We investigate whether idiosyncratic interbank funding shocks affecting a bank headquarters can trigger a liquidity hoarding reaction by their regional branches. Shock-affected branches of Brazilian banks increase liquid assets and cut lending in the shocks' aftermath compared to non-affected...

This paper examines to what extent slowdowns in economic growth are compounded by widening fiscal deficits and corresponding pressures on public debt after natural disasters. We rely on ifo GAME database (Felbermayr and Groeschl (2014)) that contains exogenous measures of physical disaster...