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We investigate the relationship between economic growth and lagged international capital flows, disaggregated into FDI, portfolio investment, equity investment, and short-term debt. We follow about 100 countries during 1990–2010 when emerging markets became more integrated into the...
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This paper examines the financial crisis of 2007/9 and the downturn in the U.S. We argue that effective demand over the 2001–2006 expansion was maintained by credit. The role of credit in a Vector Error Correction Model and Granger-causality between aggregate spending, credit, disposable...
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Local markets with tight land use controls result in prices rising relative to wages and affordability. Affordability is eased by unconventional but risky finance. Tight land use and loose financing in these renegade markets concentrates the impact of national or international shocks. A positive...
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We examine daily cross-market return interactions and downside risk between a US REIT returns index and the return … unilateral transmitter of returns. We also find that the Value at Risk (VaR) of the least capitalized REIT markets is … the crash (financial crisis) period. Overall, our evidence indicates that REIT market risk shifted to the largest REIT …
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