Results 11 to 20 of about 1,860 (237)
TROUBLESHOOTING BASEL II: THE ISSUE OF PROCYCLICALITY [PDF]
Annals of the University of Oradea: Economic Science, 2011 A widespread concern about Basel II capital requirements is that it might amplify business cycle fluctuations, forcing banks to restrict their lending when the economy goes into recession.
Kurti Laszlo - Adam +3 more
doaj +1 more source
Rent-seeking distortions and fiscal procyclicality [PDF]
Journal of Development Economics, 2011 Recent research has demonstrated that while government expenditures are countercyclical in most industrialized countries, they tend to be procyclical in developing countries. We develop a dynamic political-economy model to explain this phenomenon. In the model, public expenditures provide insurance to uninsured households, and optimal fiscal policy is ...
Ilzetzki, Ethan, Ethan Ilzetzki
openaire +2 more sources
Why is Fiscal Policy Often Procyclical? [PDF]
SSRN Electronic Journal, 2005 Many countries, especially developing ones, follow procyclical fiscal policies, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for less-than-benevolent government to appropriate rents.
Alberto Alesina, Guido Tabellini
openaire +8 more sources
The Procyclical Effects of Basel II [PDF]
SSRN Electronic Journal, 2007 We analyze the cyclical effects of moving from risk-insensitive (Basel I) to risk-sensitive (Basel II) capital requirements in the context of a dynamic equilibrium model of relationship lending in which banks are unable to access the equity markets every period.
Repullo, Rafael, Suarez, Javier
openaire +2 more sources
Monetary and Macroprudential Policy and Welfare in an Estimated Four‐Agent New Keynesian Model
Journal of Money, Credit and Banking, EarlyView., 2023 Abstract We examine the social and agent‐specific welfare effects of monetary and macroprudential policy in a four‐agent estimated macro‐economic model comprising “banked simple households,” “underbanked simple households,” “firm owners,” and “bank owners.” Optimal capital requirement and loan loss provisions ratios improve all agent‐specific and ...
GEORGE J. BRATSIOTIS, KASUN D. PATHIRAGE
wiley +1 more source
Procyclical Leverage and Value-at-Risk [PDF]
Review of Financial Studies, 2011 The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries. Empirically, we find that intermediary leverage is negatively aligned with the banks’ value-at-risk (VaR). Motivated by the evidence, we explore a contracting model that captures the observed features.
Tobias Adrian, Hyun Song Shin
openaire +4 more sources
Problemy Zarządzania, 2015 This article presents explanations of the procyclicality phenonomenon with the application of the theory of market failures and behavioral finance.
Małgorzata Olszak
doaj +1 more source
What is the Sustainable Level of Banks’ Credit Losses and Provisions?
Review of Economic Perspectives, 2021 In this paper, we estimate the sustainable level of lifetime expected credit losses and provisions and assess the procyclicality of banks’ credit losses and provisions in the Czech Republic.
Malovaná Simona, Tesařová Žaneta
doaj +1 more source
Filter selection for countercyclical capital buffers
South African Journal of Economic and Management Sciences, 2018 Background: Procyclicality plays a pivotal role in finance in both thriving and crisis periods. This influence stems not only from the way market participants behave but also from risk metrics used and regulatory capital amassed and released during bust ...
Dirk Visser, Gary van Vuuren
doaj +1 more source
The procyclicality of political trust in Spain [PDF]
Panoeconomicus, 2018 Political trust has been considered a necessary condition for good democratic and economic performance over time. The grave economic crisis that started in 2008, which is known as the Great Recession, has deteriorated the level of political trust in ...
Caballero Gonzalo, Álvarez-Díaz Marcos
doaj +1 more source