The objective is to show that endogenous discounting models should use a felicity function constrained to a positive domain. A variety of articles use the Mangasarian or Arrow and Kurz condition as a sufficient condition for optimality, which restricts felicity to a negative domain. Since the...

Ecolabeling is a means of reducing the information gap between consumers and producers. We study the implication of ecolabeling a supposedly green good for a consumer's allocation of income between a dirty and the supposedly green good. In the model, the role of the ecolabel is to help product...

We investigate the leverage cycle in Luxembourg’s banking sector using individual bank-level data for the period 2003 Q1–2010 Q1. One of our findings is that Luxembourg’s banks have a procyclical leverage. This procyclicality is not due to marking-to-market but because Luxembourg’s banks...

We empirically investigate the dynamic interactions between sovereign ratings and the macroeconomic environment using a Panel VAR on annual data for European countries from 1996 to 2013. Our results provide evidence for a significant two-way interaction between the macroeconomic environment and...

We extend the literature on the bank lending channel in two aspects. First, rather than following the literature by analyzing the impact of banks'liquidity (measured via their asset portfolio) on monetary policy transmission, we study the role of banks' actual liquidity risk, as measured by the...