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Bank-Based or Market-Based Financial Systems: Which is Better?

This paper empirically assesses competing theoretical views on a century old policy debate: Are bank based or market-based financial systems better for promoting long-run economic growth? Since the 19th century, many economists have argued that bank-based systems are better at mobilizing savings, identifying good investments, and exerting sound corporate control, particularly during the early stages of economic development and in weak institutional environments. Others, however, emphasize the advantages of markets in allocating capital, providing risk management tools, and mitigating the problems associated with excessively powerful banks.

Pharmacotherapy in Periodontal Therapy

Periodontal disease is an infection that involves the inflammatory process and the immune response. It can cause a breakdown of periodontal structures resulting in increased pocket depth, clinical attachment loss, and destruction of alveolar bone.Treatment of periodontal diseases has evolved appreciably in the last decade. Greater emphasis has been placed on nonsurgical approaches to periodontal therapy.

Reference Guide for HERBS

The vegetable world comprises three main groups of plants: Superior, Intermediary and Inferior. These encompass bacteria, microscopic algae, mushrooms, ferns, brushes and trees, among others. Their identification is a task of specialists and the limit between the vegetal and animal world is not clear. To simplify matters, we consider plants those recognized as such by ordinary people. Books about medicinal properties of vegetables normally seem to treat differently herbs and medicinal plants.

Firms' Financing Choices in Bank-Based and Market-Based Economies

The late 1980s and 1990s witnessed unprecedented developments in the financial sector of emerging economies. Emerging markets became more open and integrated with the rest of the world. After lifting restrictions on capital movements, countries received record high levels of capital inflow. During the 1970-80s, capital flows were mainly directed to governments or to the private sector through the banking system. Whereas, in the 1990s, capital flows took the form of foreign direct investment and portfolio flows, including bond and equity flows.

Debt Maturity: Is Long-Term Debt Optimal?

Prior to many of the major emerging market financial crises of the past decade Mexico, Russia, Brazil, Argentina governments borrowed large amounts of short maturity liabilities. Each of these countries subsequently had to roll over large amounts of short-term debt to meet its payment obligations. Scholars have argued that short-term liabilities render an economy particularly vulnerable as the shorter and more concentrated the debt maturity the more likely debt crises are to occur. In addition, short term debt may increase a country's exposure to sharp increases in interest rates, which may have additional negative consequences, as governments may need to increase taxes in order to service the debt.

The maturity of debt issues and predictable variation in bond returns

How corporations should manage financial policy to minimize the cost of capital is a question of great theoretical and practical interest. In efficient, integrated, and otherwise perfect capital markets, Modigliani and Miller (1958) and Stiglitz (1974) show that financial policy cannot reduce the cost of capital. Their key insight is that in such idealized markets, the costs of different forms of capital do not vary independently, so there is never any gain to substituting between debt and equity, for example, or between short and long-term debt.

The Impact of Information Asymmetry on Debt Pricing and Maturity

In this paper, I examine the impact of information asymmetry on debt pricing and maturity. The role of information asymmetry in debt contracting has long been of interest to researchers in accounting and finance. By investigating how information asymmetry influences debt contractual terms in the syndicated loan market, this paper demonstrates that information asymmetry increases the cost of debt capital and reduces the debt maturity.

The Effect of Labor Market Trends on the Incentives and Incidence for Claiming Social Security Benefits Early

Although a large literature analyzes the determinants of retirement decisions, relatively few papers explicitly analyzed the decision of when to claim social security benefits (Coile, Diamond, Gruber, Jousten 2002). Moreover, typical analyses of the decision to claim tend to focus on financial incentive deriving from the lifetime value of benefits. The current literature on claiming places little focus on incentives to claim benefits coming from the labor market.

Disentangling Treatment Effects of Active Labor Market Policies: The Role of Labor Force Status Sequences

Over the last decade there has been much interest by labor economists in the evaluation of so-called Active Labor Market Policy (ALMP), i.e. policy measures such as training programs, wage subsidy schemes, or direct job creation in the public sector. These measures, generally, aim at increasing the employment probability and/or the earnings performance of program participants.

Investment Cycles and Sovereign Debt Overhang

This paper explores the joint dynamics of sovereign debt and foreign direct investment in a small open economy. Our analysis brings to the forefront two important political economy considerations. We follow the seminal work of Thomas and Worrall (1994) in that the government cannot commit, leaving capital and debt exposed to expropriation or repudiation. However, in Thomas and Worrall (and more generally in Ray (2002 )), the government eventually accumulates sufficient assets to overcome its lack of commitment.

Measures of central adiposity as an indicator of obesity

Obesity has long been identified as an important risk factor for a number of health problems. Body Mass Index (BMI), the most frequently used measure to determine levels of body fat, provides a proxy measure of total adiposity (the amount of fat around the body), but a number of studies have suggested that the accumulation of body fat around the waist (central or abdominal adiposity) may present a higher risk to health than fat deposited in other parts of the body.

