Extroverted financialization: how US finance shapes European banking

European Journal of Finance and Banking Research

A deterministic trading strategy by a representative investor on a single market asset, which generates complex and realistic returns with its first four moments similar to the empirical values of European stock indices, is used to simulate the effects of financial regulation that either pricks bubbles, props up crashes, or both. The results suggest that regulation makes the market process appe...

Money, Banking, and Finance

How Does the US Government Finance Fiscal Shocks?

We develop a method for identifying and quantifying the fiscal channels that help finance government spending shocks and apply it to postwar U.S. data. We define fiscal shocks as surprises in defense spending and show that they are more precisely identified when defense stock data are used in addition to aggregate macroeconomic data. Our results show that in the postwar period, over 9% of the U...

Centre for Banking and Finance

This paper examines the effectiveness of strategic planning in commercial banks and how management styles influence (or reflect influences) on diversification decisions within bank markets. The research is based on and further develops a framework proposed by Goold and Campbell (1987) and Goold et al. (1994) by testing the strategic response of banks to changes in their growth opportunities. Ch...

Access to Banking Finance and Exporting

Using firm-level data from the manufacturing sector of Chile for the period 1995-2002, we examine whether access to finance increase the probability of exporting. To do that, we exploit information of firms ́ access to banking debt and changes in the real exchange rate (RER) to identify the causal effect of finance on exporting. This is an interesting setting given that the Chilean economy exper...