Financial integration and the co-movement of economic activity: Evidence from U.S. states

We analyze the effect of the geographic expansion of banks across U.S. states on the comovement of economic activity between states. Exploiting the removal of interstate banking restrictions to construct time-varying instrumental variables at the state-pair level, we find that bilateral banking integration increases output co-movement between states. The effect of financial integration depends on the nature of the idiosyncratic shocks faced by states and is stronger for more financially dependent industries. Finally, we show that integration (1) increases the similarity of bank lending fluctuations between states and (2) contributes to the transmission of deposit shocks across states.

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CURRENCY UNION, FREE-TRADE AREAS, AND BUSINESS CYCLE SYNCHRONIZATION

Macroeconomic Dynamics ◽

10.1017/s1365100511000423 ◽

2013 ◽

Vol 17 (3) ◽

pp. 646-680 ◽

Cited By ~ 5

Author(s):

Pierangelo De Pace

Keyword(s):

International Business ◽

Economic Activity ◽

Financial Integration ◽

Currency Union ◽

The United States ◽

International Business Cycles ◽

Statistical Reliability ◽

Stationary Bootstrap ◽

Cross Country ◽

And Performance

Since the 1970s, the characteristics of international business cycles have changed, and deeper economic integration has modified the features of cross-country comovement. We formally test for correlation shifts in measures of real economic activity and economic/financial integration. In Europe we find some statistically significant evidence of higher correlations for several subgroups of countries following the creation of the EMU in 1999. We detect significantly more pronounced correlations between Mexico and the United States and between Mexico and Canada in North America after the enforcement of the NAFTA in 1994. Results are derived from an econometric framework based on nonparametric iterated stationary bootstrap methods, whose statistical reliability and performance we assess through Monte Carlo simulations.

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Economic Activity

10.1017/cbo9780511560033 ◽

1967 ◽

Cited By ~ 23

Author(s):

G. C. Harcourt ◽

P. H. Karmel ◽

R. H. Wallace

Keyword(s):

Economic Activity

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ADMINISTRATIVE AND LEGAL REGULATION OF SOME SPECIES OF FOREIGN ECONOMIC ACTIVITY TO BE LICENSED

Law Journal of Donbass ◽

10.32366/2523-4269-2018-64-3-114-119 ◽

2018 ◽

Vol 64 (3) ◽

pp. 114-119

Author(s):

Anastasiia Filipenko ◽

Keyword(s):

Economic Activity ◽

Legal Regulation

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Institutional Specifics of Business Self-regulation

Voprosy Ekonomiki ◽

10.32609/0042-8736-2003-11-88-98 ◽

2003 ◽

pp. 88-98 ◽

Cited By ~ 2

Author(s):

A. Obydenov

Keyword(s):

Economic Activity ◽

Self Regulation ◽

Institutional Arrangement ◽

Voluntary Membership ◽

Sufficient Set ◽

The Subject ◽

Necessary And Sufficient ◽

Object Of Control ◽

Self Enforcement

Self-regulation appears to be a special institution where economic actors establish their own rules of economic activity for themselves in a specific business field. At the same time they are the object of control within these rules and the subject of legal management of the controller. Self-regulation contains necessary prerequisites for fundamental resolution of the problem of "controlling the controller". The necessary and sufficient set of five self-regulation organization functions provides efficiency of self-regulation as the institutional arrangement. The voluntary membership in a self-regulation organization is essential for ensuring self-enforcement of institutional arrangement of self-regulation.

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Economic effects of monetary policy in Russia: What do large datasets tell us?

Voprosy Ekonomiki ◽

10.32609/0042-8736-2020-4-31-53 ◽

2020 ◽

pp. 31-53 ◽

Cited By ~ 1

Author(s):

Anna A. Pestova ◽

Natalia A. Rostova

Keyword(s):

Monetary Policy ◽

Interest Rate ◽

Interest Rates ◽

Economic Activity ◽

Global Financial Crisis ◽

Exchange Rate Regime ◽

Aggregate Demand ◽

Economic Effects ◽

Theoretical Concepts ◽

Empirical Estimates

Is the Bank of Russia able to control inflation and, at the same time, manage aggregate demand using its interest rate instruments? In other words, are empirical estimates of the effects of monetary policy in Russia consistent with the theoretical concepts and experience of advanced economies? This paper is aimed at addressing these issues. Unlike previous research, we employ “big data” — a large dataset of macroeconomic and financial data — to estimate the effects of monetary policy in Russia. We focus exclusively on the period after the 2008—2009 global financial crisis when the Bank of Russia announced the abandoning of its fixed ruble exchange rate regime and started to gradually transit to an interest rate management. Our estimation results do not confirm standard responses of key economic activity and price variables to tightening of monetary policy. Specifically, our estimates do not reveal a statistically significant restraining effect of the Bank of Russia’s policy of high interest rates on inflation in recent years. At the same time, we find a significant deteriorating effect of the monetary tightening on economic activity indicators: according to our conservative estimates, each of the key rate increases occurred in March and December 2014 had led to a decrease in the industrial production index by about 0.2 percentage points within a year.

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Mechanisms of Global Governance: Economic Analysis

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-7-4-28 ◽

2013 ◽

pp. 4-28 ◽

Cited By ~ 4

Author(s):

L. Grigoryev ◽

A. Kurdin

Keyword(s):

Property Rights ◽

Economic Analysis ◽

Global Governance ◽

International Organizations ◽

Economic Activity ◽

Global Level ◽

Narrow Sense ◽

Key Characteristics ◽

Global Problems

The coordination of economic activity at the global level is carried out through different mechanisms, which regulate activities of companies, states, international organizations. In spite of wide diversity of entrenched mechanisms of governance in different areas, they can be classified on the basis of key characteristics, including distribution of property rights, mechanisms of governance (in the narrow sense according to O. Williamson), mechanisms of expansion. This approach can contribute not only to classifying existing institutions but also to designing new ones. The modern aggravation of global problems may require rethinking mechanisms of global governance. The authors offer the universal framework for considering this problem and its possible solutions.

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Impact of regulatory framework rigidity on poverty in the regions of Russia

Voprosy Ekonomiki ◽

10.32609/0042-8736-2020-12-62-79 ◽

2020 ◽

pp. 62-79

Author(s):

P. N. Pavlov

Keyword(s):

Economic Activity ◽

Regional Level ◽

Institutional Factors ◽

Federal Regulations ◽

Russian Regions ◽

Poverty Dynamics ◽

Regulatory Burden ◽

Sectoral Structure ◽

The Impact ◽

Regions Of Russia

The paper analyzes the impact of the federal regulatory burden on poverty dynamics in Russia. The paper provides regional level indices of the federal regulatory burden on the economy in 2008—2018 which take into account sectoral structure of regions’ output and the level of regulatory rigidity of federal regulations governing certain types of economic activity. Estimates of empirical specifications of poverty theoretical model with the inclusion of macroeconomic and institutional factors shows that limiting the scope of the rulemaking activity of government bodies and weakening of new regulations rigidity contributes to a statistically significant reduction in the level of poverty in Russian regions. Cancellation of 10% of accumulated federal level requirements through the “regulatory guillotine” administrative reform may take out of poverty about 1.1—1.4 million people.

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