scholarly journals Financial Entanglement: A Theory of Incomplete Integration, Leverage, Crashes, and Contagion

2015 ◽  
Vol 105 (7) ◽  
pp. 1979-2010 ◽  
Author(s):  
Nicolae Gârleanu ◽  
Stavros Panageas ◽  
Jianfeng Yu
Keyword(s):  
Market Integration ◽  
Market Access ◽  
Asset Price ◽  
Unified Model ◽  
Price Determination ◽  
Price Changes ◽  
Ex Ante ◽  
Participation Costs ◽  
Flow Reversals

We propose a unified model of limited market integration, asset-price determination, leveraging, and contagion. Investors and firms are located on a circle, and access to markets involves participation costs that increase with distance. Due to a complementarity between participation and leverage decisions, the equilibrium may exhibit diverse leverage and participation choices across investors, although investors are ex ante identical. Small changes in market-access costs can cause a change in the type of equilibrium, leading to discontinuous price changes, deleveraging, and portfolio-flow reversals. Moreover, the market is subject to contagion—an adverse shock to investors in some locations affects prices everywhere. (JEL D83, G11, G12, G32, G35)

scholarly journals Double Jeopardy: How Refugees Fare in One European Labor Market

2019 ◽  
Vol 10 (1) ◽  
Author(s):  
Dries Lens ◽  
Ive Marx ◽  
Sunčica Vujić
Keyword(s):  
Labor Market ◽  
Market Integration ◽  
Market Access ◽  
Labor Migrants ◽  
Long Run ◽  
Employment Rates ◽  
Labor Market Access ◽  
First Job ◽  
Work Histories ◽  
Longitudinal Dataset

AbstractThis paper examines the labor market trajectories of refugees who arrived in Belgium between 1999 and 2009. Belgium offers a relatively easy formal labor market access to refugees and other types of migrants but they face many other barriers in this strongly regulated and institutionalized labor market. Based on a longitudinal dataset that links respondents’ information from the Belgian Labor Force Survey with comprehensive social security data on their work histories, we estimate discrete-time hazard models to analyze refugees’ entry into and exit out of the first employment spell, contrasting their outcomes with family and labor migrants of the same arrival cohort. The analysis shows that refugees take significantly longer to enter their first employment spell as compared with other migrant groups. They also run a greater risk of exiting out of their first employment spell (back) into social assistance and into unemployment. The low employment rates of refugees are thus not only due to a slow integration process upon arrival, but also reflect a disproportional risk of exiting the labor market after a period in work. Our findings indicate that helping refugees into a first job is not sufficient to ensure labor market participation in the long run, because these jobs may be short-lived. Instead, our results provide clear arguments in favor of policies that support sustainable labor market integration.

18. The Single Market

2016 ◽  
Author(s):  
Michelle Egan
Keyword(s):  
International Relations ◽  
Comparative Politics ◽  
Market Integration ◽  
Historical Perspective ◽  
Market Access ◽  
Single Market ◽  
The European Union ◽  
Regulatory Strategies ◽  
Shed Light

This chapter focuses on the evolution of the single market project, from its original conception in the 1950s, beginning with the Rome Treaty and ending with the Single Market Act I and II. It first considers market integration in historical perspective before discussing the role of the Court of Justice of the European Union (CJEU) in promoting market access, the balance between different economic ideals, and the regulatory strategies used to foster market integration. It then analyses the importance of the single market in promoting competitiveness and growth, along with the politics of neoliberalism and the ‘1992 Programme’. It also explores the politics of regulated capitalism and whether the single market contributes to globalization. It concludes by explaining how both traditional international relations theories of integration and newer approaches in comparative politics and international relations can be used to shed light on the governance of the single market.

scholarly journals Foreword by the Director-General of the WTO

2002 ◽  
Vol 1 (1) ◽  
pp. 3-3
Author(s):  
Mike Moore
Keyword(s):  
World Trade ◽  
Market Integration ◽  
Market Access ◽  
Director General ◽  
Trade Restrictions ◽  
Trading System ◽  
Wide Range ◽  
The World ◽  
International Economic Cooperation

