This article applies a Bayesian dynamic factor model to examine the relationship between financial development and economic growth from a new angle. We estimate the common, country, and idiosyncratic factors that drive the dynamics and co-movement of financial development and economic growth...

This paper examines bank risk and its main determinants when gauged at various bank threshold variables. We apply the dynamic panel threshold estimation technique developed by Seo and Shin (2016) to a panel of 3,109 commercial banks in the United States during 2005–2019. A novel instrument is...

This paper applies a Bayesian dynamic factor model to analyze the co-movement of government debt and economic growth in 12 euro-area countries from 1970--2009. We decompose the variations in output growth and government debt into three distinct factors: (i) a common factor capturing co-movement...