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The Dynamics of Exclusion and Fiscal Conservatism

Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1994

This paper studies the impact of income inequality on fiscal conservatism when an increase in inequality affects the …, inequality will then be associated with less, rather than more, redistributive taxation. Furthermore, if the poor are liquidity … constrained then the positive association between inequality and fiscal conservatism will increase the persistence in the dynamics …

Persistent link: https://www.econbiz.de/10005136638

Term Structure Forecasting: No-Arbitrage Restrictions vs Large Information Set

Favero, Carlo A.; Niu, Linlin; Sala, Luca - C.E.P.R. Discussion Papers - 2007

This paper addresses the issue of forecasting the term structure. We provide a unified state-space modelling framework that encompasses different existing discrete-time yield curve models. Within such framework we analyze the impact on forecasting performance of two crucial modelling choices,...

Persistent link: https://www.econbiz.de/10005497801

Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs

Quah, Danny - C.E.P.R. Discussion Papers - 1997

This paper studies cross-country patterns of economic growth from the viewpoint of income distribution dynamics. Such a perspective raises new empirical and theoretical issues in growth analysis: the profound empirical regularity is an ‘emerging twin peaks’ in the cross-sectional...

Persistent link: https://www.econbiz.de/10005792305

A Dynamic General Equilibrium Analysis of Monetary Policy Rules, Adverse Selection and Long-Run Financial Risk

Blommestein, Hans J.; Eijffinger, Sylvester C W; Qian, … - C.E.P.R. Discussion Papers - 2011

This paper builds a dynamic general equilibrium macro-finance model with two types of borrowers: entrepreneurs who want …

Persistent link: https://www.econbiz.de/10009371476

Global Imbalances and the Financial Crisis: Products of Common Causes

Obstfeld, Maurice; Rogoff, Kenneth - C.E.P.R. Discussion Papers - 2009

borrow cheaply abroad and thereby finance its unsustainable housing bubble. …

Persistent link: https://www.econbiz.de/10008557008

Theoretical Notes on Bubbles and the Current Crisis

Martin, Alberto; Ventura, Jaume - C.E.P.R. Discussion Papers - 2010

We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the...

Persistent link: https://www.econbiz.de/10008684673

Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008

Schularick, Moritz; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2009

The crisis of the advanced economies in 2008-09 has focused new attention on money and credit fluctuations, financial crises, and policy responses. We study the behavior of money, credit, and macroeconomic indicators over the long run based on a new historical dataset for 14 countries over the...

Persistent link: https://www.econbiz.de/10008636377

Two Monetary Tools: Interest Rates and Haircuts

Ashcraft, Adam; Garleanu, Nicolae Bogdan; Pedersen, … - C.E.P.R. Discussion Papers - 2010

We study a production economy with multiple sectors financed by issuing securities to agents who face capital constraints. Binding capital constraints propagate business cycles, and a reduction of the interest rate can increase the required return of high-haircut assets since it can increase the...

Persistent link: https://www.econbiz.de/10008642875

Inequality, Leverage and Crises

Kumhof, Michael; Rancière, Romain - C.E.P.R. Discussion Papers - 2011

The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2007 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial...

Persistent link: https://www.econbiz.de/10008784720

Optimal Interventions in Markets with Adverse Selection

Philippon, Thomas; Skreta, Vasiliki - C.E.P.R. Discussion Papers - 2010

We study interventions to restore efficient lending and investment when financial markets fail because of adverse selection. We solve a design problem where the decision to participate in a program offered by the government can be a signal for private information. We charac terize optimal...

Persistent link: https://www.econbiz.de/10008468692