Showing 1 - 10 of 25
This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of guarantees for German Landesbanken which results in lower credit ratings, higher funding costs, and a loss in franchise value. This removal was announced in 2001, but...
Persistent link: https://www.econbiz.de/10010352433
We study the contribution of loans, granted to different borrower groups, to economic activity in the USA over the … estimation of a large VAR through Bayesian techniques. Loans to households emerge as the most important driver of economic …
Persistent link: https://www.econbiz.de/10012314817
This paper uses fractional integration and cointegration methods to analyse the determinants of the amount of loans … gross investment as determinants of loans to NFCs. The forecasting accuracy of the FCVAR was also assessed by comparing it …
Persistent link: https://www.econbiz.de/10012425580
We develop a stylized DSGE model in which banks face capital regulation and their loan portfolios are subject to non-diversifiable losses due to aggregate shocks. The framework is used to explore the importance of the interaction between macroeconomic conditions, credit default and bank...
Persistent link: https://www.econbiz.de/10011584859
reform. But how do increased capital requirements affect business loans? While there is widespread belief that the real costs … of increased bank capital in terms of reduced loans could be substantial, there are good reasons to believe that the … between the capitalization of the banking sector and bank loans using panel cointegration models. We study the evolution of …
Persistent link: https://www.econbiz.de/10010283577
Do macroprudential regulations on residential lending influence commercial lending behavior too? To answer this question, we identify the compositional changes in banks’ supply of credit using the variation in their holdings of residential mortgages on which extra capital requirements were...
Persistent link: https://www.econbiz.de/10012141016
Neither marriage nor a legally enforceable contract serves any useful purpose if the parties have access to a perfect credit market. In the presence of credit rationing, efficiency and utility equalization are guaranteed only by a legally enforceable contract. Separate-property marriage may...
Persistent link: https://www.econbiz.de/10010328730
, implemented at the end of a three-year cycle in which contracts are generally revised, was (a) the joint outcome of negotiations …
Persistent link: https://www.econbiz.de/10010333400
This paper studies general equilibrium when workers in the economy are also consumers of final goods. Once a firm and a worker are matched, there is a standard moral hazard problem. However, the firm’s profit depends on the price of the good the worker produces, and the price is determined by...
Persistent link: https://www.econbiz.de/10011584962
are on electricity-included property lease contracts causing them to face a marginal electricity price of zero. We use … exogenous variation in weather shocks to show that the largest firms on tenant-paid contracts use up to 14 percent less …
Persistent link: https://www.econbiz.de/10012052840