards counerpars abroad. 5

6 Curren ransfer and capial accoun, ne The ne sum of curren ransfers and he capial accoun gave a defici of SEK 8.8 billion which is an improvemen of SEK 3.1 billion compared o he fourh quarer of 2007, and SEK 4.1 billion compared o he firs quarer of Curren ransfer and capial accoun, ne Transacions linked o he EU generaed a defici of SEK 3.3 billion, an increase of SEK 2.2 billion compared o he firs quarer of Foreign aid amouned o SEK 0.8 billion, nearly unchanged from las year. The iem oher ransfers showed a defici of SEK 3.8 billion, an increase of he defici by SEK 1.6 billion compared o he same period las year. This iem has also increased somewha compared o he previous quarer I is mainly he sub-iem acquisiions/sales of immaerial asses in he capial accoun ha deviaes from he previous quarer and he firs quarer of The ne of acquisiions/sales resuled in a defici of SEK 0.2 billion compared o he same period in 2007 ha resuled in a surplus of SEK 2.3 billion. 6

7 Financial accoun The financial accoun resuled in a surplus of SEK 19 billion for he firs quarer of The iem oher invesmen is he main conribuor o he surplus of a ne inflow of SEK 59.6 billion. Direc invesmens also conribue o he ne inflow wih SEK 5.1 billion. Porfolio invesmens resuled in a ne ouflow of SEK 42.6 billion while rade in financial derivaives resuled in a ne ouflow of SEK 8.9 billion. Financial accoun (see Table J) Swedish invesmen abroad Invesmen in Sweden Direc invesmen During he firs quarer of 2008, direc invesmen resuled in a ne inflow of SEK 5.1 billion. This corresponds o an increase of SEK 41.2 billion compared o he same period las year when he iem resuled in a new ouflow of SEK 36.1 billion. Direc invesmen (see Table J) Swedish invesmens abroad produced an ouflow of SEK 64.4 billion during he quarer while foreign invesmen in Sweden resuled in an inflow of SEK 69.5 billion Swedish invesmen abroad Invesmen in Sweden The ne inflow is largely because a number of foreign acquisiions of Swedish companies were finalised during he quarer, where Nasdaq s acquisiion of he Sockholm sock exchange OMX was he larges deal. This is refleced in he sub-iem equiy capial. This iem showed a ne inflow of SEK 48.8 billion for he firs quarer, which is an increase of SEK 43.9 billion compared o he same quarer in I is imporan o noe ha oal profi, consising of re-invesed profis and reurned dividends, are forecased and may be subjec o revisions. 7

8 Porfolio invesmen Porfolio invesmens abroad generaed a capial ouflow of SEK 42.6 billion in he firs quarer of This can be compared o he same period he year before when porfolio invesmens produced a ne ouflow of SEK billion. Porfolio invesmen (see Table J) Foreign ineres for Swedish deb securiies was considerably less han during he same quarer one year ago. In oal, foreign invesors purchased Swedish deb securiies for a ne value of SEK 55.3 billion, or a decrease of SEK 161 billion. The firs quarer of 2007 generaed an unusually large ne inflow Swedish invesmen abroad Invesmen in Sweden Swedish invesors increased heir holdings in foreign bonds and money marke insrumens by SEK 50.8 billion. Foreign bonds in Swedish kronor and money marke insrumens in foreign currency were he main ne purchase iems. Share rade resuled in a significan ne ouflow of SEK 47.1 billion during he firs quarer. This is an increase of SEK 39 billion ne compared o he same quarer las year. Swedish invesors coninued o make ne purchases of foreign shares and funds for SEK 45.4 billion in he firs quarer. A he same ime foreign invesors made ne sales of Swedish shares for SEK 1.7 billion. 8

9 Financial derivaives Financial derivaives gave rise o unusually large flows which resuled in a ne ouflow of SEK 8.9 billion in he firs quarer. Thus, hree quarers in a row have had relaively large ne ouflows. During he firs quarer of 2007, he value of ne ouflow was SEK 4.4 billion. The flows concerning financial derivaives consis primarily of realised posiive and negaive values of derivaive conracs during he period (inflow and ouflow respecively). Opion premiums ha have been paid for and received are also included in he flows. Financial derivaives (see Table J) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Swedish invesmen abroad Invesmen in Sweden Oher invesmen Transacions relaed o oher invesmen resuled in a ne ouflow of SEK 59.6 billion during he firs quarer of Oher invesmen (see Table J) Changes in Swedish lending o oher counries, among oher hings, resuled in a ne ouflow of SEK 55.6 billion while he corresponding changes for loans o and deposis in Sweden resuled in a ne inflow of SEK billion The ouflow concerning lending o oher counries is mainly because Swedish banks repor increased lending in foreign currency. Banks also accoun for mos of he inflow; during he period banks have increased long-erm borrowing in foreign currencies and shor-erm borrowing in Swedish kronor. Swedish invesmen abroad Invesmen in Sweden 9

10 Inernaional invesmen posiion, ne (see Table E) Inernaional invesmen posiion, ne 0-0 The inernaional invesmen posiion is compiled wice a year. During 2007, he foreign deb was reduced by half compared o The oal ne deb abroad amouned o SEK 197 billion, which amouns o approximaely 6.5% of he Swedish GDP. Ne asses, in he form of direc invesmens, have been forecased a SEK 348 billion. This corresponds o an increase in asses of SEK 2 billion compared o The ne deb in he form of porfolio invesmens (porfolio shares and deb securiies) amouned o SEK 520 billion, which is a decrease of SEK 60 billion compared o The remaining ne deb, exclusive of direc invesmens and porfolio invesmens, coninued o lessen during las year. This remaining deb was reduced in oal by SEK 30 billion compared o 2006 and amouned o SEK 256 billion by he close of The official compilaion of Sweden's inernaional invesmen posiion was revised o reflec marke value, wih he excepion of direc invesmen, which is repored a book value. A compilaion of Sweden's exernal posiion is published as a complemen, where he marke value of direc invesmen has also been calculaed (Table F). According o his compilaion, Sweden's ne asses abroad for 2007 equalled SEK 437 billion. Those facors of greaes significance for he developmen of he inernaional invesmen posiion include: SEK exchange rae, share prices on he sock marke in Sweden and abroad, and he marke value of direc invesmen companies. I is imporan o noe ha several sub-iems in he inernaional invesmen posiion for June 2007, such as direc invesmen and porfolio shares, are forecass. The figures should herefore be inerpreed wih cauion

