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The failure to predict the Great Recession. The failure of academic economics? A view focusing on the role of credit

Rivas, Gadea; Dolores, Maria; Pérez-Quirós, Gabriel - C.E.P.R. Discussion Papers - 2012

, the now infamous credit to GDP chart. We compare the conclusions reached in the literature after the crisis with the … results that could have been drawn from an ex ante analysis. We show that, even though credit affects the business cycle in …

Persistent link: https://www.econbiz.de/10011084606

A Lender-Based Theory of Collateral

Inderst, Roman; Mueller, Holger M - C.E.P.R. Discussion Papers - 2006

lender to leave surplus to borrowers, which distorts the local lender’s credit decision in the sense that she inefficiently … technological innovations such as small business credit scoring that narrow the information advantage of local lenders vis …

Persistent link: https://www.econbiz.de/10005123922

A Theory of Supervision with Endogenous Transaction Costs

Faure-Grimaud, Antoine; Laffont, Jean-Jacques; … - C.E.P.R. Discussion Papers - 1998

We propose a theory of supervision with endogenous transaction costs. A principle delegates part of his authority to a supervisor who can acquire soft information about an agent's productivity. If the supervisor were risk-neutral, the principal would simply make the better informed supervisor...

Persistent link: https://www.econbiz.de/10005114332

Credit Rationing and Crowding-Out During the Industrial Revolution: Evidence from Hoare's Bank, 1702-1862

Temin, Peter; Voth, Hans-Joachim - C.E.P.R. Discussion Papers - 2004

wartime financing on private credit markets. Whenever public borrowing rose above trend, private lending declined markedly. We … conclude that there is considerable evidence that government borrowing, especially during wartime, crowded out private credit …

Persistent link: https://www.econbiz.de/10005504267

Credit, Wages and Bankruptcy Laws

Biais, Bruno; Mariotti, Thomas - C.E.P.R. Discussion Papers - 2003

the credit and labour markets, as well as wealth heterogeneity. Soft bankruptcy laws often preclude liquidation, to avoid … ex-post inefficiencies. This worsens credit rationing, depresses investment and reduces aggregate leverage. Yet, tough …

Persistent link: https://www.econbiz.de/10005498012

Like Father like Sons? The Cost of Sovereign Defaults In Reduced Credit to the Private Sector

Esteves, Rui; Jalles, João Tovar - C.E.P.R. Discussion Papers - 2013

credit rationing. We explore a novel dataset covering the vast majority of corporates and municipals in emerging nations that …

Persistent link: https://www.econbiz.de/10011083857

The Procyclical Effects of Bank Capital Regulation

Repullo, Rafael; Suarez, Javier - C.E.P.R. Discussion Papers - 2012

We develop and calibrate a dynamic equilibrium model of relationship lending in which banks are unable to access the equity markets every period and the business cycle is a Markov process that determines loans' probabilities of default. Banks anticipate that shocks to their earnings and the...

Persistent link: https://www.econbiz.de/10011084391

Cross-Border Liquidity, Relationships and Monetary Policy: Evidence from the Euro Area Interbank Crisis

Abbassi, Puriya; Bräuning, Falk; Fecht, Falko; … - C.E.P.R. Discussion Papers - 2015

sovereign debt crisis. Moreover, the interbank market – unlike other credit markets – allows to exploit the price dispersion … from different lenders on identical credit contracts, i.e. overnight uncollateralized loans in the same morning for the …

Persistent link: https://www.econbiz.de/10011196038

Austerity

Dellas, Harris; Niepelt, Dirk - C.E.P.R. Discussion Papers - 2014

include incomplete information about credit risk. Austerity is defined as the shortfall of consumption from the level desired …

Persistent link: https://www.econbiz.de/10011145392

Can Competition in the Credit Market be Excessive?

Caminal, Ramon; Matutes, Carmen - C.E.P.R. Discussion Papers - 1997

We study the welfare implications of market power in a model where banks choose between credit rationing and monitoring … power induces banks to exert higher monitoring effort and reduces the frequency of credit rationing. Whenever the second …

Persistent link: https://www.econbiz.de/10005656189