Dissertation > Excellent graduate degree dissertation topics show

Global imbalances and financial risks under risk preference differences

Author: HuangMin
Tutor: TianSuHua
School: Fudan University
Course: World economy
Keywords: Risk Preference Global Imbalances Economic catch-up
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 104
Quote: 0
Read: Download Dissertation

Abstract


This paper establishes a mean-variance model within heterogeneous risk preferences of investors to explain a set of puzzles on global imbalances.Emerging markets met higher risk aversion compared with advanced economies due to a series of financial crises and institutional shocks they had suffered since late 1990s.As a result they prefer low-risk assets so as to lend in the global market and obtain trade surpluses, while the advanced borrow to fund their high-return/risk items and receive exorbitant earnings from overseas investments to maintain their current account. Shock analysis tells that discrepancy in risk preferences would trigger continuous external imbalances if there happened a negative impact.Economic catch-up in emerging areas implies a decline of wealth share in mature markets and the risk-free interest rate goes down as well. With the leverage rise is an accumulation of risk, which ultimately leads to the global financial crisis. Recalibration of risk preferences after the crisis may amend the mechanism that results in the imbalance and thus push the world economy upon the harmonious track.Different from previous studies, our research focuses on the demand side of assets and introduces the risk factor into the traditional portfolio model, in order to explore the formation and development of global imbalances within heterogeneous risk preferences. We also discuss the rebalance path of world economy on the basis of our model.

Related Dissertations

  1. Study on Impact Mechanism of Public Investment and Human Capital Accumulation on Economic Catching-up in Beibu Bay Economic Zone,F127;F224
  2. Yunnan economic catch-up process research strengths superposition,F127
  3. The Functional Mechanism of Geographic Factors to Economic Catch-up in Late-developing Region,F207
  4. The latecomer advantage theory analysis and economic catch-up strategy research,F061.3
  5. Catching-up Economy and Institutional Change in Russia,F151.2
  6. Research on Technological Learning of Virtual Network Industry,F49
  7. Emotional intelligence , self-handicapping Impact on career decisions,B842.6
  8. The Impact of CEO Celebrity on Organizational Attractiveness,F224
  9. Empowering Leadership and Innovative Behavior: Creative Self Efficacy, Creative Role Identity and Risk Perference,F224
  10. Global Imbalances and U.S. Macroeconomic Benefits,F171.2
  11. The Neuromechanism of Risk Aversion and Risk Seeking Based on Kahneman’s Prospect Theory,B849
  12. Risk Preference, Agency Theory and R&D Intensity,F224
  13. Experiments on Individual’s Risk and Time Preferences,F224
  14. Incentive Mechanism Design of Rural Credit Cooperatives,F832.2
  15. Based on experimental economics electricity market auction model and offer strategy,F416.61
  16. Study on Cultural Algorithms and Their Applications to Portfolio Selection,F830.59
  17. The Empirical Study of the Influence of Personality Traits, Social Capital, Prior Knowledge and Opportunity Alertness on Business Angels’ Capital Alertness,F224
  18. Experimental Research on Effects of Trust in Cooperation Dilemma,B841
  19. Supply Chain buyback contract with risk appetite by joining mechanism,F224
  20. A Study on the Risk Preference and Asset Choice of China’s Individual Investors,F224
  21. Study of the Modeling of Fuzzy Dynamic Portfolio Selection,F830.59

CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
© 2012 www.DissertationTopic.Net  Mobile