This volume contains contemporary analysis of three key developments in financial economics: financial integration; the dynamics of financial markets; and the information, computer, and technology revolution and its impact on markets and the economic performance, among others. With regard to financial integration, the contributions focus on three streams in international finance: the impact of increased financial integration on credit risk and on the required regulatory arrangements needed to reduce the probability of welfare reducing bank failures, the creation of new international currencies, and the relationship between finance and growth. With regard to the dynamics of financial markets, specific attention is devoted to the complex interaction of different sets of traders with heterogeneous beliefs and information sets. Finally, with respect to the ICT revolution, attention is focused on its impact on: foreign direct investment across countries, competition in the banking industry, consolidation in the financial services industry including its effects credit availability for small and medium sized enterprises, and the capital structure decisions of financial firms.
Fourteen papers contribute to the understanding of how the information, computer, and technology revolution and the integration of financial markets are shaping microeconomic behavior and the macroeconomy. Journal of Economic Literature, 2004.
1. Risk quantification of retail credit: Current practices and future challenges (W.W. Lang, A.M. Santomero). 2. The comparative performance of classification models: An empirical approach (S. Caiazza). 3. The economics of international monies (G.P. Dwyer Jr., J.R. Lothian). 4. How much do we really know about growth and finance? (P. Wachtel). 5. An empirical test for short termism in the US stock market (R.Y. Chou, W.-C. Guo). 6. Stock price dynamics: An empirical test of the Chartist-Fundamentalist hypothesis (L. Becchetti, M.I.M. Santoro). 7. The new global determinants of FDI flows to developing countries: The importance of ICT and democratization (T. Addison, A. Heshmati). 8. Internet banking in Spain: Some stylized facts (J. Delgado, M.J. Nieto). 9. Consolidation, efficiency and competition in the financial sector: A review of the international evidence (D. Amel, C. Barnes, F. Panetta, C. Salleo). 10. Consolidation of the banking industry, customer relationships and SME financing in France (M. Dietsch, V. Golitin). 11. The dynamics of capital structure (S. Banerjee, A. Heshmati, C. Wihlborg). 12. Contagion and portfolio shift in emerging countries' sovereign bonds (A.D. de los Rios, A.G. Herrero). 13. The Italian overnight market: Microstructure effects, the Martingale hypothesis and the payment system (E. Barucci, C. Impenna, R. Reno). 14. Esitmation risk, complexity and portfolio selection: How much do investors lose? (I. Hasan, A. Siddique, Y. Simaan).