This paper studies the channels through which house prices a¤ect sectoral output in emerging market economies, focusing on the role of collateral and borrowing dynamics. We first show that relative to the tradable sector, nontradable sector output is more strongly correlated with house prices...

This paper studies how changes in household credit affect small business lending. First, we build a closed economy model that examines two opposing channels: a negative crowding out effect and a positive collateral effect. Our analysis shows that, following a household credit expansion, the...

Turkey has been going through a profound urban renewal process in the past decade, mainly based on a policy where public land is rapidly commodified by the state and used for construction projects through public-private partnerships. To some, this mechanism of state-led property development...

We estimate a canonical sovereign default model from Arellano (2008) for Argentina via maximum simulated likelihood estimation to understand how well it performs in terms of predicting default events. The estimated model accounts for the overall default patterns of Argentina and closely matches...

As has been amply documented by science and validated by the Intergovernmental Panel on Climate Change, global warming is a reality. In response to global warming, the interna- tional community has devised ambitious policies that are enshrined in the Kyoto Protocol and most recently, in the...

The disproportionate increase of bank lending to households relative to businesses is a central trend in the financial sector of many countries. In this paper, we provide evidence that credit information sharing has strongly contributed to this trend. Specifically, using a sample of 25 European...

This papers examines the potential link between household credit shocks and income inequality at the national level. For a sample of 32 developed and developing countries, we show that aggregate consumption temporarily increases in the short run and decreases in the long run in the face of...