Showing 1 - 10 of 119
In this paper, we reexamine the question "Why doesn't capital flow from rich to poor countries?" posed, most recently, by Lucas (1990). We build a simple contracting framework where costly intermediation together with an adverse selection problem have quantitatively important effects on capital...
Persistent link: https://www.econbiz.de/10005126182
…nancial intermediation. The research focuses at the analysis of the consequences of a suddain negative production shock on a … reaction” when a single macroeconomic shock can lead to the exhaustion of credit resources and the bankruptcy of the whole … induced by the shock are below those in the market economy. …
Persistent link: https://www.econbiz.de/10005126268
Asymmetry in views of depositors and bankers can generate failures of financial intermediation in linking creditors and borrowers, and/or result in excessively high interest rates. Instead of considering asymmetry in assessment of the banks' solvency, this paper focuses on asymmetry in views as...
Persistent link: https://www.econbiz.de/10005134636
smooth the negative consequences of a macroeconomic shock. The model describes a two-market OLG economy with two types of … setting allows for a comparison regarding the speed of economic recovery after the shock. The principal finding is that the … market-based system provides better arrangements to speed up the recovery, but concentrates the burden of the shock in one …
Persistent link: https://www.econbiz.de/10005134734
Just when China’s leaders receive conflicting signals of “overheating” and “below-potential growth”, they encounter tremendous external pressure to revalue the Renminbi (RMB) substantially. Our conclusion is that the major macroeconomic challenges have their roots in China’s...
Persistent link: https://www.econbiz.de/10005062405
This paper analyzes sequential games of double-sided Bertrand competition in the deposit and credit markets, when banks are free to reject customers and cannot distinguish among borrowers. The timing of competition is crucial when customers apply once. Interest rates are pushed upwards when the...
Persistent link: https://www.econbiz.de/10005550896
Egypt accelerated its ongoing transition from a public sector dominated economy to a private sector led and market oriented economy after the collapse of oil prices in the mid-1980s. Some aspects of the economy, such as trade policy, have been substantially transformed since then whereas other...
Persistent link: https://www.econbiz.de/10005118733
This paper is on monetary policy transmission. First, it asks the question whether industries are affected differently by monetary policy shocks. Here both output and price effects are compared. Second, some industry characteristics are explored which may help to understand the existence of...
Persistent link: https://www.econbiz.de/10005561233
A two-block open economy model is estimated in this paper using Australian and U.S. data. Evaluation of the estimated model is carried out in relation to a simple closed economy alternative. Namely, we inspect the implied transmission mechanisms, and examine the relative out-of-sample...
Persistent link: https://www.econbiz.de/10005125001
positive response of price to a monetary policy shock is historically limited to the sub-samples associated with a weak central … equilibria arise. In contrast, the DSGE model never generates on impact a positive inflation response to a policy shock. The …
Persistent link: https://www.econbiz.de/10005126381