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This paper builds a macro model with a financial sector and a housing market to understand the transmission and effects of macroprudential instruments addressing mortgage credit. The model compares the introduction of a loan-to-value ratio (LTV), a countercyclical capital buffer (CCyB)-style...
Persistent link: https://www.econbiz.de/10012034723
We analyze the effect of the geographic expansion of banks across U.S. states on the co-movement of economic activity between states. Exploiting the removal of interstate banking restrictions to construct time-varying instrumental variables at the state-pair level, we find that bilateral banking...
Persistent link: https://www.econbiz.de/10012651086
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paper shows that financial regulation can be effective at mitigating this type of risk. Exploiting regulatory changes … financial institutions subject to stricter regulation. Following the easing of these regulations, overconfidence-induced risk …-taking increases again. These findings confirm the effectiveness of financial regulation at correcting overconfident behavior, but also …
Persistent link: https://www.econbiz.de/10014477386
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We present a simple model, illustrating how democracy may improve the quality of the economic institutions. The model further suggests that institutional quality varies more across autocracies than across democracy and that the positive effect of democracies on economic institutional quality...
Persistent link: https://www.econbiz.de/10013342090
The development of macroprudential policy tools has been one of the most significant changes in banking regulation in …
Persistent link: https://www.econbiz.de/10011595267
Persistent link: https://www.econbiz.de/10000914061
monetary policy shock depends on the degree of economic regulation in different markets. In particular, financial (product … allowed to vary as a function of the degree of financial, product and labour market regulation on data from 1976 Q1-2006 Q4 …
Persistent link: https://www.econbiz.de/10011436615
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