Rollover risk imposes market discipline on banks’ risk-taking behavior but it can be socially costly. I present a two … capital constrained, uncertainty in asset quality and rollover risk create a negative externality that spills over to the real …

This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp … investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and … economic policy uncertainty. Our results suggest that while explaining aggregate investment activity better than nominal …

-led growth and face growing risks from a deceleration in investment in China. This note quantifies potential global spillovers … from an investment slowdown in China. It finds that a one percentage point slowdown in investment in China is associated … vulnerable to an investment slowdown in China. The spillover effects also register strongly across a range of macroeconomic …

that some types of investment are becoming excessive in China, particularly in inland provinces. In these regions, private … existing trends continue, valuable resources could be wasted at a time when China’s ability to finance investment is facing …This paper proposes a possible framework for identifying excessive investment. Based on this method, it finds evidence …

Real estate investment accounts for a quarter of total fixed asset investment (FAI) in China. The real estate sectorâ … process relies primarily on collateral, like in China. As a result, the impact on economic activity of a collapse in real … estate investment in China—though a low-probability event—would be sizable, with large spillovers to a number of Chinaâ …

Now close to 50 percent of GDP, this paper assesses the appropriateness of China’s current investment levels. It … stand out, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than …. However, because its investment is predominantly financed by domestic savings, a crisis appears unlikely when assessed against …

rates of FDI as well as domestic capital formation. This "investment hunger" can lead to unanticipated declines in the … returns to investment, and resulting financial insolvencies. Private consumption remains low and there are concerns that high …, loosely based upon China. We calibrate a benchmark equilibrium, and carry out various counterfactual simulations to analyze …

This paper summarizes recent arguments/findings on two aspects of foreign direct investment (FDI): its correlation with … importance of fiscal incentives, the business/investment climate, labor costs, and openness. …

with different levels of country risk. We construct a model of firms' FDI decisions, broadly in Dunning's "eclectic theory …" framework, using "real options" to emphasize economic uncertainty and country risk. Numerical results of the model take the form … investments at each level of country risk and foreign investors' willingness towards risk sharing increases. We reveal a …