scholarly journals How to Avoid Household Debt Overhang?: An Analytical Framework and Analysis for India

2020 ◽  
Vol 5 (No. 1 Apr 2020) ◽  
pp. 1-12
Author(s):  
Naoyuki Yoshino ◽  
Prachi Gupta
Keyword(s):  
Analytical Model ◽  
Utility Maximization ◽  
Analytical Framework ◽  
Income Growth ◽  
Stability Conditions ◽  
Household Debt ◽  
Debt Overhang ◽  
Model Stability ◽  
Five Factors ◽  
Income Ratio

In this paper we develop an analytical framework using the household utility maximization approach to model stability conditions to avoid household debt overhang. Our theoretical framework suggests that household debt stability is a function of five factors, namely the rate of interest, period of lending, income growth, loan-to-income ratio, and households’ disutility from borrowing. Further, we apply our analytical model to the case of India and estimate household debt stability conditions for Indian households under various scenarios to estimate the ceiling borrowing ratios below which households can avoid the risk of running into a debt overhang problem.

Aid Motivation and Donor Behavior

2007 ◽  
Vol 5 (1) ◽  
Author(s):  
Shyam Nath ◽  
Keyword(s):  
Income Distribution ◽  
Utility Function ◽  
Foreign Aid ◽  
Utility Maximization ◽  
Analytical Framework ◽  
Budget Constraint ◽  
Aid Allocation ◽  
Donor Behavior ◽  
Trade Performance

This paper develops an analytical framework to explain foreign aid motivation and donor behavior, using an interdependent utility maximization framework, in which donor faces two constraints; its own budget constraint and the recipient's utility function. This paper specifically contributes to the literature on foreign aid by integrating the various objectives underlying aid allocation, namely recipient income and trade performance, international income distribution and donor reaction to fungibility. Between trade interest and international income distribution, the former is found to be a more common consideration in aid allocation. One of the important results is that the fungibility of foreign aid is established as a major problem so as to invite donor’s retaliation. However, the retaliatory response appears to co-exist with other motivations.

A Data Warehouse Based Modelling Technique for Stock Market Analysis

2018 ◽  
Vol 7 (3.13) ◽  
pp. 165
Author(s):  
Debomita Mondal ◽  
Giridhar Maji ◽  
Takaaki Goto ◽  
Narayan C. Debnath ◽  
Soumya Sen
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Data Warehouse ◽  
Analytical Model ◽  
Market Performance ◽  
Analytical Framework ◽  
Market Analysis ◽  
External Factors ◽  
Stock Market Performance ◽  
Indian Stock Market

The objective of this paper is identifying a warehouse model to build an analytical framework and analyze different important parameters which directly impact the changes of share market. We identify parameters that represent different viewing windows and perspectives towards stock market performance and movement trends. We categorize and define many intrinsic as well as external factors that may affect stock market as a whole. Sensex and Nifty are used as the pulse of Indian stock market. In this paper, we focus on defining a suitable OLAP model which can cater all the parameters that affect share market. We also identify different applications of this analytical model for forecasting information to help decision making.  

A Data Warehouse Based Modelling Technique for Stock Market Analysis

2018 ◽  
Vol 7 (3.13) ◽  
pp. 165
Author(s):  
Debomita Mondal ◽  
Giridhar Maji ◽  
Takaaki Goto ◽  
Narayan C. Debnath ◽  
Soumya Sen
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Data Warehouse ◽  
Analytical Model ◽  
Market Performance ◽  
Analytical Framework ◽  
Market Analysis ◽  
External Factors ◽  
Stock Market Performance ◽  
Indian Stock Market

The objective of this paper is identifying a warehouse model to build an analytical framework and analyze different important parameters which directly impact the changes of share market. We identify parameters that represent different viewing windows and perspectives towards stock market performance and movement trends. We categorize and define many intrinsic as well as external factors that may affect stock market as a whole. Sensex and Nifty are used as the pulse of Indian stock market. In this paper, we focus on defining a suitable OLAP model which can cater all the parameters that affect share market. We also identify different applications of this analytical model for forecasting information to help decision making.  

scholarly journals An Analytical Model for Transient Heat Transfer with a Time-Dependent Boundary in Solar- and Waste-Heat-Assisted Geothermal Borehole Systems: From Single to Multiple Boreholes

