RESUMO
How does stablecoin design affect market behavior during turbulent periods? Stablecoins attempt to maintain a "stable" peg to the US dollar, but do so with widely varying structural designs. The spectacular collapse of the TerraUSD (UST) stablecoin and the linked Terra (LUNA) token in May 2022 precipitated a series of reactions across major stablecoins, with some experiencing a fall in value and others gaining value. Using a Baba, Engle, Kraft and Kroner (1990) (BEKK) model, we examine the reaction to this exogenous shock and find significant contagion effects from the UST collapse, likely partially due to herding behavior among traders. We test the varying reactions among stablecoins and find that stablecoin design differences affect the direction, magnitude, and duration of the response to shocks. We discuss the implications for stablecoin developers, exchanges, traders, and regulators.
RESUMO
In this study, we consider different poverty indexes in a dynamic framework where individuals change their rate of income randomly in time. The primary objective of this paper is to assess the accuracy of the approximation of the indexes that can be obtained by applying the strong law of large numbers to an economic system composed of an infinite number of agents. The main result is a multivariate central limit theorem for dynamic poverty measures, which is obtained applying the theory of U-statistics. We also show how to get the confidence sets for the considered dynamic indexes, which show the appropriateness of the model. An application to the Italian income data from 1998 to 2012 confirms the effectiveness of the considered approach and the possibility to determine the evolution of poverty and inequality in real economies.