11 Wha is he balance of paymens? In a closed economy he level of invesmen is deermined by he oal savings in he economy. This means ha if he savings decline for some reason, invesmens will also decline. In an open economy he relaionship beween savings and invesmen is no as clear, as global financial markes enable inernaional capial o flow easily beween counries. The balance of paymens conains informaion on hese flows. Pu in simple erms, i is a compilaion of a counry's real and financial ransacions wih he res of he world. The balance of paymens can be divided ino: Curren accouns, including regular ransacions in goods and services, reurn on financial asses and debs, and regular ransfers such as EU subsidies and fees. The capial accoun, which covers EU subsidies and foreign aid for real invesmen as well as he purchase and sale of righs, such as paens. The financial accoun, which can be divided ino direc invesmen, porfolio invesmen, financial derivaives, oher invesmen and he foreign currency reserve. The financial accoun shows changes in exernal financial asses and liabiliies. Derivaion of he balance of paymens A counry's gross domesic produc, GDP, is he oal value of he goods and services produced in he counry during a cerain year. Producion is used o saisfy eiher domesic demand in he form of households' consumpion, C, privae invesmen, I, and public expendiure, G, or o be delivered abroad in he form of expors of goods and services, X. Domesic demand can also be saisfied by he impor of goods and services, M. The Naional Income Ideniy shows ha a counry's producion during an individual year is equal o he sum of domesic demand ( C + I + G ) and ne sales of goods and services o he res of he world ( X M ): GDP = C + I + G + X M. 1 (1) By adding ogeher he ne facor incomes, F, i.e. Swedish facor income earned abroad (Swedish wageearners' remuneraion abroad and earnings on foreign capial abroad) minus foreign facor income earned in Sweden (foreign wage-earners' remuneraion in Sweden and earnings on foreign capial in Sweden) i is possible o rewrie (1) in erms of gross naional income, GNI C + I + G + X M + F GNI : 2 =. (2) Rewriing (2) gives: GNI C G = S = I + X M + F, (3) 1 This relaionship is called an ideniy because i mus by definiion be fulfilled in every individual ime period. 2 These facor incomes are ofen called primary incomes. Ne facor incomes consis of wages, capial earnings and curren ransfers. 11

12 where S refers o he oal naional savings in he economy. The naional savings consis of he consolidaed public secor savings, T G, where T is ax income, and households' savings, GNI T C. 3 According o (3): S I = X M + F. (4) The difference beween S and I is ofen called ne exernal invesmen and he difference beween X and M is called he balance of rade. X M + F is he curren accoun balance. Equaion (4) hus shows ha here is a simple connecion beween ne invesmens and he balance of rade. For a given ne facor income, changes in he difference beween S and I will always be followed by corresponding changes in he difference beween X and M. Equaion (4) also shows ha i is no possible in he shor erm o reduce a defici in he balance of rade wihou a he same ime increasing naional savings or reducing domesic invesmen. 4 I is also ineresing o noe ha equaion (4) means ha if households' savings are as grea as domesic invesmen, public secor savings will develop roughly in line wih ne expors over ime. 5 In he same way as naional savings can be divided up ino he consolidaed public secor's savings and households' savings, domesic invesmens can be divided up ino public secor invesmen and privae invesmen. This division indicaes ha if he public secor's invesmen exceeds is savings, and if his is no compleely couneraced by a savings surplus in he privae secor, i mus by definiion be mached by a defici on he curren accoun balance. A growing defici in he curren accoun balance can hus be a sign among many ha he cenral governmen's expendiure is greaer han is income. By combining he naional income ideniy (1) wih he naional budge resricion, i is possible o derive he balance of paymens. According o he budge resricion, he counry's oal expendiure in each ime period is limied by he income in he same period and he counry's possibiliies o borrow. GDP + r A = C + I + G + A + A ). (6) ( 1 where A is he ne exernal asses during period and r A is he ineres earnings on hese asses. The ne asses in urn consis of he capial balance and he financial balance. I is simple o obain he balance of paymens from (1) and (6). X M + F = ( A A ) 1. (7) + The lef side of he balance of paymens (7) is, as menioned earlier, he curren accoun, which consiss of he sum of he balance of rade and ne facor incomes. The erm ( A A + 1) on he righ side shows how he ne exernal asses change over ime. Please noe ha if Swedes make ne purchases of foreign asses, he capial balance and he financial balance will show a ne defici, i.e. A < Equaion (7) hus A 3 This means ha he naional savings are idenical o he sum of he public secor savings and households' savings. 4 Ne facor incomes are assumed o be consan in he shor erm. 5 This relaionship means in acual fac ha he public secor's budge balance will co-vary wih he balance of rade during cerain periods of ime. 12

13 means ha he sum of he curren accoun balance, he capial balance and he financial balance is always idenical o zero. 6 The connecion o he inernaional invesmen posiion As he financial balance measures exernal ne lending, a change in he balance on he curren accoun will - by definiion - always be mached by a similar change in he ne exernal claims. A surplus on he curren accoun is hus mached by an increase in exernal ne claims - privae or public secor. The surplus can also be refleced in an increase in he foreign currency reserve, as hese ransacions are included in he financial balance. A defici on he curren accoun insead means ha he ne purchaser abroad mus pay eiher by selling exernal asses or by increasing exernal liabiliies. This means ha if, for insance, Sweden were o buy more asses abroad han are sold abroad (his is he same as saying ha he ne oal of he financial balance is less han zero), Sweden mus a he same ime sell more goods and service abroad han i buys from abroad. Pu simply, he oal ouward paymens from a counry mus correspond o he oal inflow of paymens. The inernaional invesmen posiion shows a counry's oal ne deb and repors in he form of sock daa on all domesic secor asses and liabiliies abroad. The ne oal of asses and liabiliies is hus a measure of a counry's wealh relaive o oher counries. Sock daa is repored a marke value and can be divided up exacly like he financial balance, ino direc invesmen, porfolio invesmen, financial derivaives, oher invesmen and he foreign currency reserve. 7 The relaionship beween he inernaional invesmen posiion and he ransacions in he balance of paymens is illusraed below. Changes in he ne exernal posiion are due o ransacions ha have been implemened and regisered in he financial balance and o changes in exchange raes and asse prices. In addiion, he socks can be affeced by, for insance, wrie-downs of claims (an example of oher correcions in he diagram). If he curren accoun shows a defici or surplus over a longer period of ime, his enails a build-up of eiher a ne liabiliy or a ne asse. Changes in he inernaional invesmen posiion depending on Opening balance Transacions Price changes Exchange rae changes Oher correcions Closing balance 6 As he financial balance measures exernal ne lending, a change in he balance on he curren accoun will - by definiion - always be mached by a similar change in he ne exernal claims. 7 In cerain cases he book value is used insead of he marke value, because he base for calculaing marke value is insufficien. 13

