Financial innovation and arbitrage pricing in frictional economies

Article Abstract:

Frictional economies have basic differences compared to frictionless economies. Frictional economies have sublinear price functions that provide incentives for financial innovations. Innovators perform key economic functions when decomposing current securities and making new markets accessible. These include providing investors the chance to avail of cheaper consumption and achieve improved risk sharing. Innovators also highlight the basic value of increased payoffs. They serve these functions even when introducing un-issued redundant securities.

Innovations, Prices and rates, Financial markets, Arbitrage

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The spirit of capitalism and stock-market prices

Article Abstract:

Wealth acquisition by investors is not only prompted by a desire for more consumption rewards but also for the status that wealth brings. It was discovered that status-conscious investors tend to limit their consumption expenses and restrain themselves from taking risks. Furthermore, consumption and risk taking rely on the social status and current wealth standards. Finally, capitalism is also found to cause erratic stock prices.

Research, Risk (Economics), Beliefs, opinions and attitudes, Investors, Wealth

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Population growth, dependency, and consumption

Article Abstract:

A study was conducted to analyze how population growth influences the average level of utility and consumption per capita. The effects of population growth on the ratio of dependent consumers to working-age adults were examined. Results indicated that increases in fertility would lower old-age dependency in the long run and would promote a long period of higher-than-steady-state dependency.

Economic aspects, Population

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