Financial crises can have severe negative effects on investment. One reason for this is that financial crises increase uncertainty, increasing the real option value of delaying investment. In this paper, we show that the negative effect of crises on investment differs significantly across...

Just over a year ago, India's outward foreign direct investment (OFDI) seemed to be on a path of rapid and sustained growth. Its average annual growth of 98% between 2004 and 2007 was unprecedented, far ahead of that of other emerging markets like China (74%), Malaysia (70%), Russia (53%), and...

Economic and financial commentary on Brazil, Russia, India, and China (the ¡®BRIC' countries) generally focuses on these countries' accumulation of foreign exchange reserves, while their outward foreign direct investment (FDI) typically attracts less attention. While FDI from the BRIC...

Although the crisis emerged in the financial sector, its roots are deeper and lie in a structural change in income distribution that begun in the 1980s. The increase of inequality depressed aggregate demand by the middle-class, while the search for high returns by the wealthiest led to the...

What influences banks’ borrowing costs in the unsecured money market? The objective of this paper is to test whether measures of centrality, quantifying network effects due to interactions among banks in the market, can help explain heterogeneous patterns in the interest rates paid to borrow...

The purpose of this paper is to investigate whether a credit crunch occurred in Germany during the recent financial crisis and to analyze the underlying factors. In order to disentangle credit supply and demand we specify a theory-based dynamic disequilibrium model of the German credit market....

The aim of this analysis is the assessment of productivity changes of banks performing in Poland in the years 1996−2007. The analysis comprises 27 biggest banks which performed their activities in the above mentioned period of time. The level of productivity was assessed by the means of...

We study the effects of securitization on renegotiation of distressed residential mortgages over the current financial crisis. Unlike prior studies, we employ unique data that directly observe lender renegotiation actions and cover more than 60% of the U.S. mortgage market. Exploiting...

We study the relative and absolute pricing of CMBX contracts (commercial real estate derivatives) during the recent financial crisis. Using a structural CMBX pricing model, we find little systematic mispricing relative to REIT equity and options. We do find short-term deviations from this...

Typically, depositors in transition countries react very sensitively to the safety of deposits. Faced with rising deposit outflows in October 2008, many transition countries were forced to extend the limits of deposit insurance coverage. Has this calmed private agents? Or has it caused more...