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Mixed signals : investment distortions with adverse selection

Darst, R. Matthew; Refayet, Ehraz - 2019

We study how adverse selection distorts equilibrium investment allocations in a Walrasian credit market with two …-sided heterogeneity. Representative investor and partial equilibrium economies are special cases where investment allocations are … trade and investment allocations below perfect information levels. The degree of heterogeneity between informed agents' type …

Persistent link: https://www.econbiz.de/10012181247

Interest rate hysteresis in macroeconomic investment under uncertainty

Belke, Ansgar; Göcke, Matthias - 2019

The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …

Persistent link: https://www.econbiz.de/10012151228

Interest rate bands of inaction and play-hysteresis in domestic investment : evidence for the euro area

Belke, Ansgar; Frenzel Baudisch, Coletta; Göcke, Matthias - 2019

The interest rate represents an important monetary policy tool to steer investment in order to reach price stability …. Therefore, implications of the exact form and magnitude of the interest rate-investment nexus for the European Central Bank … impact of changes in the interest rate on macroeconomic investment under certainty and under uncertainty to investigate …

Persistent link: https://www.econbiz.de/10012151693

Interest rate hysteresis in macroeconomic investment under uncertainty

Belke, Ansgar; Göcke, Matthias - 2019

important driver of macroeconomic investment. As an innovation, this paper derives the exact shape of the "hysteretic" impact of … changes in the interest rate on macroeconomic investment under the scenarios of certainty and uncertainty. We capture the … direct interest rate-hysteresis effects on investment and the capital stock and, explicitly, stochastic changes of the …

Persistent link: https://www.econbiz.de/10011994756

Exchange-Rate and Interest-Rate Driven Competitive Advantages in the EMU

Andrén, Niclas; Oxelheim, Lars - 2002

Real exchange and interest rates may still fluctuate inside the EMU and give rise to changes in competitiveness. We find, in contrast to what is generally expected, no convergence in these variables after the introduction of the euro. On the contrary, a divergence is found that is extraordinary...

Persistent link: https://www.econbiz.de/10010335179

Cross border banking: Pull-push effects of parent banks on subsidiaries' credit extensions

Gattini, Luca; Zagorisiou, Angeliki - 2016

This study contributes to the analysis of cross border banking behavior in CESEE (Central Eastern and South Eastern Europe). It detects potential transmission channels from parent to subsidiary banks based on a newly constructed database (323 banks operating in the region and 84 parent banks...

Persistent link: https://www.econbiz.de/10011574277

Choice of currency in bond issuance and the international role of currencies

Siegfried, Nikolaus; Simeonova, Emilia; Vespro, Cristina - 2007

This paper investigates bond issuance of non-financial corporations in advanced economies during the period 1999-2003, attempting to understand motives for issuing in foreign currency, and determinants for the choice of currency. We consider the following influences on the currency choice when...

Persistent link: https://www.econbiz.de/10011604860

The channels of international comovement

Barbiero, Omar - 2023

How does exposure to international markets affect returns and cash flow comovements? Foreign bond owners, lenders, affiliates, investors, customers, and suppliers all transmit country shocks to companies. Most multinationals have many of these exposures simultaneously within the same foreign...

Persistent link: https://www.econbiz.de/10014480486

Competition for internal funds within multinational banks: Foreign affiliate lending in the crisis

Düwel, Cornelia; Frey, Rainer - 2012

We investigate how the lending activities of a multinational bank's affiliates located abroad are affected by funding difficulties in view of the financial crisis. For this, we consider transaction-induced changes in long-term lending to the private sector of 40 countries by the affiliates of...

Persistent link: https://www.econbiz.de/10010310488

Producer Prices in the Transition to a Common Currency

Andrén, Niclas; Oxelheim, Lars - 2006

We analyze producer price developments in the transition from a national exchange rate regime to a monetary union. The focus is on the European Economic and Monetary Union (EMU). Stylized facts witness about an exploding gaps in producer-price inflation during the years immediately following the...

Persistent link: https://www.econbiz.de/10010320173