Search Results - subject:"Liquidity constraints"

Collateral Constraints, Financial Constraints, and Risk Management : Evidence From Anti-Recharacterization Laws

Fairhurst, Douglas J.; Nam, Yoonsoo - 2021

We use the staggered enactment of anti-recharacterization laws as a plausibly exogenous shock to the value of securitizing collateral through Special Purpose Vehicles (SPVs) and test how collateral values impact corporate risk management. Following the laws’ enactment, we find increases in...

Persistent link: https://www.econbiz.de/10013224656

Financial Reforms and Capital Flows : Insights from General Equilibrium

Martin, Alberto; Ventura, Jaume - 2021

As a result of debt enforcement problems, many high-productivity firms in emerging economies are unable to pledge enough future profits to their creditors and this constrains the financing they can raise. Many have argued that, by relaxing these credit constraints, reforms that strengthen...

Persistent link: https://www.econbiz.de/10013225009

A Theory of the Consumption Function, with and Without Liquidity Constraints (Expanded Version)

Carroll, Christopher D. - 2021

effects of precautionary saving and liquidity constraints are often virtually indistinguishable …

Persistent link: https://www.econbiz.de/10013225387

The Liquidity Constraint of Banks and Monetary Non-Neutrality in the Steady State

Wang, Tianxi - 2021

This paper shows that monetary policy produces real effects in the steady state by impacting banks' liquidity constraint, in the absence of frictions that have been used to generate non-neutrality, such as nominal rigidity and search frictions. Moreover, the effects for different types of banks...

Persistent link: https://www.econbiz.de/10013225860

What Makes an Entrepreneur? Evidence on Inheritance and Capital Constraints

Blanchflower, David G.; Oswald, Andrew J. - 2021

and liquidity constraints. The paper also evaluates a number of hypotheses suggested in the literature on small businesses …

Persistent link: https://www.econbiz.de/10013226999

Risk Capital Allocation under Market Liquidity Constraints

Al Janabi, Mazin A. M. - 2021

We develop measures of certain kinds of liquidity trading risk that is useful for completing the definition of market risk and for predicting liquidity-adjusted VaR (L-VaR) under illiquid market conditions. We argue that asset liquidity risk associated with the uncertainty of liquidating...

Persistent link: https://www.econbiz.de/10013227399

The Dynamics of Work and Debt

Campbell, Jeffrey R.; Hercowitz, Zvi - 2021

This paper characterizes the labor supply and borrowing of a household facing collateral requirements that limit its debt and compel it to accumulate equity in its durable goods stock. The household's discount rate exceeds the market rate of interest, so it would otherwise finance increased...

Persistent link: https://www.econbiz.de/10013227768

Entrepreneurial Decisions and Liquidity Constraints

Holtz-Eakin, Douglas; Joulfaian, David; Rosen, Harvey S. - 2021

This paper analyzes the role of liquidity constraints in the formation of new entrepreneurial enterprises. The basic … conditional amounts of depreciable assets, ceteris paribus. If so, liquidity constraints are likely to be present. To be … the amount of capital employed. These findings are consistent with the presence of liquidity constraints …

Persistent link: https://www.econbiz.de/10013227883

The consumption response to borrowing constraints in the mortgage market

Tracey, Belinda; Horen, Neeltje van - 2021

This paper shows that relaxing borrowing constraints positively affects household consumption in addition to stimulating housing market activity. We focus on the UK Help-to-Buy (HTB) program, which provided a sudden relaxation of the down payment constraint by facilitating home purchases with...

Persistent link: https://www.econbiz.de/10013227958

Sudden Stops, Financial Crises, and Original Sin in Emerging Countries : Déjà Vu?

Bordo, Michael D. - 2021

The current pattern of sudden stops and financial crises in emerging markets has great resonance to events in the first era of globalization, from 1870-1913. In this paper I present descriptive statistics on capital flows, current account reversals and financial crises during the period...

Persistent link: https://www.econbiz.de/10013228270