BALANCE OF PAYMENTS AND FINANCIAL MA REPORT 2015. All officiell statistik finns på: www.scb.se Statistikservice: tfn 08-506 948 01

BALANCE OF PAYMENTS AND FINANCIAL MA REPORT 2015. All officiell statistik finns på: www.scb.se Statistikservice: tfn 08-506 948 01 RKET BALANCE OF PAYMENTS AND FINANCIAL MA REPORT 2015 All officiell saisik finns på: www.scb.se Saisikservice: fn 08-506 948 01 All official saisics can be found a: www.scb.se Saisics service, phone +46

More information

I. Basic Concepts (Ch. 1-4)

I. Basic Concepts (Ch. 1-4) (Ch. 1-4) A. Real vs. Financial Asses (Ch 1.2) Real asses (buildings, machinery, ec.) appear on he asse side of he balance shee. Financial asses (bonds, socks) appear on boh sides of he balance shee. Creaing

More information

4. International Parity Conditions

4. International Parity Conditions 4. Inernaional ariy ondiions 4.1 urchasing ower ariy he urchasing ower ariy ( heory is one of he early heories of exchange rae deerminaion. his heory is based on he concep ha he demand for a counry's currency

More information

Duration and Convexity ( ) 20 = Bond B has a maturity of 5 years and also has a required rate of return of 10%. Its price is $613.

Duration and Convexity ( ) 20 = Bond B has a maturity of 5 years and also has a required rate of return of 10%. Its price is $613. Graduae School of Business Adminisraion Universiy of Virginia UVA-F-38 Duraion and Convexiy he price of a bond is a funcion of he promised paymens and he marke required rae of reurn. Since he promised

More information

Markit Excess Return Credit Indices Guide for price based indices

Markit Excess Return Credit Indices Guide for price based indices Marki Excess Reurn Credi Indices Guide for price based indices Sepember 2011 Marki Excess Reurn Credi Indices Guide for price based indices Conens Inroducion...3 Index Calculaion Mehodology...4 Semi-annual

More information

Morningstar Investor Return

Morningstar Investor Return Morningsar Invesor Reurn Morningsar Mehodology Paper Augus 31, 2010 2010 Morningsar, Inc. All righs reserved. The informaion in his documen is he propery of Morningsar, Inc. Reproducion or ranscripion

More information

Equities: Positions and Portfolio Returns

Equities: Positions and Portfolio Returns Foundaions of Finance: Equiies: osiions and orfolio Reurns rof. Alex Shapiro Lecure oes 4b Equiies: osiions and orfolio Reurns I. Readings and Suggesed racice roblems II. Sock Transacions Involving Credi

More information

Chapter 6: Business Valuation (Income Approach)

Chapter 6: Business Valuation (Income Approach) Chaper 6: Business Valuaion (Income Approach) Cash flow deerminaion is one of he mos criical elemens o a business valuaion. Everyhing may be secondary. If cash flow is high, hen he value is high; if he

More information

1. Fund types and population covered

1. Fund types and population covered Performance and financial overview of invesmen funds - France 1 March 016 The Banque de France draws up he following informaion for invesmen funds: 1 monhly saisics on fund ousandings and flows, and on

More information

The Greek financial crisis: growing imbalances and sovereign spreads. Heather D. Gibson, Stephan G. Hall and George S. Tavlas

The Greek financial crisis: growing imbalances and sovereign spreads. Heather D. Gibson, Stephan G. Hall and George S. Tavlas The Greek financial crisis: growing imbalances and sovereign spreads Heaher D. Gibson, Sephan G. Hall and George S. Tavlas The enry The enry of Greece ino he Eurozone in 2001 produced a dividend in he

More information

PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE

PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE Profi Tes Modelling in Life Assurance Using Spreadshees PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE Erik Alm Peer Millingon 2004 Profi Tes Modelling in Life Assurance Using Spreadshees

More information

Option Put-Call Parity Relations When the Underlying Security Pays Dividends

Option Put-Call Parity Relations When the Underlying Security Pays Dividends Inernaional Journal of Business and conomics, 26, Vol. 5, No. 3, 225-23 Opion Pu-all Pariy Relaions When he Underlying Securiy Pays Dividends Weiyu Guo Deparmen of Finance, Universiy of Nebraska Omaha,

More information

The Grantor Retained Annuity Trust (GRAT)

The Grantor Retained Annuity Trust (GRAT) WEALTH ADVISORY Esae Planning Sraegies for closely-held, family businesses The Granor Reained Annuiy Trus (GRAT) An efficien wealh ransfer sraegy, paricularly in a low ineres rae environmen Family business

More information

Questioni di Economia e Finanza

Questioni di Economia e Finanza Quesioni di conomia e Finanza (Occasional Papers) In search of los capial: an esimaion of undeclared porfolio asses by Valeria Pellegrini and nrico Tosi Sepember 2012 Number 131 Quesioni di conomia e

More information

Chapter 1.6 Financial Management

Chapter 1.6 Financial Management Chaper 1.6 Financial Managemen Par I: Objecive ype quesions and answers 1. Simple pay back period is equal o: a) Raio of Firs cos/ne yearly savings b) Raio of Annual gross cash flow/capial cos n c) = (1

More information

MSCI Index Calculation Methodology

MSCI Index Calculation Methodology Index Mehodology MSCI Index Calculaion Mehodology Index Calculaion Mehodology for he MSCI Equiy Indices Index Mehodology MSCI Index Calculaion Mehodology Conens Conens... 2 Inroducion... 5 MSCI Equiy Indices...

More information

July 27, 2007. only due to developments in the USA but is also the upshot of investment decisions in the surplus countries.

July 27, 2007. only due to developments in the USA but is also the upshot of investment decisions in the surplus countries. Inernaional opics Curren Issues July 7, 7 US curren accoun defici: No reason o panic! Las year he US curren accoun closed wih a record defici of USD 811 bn or 6.1% of GDP. In 1991 i had sill been in balance.

