Search Results - subject:"Liquidity constraints"

Liquidity Constraints, Home Equity and Residential Mortgage Losses

Do, Hung Xuan - 2018

This paper analyses how borrower liquidity constraints and home equity relate to the realized loss given default (LGD … liquidity constraints and positive equity are explaining cure, while negative equity explains non-zero loss. However, a … relationship between borrower liquidity constraints and the non-zero LGD is not economically meaningful. Our findings support to …

Persistent link: https://www.econbiz.de/10012935614

Inequality in Human Capital and Endogenous Credit Constraints

Hai, Rong - 2018

This paper studies the determinants of inequality in human capital with particular emphasis on the role of the credit constraints. We develop and estimate a model in which individuals are subject to uninsured human capital risks and invest in education, acquire work experience, accumulate...

Persistent link: https://www.econbiz.de/10012936308

Corporate Investment and Innovation in the Presence of Competitor Constraints

Grieser, William - 2018

We study the relation between investment behavior and competitor financial constraints. Using inter-firm patent citations and text-based product market similarities to identify intransitive competitor networks, we find that firms increase investment spending, patenting activity, and...

Persistent link: https://www.econbiz.de/10012936402

Liquidity Constraints of the Middle Class

Campbell, Jeffrey R. - 2018

Existing evidence from U.S. middle-class households shows that their MPCs out of tax rebates greatly exceed the PIH's prediction and are weakly related to their liquid assets. The standard precautionary-saving model predicts the first fact but counterfactually requires MPCs to decrease with...

Persistent link: https://www.econbiz.de/10012937496

The Effect of Investment Constraints on Hedge Fund Investor Returns

Joenväärä, Juha - 2018

liquidity constraints, but remains statistically significant at higher rebalancing frequencies. Hypothetical investor portfolios …

Persistent link: https://www.econbiz.de/10012938196

Tapping into Financial Synergies : Alleviating Financial Constraints Through Acquisitions

Williamson, Rohan - 2018

The paper examines whether firms are able to use acquisitions to ease their financial constraints. The results show that acquisitions do ease financing constraints for constrained acquirers. Relative to unconstrained acquires, financially constrained firms are more likely to use undervalued...

Persistent link: https://www.econbiz.de/10012938513

Disruptive Finance : Using Psychometrics to Overcome Collateral Constraints in Ethiopia

Alibhai, Salman; Buehren, Niklas; Coleman, Rachel; … - 2018

This case study tells the story of the evolution of psychometric credit scoring as an innovative solution in a World Bank operation, from its humble beginnings as a small pilot in Ethiopia, to the current movement to replicate its use for similar challenges in countries across the continent in...

Persistent link: https://www.econbiz.de/10012569405

Fiscal buffers, private debt and recession : the good, the bad and the ugly

Batini, Nicoletta; Melina, Giovanni; Villa, Stefania - 2018

Persistent link: https://www.econbiz.de/10011944447

Innovation and Growth with Financial, and Other, Frictions

Chiu, Jonathan - 2018

The generation and implementation of ideas, or knowledge, is crucial for economic performance. We study this process in a model of endogenous growth with frictions. Productivity increases with knowledge, which advances via innovation, and with the exchange of ideas from those who generate them...

Persistent link: https://www.econbiz.de/10012940374

Credit Supply Shocks, Financial Constraints and Investments for Small and Medium-sized Firms

Hetland, Ove Rein - 2018

In this paper, we find that reduced credit supply reduces firm investments in our sample of small private firms. The effect is strongest for the least financially constrained firms. We use a representative survey of identified Norwegian firms that is linked with financial, bank account and...

Persistent link: https://www.econbiz.de/10012940395