Search results for "Monetary"
showing 10 items of 502 documents
Why so much EURO-scepticism among Euro-enthusiasts?
2016
This paper addresses the intriguing situation in which there is an identified paradox inside the Polish society, namely strong Euro-enthusiasm combined with clear EURO-scepticism. The author of this article differentiates between EURO-scepticism and Euro-scepticism. Euro-scepticism is a recognised and extensively researched phenomenon across Europe, most generally conceptualised as a negative attitude towards the European integration process (in particular in the form of the European Union). EURO-scepticism, by contrast, is a much narrower category which can be characterised as a negative attitude towards the monetary integration on a supranational level, its deepening, participation in it,…
Earnings sustainability, economic conditions and the value relevance of accounting information
2013
Summary This study demonstrates that the value relevance of accounting information is influenced by the ability to capitalize investments in valuable resources. We use data from Sweden to show that firms that operate in industries in which accounting conservatism limits this capitalization display lower value relevance as a result of more unsustainable earnings components. However, when controlling for the different properties of sustainable and unsustainable earnings components, the difference vanishes. Moreover, we show that firms operating in industries in which more investments are immediately expensed display systematic temporal variations in the level of value relevance. We contend th…
The value relevance of accounting information during the global financial crisis: evidence from Norway
2013
This study investigates how the recent financial crisis influenced the value relevance of accounting information. The empirical analyses show that the book values of equity explained most of the cross-sectional variation in stock prices during the crisis. Still, the earnings response coefficient increased significantly during the period of the crisis. The analysis suggests a separation between the information content of book values and earnings in a crisis situation. The findings are consistent with book values being highly relevant as a proxy variable for liquidation values in a crisis, whereas earnings, in contrast to the balance sheet, capture information about the future earning capabil…
Basel III: Countercyclical Capital Buffer Proposal-the Case of Baltics
2014
Abstract The objective of countercyclical capital buffer is to encourage banks to build up buffers in good times that can be drawn down in bad times. The aim of the report is to assess such decisions by banks derived from two approaches. The approaches are the aggregate credit-to-GDP ratio as well as credit growth. The approaches are implemented for Estonia, Latvia and Lithuania for the time period 2000–2012. The report compares two approaches and analyses their relevance to the Baltic states by testing the correlation between a growth in studied variables and a growth of corresponding gaps. Methods used in the empirical part of the report are econometric analysis as well as economic analys…
El proceso de transmisión de la política monetaria a la estructura temporal de los tipos de interés en España
2011
This paper analyses the adjustment grade and speed of interest rates term structure in Spain to changes in official interest rateo For this purpose, we specify and estimate an error-correction model, which considers the anticipation of future policy monetary and this allows obtaining an efficient estimator ofthe long-run relation. Moreover, we consider the possibility of asymmetry in the adjustment process to the equilibrium. The results indicate that interest rates anticipate monetary policy actions. Furthermore, monetary policy is transmitted quickly and completely to the short-term interest rates, while transmission is not complete in long-term interest rates but his speed has increased …
Fiscal Policy Responsiveness, Persistence and Discretion
2008
This paper analyzes the different characteristics of fiscal policy using a two-step estimation procedure. First, we decompose both government spending and government revenue into three components: responsiveness, persistence and discretion. Second, we assess the determinants of these characteristics. Using data from 132 countries, our results show that fiscal policy is more persistent than responsive to economic conditions, which implies that the authorities may have less leeway in the short-run notably to curb spending behavior. In addition, countries characterized by greater fiscal persistence have less discretion and responsiveness. Finally, macroeconomic, institutional and geographic va…
The effect of the launch of bitcoin futures on the cryptocurrency market: an economic efficiency approach
2021
We analyze the economic efficiency of the cryptocurrency market after the launch of Bitcoin futures by means of the Data Envelopment Analysis and Malmquist Indexes. Our results show that the introduction of Bitcoin futures did not affect the economic efficiency of the cryptocurrency market. However, we observe that Bitcoin obtained the highest risk-return trade-off due to its liquidity compared to the rest of cryptocurrencies. Therefore, our paper underlines the support of investors on Bitcoin to the detriment of the rest of cryptocurrencies.
The cost of market power in banking: Social welfare loss vs. cost inefficiency
2007
Abstract This paper analyses the relationship between market power in the loan and deposit markets and efficiency in the EU-15 countries over 1993–2002. Results show the existence of a positive relationship between market power and cost X-efficiency, allowing rejection of the so-called quiet life hypothesis [Berger, A.N., Hannan, T.H., 1998. The efficiency cost of market power in the banking industry: A test of the ‘quiet life’ and related hypotheses. Review of Economics and Statistics 8 (3), 454–465]. The social welfare loss attributable to market power in 2002 represented 0.54% of the GDP of the EU-15. Results show that the welfare gains associated with a reduction of market power are gre…
The social costs of bank market power: Evidence from Mexico
2008
This paper estimates the social costs of market power (Harberger's triangle) in the Mexican banking system over the period 1993–2005. It also tests the so-called “quiet life” hypothesis which postulates a negative effect of market power on bank management efficiency. The social cost attributable to market power in 2005 is 0.15% of GDP, while that deriving from the cost (profit) inefficiency of banking management is 0.021% (0.075%) of GDP. The results allow us to reject the quiet life hypothesis in the deposits market. However, market power in the setting of the interest rate on loans has a negative effect on cost efficiency. Journal of Comparative Economics 36 (3) (2008) 467–488.
The Real Effects of Bank Branch Deregulation at Various Stages of Economic Development: The European Experience
2011
This paper provides evidence on the links between financial deregulation and economic performance in a European context. Specifically, we study the relaxation of bank branching restrictions in Spain which triggered off a remarkable inter-regional expansion of savings banks which was coincidental with an unprecedented period of sustained growth. Although related questions have been largely investigated for the US, the European experiences remain largely unexplored. An additional contribution is the use of quantile regression techniques which, unlike traditional OLS regression analysis, do not focus on the “average effect for the average province”. This change of focus helps to overcome the d…