The impact of trade frictions on the financial vulnerability of Chinese households. [PDF]
PLoS ONEIn recent years, escalating trade frictions have exerted substantial shocks on the financial security of Chinese households. Drawing on data from the China Family Panel Studies (CFPS) for 2014-2022, this study constructs a standard difference-in ...
Xiaoling Xue +3 more
doaj +3 more sources
Financial frictions and stock return: A novel least minus more frictional factor for asset pricing models in emerging economies. [PDF]
PLoS ONEThe primary objective of this study is to empirically evaluate the role of various levels of financial friction in explaining stock returns through different asset pricing models. This study enhances asset pricing model estimates by incorporating diverse
Saifullah Khan +4 more
doaj +2 more sources
Lockdown, employment adjustment, and financial frictions. [PDF]
Small Bus Econ (Dordr), 2022 We examine firms' employment adjustments immediately after the imposition of stringent lockdown in March 2020. In doing so, we use monthly administrative data, and take value-added tax payment changes as a proxy for the demand shock. We merge data with COVID-19 tests, classified by economic activity, and employ a fixed effects instrumental variable ...
Lastauskas P.
europepmc +5 more sources
Editorial: Financial modeling with frictions
Frontiers in Applied Mathematics and StatisticsFinancial markets, as observed in practice, are inherently incomplete due to a variety of structural and dynamic features. These include stochastic dynamics of state variables, discontinuities in asset paths, varying degrees of persistence in time series, and long-memory effects in probability distributions.
Daniele Mancinelli +3 more
doaj +3 more sources
EconomiesIn this study, we explored the impact of bank leverage and financial frictions on the transmission of real and financial shocks. Two new Keynesian dynamic stochastic general equilibrium (DSGE) models, with and without financial frictions, were employed ...
Salha Ben Salem +2 more
doaj +3 more sources
An Alternative Method for Measuring Financial Frictions [PDF]
B E Journal of Macroeconomics, 2011 Costly state verification models predict that the sensitivity of borrowing costs to financial leverage is positively related to the level of state verification costs (financial frictions). This paper constructs a measure of financial frictions that is consistent with this prediction of theory. Using bond deals from 47 countries, financial frictions are
Uluç Aysun
exaly +3 more sources
Economic development, flow of funds, and the equilibrium interaction of financial frictions [PDF]
Proceedings of the National Academy of Sciences of the United States of America, 2017 VÍCTOR Zhorin +2 more
exaly +2 more sources
Financial Sector’s Role in Transmission of Monetary and Fiscal Shocks in Russian Economy: Estimation Under Different Assumptions About Production Sector [PDF]
Финансовый журнал, 2021 The financial sector plays a crucial role in the economy, not only being a simple intermediary between creditors and borrowers, but also having a significant impact on the economy’s development and its various characteristics. For this reason, accounting
Samvel S. Lazaryan, Maria A. Elkina
doaj +1 more source
Financial Frictions and Macroeconomy During Financial Crises: A Bayesian DSGE Assessment
American Business Review, 2021 The recent global financial crisis and the Eurozone sovereign default have rekindled the debate on the interactions between the real sector and the financial sphere.
Eric Martial Etoundi Atenga +2 more
doaj +1 more source
Financial crisis, labor market frictions, and economic volatility.
PLoS ONE, 2023 This article analyzes cross-country data encompassing 130 countries and regions from 2000 to 2019 to investigate the correlation between financial crises, labor market frictions, and economic volatility.
Wenni Lei, Zhe Li, Dongzhou Mei
doaj +2 more sources