Search results for "Financial deepening"
showing 4 items of 4 documents
The effect of financial crises on potential output: New empirical evidence from OECD countries
2012
Abstract The aim of this paper is to assess the impact of financial crises on potential output. For this purpose a univariate autoregressive growth equation is estimated on an unbalanced panel of OECD countries over the period 1960–2008. Our results suggest that the occurrence of a financial crisis negatively and permanently affects potential output. In particular, financial crises are estimated to lower potential output by around 1.5–2.4% on average, with most of the impact coming from the effect on capital. The magnitude of the effect increases with the severity of the crisis. These results are robust to the use of an alternative measure of potential output, changes in the methodology and…
Banking Crises and Short and Medium Term Output Losses in Emerging and Developing Countries: The Role of Structural and Policy Variables
2012
The aim of this paper is to assess the dynamic impact of banking crises on output for a panel of developing economies. Using an unbalanced panel of 159 countries from 1970 to 2006, the paper shows that banking crises produce significant output losses. Output losses are larger for relatively richer economies, characterized by a higher level of financial deepening and larger current account imbalances. Flexible exchange rates, fiscal and monetary policy, and liquidity support policies have been found to attenuate the effect of the crises. © 2012 Elsevier Ltd.
Financial development and intergenerational education mobility
2018
Using years of education as a measure of status, we study the relationship between financial development and intergenerational mobility, focusing on human capital investments boosted by financial deepening. We consider a set of indices to capture different components of the overall intergenerational education mobility. Using a sample of 39 countries, we find that financial development is related to structural mobility but not to exchange mobility. In particular, while we detect an inverted U-shaped relationship between financial development and structural mobility, we do not find any significant relationship with exchange mobility. Keywords: Intergenerational mobility, Financial development…
Banking Crises and Short and Medium Term Output Losses in Developing Countries: The Role of Structural and Policy Variables
2010
The aim of this work is to assess the short and medium term impact of banking crises on developing economies. Using an unbalanced panel of 159 countries from 1970 to 2006, the paper shows that banking crises produce significant output losses, both in the short and in the medium term. The effect depends on structural and policy variables. Output losses are larger for relatively more wealthy economies, characterized by a higher level of financial deepening and larger current account imbalances. Flexible exchange rates, fiscal and monetary policy have been found to be efficient tools to attenuate the effect of the crises. Among banking intervention policies, liquidity support resulted to be th…