Fixed costs and the behavior of the federal funds rate
Article Abstract:
An equilibrium model was presented which tries to associate funds rate movement to changes in the supply of reserves and to a fixed cost confronting banks that borrow at the discount window. The model of the federal funds market reveals that the presence of the fixed cost is capable of illustrating several features of the funds market, such as the occasional occurrence of very high funds rates. Its existence can illustrate not only the heterogeneous behavior of banks towards the discount window, but also the occurrence of higher average funds rates at the end of maintenance period.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Risk premia and the ex-dividend stock price behaviour: empirical evidence
Article Abstract:
Original studies of stocks suggest that the atypical return on former dividend day which is related to the stock's dividend yield is a result of tax premiums and transaction costs' dominance. Research based on the CRSP Daily Master Files from Jan 1, 1975 to Oct 31, 1985 shows that the price trend occurs because of the presence of risk preminums. Low and dividend yield stocks are affected differently by tax and risk premiums. The relationship between former dividend return rates and dividend yield and risk variables is insecure.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Reserve requirements, bank share prices, and the uniqueness of bank loans
Article Abstract:
Changes in reserve requirements significantly affect large banks' stock returns. An increase in required reserves decreases the expected profits of affected banks. This change in profits alters expected returns to shareholders, inducing changes in share prices to restore a capital market equilibrium. Bank shareholders also shoulder at least part of the deposit tax. This disproves the uniqueness of bank loans based on the incidence of the deposit tax.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The quality option and timing option in futures contracts. Risk in banking and capital regulation. A theoretical analysis of real estate returns
- Abstracts: Industry note: the completion of the Internal European Market and strategies of agribusiness firms. Agribusiness firms: location determinants and economic contribution
- Abstracts: Doing well by doing a body good: an evaluation of the industry-funded nutrition education program conducted byu the Dairy Council of California
- Abstracts: The influence of type of advertisement, price, and source credibility on perceived quality. Managing the delayed service encounter: the role of employee action and customer prior experience
- Abstracts: Demand analysis of the Pacific Coast pear industry. Technical assistance and trade servicing to increase overseas demand for grass seed