Frank A. Schmid
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Macroeconomic News and Real Interest Rates Open
Their comments suggest that key information is contained in the evolving flow of these data that informs policymakers' assessments of the strength of the economy and perhaps also affects the future stance of policy.Moreover, studies with m…
Investment performance and market share: a study of the German mutual fund industry Open
We study a set of German open-end mutual funds for a time period during which this industry emerged from its infancy. In those years, the distribution channel for mutual funds was dominated by the brick-and-mortar retail networks of the la…
Stock Return and Interest Rate Risk at Fannie Mae and Freddie Mac Open
the timely payments of principal and interest on these MBS and collect a guarantee fee in return; this is effectively insurance business.The interest rate risk of these MBS resides with the investors that purchase these securities.Second, …
When For-Profits and Not-For-Profits Compete: Theory and Empirical Evidence from Retail Banking Open
We model competition in local deposit markets between for-profit and not-for-profit financial institutions.For-profit retail banks may offer a superior bundle of financial services, but not-for-profit (occupational) credit unions enjoy spo…
Monetary Policy Actions and the Incentive to Invest Open
The ability of monetary policy actions to affect the private sector's incentive to invest in fixed capital is hotly debated.Whereas a downward shift in the yield curve increases the present value of expected cash flows and should spur inve…
Macroeconomic News and Real Interest Rates Open
Real-business-cycle models suggest that an increase in the rate of productivity growth increases the real rate of interest.But economic theory is ambiguous when it comes to the effect of government budget deficits on the real rate of inter…
Conjectural Guarantees Loom Large: Evidence From The Stock Returns Of Fannie Mae And Freddie Mac Open
Fannie Mae and Freddie Mac are
Cracks in the Facade: American Economic and Financial Structures After the Boom Open
The Structural Foundations of International Finance examines the ways in which national economies, especially those of industrialized countries, are affected by the operations of international financial markets. Although these markets prov…
Mergers and Acquisitions in Germany Open
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Asset Mispricing, Arbitrage, and Volatility Open
The originaltheoretical arguments put forward in favor of effi-cient markets were based on the notion of stabiliz-ing speculation in the form of arbitrage (Friedman,1953). Simply put, arbitrage is “the simultaneouspurchase and sale of the …
Voting Rights, Private Benefits, and Takeovers Open
This article analyzes the effects that institutional design of the firm has on the allocation of control over the firm’s assets. The efficient allocation of control is a necessary condition for the optimal allocation of resources.
Membership Structure, Competition, and Occupational Credit Union Deposit Rates Open
How do occupational credit unions set deposit rates? This article shows that the answer to this question will depend on (i) who actually makes business decisions in credit unions (who is in control), and (ii) whether local deposit market c…
Corporate Governance, Entrenched Labor, and Economic Growth Open
The German system of codetermination contributes to the entrenchment of labor.We show in a two-period model of project choice that entrenched labor leads to underinvestment and overstaffing.We provide empirical evidence that German firms s…
Class Struggle Inside the Firm: A Study of German Codetermination Open
Who should control the firm? What should be the firm's objective function? If contracts are incomplete, then the group of input providers that most needs their interests protected should be allocated control rights to the firm. Existing th…
Pricing and Dividend Policies in Open Credit Cooperatives Open
This paper develops an integrated model of pricing and dividend policies in open credit cooperatives (those that do business with members and non-members on a non-discriminatory basis).We show that both the distribution of member preferenc…
Universal banking and the performance of German firms Open
Universal banking is an alternative mechanism to a stock market for risk-sharing, for providing information for guiding investment, and for contesting corporate governance. In Germany, where the stock market has historically been small, ba…
Banks VS. Credit Unions: Dynamic Competition in Local Markets Open
One interesting aspect of the financial services industry is that for-profit institutions such as commercial banks compete directly with not-for-profit financial intermediaries such as credit unions.In this article, we analyze competition …