2021 ◽  
Vol 11 (21) ◽  
pp. 10338
Author(s):  
Mohammed A. Hefni ◽  
Minghan Xu ◽  
Ferri Hassani ◽  
Seyed Ali Ghoreishi-Madiseh ◽  
Haitham M. Ahmed ◽  
...  
Keyword(s):  
Heat Flux ◽  
Energy Storage ◽  
Analytical Model ◽  
Thermal Performance ◽  
Closed Loop ◽  
Waste Heat ◽  
Analytical Framework ◽  
Thermal Design ◽  
Time Dependent ◽  
Borehole Wall

With the increasing engineering applications of geothermal borehole heat exchangers (BHEs), accurate and reliable mathematical models can help advance their thermal design and operations. In this study, an analytical model with a time-dependent heat flux boundary condition on the borehole wall is developed, capable of predicting the thermal performance of single, double, and multiple closed-loop BHEs, with an emphasis on solar- and waste-heat-assisted geothermal borehole systems (S-GBS and W-GBS) for energy storage. This analytical framework begins with a one-dimensional transient heat conduction problem subjected to a time-dependent heat flux for a single borehole. The single borehole scenario is then extended to multiple boreholes by exploiting lines of symmetry (or thermal superposition). A final expression of the temperature distribution along the center line is attained for single, double, and multiple boreholes, which is verified with a two-dimensional finite-element numerical model (less than 0.7% mean absolute deviation) and uses much lesser computational power and time. The analytical solution is also validated against a field-scale experiment from the literature regarding the borehole and ground temperatures at different time frames, with an absolute error below 6.3%. Further, the thermal performance of S-GBS and W-GBS is compared for a 3-by-3 borehole configuration using the analytical model to ensure its versatility in thermal energy storage. It is concluded that our proposed analytical framework can rapidly evaluate closed-loop geothermal BHEs, regardless of the numbers of boreholes and the type of the heat flux on the borehole wall.

Understanding the Macro-financial Effects of Household Debt

2020 ◽  
pp. 226-254
Author(s):  
Adrian Alter ◽  
Alan Feng ◽  
Nico Valckx
Keyword(s):  
Exchange Rates ◽  
Financial Development ◽  
Negative Relationship ◽  
Household Consumption ◽  
Banking Crises ◽  
Crash Risk ◽  
Gdp Growth ◽  
Household Debt ◽  
Debt Overhang ◽  
Flexible Exchange Rates

Higher household debt has been associated with lower future GDP growth across a broad set of 80 countries over the period from 1950 to 2016. Several institutional factors, such as flexible exchange rates, capital account openness, and higher financial development and inclusion, appear to mitigate this negative relationship between an increase in household debt and lower future GDP growth. Three mutually reinforcing mechanisms help explain this relationship. First, increases in household debt amplify the probability of future banking crises which significantly disrupt financial intermediation. Second, crash risk may be systematically neglected due to investors’ overoptimistic expectations associated with household debt booms. Third, debt overhang impairs household consumption when negative shocks hit.

US household deleveraging following the Great Recession – a model-based estimate of equilibrium debt

2015 ◽  
Vol 15 (1) ◽  
Author(s):  
Bruno Albuquerque ◽  
Ursel Baumann ◽  
Georgi Krustev
Keyword(s):  
Great Recession ◽  
Balance Sheet ◽  
State Level ◽  
Household Debt ◽  
The Great Recession ◽  
Us Economy ◽  
Pooled Mean Group ◽  
Level Data ◽  
The Us ◽  
Income Ratio

AbstractThe balance sheet adjustment in the household sector was a prominent feature of the Great Recession that is widely believed to have held back the cyclical recovery of the US economy. A key question for the US outlook is therefore whether household deleveraging has ended or whether further adjustment is needed. The novelty of this paper is to estimate a time-varying equilibrium household debt-to-income ratio determined by economic fundamentals to examine this question. The paper uses state-level data for household debt from the FRBNY Consumer Credit Panel over the period 1999Q1–2012Q4 and employs the Pooled Mean Group (PMG) estimator developed by Pesaran, Shin, and Smith (1999), adjusted for cross-section dependence. The results support the view that, despite significant progress in household balance sheet repair, household deleveraging still had some way to go as of 2012Q4, as the actual debt-to-income-ratio continued to exceed its estimated equilibrium. The baseline conclusions are rather robust to a set of alternative specifications. Going forward, our model suggests that part of this debt gap could, however, be closed by improving economic conditions rather than only by further declines in actual debt. Nevertheless, the normalisation of the monetary policy stance may imply challenges for the deleveraging process by reducing the level of sustainable household debt.

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