labour and capital below unity. We show that compared to the Cobb-Douglas case, the likelihood of indeterminacy under a …It has been shown that under perfect competition and a Cobb-Douglas production function, a basic real business cycle … production functions, namely a constant elasticity of substitution production function. We show that the degree of …

capital markets to foreign investment. Third, we find that the relative factor price of labor to capital, and capital … capital intensity are less affected by windfall shocks than their peers, possibly due to a larger share of the effect being … sectors in capital intensity helps cushion the volatility of oil shocks. …

institution’s credit worthiness and the return on its market value, and importantly, on the level and quality of capital … steps taken to increase resilience, notably higher capitalization. Our results suggest increased capital buffers may …

The 1988 Basel I Accord set the common requirements of bank capital to promote the soundness and stability of the … international banking system. The agreement required banks to hold capital in proportion to their perceived credit risks, and this … significant increase in credit growth following the implementation of capital regulations, in general. Despite higher capital …

-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions …-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank … engages in trading, it can use its ‘spare’ capital to profitablity expand the scale of trading. However, there are two …

credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that …

liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare … lending, efficiency and welfare significantly. The costs of high capital and liquidity requirements represent a lower bound on …

, and capital is negative when adjusting for this. Capital is sufficient to back a low inflation target given that the … income position is supported by unremunerated reserve requirements. Capital is likely to increase over time, but only …

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital … multinationals, we find that thin capitalization rules significantly affect multinational firm capital structure. Specifically … rules, which thus far have been understudied, have a substantial effect on the capital structure within multinational firms …

derivatives are globally systemic. Employing methodologies similar to the calculation of banks’ capital requirements against … trading book exposures, this paper assesses the sensitivity of central counterparties’ required risk buffers, or capital … central counterparties’ risk buffers, in line with recent enhancements to the capital regime for banks. …