We build a tractable stylized model of external sovereign debt and endogenous international interest rates. In corrupt economies with rent-seeking groups stealing public resources, a politico-economic equilibrium is characterized by permanent Öscal impatience which leads to excessive issuing of...

We derive and estimate a New Keynesian Phillips curve (NKPC) in a model where consumers are assumed to have deep habits. Habits are deep in the sense that they apply to individual consumption goods instead of aggregate consumption. This alters the NKPC in a fundamental manner as it introduces...

This paper provides the first detailed empirical study on the use of prepayments by firms. Our results based on large panels of French firms support the Daripa and Nilsen (2011) production subsidy theory of prepayment, according to which customers prepay their suppliers when these would...

Many studies consider the aggregate impact of crises on output and the fiscal cost of reconstruction, but few studies of the impact of a crisis at the level of the firm. In this paper we consider the impact of the Brazilian crisis of 1999 on the extensive and intensive margin of exporters versus...

This paper examines the relationship between self-control, financial literacy and over-indebtedness on consumer credit debt among UK consumer. Lack of selfcontrol and financial illiteracy are positively associated with non-payment of consumer credit and self-reported excessive financial burdens...

Using individual-level panel data, this paper examines the relationship between subjective unemployment expectations and psychological health. Individuals expecting to become unemployed within the next year exhibit higher rates of suffering from anxiety plus worse psychological health based on...

In this paper we examine the relationship between real activity and financial market tightness in Europe using data on 500 corporate bonds between July 1994 and May 2011 for Austria, Belgium, France, Germany, Italy, Netherlands, and Spain – and the United Kingdom. We evaluate the importance of...

The Nelson-Phelps (N-P) concept of human capital, which determines the speed at which a new technology may be implemented, is considered within an AK, overlapping-generations model to produce a generalized dynamic form. Finance firms are assumed to act as local monopolies in the market for loans...

We use UK survey data incorporating measures of financial literacy and behavioral characteristics to analyze the puzzling co-existence of high cost revolving consumer credit alongside low yield liquid savings in household balance sheets, which we term the ‘co-holding puzzle’. Approximately...

Traditionally banks have used securitization for expanding credit and thus their profitability. It has been well documented that, at least before the 2008 crisis, many banks were keeping a high proportion of the securities that they created on their own balance-sheets. Those securities retained...