Showing 1 - 9 of 9
This paper shows that shocks to social benefits have local multiplier effects that are borne primarily by economically fragile households. Using a large welfare reform in the UK, we document that recipients not only lose benefits income, but also experience a lower relative likelihood of...
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Entrepreneurs undertake more R&D when financiers are better informed about their projects because they expect to receive more funding should those projects prove successful.Financiers learn more about projects when entrepreneurs perform more R&D because then the opportunity cost of misinvesting...
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We study the role of banks in amplifying a fiscal stimulus. Exploiting increases in US defense spending following the 9/11 attacks, we show that increased economic activity in counties exposed to the spending shock lowered non-performing loans at banks. In turn, banks increased lending to small...
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This paper presents evidence that investors in residential mortgage backed securities (RMBS) did not rely exclusively on ratings but rather took the asset pool fundamentals into account when pricing these securities. Yield spreads at issuance have predictive power for future performance after...
Persistent link: https://www.econbiz.de/10013039449
This paper uses novel regulatory data on internal loan-level risk metrics of US banks to show that corporate loan interest rates line up closely with measures of hard information. We show that the variation in interest rates in excess of what internal models suggest provides limited information...
Persistent link: https://www.econbiz.de/10012834673
In dynamic models of asset markets with asymmetric information and endogenous screening, the anticipation of signaling through delayed sales incentivizes originators to exert greater effort ex ante. A central prediction in those models is a positive relationship between screening effort and the...
Persistent link: https://www.econbiz.de/10015372818