Skeletal Muscle Abnormalities in Patients With Fibromyalgia

Widespread muscle pain and tender points are the most common complaints of fibromyalgia patients, and the underlying mechanisms responsible for these symptoms have been studied intensively during the past decade. It has been suggested that fatigue and pain may lead to decreased levels of physical activity in many patients. The resulting deconditioned state may itself contribute to muscle abnormalities. Associated symptoms such as disturbed sleep, anxiety, depression, or irritable bowel also may have a negative impact on muscle function and level of daily activities. The important interactions between the central nervous and musculoskeletal systems may involve another element, the neuroendocrine stress-response system. This review will consider both the current state of knowledge and also future studies which might be designed to answer more effectively the outstanding questions regarding the underlying pathogenesis of fibromyalgia.

Rehabilitation of Muscle Dysfunction in Hemophilia

Musculoskeletal dysfunction is a common manifestation of haemophilia, and may be associated with imbalances between muscle groups. Evidence emerging from the literature suggests that the rehabilitation of this dysfunction is very relevant for the patient with musculoskeletal problems. Treatment of muscle imbalances may be linked with a reduction in recurrence of symptoms. Further research is needed to establish the relevance of this area in patients with haemophilia but the clinical experience supports the developing work in this field.

Finance and the Efficiency of Capital Allocation: Do BankBranching Regulations Matter?

Over the past decade, an extensive literature in international finance has confirmed the role of financial development as an important catalyst for growth and allocative efficiency. A common thread running through most of this literature is the focus on the level of investment returns. In striking contrast, the literature in finance on mean-variance efficiency and the capital asset pricing model suggests that the variance-covariance properties of returns should play an equally crucial role in the allocative efficiency of investment.

Mortgage Markets, Collateral Constraints, and Monetary Policy: Do Institutional Factors Matter?

The role of housing wealth on economic activity has recently attracted considerable attention among academic researchers, policy-makers and press commentators. This attention is partly explained by the sizeable rises in property prices and household indebtedness in several industrialized countries over recent years (Debelle (2004), Terrones and Otrok (2004)) and the need to understand both the determinants of such rises and their potential implications for monetary policy and financial stability. Beyond these policy considerations, there is growing interest in the effects of changes in property prices on consumption decisions, given the predominance of housing in total household wealth (Campbell and Cocco (2003)).

Bank Regulation and Mortgage Market Reform

Two sets of major financial sector regulatory reform initiatives are currently unfolding in the United States (U.S.). One set concerns bank regulatory reform as embedded in the 2010 Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and the 2010 Basel III bank regulatory proposals. While the Dodd-Frank Act and Basel III both include regulatory changes that affect mortgage market activity, neither addresses the regulatory adjustments that would be necessary for a fundamental U.S. mortgage market reform. The second financial sector regulatory reform concerns precisely a fundamental U.S. mortgage market reform as proposed in the recent U.S. Treasury/HUD (2011) White Paper.

The Dual Mortgage Market: The Persistence of Discrimination in Mortgage Lending

Efforts to promote equal access to mortgage capital by racial and ethnic minorities have historically been a key component of the civil rights agenda in the United States. From the struggle to enact fair housing and fair lending legislation in the 1960s to the community-based advocacy that prompted Congress to pass the Home Mortgage Disclosure Act (HMDA) and the Community Reinvestment Act in the 1970s, housing and civil rights advocates have pursued a common goal of eradicating racial discrimination in home mortgage lending. Today, the fight continues as housing advocates seek to expand regulatory and legislative action to halt predatory lending practices that burden many minorities with mortgages they cannot afford and often do not need.

Diseases of The Brain and Nervous System

The Nervous system comprises of the brain, the spinal cord, the nerves emanating from them and their innervations of muscle fibres. The human race is superior and special to the other living beings due to the unique anatomy and physiology of human nervous system. Especially the cortex of the brain (the grey layer of the brain surface) is highly evolved and complex. Other organs of the human beings are similar or even weaker as compared to those of the other animals, but the humanrace proves superior because of the exceptional mental power & ability, as well as logic, memory and vocabulary all due to the cortex of the brain.

Migraine and Vertigo

Migraine is a disorder usually associated with headache. Although it can affect the whole head, it usually occurs on one side only. It is characterized by throbbing and associated with symptoms that may include nausea, vomiting, and sensitivity to light and sound. Flashes or patterns before the eyes may precede the headache. Symptoms may also include vertigo and imbalance.

Migraine - More than a Headache

Migraine is a common clinical problem characterized by episodic attacks of head pain and associated symptoms such as nausea, sensitivity to light, sound, or head movement. It is generally thought of as a headache problem, but it has become apparent in recent years that many patients suffer symptoms from migraine who do not have severe headaches as a dominant symptom. These patients may have a primary complaint of dizziness, of ear pain, of ear or head fullness, "sinus" pressure, and even fluctuating hearing loss. Fortunately, treatment regimens long established for the treatment of "classic" migraine headaches are generally effective against these "atypical" symptoms of migraine.

