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Financial intermediaries, markets, and growth

Fecht, Falko; Huang, Kevin - Econometric Society - 2004

studying an environment in which a trade-off between risk sharing and growth arises endogenously. Financial intermediaries …-sharing and growth. We show the balance of intermediaries and market that maximizes welfare depend on parameter values. …

Persistent link: https://www.econbiz.de/10005130194

Banks and Capital Inflows

Fontenla, Matias - Econometric Society - 2004

This paper examines the effects that capital inflows have on the financial system in a Diamond-Dybvig environment. Here, an adverse-selection problem arises where short-term capital has the incentive to enter the domestic banking system while long-term capital chooses to stay out. Then,...

Persistent link: https://www.econbiz.de/10005328911

Financial Intermediation, Moral Hazard, And Pareto Inferior Trade

Hansen, B.O.; Keiding, H. - Econometric Society - 2004

A simple two-country model of international trade under uncertainty is considered, where investors choose uncertain projects depending on interest rates, with high rates leading to risky projects. If investment is financed by bond markets, there can be asymmetric equilibria which can be Pareto...

Persistent link: https://www.econbiz.de/10005699607

Banks, Liquidity Crises and Economic Growth

Gaytan, Alejandro; Ranciere, Romain - Econometric Society - 2004

How do the liquidity functions of banks affect investment and growth at different stages of economic development? How … issues using an overlapping generations growth model where agents, who experience idiosyncratic liquidity shocks, can invest … a growth enhancing role in reducing inefficient liquidation of long term projects, but they may face liquidity crises …

Persistent link: https://www.econbiz.de/10005702659

Conflicts of Interest and Credible Information Provision by Specialized and One-Stop Banks

Shapiro, Joel; Bolton, Patrick; Freixas, Xavier - Econometric Society - 2004

This paper is concerned with the general question of the provision of information by financial intermediaries to their customers. Specifically, it analyzes the different ways the market can be organized and its effects on pricing and the level of information investors obtain. We find that market...

Persistent link: https://www.econbiz.de/10005328965

Sources of Corporate Financing and Economic Crisis in Korea: A Micro-evidence

LIM, Youngjae - Econometric Society - 2004

Using the firm-level data set, this paper attempts to examine the dynamic patterns in the allocation of credit across firms in Korea. Supposedly, in Korea, the economic crisis in 1997 had a significant impact on the pattern in the allocation of credit across firms. In particular, this paper aims...

Persistent link: https://www.econbiz.de/10005342312

Credit Constraints and Distress Sales in Rural India: An Econometric Analysis

Rajasekhar, D.; Gagan; B.S - Econometric Society - 2004

Abstract The literature on rural credit market has generally assumed that farm households are rationed in their access to subsidised formal credit. Due to lack of infrastructure and poor access to institutional credit, exploitation of farmers in interlocked credit market is expected to be high....

Persistent link: https://www.econbiz.de/10005342334

Non-Exclusive Contracts, Collateralized Trade, and a Theory of an Exchange

Leitner, Yaron - Econometric Society - 2004

Liquid markets where agents have limited capacity to sign exclusive contracts, as well as imperfect knowledge of previous transactions by others, raise the following risk: An agent can promise the same asset to multiple counterparties and subsequently default. I show that in such markets an...

Persistent link: https://www.econbiz.de/10005063592

Offsetting the Incentives: Risk Shifting and Benefits of Benchmarking in Money Management

Shapiro, Alex; Basak, Suleyman; Pavlova, Anna - Econometric Society - 2004

Money managers are rewarded for increasing the value of assets under management, and predominantly so in the mutual fund industry. This gives the manager an implicit incentive to exploit the well-documented positive fund-flows to relative-performance relationship by manipulating her risk...

Persistent link: https://www.econbiz.de/10005699668

Asymmetric Power Distribution: Theory and Applications to Risk Measurement

Komunjer, Ivana - Econometric Society - 2004

Theoretical literature in finance has shown that quantifying the risk of financial time series amounts to measuring their expected shortfall, also known as tail Value at Risk. Unfortunately, little empirical work has been devoted to the problem of modeling and inference of such risk measures...

Persistent link: https://www.econbiz.de/10005328924