Search Results - subject:"Credit constraint"

Spare Tire? Stock Markets, Banking Crises, and Economic Recoveries

Levine, Ross - 2015

Do stock markets act as a "spare tire" during banking crises, providing an alternative corporate financing channel and mitigating the economic severity of banking crises? Using firm-level data in 36 countries from 1990 through 2011, we find that the adverse consequences of banking crises on firm...

Persistent link: https://www.econbiz.de/10012457803

The banks that said no : banking relationships, credit supply and productivity in the UK

Franklin, Jeremy; Rostom, May; Thwaites, Gregory - 2015

Persistent link: https://www.econbiz.de/10012171671

The persistence of a banking crisis

Huber, Kilian - 2015

Persistent link: https://www.econbiz.de/10012171703

Monetary Regime Choice and Optimal Credit Rationing at the Official Rate : The Case of Russia

Shulgin, Andrey - 2015

Stabilizing monetary policy in a small open economy is constrained by the open economy trilemma. In a crisis this constraint may not allow the Central Bank to cut interest rates because this may cause significant capital flight and the ensuing problems. In this paper we investigate whether the...

Persistent link: https://www.econbiz.de/10013013061

On the Price of Commitment Assets in a General Equilibrium Model with Credit Constraints and Tempted Consumers

Wozny, Lukasz Patryk - 2015

We analyze a three period production economy, where households exhibit problems of self-control and face credit constraints. Apart from liquid assets, a single commitment (illiquid) asset is available that allows to commit to a planned consumption path. We compare general equilibrium allocations...

Persistent link: https://www.econbiz.de/10013014722

Bankruptcy Law and Bank Financing

Rodano, Giacomo - 2015

Exploiting the timing of the 2005-06 Italian bankruptcy law reforms, we disentangle the effects of reorganization and liquidation in bankruptcy on bank financing and firms' investment. A 2005 reform introduces procedures facilitating loan renegotiation. The 2006 reform subsequently strengthens...

Persistent link: https://www.econbiz.de/10013017465

Credit Use of U.S. households After the Great Recession : The Role of Credit Constraints

Kim, Kyoung Tae - 2015

households experiencing credit constraint are more likely to hold installment loan debt and have higher loan amounts than those … not experiencing credit constraint. Constrained households are also more likely to hold outstanding credit card balances …, but have with lower balance totals than households not experiencing credit constraint. This research provides important …

Persistent link: https://www.econbiz.de/10013010347

Capital Requirements, Risk Shifting and the Mortgage Market

Uluc, Arzu; Wieladek, Tomasz - 2015

We study the effect of changes to bank-specific capital requirements on mortgage loan supply with a new loan-level data set containing all mortgages issued in the United Kingdom between 2005 Q2 and 2007 Q2. We find that a rise of a 100 basis points in capital requirements leads to a 5.4% decline...

Persistent link: https://www.econbiz.de/10014130887

Credit Rationing, Income Exaggeration, and Adverse Selection in the Mortgage Market

Ambrose, Brent William - 2015

We examine the role of borrower concerns about future credit availability in mitigating the effects of adverse selection and income misrepresentation in the mortgage market. We show that the majority of additional risk associated with "low-doc'' mortgages originated prior to the Great Recession...

Persistent link: https://www.econbiz.de/10013031357

Liquidity Traps and Monetary Policy : Managing a Credit Crunch

Buera, Francisco - 2015

We study a model with heterogeneous producers that face collateral and cash in advance constraints. These two frictions give rise to a non-trivial financial market in a monetary economy. A tightening of the collateral constraint results in a credit-crunch generated recession. The model can...

Persistent link: https://www.econbiz.de/10013031508