More information

The Real Business Cycle paradigm. The RBC model emphasizes supply (technology) disturbances as the main source of

The Real Business Cycle paradigm. The RBC model emphasizes supply (technology) disturbances as the main source of Prof. Harris Dellas Advanced Macroeconomics Winer 2001/01 The Real Business Cycle paradigm The RBC model emphasizes supply (echnology) disurbances as he main source of macroeconomic flucuaions in a world

More information

Glenn P. Jenkins Queen s University, Kingston, Canada and Eastern Mediterranean University, North Cyprus

Glenn P. Jenkins Queen s University, Kingston, Canada and Eastern Mediterranean University, North Cyprus COST-BENEFIT ANALYSIS FOR INVESTMENT DECISIONS, CHAPTER 3: THE FINANCIAL APPRAISAL OF PROJECTS Glenn P. Jenkins Queen s Universiy, Kingson, Canada and Easern Medierranean Universiy, Norh Cyprus Developmen

More information

Price elasticity of demand for crude oil: estimates for 23 countries

Price elasticity of demand for crude oil: estimates for 23 countries Price elasiciy of demand for crude oil: esimaes for 23 counries John C.B. Cooper Absrac This paper uses a muliple regression model derived from an adapaion of Nerlove s parial adjusmen model o esimae boh

More information

Why Did the Demand for Cash Decrease Recently in Korea?

Why Did the Demand for Cash Decrease Recently in Korea? Why Did he Demand for Cash Decrease Recenly in Korea? Byoung Hark Yoo Bank of Korea 26. 5 Absrac We explores why cash demand have decreased recenly in Korea. The raio of cash o consumpion fell o 4.7% in

More information

Present Value Methodology

Present Value Methodology Presen Value Mehodology Econ 422 Invesmen, Capial & Finance Universiy of Washingon Eric Zivo Las updaed: April 11, 2010 Presen Value Concep Wealh in Fisher Model: W = Y 0 + Y 1 /(1+r) The consumer/producer

More information

Value Added in Bread Production

Value Added in Bread Production San Francisco Sae Universiy Naional Income and Produc Accouns (NIPA) 1 Michael Bar Our firs oal is o come up wih a noion of he economy s oupu or producive capaciy of he economy. The U.S. produces a variey

More information

Table of contents Chapter 1 Interest rates and factors Chapter 2 Level annuities Chapter 3 Varying annuities

Table of contents Chapter 1 Interest rates and factors Chapter 2 Level annuities Chapter 3 Varying annuities Table of conens Chaper 1 Ineres raes and facors 1 1.1 Ineres 2 1.2 Simple ineres 4 1.3 Compound ineres 6 1.4 Accumulaed value 10 1.5 Presen value 11 1.6 Rae of discoun 13 1.7 Consan force of ineres 17

More information

Double Entry System of Accounting

Double Entry System of Accounting CHAPTER 2 Double Enry Sysem of Accouning Sysem of Accouning \ The following are he main sysem of accouning for recording he business ransacions: (a) Cash Sysem of Accouning. (b) Mercanile or Accrual Sysem

More information

Chapter 9 Bond Prices and Yield

Chapter 9 Bond Prices and Yield Chaper 9 Bond Prices and Yield Deb Classes: Paymen ype A securiy obligaing issuer o pay ineress and principal o he holder on specified daes, Coupon rae or ineres rae, e.g. 4%, 5 3/4%, ec. Face, par value

More information

MACROECONOMIC FORECASTS AT THE MOF A LOOK INTO THE REAR VIEW MIRROR

MACROECONOMIC FORECASTS AT THE MOF A LOOK INTO THE REAR VIEW MIRROR MACROECONOMIC FORECASTS AT THE MOF A LOOK INTO THE REAR VIEW MIRROR The firs experimenal publicaion, which summarised pas and expeced fuure developmen of basic economic indicaors, was published by he Minisry

More information

Aggregate Output. Aggregate Output. Topics. Aggregate Output. Aggregate Output. Aggregate Output

Aggregate Output. Aggregate Output. Topics. Aggregate Output. Aggregate Output. Aggregate Output Topics (Sandard Measure) GDP vs GPI discussion Macroeconomic Variables (Unemploymen and Inflaion Rae) (naional income and produc accouns, or NIPA) Gross Domesic Produc (GDP) The value of he final goods

More information

II.1. Debt reduction and fiscal multipliers. dbt da dpbal da dg. bal

II.1. Debt reduction and fiscal multipliers. dbt da dpbal da dg. bal Quarerly Repor on he Euro Area 3/202 II.. Deb reducion and fiscal mulipliers The deerioraion of public finances in he firs years of he crisis has led mos Member Saes o adop sizeable consolidaion packages.

More information

Debt Accumulation, Debt Reduction, and Debt Spillovers in Canada, 1974-98*

Debt Accumulation, Debt Reduction, and Debt Spillovers in Canada, 1974-98* Deb Accumulaion, Deb Reducion, and Deb Spillovers in Canada, 1974-98* Ron Kneebone Deparmen of Economics Universiy of Calgary John Leach Deparmen of Economics McMaser Universiy Ocober, 2000 Absrac Wha

More information

What is a swap? A swap is a contract between two counter-parties who agree to exchange a stream of payments over an agreed period of several years.

What is a swap? A swap is a contract between two counter-parties who agree to exchange a stream of payments over an agreed period of several years. Currency swaps Wha is a swap? A swap is a conrac beween wo couner-paries who agree o exchange a sream of paymens over an agreed period of several years. Types of swap equiy swaps (or equiy-index-linked

More information

NBER WORKING PAPER SERIES IS THE U.S. CURRENT ACCOUNT DEFICIT SUSTAINABLE? AND IF NOT, HOW COSTLY IS ADJUSTMENT LIKELY TO BE?

NBER WORKING PAPER SERIES IS THE U.S. CURRENT ACCOUNT DEFICIT SUSTAINABLE? AND IF NOT, HOW COSTLY IS ADJUSTMENT LIKELY TO BE? NBER WORKING PAPER SERIES IS THE U.S. CURRENT ACCOUNT DEFICIT SUSTAINABLE? AND IF NOT, HOW COSTLY IS ADJUSTMENT LIKELY TO BE? Sebasian Edwards Working Paper 11541 hp://www.nber.org/papers/w11541 NATIONAL

More information

Return Calculation of U.S. Treasury Constant Maturity Indices

Return Calculation of U.S. Treasury Constant Maturity Indices Reurn Calculaion of US Treasur Consan Mauri Indices Morningsar Mehodolog Paper Sepeber 30 008 008 Morningsar Inc All righs reserved The inforaion in his docuen is he proper of Morningsar Inc Reproducion

More information

WHAT ARE OPTION CONTRACTS?

