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1 – 4 of 4In this paper, we view an individual's annuitization decision as an American style call option whose underlying asset is financial wealth, which controls the distance to…
Abstract
In this paper, we view an individual's annuitization decision as an American style call option whose underlying asset is financial wealth, which controls the distance to annuitization. We then derive a certain threshold of wealth over which the individual is optimal to annuitize all of her wealth. We particularly focus on the effects of liquidity constraints on the individual's optimal annuitization decision, concerning their effects on the optimal investment and consumption strategies. We show that the annuitization decision can be significantly affected by the extent to which individual borrowing is constrained. More specifically, the optimal decision is for the individual to annuitize earlier with the tighter liquidity constrains she is exposed to than initially planned. This is particularly relevant to today's pandemic situation especially with the growing concern about cutting credit limits.
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The author augments an otherwise standard business-cycle model with a rich government sector and adds monopolistic competition in the product market and rigid prices, as well as…
Abstract
Purpose
The author augments an otherwise standard business-cycle model with a rich government sector and adds monopolistic competition in the product market and rigid prices, as well as rigid wages a la Calvo (1983) in the labor market.
Design/methodology/approach
This specification with the nominal wage rigidity, when calibrated to Bulgarian data after the introduction of the currency board (1999–2018), allows the framework to reproduce better observed variability and correlations among model variables and those characterizing the labor market in particular.
Findings
As nominal wage frictions are incorporated, the variables become more persistent, especially output, capital stock, investment and consumption, which help the model match data better, as compared to a setup without rigidities.
Practical implications
The findings suggest that technology shocks seem to be the dominant source of economic fluctuations, but nominal wage rigidities as well as the monopolistic competition in the product market, might be important factors of relevance to the labor market dynamics in Bulgaria, and such imperfections should be incorporated in any model that studies cyclical movements in employment and wages.
Originality/value
The computational experiments performed in this paper suggest that wage rigidities are a quantitatively important model ingredient, which should be taken into consideration when analyzing the effects of different policies in Bulgaria, which is a novel result.
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Tran Ngoc Tam, Nguyen Minh Hai and Bantaojai Thanatporn
The purpose of this paper is to study the Hölder calmness of solutions to equilibrium problems and apply it to economics.
Abstract
Purpose
The purpose of this paper is to study the Hölder calmness of solutions to equilibrium problems and apply it to economics.
Design/methodology/approach
The authors obtain the Hölder calmness by using an effective approach. More precisely, under the key assumption of strong convexity, sufficient conditions for the Hölder continuity of solution maps to equilibrium problems are established.
Findings
A new result in stability analysis for equilibrium problems and applications in economics is archived.
Originality/value
The authors confirm that the paper has not been published previously, is not under consideration for publication elsewhere and is not being simultaneously submitted elsewhere.
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Mi Lin, Ana Pereira Roders, Ivan Nevzgodin and Wessel de Jonge
Even if there is a wealth of research highlighting the key role of values and cultural significance for heritage management and, defining specific interventions on built heritage…
Abstract
Purpose
Even if there is a wealth of research highlighting the key role of values and cultural significance for heritage management and, defining specific interventions on built heritage, seldom the relation to their leading values and values hierarchy have been researched. How do values and interventions relate? What values trigger most and least interventions on heritage? How do these values relate and characterize interventions? And what are the values hierarchy that make the interventions on built heritage differ?
Design/methodology/approach
This paper conducts a systematic content analysis of 69 international doctrinal documents – mainly adopted by Council of Europe, UNESCO, and ICOMOS, during 1877 and 2021. The main aim is to reveal and compare the intervention concepts and their definitions, in relation to values. The intensity of the relationship between intervention concepts and values is determined based on the frequency of mentioned values per intervention.
Findings
There were three key findings. First, historic, social, and aesthetical values were the most referenced values in international doctrinal documents. Second, while intervention concepts revealed similar definitions and shared common leading values, their secondary values and values hierarchy, e.g. aesthetical or social values, are the ones influencing the variation on their definitions. Third, certain values show contradictory roles in the same intervention concepts from different documents, e.g. political and age values.
Originality/value
This paper explores a novel comparison between different interventions concepts and definitions, and the role of values. The results can contribute to support further research and practice on clarifying the identified differences.
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