This article explores the trade and financial channels through which foreign developments can be transmitted to the UK. We quantify how global developments haveCesa-Bianchi, AmbrogioDickinson, RosieKsem, SevimLloyd, SimonManuel, EdSocial Science Electronic Publishing...
Does an expansion in credit supply affect the economy by increasing productive capacity, or by boosting demand? We design a test to uncover which of the two channels is more dominant, and we apply it to the United States in the 1980s where the degree of banking deregulation generated differen...
How much do employees' wages directly reflect their employer's labor demand, rather than competition from other employers in the labor market? We test the wage incidence of product demand shocks by studying a quasi-experiment that idiosyncratically shocked individual firms' export demand without system...
The value of a currency and its exchange rate depends on the demand for that currency. Many factors affect the demand for a currency, including the political stability of the nation, thebalance of trade, inflation, and interest rates. Generally, high inflation weakens a currency and weakens...
However, looking at the FIAIX, crude oil volatility has a different impact, with positive shocks having no significant impact on financial development. In contrast, negative shocks show long-term causal effects, which emphasises the vulnerability of the banking sector to oil price fluctuations. ...
2017. How Do Credit Supply Shocks Affect the Real Economy? Evidence from the United States in the 1980s. NBER working paper.Mian, Atif, Amir Sufi, and Emil Verner. 2017. "How do credit supply shocks affect the real economy? Evidence from the United States in the 1980s." Washington ...
The Collateral Channel: How Real Estate Shocks Affect Corporate Investment: Comment What is the impact of real estate prices on corporate investment? In the presence of financing frictions, firms use pledgeable assets as collateral to fina... T Grieder,H Khan - Carleton University, D...
A potential explanation for this finding might be that substituting the consumption of a good that becomes more expensive with one that is relatively cheap could buffer price shocks transmitted from external markets, causing demand for the expensive product to fall. For instance, the high price of...
When more firms are located in a given geographical area, each firm can gain the benefit of external economies of scale—the unit cost of production in a firm declines as the scale of production by all firms increases. This gain arises through input sharing, market pooling, and knowledge ...
In all cases, RSM returns will respond less to high-EPU events shocks than TSM returns. 7. Discussion The regression analysis used in this study identified the existence of weak momentum effects in the Chinese stock market. These results verify Shi and Zhou’s (2017) conclusion that the ...