WHAT ARE OPTION CONTRACTS? WHAT ARE OTION CONTRACTS? By rof. Ashok anekar An oion conrac is a derivaive which gives he righ o he holder of he conrac o do 'Somehing' bu wihou he obligaion o do ha 'Somehing'. The 'Somehing' can be

More information

Individual Health Insurance April 30, 2008 Pages 167-170

Individual Health Insurance April 30, 2008 Pages 167-170 Individual Healh Insurance April 30, 2008 Pages 167-170 We have received feedback ha his secion of he e is confusing because some of he defined noaion is inconsisen wih comparable life insurance reserve

More information

Financial Globalization and Exchange Rates. Philip R. Lane IIIS, Trinity College Dublin and CEPR

Financial Globalization and Exchange Rates. Philip R. Lane IIIS, Trinity College Dublin and CEPR Financial Globalizaion and Exchange Raes Philip R. Lane IIIS, Triniy College Dublin and CEPR Gian Maria Milesi-Ferrei Inernaional Moneary Fund and CEPR Ocober 2004 Absrac The founders of he Breon Woods

More information

CALCULATION OF OMX TALLINN

CALCULATION OF OMX TALLINN CALCULATION OF OMX TALLINN CALCULATION OF OMX TALLINN 1. OMX Tallinn index...3 2. Terms in use...3 3. Comuaion rules of OMX Tallinn...3 3.1. Oening, real-ime and closing value of he Index...3 3.2. Index

More information

FORWARD AND FUTURES CONTRACTS

FORWARD AND FUTURES CONTRACTS Page1 C H A P T E R 2 FORWARD AND FUTURES CONTRACTS 2.1 INTRODUCTION The main purpose of forward and fuures conracs is he managemen of risk. The exposure o risk as a resul of ransacing in he spo marke

More information

LEASING VERSUSBUYING

LEASING VERSUSBUYING LEASNG VERSUSBUYNG Conribued by James D. Blum and LeRoy D. Brooks Assisan Professors of Business Adminisraion Deparmen of Business Adminisraion Universiy of Delaware Newark, Delaware The auhors discuss

More information

The Interest Rate Risk of Mortgage Loan Portfolio of Banks

The Interest Rate Risk of Mortgage Loan Portfolio of Banks The Ineres Rae Risk of Morgage Loan Porfolio of Banks A Case Sudy of he Hong Kong Marke Jim Wong Hong Kong Moneary Auhoriy Paper presened a he Exper Forum on Advanced Techniques on Sress Tesing: Applicaions

More information

Can Austerity Be Self-defeating?

Can Austerity Be Self-defeating? DOI: 0.007/s07-0-0-7 Auseriy Can Auseriy Be Self-defeaing? Wih European governmens cuing back on spending, many are asking wheher his could make maers worse. In he UK for insance, recen OECD esimaes sugges

More information

Market Liquidity and the Impacts of the Computerized Trading System: Evidence from the Stock Exchange of Thailand

Market Liquidity and the Impacts of the Computerized Trading System: Evidence from the Stock Exchange of Thailand 36 Invesmen Managemen and Financial Innovaions, 4/4 Marke Liquidiy and he Impacs of he Compuerized Trading Sysem: Evidence from he Sock Exchange of Thailand Sorasar Sukcharoensin 1, Pariyada Srisopisawa,

More information

GUIDE GOVERNING SMI RISK CONTROL INDICES

GUIDE GOVERNING SMI RISK CONTROL INDICES GUIDE GOVERNING SMI RISK CONTROL IND ICES SIX Swiss Exchange Ld 04/2012 i C O N T E N T S 1. Index srucure... 1 1.1 Concep... 1 1.2 General principles... 1 1.3 Index Commission... 1 1.4 Review of index

More information

Can Individual Investors Use Technical Trading Rules to Beat the Asian Markets?

Can Individual Investors Use Technical Trading Rules to Beat the Asian Markets? Can Individual Invesors Use Technical Trading Rules o Bea he Asian Markes? INTRODUCTION In radiional ess of he weak-form of he Efficien Markes Hypohesis, price reurn differences are found o be insufficien

More information

Development Centre RESEARCH MEMORANDUM. Banking sector output measurement in the euro area a modified approach. Antonio Colangelo and Robert Inklaar

Development Centre RESEARCH MEMORANDUM. Banking sector output measurement in the euro area a modified approach. Antonio Colangelo and Robert Inklaar Universiy of Groningen Groningen Growh and Developmen Cenre Banking secor oupu measuremen in he euro area a modified approach Research Memorandum GD-117 Anonio Colangelo and Rober Inklaar RESEARCH MEMORANDUM

More information

Risk Modelling of Collateralised Lending

Risk Modelling of Collateralised Lending Risk Modelling of Collaeralised Lending Dae: 4-11-2008 Number: 8/18 Inroducion This noe explains how i is possible o handle collaeralised lending wihin Risk Conroller. The approach draws on he faciliies

More information

Hedging with Forwards and Futures

Hedging with Forwards and Futures Hedging wih orwards and uures Hedging in mos cases is sraighforward. You plan o buy 10,000 barrels of oil in six monhs and you wish o eliminae he price risk. If you ake he buy-side of a forward/fuures

More information

Description of the CBOE S&P 500 BuyWrite Index (BXM SM )

Description of the CBOE S&P 500 BuyWrite Index (BXM SM ) Descripion of he CBOE S&P 500 BuyWrie Index (BXM SM ) Inroducion. The CBOE S&P 500 BuyWrie Index (BXM) is a benchmark index designed o rack he performance of a hypoheical buy-wrie sraegy on he S&P 500

More information

Longevity 11 Lyon 7-9 September 2015

Longevity 11 Lyon 7-9 September 2015 Longeviy 11 Lyon 7-9 Sepember 2015 RISK SHARING IN LIFE INSURANCE AND PENSIONS wihin and across generaions Ragnar Norberg ISFA Universié Lyon 1/London School of Economics Email: ragnar.norberg@univ-lyon1.fr

More information

Contrarian insider trading and earnings management around seasoned equity offerings; SEOs

Contrarian insider trading and earnings management around seasoned equity offerings; SEOs Journal of Finance and Accounancy Conrarian insider rading and earnings managemen around seasoned equiy offerings; SEOs ABSTRACT Lorea Baryeh Towson Universiy This sudy aemps o resolve he differences in

More information

THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS

THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS VII. THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS The mos imporan decisions for a firm's managemen are is invesmen decisions. While i is surely

