We empirically examine the response of cross-border capital flows to economic uncertainty. Using bilateral banking flow data, we show that while banks reduce their exposure to a foreign country when it becomes more risky, they tend to increase their exposure to their home country in bad times (a...

This paper uses non-parametric methods to study the efficiency (Dybvig, 1988 and Post, 2003) and risk-profiles (Varian, 1988) of dynamic portfolio choices. We design an experiment which varies the number of states (complexity), and includes an equivalent static Arrow-Debreu problem. The results...

Despite the swift rise of shadow banking in China over the last decade, the challenge it poses to the monetary policy effectiveness is understudied. Using a novel dataset of listed Chinese banks, we find that aggressive issuance of off-balance sheet WMP impedes an efficient transmission of...

As the Chinese market economy expands and market institutions become stronger, there will be more incentives for Chinese households to substitute market activity for home production.The goal of this paper is to provide a quantitative analysis of the potential Chinese consumer demand for...

We use data on the Chinese market for negotiable certificates of deposit to examine the effect of the 2019 default of Baoshang Bank, which is interpreted as a break in the longstanding implicit guarantee of the Chinese government on wholesale funding debt. The Baoshang default resulted in a...