Trade policy used to be a rather simple matter of defining conditions of access to markets at the border. Little more was needed than rules defining non-discriminatory tariff levels, circumscribing the use of quantitative trade restrictions, and protecting the conditions of market access through the principle of national treatment. But the very success of these simple rules in creating the conditions for successive bouts of market-opening negotiations bred the complex and multi-faceted institution that is the World Trade Organization of today. As tariffs tumbled, all manner of other policies became crucial for continuing market integration. The rules had to follow the reality. It is a brave person now who claims more than a passing familiarity with each and every aspect of the WTO Agreements.In this fascinating labyrinth of what passes for policy relating to trade, it is unconvincing to argue that there is ever enough research and analysis. There will always be more that needs to be explored and better understood. Every effort to illuminate, to clarify, and to explain the trading system must surely be welcome. But if we are to advance our understanding of what makes sense and what does not, and contribute effectively to international economic cooperation, the quality and integrity of analysis is vital. This has become more especially true in recent years as dozens of developing countries facing formidable development challenges seek progress through meaningful participation in the world trading system. One of the great strengths of the WTO is its commitment to universality. If we are to give meaning to this vision and foster confidence in the fairness of the system, we must ensure its proper design on solid conceptual foundations.I am proud to associate the WTO Secretariat with the birth of the World Trade Review. The journal is committed to promoting high-quality policy analysis and welcomes contributions from a wide range of disciplines and cross-section of contributors. This is not an in-house journal devoted to selling pre-conceived ideas. Its mission is to promote informed and honest debate and to deepen understanding. The journal's editorial independence is central to these objectives. I wish the Editor and the members of the Editorial Board of the World Trade Review well in this important endeavour.

Financial Market Integration in East Asia: Regional or Global?

2006 ◽  
Vol 5 (1) ◽  
pp. 73-89 ◽  
Author(s):  
Jongkyou Jeon ◽  
Yonghyup Oh ◽  
Doo Yong Yang
Keyword(s):  
East Asia ◽  
Financial Market ◽  
Regional Integration ◽  
Market Integration ◽  
Asset Price ◽  
The United States ◽  
Market Mechanism ◽  
Global Integration ◽  
Financial Market Integration ◽  
Price Approach

This paper investigates whether financial markets in East Asia are integrated with global markets or with each other.We use two approaches: a volume-based approach and an asset price approach. Our overall results suggest global integration of these markets rather than regional integration and that there is no anchor market in the region that would match the advanced markets such as the United States. Though global integration is not a force that competes with regional integration, there seems to be no strong sign of the creation of an effective financial market mechanism in East Asia.

scholarly journals The news model of asset price determination – an empirical examination of the Danish football clubBrøndby IF

2012 ◽  
Vol 19 (17) ◽  
pp. 1715-1718 ◽  
Author(s):  
Casper W. Jørgensen ◽  
Mark R. Moritzen ◽  
Georg Stadtmann
Keyword(s):  
Asset Price ◽  
Price Determination ◽  
Empirical Examination

scholarly journals Legal Issues Affecting Labour Market Integration of Migrants in Finland

2021 ◽  
pp. 149-171
Author(s):  
Ilona Bontenbal ◽  
Nathan Lillie
Keyword(s):  
Labour Market ◽  
Market Integration ◽  
Market Access ◽  
Immigrant Integration ◽  
Legal Issues ◽  
Integration Policy ◽  
Market Outcomes ◽  
Labour Market Integration ◽  
Policy Measures ◽  
Labour Market Outcomes

AbstractFinland has only relatively recently become a country of immigration, and as a result most immigration and integration policy legislation is also relatively recent. Since the 1990s, the number of migrants to Finland has increased steadily, motivating the adoption of various policy measures to regulate migration and support integration. From the perspective of migrant labour market integration, the two most important legislative acts are the Aliens Act (FINLEX 301/2004) and the Act on the Promotion of Immigrant Integration (FINLEX 1386/2010), which lay out basic labour market integration supports for migrants, and determine who can work in Finland and on which grounds. Finland’s comprehensive residence-based welfare state policies and collective bargaining based labour regulation also shape labour market outcomes for migrants. Immigrants working in Finland are subject to the same labour regulations as native Finnish citizens. There are different justifications for labour market access for different groups of immigrants, depending on from which country they come, and what kind of work they are doing. The chapter will go over the principle legislation regulating migration and migrants working in Finland. Also, the legislative basis for applying for asylum is discussed.

scholarly journals Trade Agreements and the Nature of Price Determination

2012 ◽  
Vol 102 (3) ◽  
pp. 470-476 ◽  
Author(s):  
Pol Antràs ◽  
Robert W Staiger
Keyword(s):  
Market Access ◽  
Trade Agreements ◽  
Terms Of Trade ◽  
Efficiency Frontier ◽  
Price Determination ◽  
Trade Theory ◽  
International Prices ◽  
International Price ◽  
Central Result ◽  
Deep Integration

According to the terms-of-trade theory, negotiations over tariffs alone, coupled with an effective market access preservation rule, can bring governments to the efficiency frontier. In this paper, we show that the nature of international price determination is important for this central result of the terms-of-trade theory. While the received theory assumes that international prices are fully disciplined by aggregate market clearing conditions, we show here that support for “shallow” integration is overturned, and instead a need for “deep” integration is suggested ? wherein direct negotiations occur over both border and behind-the-border policies ? if international prices are determined through bargaining.

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