Agency Problems and Endogenous Investment Fluctuations
in The Review of Financial Studies
July 2012; p ublished online March 2012 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Prices, Business Fluctuations, and Cycles; Economics; Financial Institutions and Services. 17088 words.
This article proposes a theory of investment fluctuations in which the source of the oscillating dynamics is an agency problem between financiers and entrepreneurs. In the model, investment...
Aggregate Implications of Corporate Debt Choices
in The Review of Economic Studies
July 2018; p ublished online October 2017 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Banking; Bankruptcy. 27798 words.
Abstract
This article studies the transmission of financial shocks in a model where corporate credit is intermediated via both banks and bond markets. In...
The costs of ‘coupling’: the global crisis and the Indian economy
in Cambridge Journal of Economics
July 2009; p ublished online July 2009 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Financial Regulation; Economics. 7818 words.
The view that the Indian economy would be less adversely affected by the global economic crisis because of limited integration and other inherent strengths has proved to be wrong. The...
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The Democratization of Credit and the Rise in Consumer Bankruptcies
in The Review of Economic Studies
October 2016; p ublished online March 2016 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Money and Interest Rates; Financial Regulation; Law and Economics. 18133 words.
Financial innovations are a common explanation for the rise in credit card debt and bankruptcies. To evaluate this story, we develop a simple model that incorporates two key frictions:...
Does Credit Crunch Investment Down? New Evidence on the Real Effects of the Bank-Lending Channel
in The Review of Financial Studies
October 2016; p ublished online June 2016 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Money and Interest Rates; Economics; Banking; Corporate Governance. 17177 words.
We quantify the real effects of the bank-lending channel exploiting the dramatic liquidity drought in interbank markets that followed the 2007 financial crisis as a source of variation in...
Dollars Dollars Everywhere, Nor Any Dime to Lend: Credit Limit Constraints on Financial Sector Absorptive Capacity
in The Review of Financial Studies
December 2010; p ublished online September 2010 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Money and Interest Rates; Banking. 18558 words.
We exploit an unexpected inflow of liquidity in an emerging market to study how capital is intermediated to firms. We find that backward-looking credit limit constraints imposed by banks...
The Effects of Marital Status and Children on Savings and Portfolio Choice
in The Review of Financial Studies
January 2010; p ublished online April 2009 .
Journal Article. Subjects: Economics; Insurance; Intertemporal Choice and Growth; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Economics of Health; Demographic Economics. 23993 words.
This paper investigates the impact of demographic shocks on optimal decisions about saving, life insurance, and, most centrally, asset allocation. The analysis indicates that marital-status...
Financialisation and capital accumulation in the non-financial corporate sector:
in Cambridge Journal of Economics
November 2008; p ublished online April 2008 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Financial Institutions and Services; Production and Organizations; Corporate Governance. 10622 words.
I discuss the impact of financialisation on real capital accumulation in the US. Using data from a sample of non-financial corporations from 1973 to 2003, I find a negative relationship...
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Housing Wealth and Consumption Growth: Evidence from a Large Panel of Households
in The Review of Financial Studies
June 2010; p ublished online February 2010 .
Journal Article. Subjects: Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Banking. 14702 words.
This article uses a large panel dataset that tracks the housing wealth and credit card spending of 12,793 individuals in Hong Kong to study the relationship between housing wealth and...
Policy Uncertainty and Corporate Investment
in The Review of Financial Studies
March 2016; p ublished online September 2015 .
Journal Article. Subjects: Information, Knowledge, and Uncertainy; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; Financial Regulation; Corporate Governance; Corporate Regulation. 17098 words.
Using a news-based index of policy uncertainty, we document a strong negative relationship between firm-level capital investment and the aggregate level of uncertainty associated with...
The revenge of the market on the rentiers.
in Cambridge Journal of Economics
July 2009; p ublished online July 2009 .
Journal Article. Subjects: International Economics; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Economic Development; International Relations and International Political Economy; Economic Growth and Aggregate Productivity; International Finance; History of Financial Markets and Institutions; Financial Institutions and Services; Corporate Governance. 19819 words.
Starting from the perspective of heterodox Keynesian–Minskyian–Kindlebergian financial economics, this paper begins by highlighting a number of mechanisms that contributed to the current...
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Why the subprime crisis is different: a Minskyian approach
in Cambridge Journal of Economics
March 2010; p ublished online December 2009 .
Journal Article. Subjects: Financial Regulation; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; General Aggregative Models; Prices, Business Fluctuations, and Cycles; Banking. 7388 words.
Minsky's financial-instability model suggests that financial crises can be resolved efficiently with lender-of-last-resort and big-government interventions. The crisis that began in 2007...
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