More information

Capital Flows and Current Account Sustainability: The Ghanaian Experience

Capital Flows and Current Account Sustainability: The Ghanaian Experience CREDIT Research Paper No. 07/07 Capial Flows and Curren Accoun Susainabiliy: The Ghanaian Experience by Absrac Maxwell Opoku-Afari Boh heoreical and operaional definiions of curren accoun susainabiliy

More information

ANALYSIS AND ACCOUNTING OF TOTAL CASH FLOW

ANALYSIS AND ACCOUNTING OF TOTAL CASH FLOW Annals of he Universiy of Peroşani, Economics, 12(1), 2012, 205-216 205 ANALYSIS AND ACCOUNTING OF TOTAL CASH FLOW MELANIA ELENA MICULEAC ABSTRACT: In order o reach he objecive of supplying some relevan

More information

Lecture Note on the Real Exchange Rate

Lecture Note on the Real Exchange Rate Lecure Noe on he Real Exchange Rae Barry W. Ickes Fall 2004 0.1 Inroducion The real exchange rae is he criical variable (along wih he rae of ineres) in deermining he capial accoun. As we shall see, his

More information

The Determinants of Trade Credit: Vietnam Experience

The Determinants of Trade Credit: Vietnam Experience Proceedings of he Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vienam Conference) ISBN: 978-1-63415-833-6 Danang, Vienam, 10-12 July 2015 Paper ID: V536

More information

Measuring the Effects of Exchange Rate Changes on Investment. in Australian Manufacturing Industry

Measuring the Effects of Exchange Rate Changes on Investment. in Australian Manufacturing Industry Measuring he Effecs of Exchange Rae Changes on Invesmen in Ausralian Manufacuring Indusry Robyn Swif Economics and Business Saisics Deparmen of Accouning, Finance and Economics Griffih Universiy Nahan

More information

How Does the Corporate Bond Market Value Capital Investments and Accruals?

How Does the Corporate Bond Market Value Capital Investments and Accruals? How Does he Corporae Bond Marke Value Capial Invesmens and Accruals? Sanjeev Bhojraj Bhaskaran Swaminahan * Forhcoming in he Review of Accouning Sudies Final Draf: June 2007 * Bhojraj is Assisan Professor

More information

The Effect of Working Capital Management on Reducing the Stock Price Crash Risk(Case Study: Companies Listed in Tehran Stock Exchange)

The Effect of Working Capital Management on Reducing the Stock Price Crash Risk(Case Study: Companies Listed in Tehran Stock Exchange) Inernaional Research Journal of Applied and Basic Sciences 2013 Available online a www.irjabs.com ISSN 2251-838X / Vol, 6 (9): 1222-1228 Science Explorer Publicaions The Effec of Working Capial Managemen

More information

Relationships between Stock Prices and Accounting Information: A Review of the Residual Income and Ohlson Models. Scott Pirie* and Malcolm Smith**

Relationships between Stock Prices and Accounting Information: A Review of the Residual Income and Ohlson Models. Scott Pirie* and Malcolm Smith** Relaionships beween Sock Prices and Accouning Informaion: A Review of he Residual Income and Ohlson Models Sco Pirie* and Malcolm Smih** * Inernaional Graduae School of Managemen, Universiy of Souh Ausralia

More information

ABSTRACT KEYWORDS. Term structure, duration, uncertain cash flow, variable rates of return JEL codes: C33, E43 1. INTRODUCTION

ABSTRACT KEYWORDS. Term structure, duration, uncertain cash flow, variable rates of return JEL codes: C33, E43 1. INTRODUCTION THE VALUATION AND HEDGING OF VARIABLE RATE SAVINGS ACCOUNTS BY FRANK DE JONG 1 AND JACCO WIELHOUWER ABSTRACT Variable rae savings accouns have wo main feaures. The ineres rae paid on he accoun is variable

More information

Long-Run Stock Returns: Participating in the Real Economy

Long-Run Stock Returns: Participating in the Real Economy Long-Run Sock Reurns: Paricipaing in he Real Economy Roger G. Ibboson and Peng Chen In he sudy repored here, we esimaed he forward-looking long-erm equiy risk premium by exrapolaing he way i has paricipaed

More information

The Impact of Surplus Distribution on the Risk Exposure of With Profit Life Insurance Policies Including Interest Rate Guarantees.

The Impact of Surplus Distribution on the Risk Exposure of With Profit Life Insurance Policies Including Interest Rate Guarantees. The Impac of Surplus Disribuion on he Risk Exposure of Wih Profi Life Insurance Policies Including Ineres Rae Guaranees Alexander Kling 1 Insiu für Finanz- und Akuarwissenschafen, Helmholzsraße 22, 89081

More information

Total factor productivity growth in the Canadian life insurance industry: 1979-1989

Total factor productivity growth in the Canadian life insurance industry: 1979-1989 Toal facor produciviy growh in he Canadian life insurance indusry: 1979-1989 J E F F R E Y I. B E R N S T E I N Carleon Universiy and Naional Bureau of Economic Research 1. Inroducion Produciviy growh

More information

SPECIAL REPORT May 4, Shifting Drivers of Inflation Canada versus the U.S.

SPECIAL REPORT May 4, Shifting Drivers of Inflation Canada versus the U.S. Paul Ferley Assisan Chief Economis 416-974-7231 paul.ferley@rbc.com Nahan Janzen Economis 416-974-0579 nahan.janzen@rbc.com SPECIAL REPORT May 4, 2010 Shifing Drivers of Inflaion Canada versus he U.S.

More information

One dictionary: Native language - English/English - native language or English - English

One dictionary: Native language - English/English - native language or English - English Faculy of Social Sciences School of Business Corporae Finance Examinaion December 03 English Dae: Monday 09 December, 03 Time: 4 hours/ 9:00-3:00 Toal number of pages including he cover page: 5 Toal number

More information

KiwiSaver Survey September Quarter 2015

KiwiSaver Survey September Quarter 2015 KiwiSaver Survey Sepember Quarer 2015 Volailiy se ino global equiy markes during he quarer amid concerns abou economic and financial uncerainy in China and poenial conagion across global economies. Negaive

More information

Tax Externalities of Equity Mutual Funds

Tax Externalities of Equity Mutual Funds Tax Exernaliies of Equiy Muual Funds Joel M. Dickson The Vanguard Group, Inc. John B. Shoven Sanford Universiy and NBER Clemens Sialm Sanford Universiy December 1999 Absrac: Invesors holding muual funds

More information

Fifth Quantitative Impact Study of Solvency II (QIS 5) National guidance on valuation of technical provisions for German SLT health insurance

