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Misallocation and Financial Market Frictions : Some Direct Evidence from the Dispersion in Borrowing Costs
Gilchrist, Simon - 2012
Financial market frictions distort the allocation of resources among productive units-all else equal, firms whose financing choices are affected by financial frictions face higher borrowing costs than firms with ready access to capital markets. As a result, input choices may differ...
Persistent link: https://www.econbiz.de/10013106993
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Credit scores, social capital, and stock market participation
Bricker, Jesse; Li, Geng - 2017
While a rapidly growing body of research underscores the influence of social capital on financial decisions and economic developments, objective data-based measurements of social capital are lacking. We introduce average credit scores as an indicator of a community's social capital and present...
Persistent link: https://www.econbiz.de/10011708125
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Institutions and Return Predictability in Oil-Exporting Countries
Aramonte, Sirio - 2015
We study whether stock market returns in oil-exporting countries can be predicted by oil price changes, and we investigate the link between predictability and the quality of each country's institutions. Returns are predictable for half the countries we consider, and predictability is stronger...
Persistent link: https://www.econbiz.de/10013024822
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Credit-Crunch Dynamics with Uninsured Investment Risk
Goldberg, Jonathan E. - 2013
the risk-free rate were constant. Indeed, the long-run increase in the riskiness of consumption growth is purely a general …
Persistent link: https://www.econbiz.de/10013081571
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Measuring the Natural Rate of Interest : A Note on Transitory Shocks
Lewis, Kurt F. - 2020
We present evidence that the natural rate of interest is buffeted by both permanent and transitory shocks. We establish this result by estimating a benchmark model with Bayesian methods and loose priors on the unobserved drivers of the natural rate. When subject to transitory shocks, the median...
Persistent link: https://www.econbiz.de/10012854228
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Non-Linearity in the Inflation-Growth Relationship in Developing Economies : Evidence from a Semiparametric Panel Model
Baglan, Deniz - 2014
potentially nonlinear effects of inflation on economic growth. We find that inflation is associated with significantly lower … growth only after it reaches about 12 percent, which is notably lower than the comparable estimate obtained from a threshold … effects of inflation on economic growth. We also document significant variation in the effect of inflation on growth across …
Persistent link: https://www.econbiz.de/10013049480
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The Responses of Wages and Prices to Technology Shocks
Edge, Rochelle M.; Laubach, Thomas; Williams, John C. - 2004
This paper reexamines wage and price dynamics in response to permanent shocks to productivity. We estimate a micro-founded dynamic general equilibrium (DGE) model of the U.S. economy with sticky wages and sticky prices using impulse responses to technology and monetary policy shocks. We utilize...
Persistent link: https://www.econbiz.de/10014072266
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From Many Series, One Cycle : Improved Estimates of the Business Cycle from a Multivariate Unobserved Components Model
Fleischman, Charles A. - 2011
We construct new estimates of potential output and the output gap using a multivariate approach that allows for an explicit role for measurement errors in the decomposition of real output. Because we include data on hours, output, employment, and the labor force, we are able to decompose our...
Persistent link: https://www.econbiz.de/10013118624
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Measuring the Natural Rate of Interest : International Trends and Determinants
Holston, Kathryn - 2016
through the end of 2015. Explanations for this decline include shifts in demographics, a slowdown in trend productivity growth … GDP growth and natural rates of interest have occurred over the past 25 years in all four economies. These country … shaping trend growth and natural rates of interest …
Persistent link: https://www.econbiz.de/10013210446
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Local ties in spatial equilibrium
Zabek, Mike - 2019
If someone lives in an economically depressed place, they were probably born there. The presence of people with local ties – a preference to live in their birthplace – leads to smaller migration responses. Smaller migration responses to wage declines lead to lower real incomes and make real...
Persistent link: https://www.econbiz.de/10012182408