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18 topics badly explained by many Finance Professors by Pablo Fernandez :: SSRN

November 12, 2018 Bilal 0

18 topics badly explained by many Finance Professors by Pablo Fernandez :: SSRN https://ift.tt/2z4n3lO 18 topics badly explained by many Finance Professors 22 Pages Posted: Date Written: October 20, 2018 Abstract This paper addresses 18 finance topics that are badly explained by many Finance Professors. The topics are: 1. Where does the WACC equation come from? 2. The WACC is not a cost. 3. The WACC equation when the value of debt is not equal to its nominal value. 4. The term equity premium is used to designate four different concepts. 5. Textbooks differ a lot on their recommendations regarding […]

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Nowcasting New Zealand GDP using machine learning algorithms, by Adam Richardson; Thomas van Florenstein Mulder; Tugrul Vehbi

November 12, 2018 Bilal 0

Nowcasting New Zealand GDP using machine learning algorithms, by Adam Richardson; Thomas van Florenstein Mulder; Tugrul Vehbi https://ift.tt/2OBSg4E Author Abstract This paper analyses the real-time nowcasting performance of machine learning algorithms estimated on New Zealand data. Using a large set of real-time quarterly macroeconomic indicators, we train a range of popular machine learning algorithms and nowcast real GDP growth for each quarter over the 2009Q1-2018Q1 period. We compare the predictive accuracy of these nowcasts with that of other traditional univariate and multivariate statistical models. We find that the machine learning algorithms outperform the traditional statistical models. Moreover, combining the individual […]

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An Economist’s Guide to Climate Change Science

November 12, 2018 Bilal 0

An Economist’s Guide to Climate Change Science https://ift.tt/2qfPY1l An Economist’s Guide to Climate Change Science NBER Working Paper No. 25189 Issued in October 2018 NBER Program(s):Development Economics, Environment and Energy Economics, Economic Fluctuations and Growth, Health Economics, International Trade and Investment, Labor Studies, Public Economics, Political Economy, Productivity, Innovation, and Entrepreneurship Climate change management is a global challenge that requires social science as much as it requires natural science. We provide a brief introduction to the physical science of climate change, written to provide essential background for economists and other social scientists. We also highlight some key areas in which […]

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Macroeconomic Effects of China’s Financial Policies

November 12, 2018 Bilal 0

Macroeconomic Effects of China’s Financial Policies https://ift.tt/2JQtr45 Macroeconomic Effects of China’s Financial Policies NBER Working Paper No. 25222 Issued in November 2018 NBER Program(s):Development Economics, Economic Fluctuations and Growth, Monetary Economics The Chinese economy has undergone three major phases: the 1978-1997 period marked as the SOE-led economy, the 1998-2015 phase as the investment-driven economy, and the new normal economy since 2016. All three economies have been shaped by the government’s financial policies, defined as a set of credit policy, monetary policy, and regulatory policy. We analyze the macroeconomic effects of these financial policies throughout the three phases and provide the […]

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The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma

November 12, 2018 Bilal 0

The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma https://ift.tt/2JzTsVk The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma Author/Editor: Paolo Cavallino ; Damiano Sandri Publication Date: November 2, 2018 Electronic Access: Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. Summary: We provide […]

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Private Equity Indices Based on Secondary Market Transactions

November 12, 2018 Bilal 0

Private Equity Indices Based on Secondary Market Transactions https://ift.tt/2qvstRO Private Equity Indices Based on Secondary Market Transactions NBER Working Paper No. 25207 Issued in November 2018 NBER Program(s):Asset Pricing, Corporate Finance Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund’s final distribution. We propose a new approach to evaluating performance using actual prices paid for limited partner shares of funds in secondary markets. We construct indices of buyout and venture capital performance using a proprietary database of secondary market […]

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Firm R&D Investment and Export Market Exposure

November 12, 2018 Bilal 0

Firm R&D Investment and Export Market Exposure https://ift.tt/2Qls2Fl Firm R&D Investment and Export Market Exposure NBER Working Paper No. 25228 Issued in November 2018 NBER Program(s):International Trade and Investment, Productivity, Innovation, and Entrepreneurship In this article we study differences in the returns to R&D investment between firms that sell in international markets and firms that only sell in the domestic market. We use German firm-level data from the high-tech manufacturing sector to estimate a dynamic structural model of a firm’s decision to invest in R&D and use it to measure the difference in expected long-run benefit from R&D investment for […]