Banking and Finance - Study findings from E. Hjalmarsson et al broaden understanding of banking and finance
2009 NOV 30 - (VerticalNews.com) -- "We test for efficiency in the Swedish co-op market by examining the negative relationship between the sales price and the present value of future monthly payments or 'rents'. If the co-op housing market is efficient, the present value of co-op rental payments due to underlying debt obligations of the cooperative should be fully reflected in the sales price," scientists in the United States report ...read more
Banking and Finance - Research data from Seoul National University update understanding of banking and finance
2009 NOV 23 - (VerticalNews.com) -- "Many intertemporal open economy macro models imply a theory of consumption smoothing channels; thus we build an empirical model to analyze the intertemporal smoothing role of saving components (fixed investments, inventories and trade balance) through the use of VAR impulse responses to different types of shocks. We find that for the OECD countries the bulk of intertemporal smoothing has been carried out domestically, via gross fixed investments and inventories, but the trade balance has also played a relevant - albeit volatile - smoothing role," researchers in Seoul, South Korea report ...read more
Banking and Finance - Research results from University of Alberta update knowledge of banking and finance
2009 NOV 23 - (VerticalNews.com) -- "This paper provides estimates of the extent to which corporate and personal income taxes are capitalized in bond prices. The methodology yields estimates of the degree of tax capitalization, rather than an implied tax rate," scientists in Edmonton, Canada report.
"This makes it straightforward to identify the marginal investor and test for changes in tax capitalization. The empirical approach also makes it unnecessary to jointly estimate the degree of tax capitalization and the entire yield curve. Corporate taxes are found to have been fully capitalized in pre-tax Government of Canada bond yields during the period 1986-1993. Since 1994, taxes have not been capitalized in yields," wrote S. Landon and colleagues, University of Alberta ...read more
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