A dynamic stochastic model of a small open economy with a two-level banking intermediation structure, a risk-sensitive regulatory capital regime, and imperfect capital mobility is developed. Firms borrow from a domestic bank and the bank borrows on world capital markets, in both cases subject to...

This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself depending on collateral. Basel I- and Basel II-type regulatory...

Purpose – To discuss, from the perspective of developing countries, recent proposals for reforming international standards for bank capital requirements. Methodology/approach – After evaluating, from the viewpoint of developing countries, the effectiveness of capital requirements reforms and...

This paper studies the growth effects of externalities associated with intergenerational health transmission, health persistence, and women's occupational constraints- with particular emphasis on the role of access to infrastructure. The first part provides a review of the evidence on these...

This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself depending on firms’ effective collateral. Basel I- and Basel...

The business cycle effects of bank capital regulatory regimes are examined in a New Keynesian model with credit market imperfections and a cost channel of monetary policy. Key features of the model are that bank capital increases incentives for banks to monitor borrowers, thereby reducing the...