We provide a model of the impact of bank mergers on loan competition, individual reserve management and aggregate liquidity risk. Banks hold reserves against liquidity shocks, refinance in the interbank market and compete in a differentiated loan market. A merger creates an internal money market that induces financial cost advantages and may increase reserve holdings. We assess the liquidity ri...

We analyze the impact of news (information shocks) in economies where liquidity plays a role. While we also consider news about real factors, like productivity, one motivation is that central bank announcements evidently affect markets, as taken for granted by advocates of forward guidance policy. The dynamic effects can be complicated, with information about monetary policy or real factors aff...

This paper identifies the entrepreneur’s exposure to idiosyncratic risk as an important determinant of the demand for loans and the capital structure. The analysis is based on a sample of small and medium-sized private companies from the United States. The exposure to idiosyncratic risk is approximated by the share of personal net worth invested in one company (SNWI). Exposure to idiosyncratic ...

This paper proposes a continuous-time framework that explains some stylised facts in recent “twin crises” episodes. I show that access to the world capital market enables the domestic economy to achieve a more efficient allocation of resources. However, the banking sector becomes more fragile when this international borrowing is wealth-constrained. A temporary shock is amplified and becomes per...

This study examines the effect of regulatory policy on efficiency under prudential framework among banks listed in the Iranian Securities and Exchange Organization over the period 2003 to 2015. Arellano-Bond estimation method has been patronized to investigate the effect of regulatory policies on efficiency. Results indicate that regulatory policy indicator indexing reserve requirement on inves...

The object of this study is to analyze the factors influencing success of Bank-issued micropayment systems in Iran. Based on an existing IS post acceptance model which considers well known factors, we focus on studying the influence of a new factor related to compulsion (direct and indirect).  Our model consists of seven main factors along with ‘Direct compulsion’ defined as a mediator v...

Burkart and Ellingsen’s (2004) model of trade credit and bank credit rationing predicts that trade credit will be used by medium-wealth and low-wealth firms to help ease bank credit rationing. The author tests these and other predictions of Burkart and Ellingsen’s model using a large sample of more than 28,000 Canadian firms. She uses an endogenous method to divide the firms into the appropriat...

The study of the innovative output of firms often relies on a count of patents filed at one single office of reference such as the European Patent Office (EPO). Yet, not all firms file their patents at the EPO, raising the specter of a selection bias. Using a novel dataset of the whole population of patents by Belgian firms, we show that the singleoffice count results in a selection bias that a...

We review the econometric literature on measuring the returns to R&D. The theoretical frameworks that have been used are outlined, followed by an extensive discussion of measurement and econometric issues that arise when estimating the models. We then provide a series of tables summarizing the major results that have been obtained and conclude with a presentation of R&D spillover returns measur...

Are market-based or bank-based financial systems better at financing the expansion of industries that depend heavily on external finance? Are marketor bank-based financial systems better at facilitating the formation of new firms? We find evidence for neither the market-based nor the bank-based hypothesis. We find overwhelming evidence that industries that are heavily dependent on external fina...