Nonlinear chaotic systems have attracted more attention of researchers in various fields of natural sciences. This is because these systems are rich in dynamics, and possess great sensitivity to initial conditions. Since the chaotic phenomenon in economics was first found in 1985, great impact has been imposed on the prominent western economics at present, because the chaotic phenomenon’s occurring in the economic system means that the macro economic operation has in it self the inherent indefiniteness.
Although the government can adopt such macro control measures as the financial policies or the monetary policies to interfere, the effectiveness of the interference is very limited. The instability and complexity make the precise economic prediction greatly limited, and the reasonable prediction behavior has become complicated as well. In the fields of finance, stocks and social economics, because of the interaction between nonlinear factors, with all kinds of economic problems being more and more complicated and with the evolution process from low dimensions to high dimensions, the diversity and complexity have manifested themselves in the internal structure of the system and there exists extremely complicated phenomenon and external characteristics in such a kind of system. So it has become more and more important to study the control of the complicated continuous economic system, and stabilize the instable periodic or stationary solutions, in order to make the precise economic prediction possible ([1]and [2]).
An important question related to both growth and finance theory is whether the financial system influences growth in the long run. We build a model in which financial markets reduce the amount of risk-sharing that financial intermediaries can provide but promote investment in a productive technology. Hence, in our model, market oriented financial systems yield more growth, but provide less risk-sharing than bank oriented systems. Which system provides the highest welfare is ambiguous.
We build on a model by Fecht (2004) in which banks play two different roles: First, as in Diamond and Dybvig (1983), they provide insurance to consumers against preference shocks. Second, as in Diamond and Rajan (2000, 2001), the refinancing from numerous small depositors enables banks - in contrast to other financial institutions to credibly commit to not renegotiate the repayment obligations on deposits, as this could trigger a run. While banks can invest freely in financial markets, households have to pay a cost to do so. We call households who pay that cost “sophisticated”.
When you ordered your BMW, you chose various items of equipment. This Owner's Manual describes all models and equipment that BMW offers within the same group. We hope you will understand that equipment and features are included which you might not have chosen for your vehicle. Any differences can easily be identified since all optional accessories and special equipment are marked with an asterisk *. If equipment in your BMW Z4 M Roadster/Z4 M Coupe is not described in this Supplementary Owner's Manual, please refer to the Owner's Manual for the BMW Z4.
