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Basel Accord and Financial Intermediation: The Impact of Policy

Berka, Martin; Zimmermann, Christian - CESifo - 2012

This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing from households. Loan activity typically decreases when entrepreneurs’ investment returns decline, and we study which type of policy could revigorate an economy in a trough. We...

Persistent link: https://www.econbiz.de/10009645629

Fundamentals, Misvaluation, and Investment: The Real Story

Chirinko, Robert S.; Schaller, Huntley - CESifo - 2007

Is real investment fully determined by fundamentals or is it sometimes affected by stock market misvaluation? We introduce three new tests that: measure the reaction of investment to sales shocks for firms that may be overvalued; use Fama-MacBeth regressions to determine whether "overinvestment"...

Persistent link: https://www.econbiz.de/10005766115

Do Bubbles Lead to Overinvestment?: A Revealed Preference Approach

Chirinko, Robert S.; Schaller, Huntley - CESifo - 2011

Many economists believe that the stock market plays an important role in efficiently allocating capital to its most productive uses. This standard story of the stock market was called into question by events in the late 1990s, when some observers believed that stock market overvaluation – or a...

Persistent link: https://www.econbiz.de/10009150640

The Growth Effect of Democracy: Is it Heterogenous and how can it be Estimated?

Persson, Torsten; Tabellini, Guido - CESifo - 2007

We estimate the effect of political regime transitions on growth with semi-parametric methods, combining difference in … parametric estimates may have seriously underestimated the growth effects of democracy. In particular, we find an average … negative effect on growth of leaving democracy on the order of −2 percentage points implying effects on income per capita as …

Persistent link: https://www.econbiz.de/10005181259

Political Booms, Financial Crises

Herrera, Helios; Ordonez, Guillermo; Trebesch, Christoph - CESifo - 2014

We show that political booms, measured by the rise in governments’ popularity, predict financial crises above and beyond other better-known early warning indicators, such as credit booms. This predictive power, however, only holds in emerging economies. We show that governments in emerging...

Persistent link: https://www.econbiz.de/10010888458

Consumption, Wealth, Stock and Housing Returns: Evidence from Emerging Markets

Caporale, Guglielmo Maria; Sousa, Ricardo M. - CESifo - 2011

In this paper, we show, using the consumer’s budget constraint, that the residuals of the trend relationship among consumption, aggregate wealth, and labour income should predict both stock returns and housing returns. We use quarterly data for a panel of 31 emerging economies and find that,...

Persistent link: https://www.econbiz.de/10009325810

Monetary Policy, Vagabonding Liquidity and Bursting Bubbles in New and Emerging Markets – An Overinvestment View

Hoffmann, Andreas; Schnabl, Gunther - CESifo - 2007

Credit booms have globally fuelled hikes in stock, raw material and real estate markets which have culminated in the recent US subprime market crisis. We explain the global asset market booms since the mid 1980s based on the overinvestment theories of Hayek, Wicksell and Schumpeter. We argue...

Persistent link: https://www.econbiz.de/10005094169

Self-Enforcing International Environmental Agreements and Trade: Taxes Versus Caps

Eichner, Thomas; Pethig, Rüdiger - CESifo - 2014

This paper studies within a multi-country model with international trade the stability of international environmental agreements (IEAs) when countries regulate carbon emissions either by taxes or caps. Regardless of whether coalitions play Nash or are Stackelberg leaders the principal message is...

Persistent link: https://www.econbiz.de/10010948902

Does China Still Have a Labor Cost Advantage?

Ceglowski, Janet; Golub, Stephen - CESifo - 2011

In recent years wages in China have been rising and the yuan has appreciated, potentially eroding China’s cost advantage in manufactures. This paper explores the evolution of China’s relative unit labor costs in manufacturing over 1998-2009. Between 1998 and 2003 China’s unit labor costs...

Persistent link: https://www.econbiz.de/10009323303

Reciprocity, World Prices and Welfare

Raimondos-Møller, Pascalis; Woodland, Alan D. - CESifo - 2011

We examine in detail the circumstances under which reciprocity, as defined in Bagwell and Staiger (1999), leads to fixed world prices. We show that a change of tariffs satisfying reciprocity does not necessarily imply constant world prices in a world of many goods and countries. While it is...

Persistent link: https://www.econbiz.de/10009324094

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