Asset encumbrance is a central concept in the context of banks’ liquidity crises, as it associated with their capacity to obtain secured funding. This occasional paper summarises work carried out by task force on asset encumbrance, bringing together analyses ECB and those national competent authorities working topic. First, we describe how has evolved euro area banks, focusing country business ...

The overall independence of a firm’s governance system depends not only on the independence of its board of directors but also on CEO influence over the other top executives. We find that board independence and independence from CEO influence in the executive suite are inversely related. Difference-in-difference estimates using a regulatory shock reveal that strengthening board independence wea...

Path-Breakers: How Does Women’s Political Participation Respond to Electoral Success? This paper analyzes the effect of a woman’s electoral victory on women’s subsequent political participation. Using the regression discontinuity afforded by close elections between women and men in India’s state elections, we find that a woman winning office leads to a large and significant increase in the shar...

We study the combined effects of uncertainty and competition on the timing optimization of investments in complementarity inputs for non-preemption duopoly (leader-follower) markets with either a weakpatent system where spillover-knowledge is allowed or a strong-patent system where proprietaryknowledge holds. We find that, for some input-sequencing investment scenarios, ex-ante and (expected) e...

This paper investigates the effect of Internet technology on how firms access export markets directly or via intermediaries. Empirical evidence suggests that technology diffusion is geographically localised, with knowledge spillovers from neighbouring adopters decaying quickly over short distances. To address the potential endogeneity of Internet adoption, I construct an instrument that capture...

The mechanisms of growth out of backwardness are investigated in an intertemporal general equilibrium model for Thailand. Learning by exporting is assumed to be the main vehicle of international spillover. While the econometric literature discusses the causality between exports and productivity, we analyze the endogenous dynamic interaction and with long run growth effects of economic policy. T...

A Family Affair: Job Loss and the Mental Health of Spouses and Adolescents This study examines the impact of involuntary job loss on the mental health of family members. Estimates from fixed-effects panel data models, using panel data for Australia, provide little evidence of any negative spillover effect on the mental health of husbands as a result of their wives’ job loss. The mental well-bei...

This paper examines the potential causes of the “ripple effect” of minimum wages. This wage spillover is thought to result from labor demand substitution: where the rising minimum increases the demand for more-skilled workers who become relatively inexpensive. However, the rising minimum also affects the relative wages across hedonically distinct occupations because it lowers compensating wage ...

Fund families typically claim that closing a fund protects the fund’s superior performance by preventing it from growing too large to be managed efficiently. Even though funds with better performance and larger size are more likely to be closed, there is no evidence that closing a fund can indeed protect its performance. Instead, fund closing decisions are more likely to be motivated by spillov...

Employing a political-economics approach, this paper compares small states and unions when the former fail to internalize cross-border externalities of publicly provided goods. It discusses two types of unions: federations with more than one level of government and unitary states. While unitary states are unable to differentiate public spending ac-cording to differing preferences, rents of gove...