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Spending responses to state sales tax holidays

Agarwal, Sumit; McGranahan, Leslie - 2012

Every year over 20 states offer sales tax holidays (STHs) on specific items like clothes, shoes and other items to encourage consumption, effecting over 100 million consumers. We use a unique dataset of credit cards transaction to study the spending response to these holidays. Using a...

Persistent link: https://www.econbiz.de/10010292191

Socially excessive bankruptcy costs and the benefits of interest rate ceilings on loans

Espinosa-Vega, Marco A.; Smith, Bruce D. - 2001

The authors study the capital accumulation and welfare implications of ceilings on loan interest rates in a dynamic general equilibrium model. Binding ceilings on loan rates reduce the probability of bankruptcy. Lower bankruptcy rates result in lower bankruptcy and liquidation costs. The authors...

Persistent link: https://www.econbiz.de/10010397532

Exchange-rate stability causes deterioration of the productive sphere and destabilizes developing economies

Huerta González, Arturo - 2024

For Matías Vernengo and Esteban Pérez Caldentey (2020), the MMT literature overemphasizes the choice of the exchange rate regime and the relevance of a flexible exchange rate regime, as well as the ultimate effect of that choice upon the policy space. In addition, they argue that the role of...

Persistent link: https://www.econbiz.de/10014581843

What's in a name? An experimental examination of investment behavior

Ackert, Lucy F.; Church, Bryan K.; Tompkins, James; … - 2003

A fundamental unresolved issue is whether information asymmetries underlie investors' predisposition to invest close to home (i.e., domestically or locally). The authors conduct experiments in the United States and Canada to investigate agents' portfolio allocation decisions, controlling for the...

Persistent link: https://www.econbiz.de/10010397514

Tracking foreign capital: The effect of capital inflows on bank lending in the UK

Kneer, Christiane; Raabe, Alexander - 2019

overseas residents. Information on the source country of foreign capital deposited with UK banks allows us to construct a novel … Bartik instrument for capital inflows. Our results suggest that foreign funds boost bank lending to the domestic economy … financial institutions. Banks do not channel capital inflows directly to households or the public sector. Much of the foreign …

Persistent link: https://www.econbiz.de/10012040362

Financial crises in emerging markets: a canonical model

Chang, Roberto; Velasco, Andres - 1998

We present a simple model that can account for the main features of recent financial crises in emerging markets. The international illiquidity of the domestic financial system is at the center of the problem. Illiquid banks are a necessary and a sufficient condition for financial crises to...

Persistent link: https://www.econbiz.de/10010397417

Firm-level evidence on international stock market movement

Brooks, Robin; Del Negro, Marco - 2003

We explore the link between international stock market comovement and the degree to which firms operate globally. Using stock returns and balance sheet data for companies in twenty countries, we estimate a factor model that decomposes stock returns into global, country- and industry-specific...

Persistent link: https://www.econbiz.de/10010397419

The present-value model of the current account has been rejected: Round up the usual suspects

Nason, James M.; Rogers, John H. - 2003

Tests of the present-value model of the current account are frequently rejected by the data. Standard explanations rely on the "usual suspects" of nonseparable preferences, shocks to fiscal policy and the world real interest rate, and imperfect international capital mobility. The authors confirm...

Persistent link: https://www.econbiz.de/10010397422

Private international debt with risk of repudiation

Jeske, Karsten - 2005

The risk of repudiation plays a central role in the size and nature of international capital flows. In this paper the author addresses the question of whether, in a world of international capital flows with risk of default, strategic externalities provide a rationale for regulation of...

Persistent link: https://www.econbiz.de/10010397500

An analysis of Japanese stock return dynamics conditional on U.S. Monday holiday closures

Hiraki, Takato; Maberly, Edwin D. - 2000

This paper examines a unique data set consisting of Japanese equity returns for the Friday, Monday, and Tuesday surrounding U.S. Monday holiday closures. The objective is to neutralize the impact of spillover effects from New York to Tokyo. Prior studies find that Japanese returns are negative...

Persistent link: https://www.econbiz.de/10010397505