We investigate the impact of financial crises on two fundamental features of stock returns, namely, the risk-return tradeoff and the leverage effect. We apply the fractionally integrated exponential GARCH-in-mean (FIEGARCH-M) model for daily stock return data, which includes both features and allows the co-existence of long memory in volatility and short memory in returns. We extend this model ...

Only a few cross-country empirical studies have been conducted to measure the performance of commercial banks especially before, during, and after crises (financial or political). This study makes an attempt to fill the gap in literature by investigating the impacts of crises on Gulf corporate conceal (GCC) commercial banks performance over the period between1997-2007. The rationale behind this...

The recent financial turmoils in Latin America and Europe have led to a concatenation of several events from currency, banking and sovereign debt crises. This paper proposes a multivariate dynamic probit model that encompasses the three types of crises ’currency, banking and sovereign debt’ and allows us to investigate the potential causality between all three crises. To achieve this objective,...

In the immediate postwar era the primary object of health reform among the advanced industrial democracies was to expand, if not universalize, access to a broad spectrum of health services through sustained, high levels of government-mandated spending. The fiscal crises of the 1970s and 1980s ushered in a new generation of policies devoted to balancing the imperatives of guaranteeing access to ...

The paper models the policy challenges facing globalizing developing countries. Models from the pure theory of international trade, the small open economy model, growth accounting, the SolowSwan model, the gravity model, models of portfolio diversification and currency crises models are reviewed to distil policy guidelines to promote the globalization of developing countries. The overriding obj...

Abstract: I study the financial distress recently experienced by the emerging market economies (EME). I distinguish two periods: Summer 2013, when there was talk about the Fed tapering monetary policy (the “taper-talk” period), and December 2013–January 2014, when the actual tapering began (the “actual-taper” period). Consistent with previous work, I find that current account deficits and real ...

Abstract Existing literature suggests that fiscal space matters for the policy response to financial crises. High public debt levels limit countries capacity pursue macroeconomic and stabilization policies resume growth after severe crisis downturns. We examine involved channels through which dynamics of a distress, namely sovereign market access policymakers’ views, in panel 30 OECD period 198...

International financial integration helps to diversify risk but also may increase the transmission of crises across countries. We provide a quantitative analysis of this trade-off in a two-country general equilibrium model with endogenous portfolio choice and collateral constraints. Collateral constraints bind occasionally, depending upon the state of the economy and levels of inherited debt. T...

Abstract Crises are often viewed as catalysts for change. The coronavirus disease crisis is no exception. In many policy sectors, proponents of reform see this global both a justification and an enabler necessary Policy scholars have paid ample attention to crisis-reform thesis. Empirical research suggests that these crisis-induced change should not be too optimistic. question remains why some ...

Often, systemic banking crises initiate from one or more banks and affect countries by rapid spreading in the banking network, financial markets and economy of countries. According to Reinhart & Rogoff (2009) in the book titled "This time is Different," financial crises are pointed as an equal opportunity menace for high-income countries and emerging markets. Although The International Mo...