The Impact of Credit Cards on Spending: A Field Experiment

In this paper, we report results from the first field experiment to examine the impact of credit cards on spending, a question of great interest for economics, law and public policy. At a regulatory level, if credit cards cause people to spend more and save less, and if there is a long-term desire to increase personal saving, this might provide a rationale for regulation of, or even banning of, credit cards. In the 1980s, the U.S. personal savings rate, which had hovered in the 6-12% range for decades, began a secular decline, culminating by the middle of the first decade of the millennium at a rate close to zero.

Bankruptcy Exemptions and the Market for Mortgage Loans

Personal bankruptcy is no longer an unusual phenomenon. Personal bankruptcy filings have risen over 500% in the last two decades and there were over 1 million filings in 1996 alone. Moreover, these filing statistics may in fact understate the importance of personal bankruptcy as many more debtors may implicitly use the threat of filing to evade collection efforts by their creditors; it is default and not necessarily bankruptcy which creates losses for creditors (see White and Petropolous (1996)).

Do Financial Constraints Matter for Foreign Market Entry? A Firm-Level Examination

Exporting activities have long been accepted as an important determinant of growth. Thus, governments in most industrialized countries have made a lot of effort in enhancing international trade such as the abolishment of trade barriers and the provision of export counselling and financial assistance for export activities. Many governments are especially engaged in measures to increase the liquidity of firms that aim to engage in international trade, such as trade credits and subsidized bank loans.

Weight Locus of Control

Increased attention has focused on the heightened prevalence of smoking among adolescents as a whole, both in high school and college settings. Tobacco use often begins in early adolescence, typically by age 16 (Klesges, Elliott, & Robinson, 1997). The percentage of high school seniors reporting daily smoking has increased from 18% in 1992 to 22% in 1996 (Gilpin, Choi, Berry, & Pierce, 1999). Generally one-third to one-half of students who ever try smoking become regular smokers (Everett, Warren, Sharp, Kann, Husten, & Crossett, 1999). The trend continues at the collegiate level as cigarette use increases nationwide in all types of colleges and universities (Wechsler, Rigotti, Gledhill-Hoyt, & Lee, 1998). Of specific concern is the perpetual rise in female adolescent smoking initiation and maintenance.

Exercise and Weight Control

Just about everybody seems to be interested in weight control. Some of us weigh just the right amount, others need to gain a few pounds. Most of us "battle the bulge" at some time in our life. Whatever our goals, we should understand and take advantage of the important role of exercise in keeping our weight under control. Carrying around too much body fat is a major nuisance. Yet excess body fat is common in modern-day living. Few of today's occupations require vigorous physical activity, and much of our leisure time is spent in sedentary pursuits. Recent estimates indicate that 34 million adults are considered obese (20 percent above desirable weight).

Determinants of the Use of Trade Credit Discounts by Small Firms

This paper investigates the usage of Trade Credit Discounts by small firms, and examines the determinants of the buyer's decision to accept or reject discounts that have been offered by the seller as part of their trade credit terms. Using the 1998 and 2003 National Survey of Small Business Finance (NSSBF) databases compiled by the Board of Directors of the Federal Reserve Bank from a survey of small U.S. firms, we select a sample of firms that use trade credit and have been offered discounts, to model the determinants of the trade credit discount decision.

Creditor Protection and Credit Volatility

The implications, for the efficiency of financial markets, of laws and regulations that protect creditors have been amply debated in the literature. Several authors have argued that protecting creditors has important benefits since it allows credit markets to provide funds at a low cost. When creditor rights are protected bylaw, outside investors are willing to pay more for financial assets-as equity and debt. Legal protection assures that more of firms profits would comeback to investors as interest or dividends.

A screen for fraudulent return smoothing in the hedge fund industry

The hedge fund industry has experienced a recent surge in popularity, with the number of funds and assets under management increasing at a much faster rate than in the mutual fund industry. The growth has generated a corresponding increase in aggregate managerial income. Incentive contracts are highly lucrative, usually including a guaranteed management fee between 1% and 2% of fund assets and a performance fee between 15% and 20% of fund profits.

Hedge Fund Activism, Corporate Governance, and Firm Performance

This paper is a first attempt to fill the gap between the widespread focus on hedge fund activism and the dearth of large sample empirical evidence and analysis of this new phenomenon. We construct a comprehensive database of 110 activist hedge funds, and then examine 374 events involving these funds during the period 2004 through 2005.

Systemic Risk and Cross-Sectional Hedge Fund Returns

The hedge fund industry has been one of the most rapidly growing areas of the financial sector over the last decade. Its rapid growth results from its important benefits to financial markets and investors in the form of improved investment opportunity, price discovery, liquidity, risk sharing, and portfolio diversification. For example, hedge funds have provided funds to build infrastructures in emerging countries over the past years.

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