Contagion of self-fulfilling financial crises due to diversification of investment portfolios
Article Abstract:
A model, in which contagion of financial crises occurs precisely as investment portfolios are diversified across countries, is presented. The realization of a financial crisis in one country generates a positive correlation between the returns on investment in different countries and thus reduces the effectiveness of diversifying investment across countries.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2004
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A three-player dynamic majoritarian bargaining game
Article Abstract:
The analysis of divide-the-dollar bargaining game among three legislators is investigated. The results showed proposal strategies and initial division of dollar extracting in small periods is weak in lower hemicontinuity.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2004
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