Liquidity and Discipline. Bank due Diligence Over the Business Cycle

Bank Lending Behaviour over the Business Cycle in Iran

This paper studies bank loans over the business cycles in Iran to determine the role of Iranian banks in stabilizing credit. By estimating the long-run relations using dynamic OLS and fully modified OLS estimators, the findings show that real bank lending is positively related to real GDP in the long-run providing evidences of the pro-cyclicality of bank lending in Iran. Hence, Iranian banking ...

The Seeds of a Crisis: A Theory of Bank Liquidity and Risk-Taking over the Business Cycle

We examine how the banking sector may ignite the formation of asset price bubbles when there is access to abundant liquidity. Inside banks, given limited liability and lack of observability of effort, loan officers (or risk takers) are compensated based on the volume of loans. Outside banks, when there is heightened macroeconomic risk, investors reduce direct investment and hold more bank depos...

Business Intelligence zur Unterstützung der Due Diligence bei Mergers & Acquisitions

Due Diligence and the Evaluation of Teachers

Layoffs and lemons over the business cycle

This paper develops a simple model in which unemployment arises from a combination of selection and bad luck. During recessions, the proportion of workers who are laid off due to low productivity declines during recessions, diminishing the adverse signaling effect of an unemployment spell. Wage regressions estimated using the Displaced Workers Supplement support this basic prediction of the mod...