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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 …
Persistent link: https://www.econbiz.de/10013055667
like no other at a time of record-breaking debt levels, especially among nonfinancial firms across the world, could …-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …
Persistent link: https://www.econbiz.de/10013250075
This paper examines the impact of financial liberalization on fixed investment in Mexico, using establishment …
Persistent link: https://www.econbiz.de/10013321422
-binding investment credit limit. Permanent dividend tax reforms distort capital investment decisions in the binding long-run equilibrium …
Persistent link: https://www.econbiz.de/10014079906
, consumption, and investment growth, but only up to a certain point. At very high levels, such as those observed in many advanced … economies, financial depth amplifies consumption and investment volatility. We also find strong evidence that deeper financial …
Persistent link: https://www.econbiz.de/10013086316
development. We find that liberalization is associated with a short-term increase in real private investment growth of about 14 …
Persistent link: https://www.econbiz.de/10013211945
The US economy is often referred to as the “banker to the world,” due to its unique role in supplying global reserve … assets and funding foreign risky investment. This paper develops a general equilibrium model to analyze and quantify the …
Persistent link: https://www.econbiz.de/10013306735
In this paper we build a model of occupational choice with informal production and progressive income taxation. We calibrate the model to the Brazilian economy to evaluate the impact of removing financial frictions on informality. We find that financial deepening leads to a drop in the size of...
Persistent link: https://www.econbiz.de/10013314843
Finance and growth emerged as a distinct field of economics during the last three decades as economists integrated the fields of finance and economic growth and then explored the ramifications of the functioning of financial systems on economic growth, income distribution, and poverty. In this...
Persistent link: https://www.econbiz.de/10013306793
We propose a stress testing framework of credit risk, which analyzes macro-financial linkages, generates consistent forecasts of macro-financial variables, and projects NPL on the basis of such forecasts. Economic contractions are generally associated with increases in non-performing loans...
Persistent link: https://www.econbiz.de/10012962169