Welcome to our book review site go-pdf.online!
You may have to Search all our reviewed books and magazines, click the sign up button below to create a free account.
Working Paper Series
None
A General-equilibrium Asset-pricing Approach to the Measurement of Nominal and Real Bank Output
This paper addresses the proper measurement of financial service output that is not priced explicitly. It shows how to impute nominal service output from financial intermediaries2 interest income, and how to construct price indices for those financial services. We model financial intermediaries as providers of financial services which resolve asymmetric information between borrowers and lenders. We embed these intermediaries in a dynamic, stochastic, general-equilibrium model where assets are priced competitively according to their systematic risk, as in the standard consumption-based capital-asset-pricing model. In this environment, we show that it is critical to take risk into account in o...
Loanable Funds, Risk, Bank Service Output
This paper develops a unified theory of bank operations that integrates theories of financial intermediation, asset pricing, and production. In a simple dynamic model, banks maximize the present value of future profits generated through three categories of qualitatively distinct functions: (1) resolving information asymmetry in order to make loans, (2) providing transaction services, and (3) financing loans with borrowed funds. Risk determines the rate of return on the funds and in turn the discount rate for future profits. But risk affects the quantity of bank services generated in the first two functions only to the extent that assets of different risk require different amounts of informat...