Fifth Quantitative Impact Study of Solvency II (QIS 5) National guidance on valuation of technical provisions for German SLT health insurance Fifh Quaniaive Impac Sudy of Solvency II (QIS 5) Naional guidance on valuaion of echnical provisions for German SLT healh insurance Conens 1 Inroducion... 2 2 Calculaion of bes-esimae provisions... 3 2.1

More information

Chapter 7. Response of First-Order RL and RC Circuits

Chapter 7. Response of First-Order RL and RC Circuits Chaper 7. esponse of Firs-Order L and C Circuis 7.1. The Naural esponse of an L Circui 7.2. The Naural esponse of an C Circui 7.3. The ep esponse of L and C Circuis 7.4. A General oluion for ep and Naural

More information

The Impact of Surplus Distribution on the Risk Exposure of With Profit Life Insurance Policies Including Interest Rate Guarantees

The Impact of Surplus Distribution on the Risk Exposure of With Profit Life Insurance Policies Including Interest Rate Guarantees 1 The Impac of Surplus Disribuion on he Risk Exposure of Wih Profi Life Insurance Policies Including Ineres Rae Guaranees Alexander Kling Insiu für Finanz- und Akuarwissenschafen, Helmholzsraße 22, 89081

More information

The yield curve, and spot and forward interest rates Moorad Choudhry

The yield curve, and spot and forward interest rates Moorad Choudhry he yield curve, and spo and forward ineres raes Moorad Choudhry In his primer we consider he zero-coupon or spo ineres rae and he forward rae. We also look a he yield curve. Invesors consider a bond yield

More information

Yale ICF Working Paper No. 00-44 March 2002

Yale ICF Working Paper No. 00-44 March 2002 Yale ICF Working Paper No. 00-44 March 2002 STOCK MARKET RETURNS IN THE LONG RUN: PARTICIPATING IN THE REAL ECONOMY Roger G. Ibboson Yale School of Managemen Peng Chen Ibboson Associaes, Inc. This paper

More information

USE OF EDUCATION TECHNOLOGY IN ENGLISH CLASSES

USE OF EDUCATION TECHNOLOGY IN ENGLISH CLASSES USE OF EDUCATION TECHNOLOGY IN ENGLISH CLASSES Mehme Nuri GÖMLEKSİZ Absrac Using educaion echnology in classes helps eachers realize a beer and more effecive learning. In his sudy 150 English eachers were

More information

Appendix D Flexibility Factor/Margin of Choice Desktop Research

Appendix D Flexibility Factor/Margin of Choice Desktop Research Appendix D Flexibiliy Facor/Margin of Choice Deskop Research Cheshire Eas Council Cheshire Eas Employmen Land Review Conens D1 Flexibiliy Facor/Margin of Choice Deskop Research 2 Final Ocober 2012 \\GLOBAL.ARUP.COM\EUROPE\MANCHESTER\JOBS\200000\223489-00\4

More information

Institut für Halle Institute for Economic Research Wirtschaftsforschung Halle

Institut für Halle Institute for Economic Research Wirtschaftsforschung Halle Insiu für Halle Insiue for Economic Research Wirschafsforschung Halle On he Twin Deficis Hypohesis and he Impor Propensiy in Transiion Counries Huber Gabrisch December 2011 No. 20 IWH-Diskussionspapiere

More information

Do current account balances matter for competitiveness in the Euro Area?

Do current account balances matter for competitiveness in the Euro Area? Preliminary draf, do no quoe wihou he permission of he auhors Do curren accoun balances maer for compeiiveness in he Euro Area? Sefan Collignon* San Anna School of Advanced Sudies Piero Esposio** San Anna

More information

The Influence of Iran's Entrance into the WTO on Major Indexes of Tehran Stock Exchange

The Influence of Iran's Entrance into the WTO on Major Indexes of Tehran Stock Exchange 2013, TexRoad Publicaion ISSN: 2090-4274 Journal of Applied Environmenal and Biological Sciences www.exroad.com The Influence of Iran's Enrance ino he WTO on Major Indexes of Tehran Sock Exchange Darush

More information

Supplementary Appendix for Depression Babies: Do Macroeconomic Experiences Affect Risk-Taking?

Supplementary Appendix for Depression Babies: Do Macroeconomic Experiences Affect Risk-Taking? Supplemenary Appendix for Depression Babies: Do Macroeconomic Experiences Affec Risk-Taking? Ulrike Malmendier UC Berkeley and NBER Sefan Nagel Sanford Universiy and NBER Sepember 2009 A. Deails on SCF

More information

SHB Gas Oil. Index Rules v1.3 Version as of 1 January 2013

SHB Gas Oil. Index Rules v1.3 Version as of 1 January 2013 SHB Gas Oil Index Rules v1.3 Version as of 1 January 2013 1. Index Descripions The SHB Gasoil index (he Index ) measures he reurn from changes in he price of fuures conracs, which are rolled on a regular

More information

The Allocation of Interest Rate Risk and the Financial Sector

The Allocation of Interest Rate Risk and the Financial Sector The Allocaion of Ineres Rae Risk and he Financial Secor Juliane Begenau Sanford Monika Piazzesi Sanford & NBER May 2012 Marin Schneider Sanford & NBER Absrac This paper sudies US banks exposure o ineres

More information

The Dot-Com Bubble, the Bush Deficits, and the US Current Account

The Dot-Com Bubble, the Bush Deficits, and the US Current Account The Do-Com Bubble, he Bush Deficis, and he US Curren Accoun Aar Kraay The World Bank Jaume Venura CREI and Universia Pompeu Fabra December 2005 Absrac: Over he pas decade he US has experienced widening

More information

INTERNATIONAL REAL ESTATE REVIEW 2003 Vol. 6 No. 1: pp. 43-62. Banking System, Real Estate Markets, and Nonperforming Loans

INTERNATIONAL REAL ESTATE REVIEW 2003 Vol. 6 No. 1: pp. 43-62. Banking System, Real Estate Markets, and Nonperforming Loans Banking Sysem, Real Esae Markes, and Nonperforming Loans 43 INTERNATIONAL REAL ESTATE REVIEW 2003 Vol. 6 No. 1: pp. 43-62 Banking Sysem, Real Esae Markes, and Nonperforming Loans Wen-Chieh Wu Deparmen

More information

Impact of scripless trading on business practices of Sub-brokers.

