In a spatial model of aggregate municipal employment, this article shows statistically that floods disrupt employment in municipalities. Flood events decrease local employment on average by 3.4%. Employment levels, however, recover after one year.

This study identifies sources of price aggregation bias when separability restrictions do not apply. It shows that even though the assumption of the generalized composite commodity theorem guarantees aggregate integrability, it does not guarantee consistent price aggregation except in the...

An important instrument to mitigate credit losses is modification of note rates of distressed borrowers. From a logistic model of early default, this article inferred the note rate impact on loan default probabilities, while controlling for loan characteristics (credit quality) and borrower...

This paper presents a spatial kernel estimator that allows coefficients and market size to be estimated at the observation of interest. In economic terms, the bandwidth length of the spatial kernel estimator captures the size of the market incorporated in estimation at the location of interest,...

To balance capital requirements and manage credit risk, lenders slice and dice mortgages for securitization versus holding unsecured loans for investment in their portfolios. This article estimates factors that explain credit securitization decisions with Government Sponsor Enterprises (GSEs).

One of the most challenging tasks facing financial institutions is how much to mark down mortgage loans with delinquency events in the book of business. Since delinquent loans are not actively traded in the market, a modelling approach is needed for re-pricing these loans. Here, we show a...

Because of reduced stockholding, Chinese domestic corn markets are becoming much more interdependent with the rest of the world. As China's economy continues to transition from centrally planned to market oriented, internal pressure for increased use of market mechanisms in trading corn and...