We analyse macro financial linkages in the Danish economy by estimating a structural VAR model using Bayesian techniques and construct a new financial condition index for the Danish economy. We measure financial conditions as the aggregate impact of financial variables on real activity from the...

This working paper documents an econometric model for detecting turning points in the Danish economy in real time. The model is a mixedfrequency model using both monthly and quarterly data, which can be estimated on an unbalanced panel of data and be updated immediately as data comes through....

We analyse the costs and benefits of increasing capital requirements for Danish banks. Costs can be close to 0 if banks suspend dividend payments for a period of time as banks accumulate capital and if investors' required return falls. The latter implies that the Modigliani-Miller effect is...

This working paper documents an econometric model for detecting turning points in the Danish economy in real time. The model is a mixedfrequency model using both monthly and quarterly data, which can be estimated on an unbalanced panel of data and be updated immediately as data comes through....

We analyse the costs and benefits of increasing capital requirements for Danish banks. Costs can be close to 0 if banks suspend dividend payments for a period of time as banks accumulate capital and if investors' required return falls. The latter implies that the Modigliani-Miller effect is...