We document a substantial dispersion of interest margins charged by commercial banks across Chinese provinces. As our empirical study provides evidence that resource costs are the primary drivers of Chinese bank interest margins, we build a parsimonious dynamic stochastic general equilibrium...

We find evidence of a non-linear relationship between stock-flow adjustmentsand debt levels that is different for low- and high-debt economies. Stockflowadjustments are largely a by-product of efficient public debt management.We study an alternative measure of interest costs on debt —...