infonet-economy

The cross-border flows of goods, investment, services, know-how and people associated with international production networks–call it ‘supply-chain trade’ for short–has transformed the world. The WTO has not kept pace. This paper argues that adapting world trade governance to the realities of supply-chain trade will require a new organization–a WTO 2.0 as it were. Reasoning on the…

Die Grenzabschöpfungen im Finanzausgleich stellen implizite Minimalsteuersätze für Gemeinden oder Kantone dar. Steigende Durchschnittsabschöpfungen implizieren weit höhere Grenzabschöpfungen.

The paper investigates transmission of different foreign and domestic shocks to bank lending activity in Bosnia and Herzegovina through the bank lending channel. The bank lending channel is analyzed in a time series cross sectional data framework for the period 2006q1- 2014q1, investigating reactions of small vs. large banks to those shocks. First, the evidence has been found that…

This paper evaluates the importance of building a composite metric of financial soundness for the private corporate sector in Colombia. Instead of relying on the individual and sometimes restrictive financial ratio analysis approach, the purpose of this document is to provide a single metric aimed at measuring the financial health of firms. Said metric, the financial soundness index…

This paper presents a DSGE model with banks that face moral hazard in management. Banks receive demand deposits and fund investment projects. Banks are subject to potential withdrawals by depositors which may force them into early liquidation of their investments. The likelihood of this happening depends on the bank management efforts to keep the bank financially sound and the degree…

At the forefront of the economic consolidation of the euro area, banking integration came to a stall following the beginning of the 2008 crisis. Since then European banks started retrenching their asset holdings within national borders, effectively reducing the scale of their European operations. This paper explores the link between banking integration and fragmentation in the…

The term BRICS was coined by Jim O’Neill from Goldman Sachs over a decade ago. Unlike many acronyms, this one has stuck - largely because of the growing share of the world economy associated with the emerging economic powers Brazil, India, China, Russia and South Africa (the latter being added somewhat later.) With the greater global footprint, the policy choices of these countries…

This new eBook argues that least developed countries were hard hit by these barriers. Drawing on Global Trade Alert data, it argues that these barriers reduced these nations’ exports by 30% during the period 2009 to 2013 – over a quarter of a trillion US dollars in total.

The surge in international asset trade since the early 1990s has lead to renewed interest in models with international portfolio choice. We develop the implications of portfolio choice for both gross and net international capital flows in the context of a simple two-country dynamic stochastic general equilibrium (DSGE) model. We focus on the time-variation in portfolio allocation…