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Hedge fund managers differ in ability and investors want to distinguish good ones from bad. Via the design of their investment strategies, better fund managers want to ease this inference problem while worse fund managers want to complicate it. We impose only the minimal restrictions on the...
Persistent link: https://www.econbiz.de/10010352178
default under net settlement can also distort banks' investment incentives. ; Absent these distortions, net settlement …
Persistent link: https://www.econbiz.de/10010397416
In this paper we use a simultaneous equations model to examine the relationship between analysts' forecasting decisions and institutions' investment decisions. Neglecting their interaction results in model misspecification. We find that analysts' optimism concerning a firm's earnings responds...
Persistent link: https://www.econbiz.de/10010397439
We study financial fragility, exchange rate crises, and monetary policy in an open economy version of a Diamond-Dybvig model. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails,...
Persistent link: https://www.econbiz.de/10010397526
insurance funds when banks fail. Is PCA misguided, or are there incentive defects in the law and how the requirements are being …
Persistent link: https://www.econbiz.de/10010397540
We estimate a large Bayesian time-varying parameter vector autoregressive (TVP-VAR) model of daily stock return volatilities for 35 U.S. and European financial institutions. Based on that model we extract a connectedness index in the spirit of Diebold and Yilmaz (2014) (DYCI). We show that the...
Persistent link: https://www.econbiz.de/10012060204
financing spending. We next examine the role played by financial institutions (e.g., banks) in the provision of finance. The …
Persistent link: https://www.econbiz.de/10010281714
We estimate the long-run effects of the 1930s Home Owners Loan Corporation (HOLC) redlining maps by linking children in the full count 1940 Census to 1) the universe of IRS tax data in 1974 and 1979 and 2) the long form 2000 Census. We use two identification strategies to estimate the potential...
Persistent link: https://www.econbiz.de/10013364534
set of additional Tier 1 (AT1) CoCos issued by banks in the European Economic Area between 2014 and 2020. Following …
Persistent link: https://www.econbiz.de/10013370153
We show that nonbanks (funds, shadow banks, fintech) affect the transmission of monetary policy to output, prices and …, borrowerlender relationships and Gertler-Karadi monetary policy shocks. Higher policy rates shift credit supply from banks to …
Persistent link: https://www.econbiz.de/10013479450