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Credit Constraints, Quality, and Export Prices: Theory and Evidence from China

Fan, Haichao; Lai, Edwin L.-C.; Li, Yao Amber - 2013

exports. The paper modifies Arkolakis's (2010) model of trade with heterogeneous firms by introducing endogenous quality and … choice of lower-quality products dominates the price distortion effect resulting from credit constraints. However, a … competing theory based on the alternative assumption that quality is exogenous across firms would predict completely opposite …

Persistent link: https://www.econbiz.de/10010319388

Marketmaking Middlemen

Gautier, Pieter A.; Hu, Bo; Watanabe, Makoto - 2016

This paper develops a model in which market structure is determined endogenously by the choice of intermediation mode. We consider two representative business modes of intermediation that are widely used in real-life markets: one is a middleman mode by which an intermediary holds inventories...

Persistent link: https://www.econbiz.de/10011522530

Creative destruction and productive preemption

Norbäck, Pehr-Johan; Persson, Lars; Svensson, Roger - 2013

We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are … entrepreneurial effort allocated to high-quality invention projects. Using data on patents granted to small firms and individuals, we … find evidence that high-quality inventions are sold under preemptive bidding competition. Asymmetric information problems …

Persistent link: https://www.econbiz.de/10010291511

Monitoring, Cross Subsidies, and Universal Banking

Choi, Jay Pil; Stefanadis, Christodoulos - 2015

We formalize the idea that a financial conglomerate may utilize commercial banking activities to cross-subsidize investment banking through bundled offers. The investment banking sector entails supra-normal profits due to incentive problems with security underwriting. Universal banks may aim to...

Persistent link: https://www.econbiz.de/10011388176

Institutional Reform and Depositors' Portfolio Choice - Evidence from Censored Quantile Regressions

Berlemann, Michael; Luik, Marc-André - 2014

In this paper we study the effect of institutional reform on the decision to hold risky assets at the extensive and the intensive margin. We therefore make use of the natural experiment of German Division and Reunification and, based on savings bank customer data from German savings banks, study...

Persistent link: https://www.econbiz.de/10010352408

Demographic change and bank profitability: empirical evidence from German savings banks

Berlemann, Michael; Oestmann, Marco; Thum, Marcel - 2010

Most European economies will experience significant demographic changes in the decades ahead. Due to low birth rates, populations are shrinking and ageing at the same time. This paper explores the impact of demographic change on the banking industry. A unique data set, which contains detailed...

Persistent link: https://www.econbiz.de/10010271784

Systemic Risk and the Great Depression

Das, Sanjiv Ranjan - 2019

We employ a unique hand-collected dataset and a novel methodology to examine systemic risk before and after the largest U.S. banking crisis of the 20th century. Our systemic risk measure captures both the credit risk of an individual bank as well as a bank’s position in the network. We...

Persistent link: https://www.econbiz.de/10012892160

Government Guarantees and Bank Risk Taking Incentives

Fischer, Markus; Hainz, Christa; Rocholl, Jörg; … - 2014

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

Bank Bonus Pay as a Risk Sharing Contract

Efing, Matthias; Hau, Harald; Kampkötter, Patrick; … - 2019

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that make external financing costly, the optimal contract between shareholders and employees involves some degree of risk sharing whereby bonus pay partially absorbs earnings shocks....

Persistent link: https://www.econbiz.de/10012018186

The Loan Puzzle. A Study of Loans to Different Groups in the USA.

Cafiso, Gianluca - 2020

We study loans from banking and non-banking lenders to different groups of borrowers in order to unveil significant differences on how those respond to a shock and evaluate possible alternative explanations for such differences. The objective is to gain insights useful to explain the loan...

Persistent link: https://www.econbiz.de/10012207940

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