We extend the Cole and Obstfeld model in a number of directions to more accurately assess the terms of trade channel. Two crucial theoretical extensions are: to allow multiple producers of each primary commodity and to allow for incomplete specialization.We find that the negative correlation...

This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing from households. Loan activity typically decreases when entrepreneurs' investment returns decline, and we study which type of policy could revigorate an economy in a trough. We...

This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing from households. Loan activity typically decreases when entrepreneurs' investment returns decline, and we study which type of policy could revigorate an economy in a trough. We...

This paper summarizes the position of the banking sector in Slovakia from the historical perspective, analyzes its bad debt situation in late 1990s and proposes a model-based solution to found issues. It argues that banks should not be allowed to lead restructuring of a banking sector in a...

We investigate the impact of mining pollution on the likelihood of reporting illness by linking geocoded soil pollution information with five rounds of Mongolian Household Socio-Economic Survey data. Using perceived property rent as an instrument, our probit regression results indicate that...

The national terms of trade, defined as the ratio of an export price index to an import price index has been extensively studied empirically. In this paper we construct an alternative measure, which we call the consumption terms of trade. This measure recognizes the fact that consumers and firms...