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Does Regulatory Harmonization Increase Bilateral Asset Holdings?

Vlachos, Jonas - C.E.P.R. Discussion Papers - 2004

By combining new data on bilateral asset holdings with data on securities regulation in an empirical gravity model, it … is found that bilateral differences in securities regulation lead to decreased portfolio holdings. Hence, regulatory … the exogenous component of asset holdings to be associated with larger differences in securities regulation. This might …

Persistent link: https://www.econbiz.de/10005124356

Bank and Sovereign Risk Interdependence in the Euro Area

Kollintzas, Tryphon; Tsoukalas, Konstantinos - C.E.P.R. Discussion Papers - 2015

We develop a dynamic stochastic general equilibrium model to study bank risk and sovereign risk interdependence in the Euro Area. We find that an increase in capital investment risk shock, results in a considerably deeper recession when sovereign risk is also present. This result has three...

Persistent link: https://www.econbiz.de/10011201352

Explaining Forward Exchange Bias .... Intra-day

Lyons, Richard K; Rose, Andrew K - C.E.P.R. Discussion Papers - 1994

Intra-day interest rates are zero. Consequently, a foreign exchange dealer can short a vulnerable currency in the morning, close this position in the afternoon, and never face an interest cost. This tactic might seem especially attractive in times of crisis, since it suggests an immunity to the...

Persistent link: https://www.econbiz.de/10005124023

Money Illusion and Housing Frenzies

Brunnermeier, Markus K; Julliard, Christian - C.E.P.R. Discussion Papers - 2007

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or buy a house by simply comparing monthly rent and mortgage payments do not take into account that inflation lowers future real mortgage costs. We...

Persistent link: https://www.econbiz.de/10005067397

Monetary Policy in an Open Economy: The Differential Impact on Exporting and Non-Exporting Firms

Ber, Hedva; Blass, Asher; Yosha, Oved - C.E.P.R. Discussion Papers - 2002

Using firm-level data, we provide evidence that, although monetary policy affects real investment, the effect operates differentially: the greater its export intensity the less a firm is affected by tight money. We examine several interpretations and conclude that the impact is transmitted...

Persistent link: https://www.econbiz.de/10005504673

The Wealth-Consumption Ratio

Lustig, Hanno; van Nieuwerburgh, Stijn; Verdelhan, Adrien - C.E.P.R. Discussion Papers - 2012

We derive new estimates of total wealth, the returns on total wealth, and the wealth effect on consumption. We estimate the prices of aggregate risk from bond yields and stock returns using a no-arbitrage model. Using these risk prices, we compute total wealth as the price of a claim to...

Persistent link: https://www.econbiz.de/10011083953

What Calls to ARMs? International Evidence on Interest Rates and the Choice of Adjustable Rate Mortgages

Badarinza, Cristian; Campbell, John Y; Ramadorai, Tarun - C.E.P.R. Discussion Papers - 2014

The relative popularity of adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) varies considerably both across countries and over time. We ask how movements in current and expected future interest rates affect the share of ARMs in total mortgage issuance. Using a nine-country panel...

Persistent link: https://www.econbiz.de/10011084239

Monetary transmission in low income countries

Mishra, Prachi; Montiel, Peter J; Spilimbergo, Antonio - C.E.P.R. Discussion Papers - 2010

framework prevalent in LICs drastically reduces the role of securities markets and increases the cost of bank lending to private …

Persistent link: https://www.econbiz.de/10008466328

Corporate Efficiency in Europe

Hanousek, Jan; Kocenda, Evzen; Shamshur, Anastasiya - C.E.P.R. Discussion Papers - 2015

Europe. We find that (i) larger firms are less efficient than smaller firms, (ii) greater leverage contributes to corporate …

Persistent link: https://www.econbiz.de/10011213309

Income inequality, decentralisation and regional development in Western Europe

Pike, Andy J; Rodriguez-Pose, Andres; Tomaney, John; … - C.E.P.R. Discussion Papers - 2011

Western Europe has an effect on within regional interpersonal inequality. Second, whether this potential relationship is …

Persistent link: https://www.econbiz.de/10009322504