Bolton, Patrick, Freixas, Xavier, Gambacorta, Leonardo, Mistrulli, Paolo Emilio, (2016), “Relationship and Transaction Lending in a Crisis”, The Review of Financial Studies, 7 Ιουνίου We study how relationship lending and transaction lending vary over the business cycle. We develop a model in which relationship banks gather information on their borrowers, allowing them to provide loans to profitable firms during a crisis. Because of the services they provide, operating costs of relationship banks are higher than those of …Read More
Product market reforms under the microscope
Gal, Peter, Hijzen, Alexander, (2016), “Product market reforms under the microscope”, VoxEU, 27 Σεπτεμβρίου Product market reforms are seen as a way to boost output in advanced economies, but we know little about their short-term impact. This column presents data from 18 advanced economies that reveal large differences in the potential upside of reform depending on the sector in which a firm operates, its size, and its financial health. Σχετικές Αναρτήσεις …Read More
Βιβλιοθήκη » EE » Οικονομία » Άρθρα Γνώμης
The Promise of Bank Mergers
Vives, Xavier, (2016), “The Promise of Bank Mergers”, Project Syndicate, 23 Σεπτεμβρίου The banking business has fallen on hard times. The combination of persistent low interest rates, increasing regulatory compliance costs, and the rise of new competitors taking advantage of financial technologies (fintech for short) has produced, in Europe in particular, excess capacity and low profitability – and a strong temptation to merge. In a difficult market, mergers – by …Read More
Βιβλιοθήκη » EE » Οικονομία » Άρθρα Γνώμης
Negative interest rate policies: Channels and consequences
Arteta, Carlos, Kose, M Ayhan, Stocker, Marc, Taskin, Temel, (2016), “Negative interest rate policies: Channels and consequences”, VoxEu, 26 Σεπτεμβρίου Against a background of persistently weak growth and low inflation expectations, a number of central banks have implemented negative interest rate policies over the past few years. This column argues that such policies could help provide additional monetary policy stimulus, as long as policy interest rates are only modestly negative …Read More
The European VAT Oxymoron: A pragmatic solution for welfare, especially in times of crisis?
Alexandris Polomarkakis, Konstantinos, (2016), “The European VAT Oxymoron: A pragmatic solution for welfare, especially in times of crisis?”, Journal of International and Comparative Social Policy, 26 Αυγούστου VAT is an important but at the same time long neglected issue in social policy literature. The way in which taxes are levied has important implications for citizens in terms of equity and efficiency effects. Rate diversification is embedded in VAT planning across …Read More
Debt Dilution and Sovereign Default Risk
Hatchondo, Juan Carlos, Martinez, Leonardo, Sosa-Padilla, César, (2016), “Debt Dilution and Sovereign Default Risk”, Journal of Political Economy, 31 Αυγούστου We measure the effects of debt dilution on sovereign default risk and study debt covenants that could mitigate these effects. We calibrate a baseline model with endogenous debt duration and default risk (in which debt can be diluted) using data from Spain. We find that debt dilution accounts for 78 percent of the …Read More
Tax Policy Reforms in the OECD 2016
OECD, (2016), “Tax Policy Reforms in the OECD 2016”, OECD Publishing, 22 Σεπτεμβρίου This is the first edition of “Tax Policy Reforms in the OECD”. This annual series of reports aims to track and compare tax policy developments over time across OECD countries. This year’s edition focuses on the tax reforms that were introduced in 2015 and identifies the most significant tax policy reforms as well as common tax policy …Read More
Size and composition of public investment, sectoral composition and growth
Felice, Giulia, (2016), “Size and composition of public investment, sectoral composition and growth”, European Journal of Political Economy, Σεπτέμβριος After providing some descriptive evidence on the relationship between the size and composition of public expenditure and the sectoral employment composition of the economy, this paper develops an endogenous growth model with two private sectors, where the government provides, as pure public goods, both infrastructure investment, directly affecting the productivity of private capital …Read More
Public Investment Multipliers in EU Countries: Does the Efficiency of Public Sector Matter?
Papaioannou, Sotiris K., (2016), “Public Investment Multipliers in EU Countries: Does the Efficiency of Public Sector Matter?”, Centre of Planning and Economic Research, Φεβρουάριος This study examines whether differences in public sector efficiency are associated with diverging effects of public investment on growth. At first stage, we estimate public investment multipliers for each country of the European Union (EU). Their size varies considerably across countries. Then we construct measures of public …Read More
Infrequent but long-lived zero-bound episodes and the optimal rate of inflation
Dordal i Carreras, Marc, Coibion, Olivier, Gorodnichenko, Yuriy,Wieland, Johannes, (2016), “Infrequent but long-lived zero-bound episodes and the optimal rate of inflation”, VoxEu, 21 Σεπτεμβρίου Models that estimate optimal inflation rates struggle to accurately account for interest rates reaching the zero lower bound, due to the lack of historical data available. This column suggests periods of hitting the zero lower bound are longer than previously thought, and models the optimal inflation …Read More
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