금융부문의 중요성 (Importance of Financial Institutions) ◈ Robinson Crusoe example ☞The advantage of developed Financial industry (Financial Institutions & market) ◈ Two-preriod model ☞ It shows that the developed financial industry increases the utility of members
초기부(Initial endowment) <Fig. 1> Future consumption C1 E y1 Indifference curve y0 C0 Current consumption
생산기회가 있는 경우의 소비집합 ( Consumption set in production opportunity ) <Fig. 2> Future consumption I1 B I2 P b E y1 C0 a y0 A Current consumption
발달된 금융시장이 존재할 경우의 최적 생산점 (Optimal production point in developed financial market) <Fig. 3> W1’ Future consumption W1 B P* d P E y1 X f C0 c y0 A e W0 W0’ Current consumption
금융시장이 존재할 경우의 최적 소비조합(Optimal consumption set in developed financial market) <Fig. 4> C1 W1’ Future consumption W1 B d P* P C* y1 E C0 c y0 A e W0 W0’ Current consumption
rL = rB인 경우 소비기회집합의 확대 (expansion of Consumption opportunity set in case of rL=rB) <Fig. 5> Future consumption SLOPE = -(1+rL)=-(1+rB) C0 Current consumption
rL < rB인 경우 소비기회집합의 확대 (expansion of Consumption opportunity set in case of rL<rB) <Fig. 6> Future consumption SLOPE = -(1+rL)=-(1+rB) C0 Current consumption
기업의 최적 결정 (Optimal decision in case of corporation) <Fig. 7> C1 Budget line two-period horizon Ignore risk assume Repay Future Consumption C0 Over-investment = negative NPV Borrowing Investment Value created = NPV Endowment
발달된 금융시장의 조건 (Condition of developed financial market) ◈ 금융시장의 효율성 (Perfect and Complete Market) 1. Operational Efficiency 2. Informational Efficiency 3. Allocational Efficiency
Perfect Market 의 의미 (What Is Perfect Market?) No transactions costs: no tax, no fees, perfect divisibility, no information asymmetry, Perfect competition: borrowing and lending rates equal, no excess return, Ex) The assumptions for CAPM
Complete Market 의 의미 (What Is Complete Market?) There are as many independent securities as the number of future states of nature. The meaning of independent security: The cash flow pattern of that security cannot be replicated by the combination of other existing securities