|Intellectual Property in Financing
Semester: Fruehling 05
Abstract: This paper analyses the use of intellectual property
in financing contracts. It defines intellectual property assets as the
codified, physical, fungible representation of an intangible asset. Such
intellectual property assets have two functions: there primary use is to
serve as property right on the usage of the intangible asset, there secondary
use is as representation of future cash flows resulting from the intangible
asset. Under the condition that primary and secondary function can be
separated, financial instruments can be constructed from the latter.
Such instruments have certain properties that distinguish them from
other financing instruments. First, their valuation is still an
unresolved question, why this paper sketches and comments the valuation
techniques in use today. Second, markets for intellectual property assets
are still small and illiquid. The institution of the intellectual property
assets intermediary therefore is introduced. Having found a price for the
asset and a marketplace, this paper finally introduces the existing
instruments for financing.
Currency Boards Collapse - The Case of Argentina.
Semester: Winter 04-05
Abstract: This paper first gives a concise overview of
the currency board era in Argentina, then offers a summary of
why economies may adopt fixed exchange rate regimes, and how
the currency board is canonically defined.
The main part of the paper then states eight conditions
necessary to make a currency board sustainable and analyzes
these conditions both in general and in respect to the
situation in Argentina in the currency board era.
It then turn to what may be considered the two main factors (these
two being peso overvaluation and fiscal policy) which led to
the collapse of the currency board system, analyzes them in
some more detail and shows the linkage between the two.
In the last part, this paper addresses alternatives Argentina
could have taken in different phases of the currency
board era, first and foremost dollarization, and what lessons
might be learned from Argentina's experience.
Bonds: An Overview for Investors and Issuers.
Semester: Sommer 04
Abstract: This paper offers an overview of the distinctive
features of convertible bonds for both investors and issuers.
For investors, it focuses on diversification potential
and the derivative character of the product. It shows that
reasonable potential exists when adding convertibles to bonds
and stocks. For issuers, the paper presents the academic
justification for convertible bonds, namely information
related problems like the overinvestment problem, divergent
risk perception or adverse selection at the issuance of
conventional equity. In a third part, the paper introduces three
classical pricing models (contingent claim analysis, the
no-arbitrage equilibrium condition and the binomial tree
approach, where the latter is discussed to some extent) and
finally sketches a few of the more recent developments in this
field of research.
Crises, Capital Controls and the Tobin Tax: Answers to
Globalisation of Financial Markets.
Semester: Sommer 04
paper analyzes capital controls with a focus on conversion
taxes as proposed by Tobin and Spahn. To understand the
problems associated with these models, it first offers a
description of the foreign exchange markets and their
decentralized, concentrated form of organization. In a second
part, the paper turns to financial crises, their causes and
their costs both domestic and international. Central issues
are bad allocation of resources, loss of information in the
banking sector and contagion. In a third part, the paper
analyzes capital control models as preventive measures to such
events, with a focus on conversion taxes. The paper shows
possible advantages of capital controls in general (a more
independent monetary policy) and of conversion taxes in
particular (systemic stability and tax payoffs). It then turns
to counterarguments to conversion taxes. A Tobin Tax would
punish all short-term investors indiscriminately. It would
rise hedging costs. There is a tax evasion problem not easily
overcome. The paper ends with a simple, qualitative model
where a Tobin Tax increases volatility contrary to
expectations. The paper concludes that Spahn's proposal shows
most promise, if the remaining issues, mainly related to
hedging costs, can be overcome.