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when investment is debt-financed. In such a case a firm pays the creditor not only the sum of annual interest (initial … the investment is debt-financed, the interest payment additionally reduces the corporate tax base. The research findings … optimum debt maturity tends to correlate positively with the corporate tax rate but negatively with the interest rate. In the …
Persistent link: https://www.econbiz.de/10011402695
times. The paper analyzes how these government programs influence credit allocation, indebtedness, and risk at both the … expansion of the credit program by supporting firms and enabling banks to screen firms better. Macroeconomic risk of the credit …This paper studies how credit guarantee and employment protection programs interact in assisting firms during crises …
Persistent link: https://www.econbiz.de/10015191750
Consumption risk sharing among U.S. federal states increases in booms and decreases in recessions. We find that small … firms' access to credit markets plays an important role in explaining this stylized fact: business cycle fluctuations in … aggregate risk sharing are more pronounced in states in which small firms account for a large share income or employment. In …
Persistent link: https://www.econbiz.de/10003807913
others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit … slower recoveries. Credit-financed housing price bubbles have emerged as a particularly dangerous phenomenon. …
Persistent link: https://www.econbiz.de/10011309562
risk of firm default. …
Persistent link: https://www.econbiz.de/10011958806
This paper examines the effects of Islamic banking on the causal linkages between credit and GDP by comparing two sets … analysis provides evidence of long-run causality running from credit to GDP in countries with Islamic banks only. This is …
Persistent link: https://www.econbiz.de/10011416380
Conventional wisdom in economics holds that traditional credit and insurance networks are inapt for insuring against … Savings and Credit Associations (Roscas), a popular group-based financial institution world-wide, in the aftermath of the 2004 … occupational groups, the price of credit and other loan characteristics. We find that the supply of funds in these local credit …
Persistent link: https://www.econbiz.de/10011931550
question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …
Persistent link: https://www.econbiz.de/10012064522
The idea that certain economic variables are roughly constant in the long-run is an old one. Kaldor described them as stylized facts, whereas Klein and Kosobud labelled them great ratios. While such ratios are widely adopted in theoretical models in economics as conditions for balanced growth,...
Persistent link: https://www.econbiz.de/10013041372
leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals …A healthy financial system encourages the efficient allocation of capital and risk. The collapse of the house price … stochastic optimal control (SOC)/dynamic risk management is a much more effective approach to determine the optimal degree of …
Persistent link: https://www.econbiz.de/10003936616