Download or read book Essays on Financial Frictions and Financial Integration written by Ahrang Lee and published by . This book was released on 2012 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This dissertation addresses two questions regarding international financial market integration and financial frictions. Does stock market volatility in a country raise that in other countries? To answer this question, I conduct two types of empirical exercises. I fit a simple bivariate vector augoregressions (VAR), which show a persistent positive response of domestic volatility to a shock in external volatility. In addition, I run two stage least squares on domestic volatility to resolve the problem of an endogenous explanatory variable. Disaster shocks are used as the instrument for external volatility. I find that international spillovers do occur in stock markets. In particular, one standard deviation increase in external volatility raises domestic volatility by at least 0.3 standard deviations. Moreover, I show that disaster shocks are a valid and robust instrument for volatility. To the best of my awareness, this is the first work addressing the issue of endogeneity in international stock markets with instrument variables. The second question asks if fixed costs to using financial intermediation are quantitatively important in explaining income differences across-countries. I introduce fixed costs into an entrepreneurship model with financial frictions where agents are heterogeneous in their financial assets, entrepreneurial ability and labor productivity. I find that the fraction of agents using financial intermediation substantially decreases as fixed costs increase. Fixed costs as low as 11 per cent of typical year's income lower the intermediated population from almost one to one fifth. Fixed costs also reduce accumulation of capital by 20 per cent as they restrict the intermediated population. Lastly, barriers to financial intermediation play an important role in increasing wealth inequality within an economy and across economies. The aforementioned fixed costs raise the wealth Gini index from 0.78 to 0.92 and reduce aggregate income by 10 per cent. That is, the fixed costs alone can explain 10 per cent of income difference between, for example, Belgium and Guyana.
Download or read book Financial Integration and Financial Frictions written by Pascal Towbin and published by . This book was released on 2011 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on the Real Effects of Financial Frictions written by Patricio Toro Venegas and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Money and Financial Frictions in Finance and Macroeconomics written by Xuan Wang and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Frictions written by Karl Walentin and published by . This book was released on 2005 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Integration Financial Frictions and Business Cycles of Emerging Market Economies written by Tianxiao Zheng and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Frictions and Productivity written by Isabelle Roland and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Integration Capital Goods and Growth written by Jessica F Madariaga and published by . This book was released on 2012 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays in Open Economy Macroeconomics with Borrowing Frictions written by Nelnan F. Koumtingue and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Integration written by Ricardo Correa and published by . This book was released on 2006 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Markets Inequality and Economic Development written by Joaquin Blaum and published by . This book was released on 2012 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Chapter 1, I study the effects of wealth inequality on economies where financial markets are imperfect. I exploit the idea that inequality should have a different effect across sectors. Using a difference-in-difference strategy, I show that sectors that are more in need of external finance are relatively smaller in countries with higher income inequality. I then build a model in which sectors differ in their fixed cost requirement, agents face collateral constraints, and production is subject to decreasing returns. A calibrated version of the model is consistent with the documented facts on inequality and cross-sector outcomes. At the calibrated parameters, wealth inequality exacerbates the effect of financial frictions on the economy. Quantitatively, wealth inequality can generate losses of up to 46 percent of per capita income. In Chapter 2, co-authored with Claire Lelarge and Michael Peters, we explore the ingredients that a model of import behavior should have in order to be consistent with the firm level evidence. We build a model where firms are heterogeneous in their factor neutral productivity, and prices, fixed costs and input qualities are common across firms. Using a comprehensive dataset of French firms, we test the qualitative predictions of such model. The model fares well in describing firm's expenditure across imported varieties, but fails to account for the pattern of expenditure between domestic and foreign inputs. We conclude that a mechanism inducing firm-level heterogeneity in the relative price of domestic varieties is needed to model import demand. In Chapter 3, I study the effects of financial frictions on the pattern of cross-industry growth rates. I document two facts: (i) externally dependent sectors tend to grow faster along the economy's development path, and (ii) externally dependent sectors grow disproportionately faster in countries with better financial institutions. I argue that financial frictions can account for these facts. I build a dynamic two-sector model in which sectors differ in their liquidity requirement and agents face collateral constraints. Financial frictions generate faster growth in the sector with higher liquidity requirement. I identify conditions under which financial development leads to higher excess growth in the externally dependent sector.
Download or read book Three Essays on Financial Integration and Heterogeneity written by Christian Matthias Friedrich and published by . This book was released on 2013 with total page 177 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Integration written by Tokuo Iwaisako and published by . This book was released on 1997 with total page 332 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Integration and Growth written by Asli Leblebicioglu and published by . This book was released on 2005 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on the Role of Durables and Financial Frictions in Business Cycles and International Trade written by Dong Cheng and published by . This book was released on 2018 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Imperfect Pass through and Imperfect Financial Integration written by Jorge Daniel Selaive and published by . This book was released on 2003 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Financial Integration written by Jessie Nabulambo Kilembe and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
