Search results for "interest rate"
showing 10 items of 139 documents
INFORMATION CHANNELS INFLUENCING THE HOUSEHOLDS’ DECISION OF HOME LOAN PROVIDERS
2012
With rapid growing of competitiveness in the Latvian commercial banking, and resemblance of services offered by banks, it has become significantly important that banks detect the information sources influencing the customer choice of banks of financial products. The relevant literature indicates that a great deal of research effort has been expended to investigate bank selection criteria for broad categories of customers. One promising segment, which, arguably, has not been given enough attention, is the households group. Home loans products make the markets that had the huge increase before crisis. The great fall of interest rates along with the offering of new, more flexible and attractiv…
Renewable Energy Technologies for Economic Development
2020
Indonesian villages are facing dangerous condition. Every year, young people are deserting the villages. To overcome this problem, Tangsi Jaya hamlet, West Java, has been provided with 18 kW micro-hydro to supply electricity both to the community and to Small Processing Center for ground coffee production. Results of cash flow analysis for ground coffee in Tangsi Jaya hamlet, with total investment of IDR 110 750 000 and discount rate of 18 % for 5 yr. Banyumeneng I hamlet, Yogyakarta with an investment cost IDR 95 000 000 and production cost of IDR 34 195 000 yr–1 and the interest rate of 14 % yr–1, the payback period was estimated to be 3 yr with ROI of 40 %. PEST analysics indicate that t…
Growing Like Germany: Local Public Debt, Local Banks, Low Private Investment
2021
The paper uses a panel of more than 1m German firms over 2010-2016, to provide the first firm-bank level evidence of local crowding out for a developed economy characterized by low interest rates and fiscal austerity. Our mechanism relies on two structural features of Germany's banking landscape: the local segmentation of credit markets for small and medium-sized firms (SME) and the role of local public banks in local public finance. Local public banks dominate lending to small and medium firms in Germany and also have an explicit mandate to lend to the local public sector. With spreads on local government debt at all-time lows, local public banks tried to break even, using their market pow…
Notations et écarts de rentabilité : le marché français avant l'euro
2003
The main task of this paper is to confront two classical measures of default risk of the issuer, the rating and the spread. The first is attributed by agencies specialized in this activity (Standard and Poor's or Moody's) while the second results directly from the market price of the bond. This article studies this link over a period of two years for about forty French denominated bonds. Two measures of the spread are used and the results obtained show the very partial consideration of this information by the investors on the French bond market.
Investment Modelling at the Euro Area Level
2014
The aim of this research is to model the investment function at the level of the Euro zone. To achieve this main objective, we use and implement the structural equation modeling procedure for empirical analysis. Using this technique, the causal relationships established between investment and influencing factors are estimated and tested. Also, in the process of modeling structural equations, we examine empirical data sets related to the Euro area’s Member States.
THE LONG-RUN DETERMINANTS OF INVESTMENT: A DYNAMIC APPROACH FOR THE FUTURE ECONOMIC POLICIES
2010
Investment is the sum of the purchases on newly produced capital, changes in business inventories referred to as inventory investment, and the purchases of new residential housing. The work covered by this study aims to identify the model that presents, in the best possible way, the method of investment’s calculation and to determine the factors of influence. In the first part, the investment is analyzed as a linear function dependent on the interest rate; and the second part implies a new model for determining long-term investments, but also an identification of the measures that would lead to increased investments.
ANALYZING THE EUROPEAN MARKET OF INTEREST RATE SWAP INDICES
2012
The interest rate risk is the most important risk that derives from the OTC transactions, taking into consideration both the notional amounts and the market value of the financial derivatives that relies on interest rate contracts. Open positions on interest rate derivatives represents more than 75% of the OTC market. In the European banking market interest rate swaps prices are strongly dependent on the interbank interest rates. In this paper we want to analyze the behavior of the Eoniaswap indices and their impact on the interest rate swaps between banks.
Analysis of Equilibrium at the Euro Area Level from a New Model Perspective
2015
This paper aims to address issues related to equilibrium at the Euro Area. Research methodology implies a wide range of methods and techniques that are used to analyze macroeconomic phenomena and processes at the Euro Area. Following the empirical analyses, namely exploratory factor analysis and structural equation modeling procedure, we propose a model of equilibrium in the Euro zone, an area characterized by the existence of market with turbulence and search frictions. Using this econometric modeling technique, we test and estimate causal relationships that combines a series of empirical data and quantitative causal hypotheses.
A New Perspective of Investment Modelling at the European Union Level
2015
The study that represents the subject of this paper follows the analysis of the investment function and the influencing factors at the European Union level. The research has, as a starting point, the hypothesis that there is a negative relationship between the European Union investments and tax rates. For verifying this hypothesis, the structural equation modeling is used (SEM), and the same technique is applied in the second part of the research, which will track the development of the investments’ model at the European Union level. The results will highlight the relationships that are established between specific variables that characterize the volume of investments.
A New Approach of Investment for the Future Economic Policies
2013
The investment takes the form of sums of money spent for the acquisition of capital goods, changes in business inventories, and the purchases of new residential housing that are not currently consumed, but will be used in the future for the growth of the wealth. The work covered by this study aims to identify the model that presents, in the best possible way, the method of investment’s calculation and to determine the factors of influence. In the first part, the investment is analyzed as a linear function dependent on the interest rate; and the second part implies a new model for determining long-term investments.