Impact of scripless trading on business practices of Sub-brokers. Impac of scripless rading on business pracices of Sub-brokers. For furher deails, please conac: Mr. T. Koshy Vice Presiden Naional Securiies Deposiory Ld. Tradeworld, 5 h Floor, Kamala Mills Compound,

More information

Chapter 8: Regression with Lagged Explanatory Variables

Chapter 8: Regression with Lagged Explanatory Variables Chaper 8: Regression wih Lagged Explanaory Variables Time series daa: Y for =1,..,T End goal: Regression model relaing a dependen variable o explanaory variables. Wih ime series new issues arise: 1. One

More information

International Financial Adjustment

International Financial Adjustment Inernaional Financial Adjusmen Pierre-Olivier Gourinchas Berkeley, CEPR and NBER Hélène Rey Princeon, CEPR and NBER Working Paper Version This Draf: April 3, 2006 Absrac The paper explores he implicaions

More information

ESTIMATE OF POTENTIAL GROSS DOMESTIC PRODUCT USING THE PRODUCTION FUNCTION METHOD

ESTIMATE OF POTENTIAL GROSS DOMESTIC PRODUCT USING THE PRODUCTION FUNCTION METHOD Economeric Modelling Deparmen Igea Vrbanc June 2006 ESTIMATE OF POTENTIAL GROSS DOMESTIC PRODUCT USING THE PRODUCTION FUNCTION METHOD CONTENTS SUMMARY 1. INTRODUCTION 2. ESTIMATE OF THE PRODUCTION FUNCTION

More information

Puttable and Extendible Bonds: Developing Interest Rate Derivatives for Emerging Markets

Puttable and Extendible Bonds: Developing Interest Rate Derivatives for Emerging Markets WP/03/01 Puable and Exendible Bonds: Developing Ineres Rae Derivaives for Emerging Markes Salih N. Nefci and André O. Sanos 003 Inernaional Moneary Fund WP/03/01 IMF Working Paper IMF Insiue Puable and

More information

Nikkei Stock Average Volatility Index Real-time Version Index Guidebook

Nikkei Stock Average Volatility Index Real-time Version Index Guidebook Nikkei Sock Average Volailiy Index Real-ime Version Index Guidebook Nikkei Inc. Wih he modificaion of he mehodology of he Nikkei Sock Average Volailiy Index as Nikkei Inc. (Nikkei) sars calculaing and

More information

NATIONAL BANK OF POLAND WORKING PAPER No. 120

NATIONAL BANK OF POLAND WORKING PAPER No. 120 NATIONAL BANK OF POLAND WORKING PAPER No. 120 Large capial inflows and sock reurns in a hin marke Janusz Brzeszczyński, Marin T. Bohl, Dobromił Serwa Warsaw 2012 Acknowledgemens: We would like o hank Ludwig

More information

Diagnostic Examination

Diagnostic Examination Diagnosic Examinaion TOPIC XV: ENGINEERING ECONOMICS TIME LIMIT: 45 MINUTES 1. Approximaely how many years will i ake o double an invesmen a a 6% effecive annual rae? (A) 10 yr (B) 12 yr (C) 15 yr (D)

More information

MITEL NETWORKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions of US dollars) (unaudited) December 31, December 31, 2015 2014

MITEL NETWORKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions of US dollars) (unaudited) December 31, December 31, 2015 2014 CONSOLIDATED BALANCE SHEETS,, 5 ASSETS Curren asses: Cash and cash equivalens.. Accouns receivable..5 Sales-ype lease receivables.. Invenories.. Oher curren asses 5. 5. 5. 5. curren porion of sales-ype

More information

11/6/2013. Chapter 14: Dynamic AD-AS. Introduction. Introduction. Keeping track of time. The model s elements

11/6/2013. Chapter 14: Dynamic AD-AS. Introduction. Introduction. Keeping track of time. The model s elements Inroducion Chaper 14: Dynamic D-S dynamic model of aggregae and aggregae supply gives us more insigh ino how he economy works in he shor run. I is a simplified version of a DSGE model, used in cuing-edge

More information

The Interaction of Guarantees, Surplus Distribution, and Asset Allocation in With Profit Life Insurance Policies

The Interaction of Guarantees, Surplus Distribution, and Asset Allocation in With Profit Life Insurance Policies 1 The Ineracion of Guaranees, Surplus Disribuion, and Asse Allocaion in Wih Profi Life Insurance Policies Alexander Kling * Insiu für Finanz- und Akuarwissenschafen, Helmholzsr. 22, 89081 Ulm, Germany

More information

Sustainability of current account deficit with high oil prices: Evidence from Turkey 1

Sustainability of current account deficit with high oil prices: Evidence from Turkey 1 Inernaional Journal of Economic Sciences Vol. III / No. 2 / 2014 Susainabiliy of curren accoun defici wih high oil prices: Evidence from Turkey 1 Erkan Özaa ABSTRACT Curren accoun defici as a raio of GDP

More information

Fair Valuation and Risk Assessment of Dynamic Hybrid Products in Life Insurance: A Portfolio Consideration

Fair Valuation and Risk Assessment of Dynamic Hybrid Products in Life Insurance: A Portfolio Consideration Fair Valuaion and Risk ssessmen of Dynamic Hybrid Producs in ife Insurance: Porfolio Consideraion lexander Bohner, Nadine Gazer Working Paper Deparmen of Insurance Economics and Risk Managemen Friedrich-lexander-Universiy

More information

Debt Relief and Fiscal Sustainability for HIPCs *

Debt Relief and Fiscal Sustainability for HIPCs * Deb Relief and Fiscal Susainabiliy for HIPCs * Craig Burnside and Domenico Fanizza December 24 Absrac The enhanced HIPC iniiaive is disinguished from previous deb relief programs by is condiionaliy ha

More information

The Transport Equation

The Transport Equation The Transpor Equaion Consider a fluid, flowing wih velociy, V, in a hin sraigh ube whose cross secion will be denoed by A. Suppose he fluid conains a conaminan whose concenraion a posiion a ime will be

More information

Methodology brief Introducing the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global)

Methodology brief Introducing the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) Mehodology brief Emerging Markes Bond Index The EMBI Global, which currenly includes 27 counries, has been creaed in response o invesor demand for a broader emerging markes deb benchmark The EMBI Global

More information

Understanding China s High Investment Rate and FDI Levels: A Comparative Analysis of the Return to Capital in China, the United States, and Japan

Understanding China s High Investment Rate and FDI Levels: A Comparative Analysis of the Return to Capital in China, the United States, and Japan Undersanding China s High Invesmen Rae and FDI Levels: A Comparaive Analysis of he Reurn o Capial in China, he Unied Saes, and Japan Wenkai Sun, Renmin Universiy of China Xiuke Yang, Peking Universiy Geng

More information