scholarly journals The Financial Transmission of Housing Booms: Evidence from Spain

2021 ◽  
Vol 111 (3) ◽  
pp. 1013-1053
Author(s):  
Alberto Martín ◽  
Enrique Moral-Benito ◽  
Tom Schmitz
Keyword(s):  
Financial Constraints ◽  
Quantitative Model ◽  
Crowding Out ◽  
Cross Sectional ◽  
Credit Growth ◽  
Net Worth ◽  
Credit Supply ◽  
Housing Boom ◽  
Credit Demand

How does a housing boom affect credit to non-housing firms? Using bank, firm, and loan-level microdata, we show that the Spanish housing boom reduced non-housing credit growth during its first years, but stimulated it later on. These patterns can be rationalized by financial constraints for banks. Constrained banks initially accommodated higher housing credit demand by reducing non-housing credit. Eventually, however, the housing boom increased bank net worth and expanded credit supply. A quantitative model, disciplined by our cross-sectional estimates, indicates that the crowding-out effect was substantial but temporary, and had been fully absorbed by the end of the boom. (JEL E32, E44, G21, R21, R31)

scholarly journals Household food unavailability due to financial constraints affects the nutrient intake of children

2018 ◽  
Vol 29 (5) ◽  
pp. 816-820
Author(s):  
Hitomi Suga
Keyword(s):  
Nutrient Intake ◽  
Financial Constraints ◽  
Nationwide Survey ◽  
Cross Sectional Study ◽  
Analysis Of Covariance ◽  
Dietary Intakes ◽  
Nutrition Survey ◽  
Cross Sectional ◽  
Dietary Record ◽  
Statistical Trends

Abstract Background A household’s food unavailability due to financial constraints may act as a barrier to a healthy diet for children. This cross-sectional study aimed to examine the association between food unavailability due to financial constraints and the nutrient intake of children aged 1–15 years using data of a nationwide survey among the Japanese population. Methods Datasets from the National Health and Nutrition Survey and the Comprehensive Survey of Living Conditions in Japan, 2014 were used for this study. The dietary intakes of energy and nutrients were estimated using a one-day dietary record. Participants were categorized into four subgroups, according to their households’ frequency of food unavailability due to financial constraints. The adjusted means and 95% confidential intervals of the energy and nutrient intakes in each subgroup were calculated using analysis of covariance. The statistical trends across the subgroups were examined using analysis of covariance. Results Of the 895 children included in the analysis, 202 (22.6%) were classified into subgroups with frequent food unavailability due to financial constraints. Significant decreases in the mean intakes of carbohydrate, calcium, retinol activity equivalents, riboflavin, folate and vitamin C were observed with increases in the frequency of households’ food unavailability. In contrast, frequent food unavailability was associated with higher total fat and vitamin B12 intake. Conclusion A substantial proportion of children in Japan experienced food unavailability due to financial constraints, and this affected their nutrient intake. Adopting a population approach may help overcome this problem.

scholarly journals Who Bears Interest Rate Risk?

2018 ◽  
Vol 32 (8) ◽  
pp. 2921-2954 ◽  
Author(s):  
Peter Hoffmann ◽  
Sam Langfield ◽  
Federico Pierobon ◽  
Guillaume Vuillemey
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Banking Sector ◽  
Balance Sheet ◽  
Interest Rate Risk ◽  
Cross Sectional ◽  
Net Worth ◽  
Loan Rate ◽  
Rate Risk ◽  
European Banking

Abstract We study the allocation of interest rate risk within the European banking sector using novel data. Banks’ exposure to interest rate risk is small on aggregate, but heterogeneous in the cross-section. Contrary to conventional wisdom, net worth is increasing in interest rates for approximately half of the institutions in our sample. Cross-sectional variation in banks’ exposures is driven by cross-country differences in loan-rate fixation conventions for mortgages. Banks use derivatives to partially hedge on-balance-sheet exposures. Residual exposures imply that changes in interest rates have redistributive effects within the banking sector. Received October 31, 2017; editorial decision August 30, 2018 by Editor Philip Strahan. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Credit Stimulus, Executive Ownership, and Firm Leverage

2021 ◽  
Author(s):  
Rajdeep Chakraborti ◽  
Sandeep Dahiya ◽  
Lei Ge ◽  
Pedro Gete
Keyword(s):  
Banking Sector ◽  
Chinese Government ◽  
Bank Capital ◽  
Credit Expansion ◽  
Complete Control ◽  
Credit Supply ◽  
Credit Demand ◽  
Firm Leverage

We show that executive ownership is a significant driver of the demand for credit following credit expansion policies. Our focus on credit demand is in contrast to most studies that have focused on credit supply factors such as bank capital. Our identification exploits the large and unexpected Chinese credit expansion in 2008. This setting offers a unique advantage as in 2008 the Chinese government had almost complete control over the banking sector and it directed the banks to increase credit supply. Thus, in this setting, demand, rather than supply, largely drives the observed changes in firms’ borrowing. We provide extensive robustness tests to validate our results. This paper was accepted by Kay Giesecke, finance.

Crowding-Out Effect of Out-of-Pocket Health Expenditures on Consumption Among Households in Mongolia

2021 ◽  
Author(s):  
Ochirbat Batbold ◽  
Tuvshin Banzragch ◽  
Davaatseren Davaajargal ◽  
Christy Pu
Keyword(s):  
Social Health Insurance ◽  
Health Expenditures ◽  
Household Consumption ◽  
Cross Sectional Study ◽  
Absolute Amount ◽  
Crowding Out ◽  
Cross Sectional ◽  
Household Expenditures ◽  
Engel Curves ◽  
Nationally Representative

Background: High out-of-pocket (OOP) health expenditures are a common problem in developing countries. Studies rarely investigate the crowding-out effect of OOP health expenditures on other areas of household consumption. OOP health costs are a colossal burden on families and can lead to adjustments in other areas of consumption to cope with these costs. Methods: This cross-sectional study used self-reported household consumption data from the nationally representative Household Socioeconomic Survey (HSES), collected in 2018 by the National Statistical Office of Mongolia. We estimated a quadratic conditional Engel curves system to determine intrahousehold resource allocation among 12 consumption variables. The 3-stage least squared method was used to deal with heteroscedasticity and endogeneity problems to estimate the causal crowding-out effect of OOP. Results: The mean monthly OOP health expenditure per household was ₮64 673 (standard deviation [SD]=259 604), representing approximately 6.9% of total household expenditures. OOP health expenditures were associated with crowding out durables, communication, transportation, and rent, and with crowding in education and heating for all households. The crowding-out effect of ₮10 000 in OOP health expenditures was the largest for food (₮5149, 95% CI=−8582; −1695) and crowding-in effect was largest in heating (₮2691, 95% CI=737; 4649) in the lowest-income households. The effect of heating was more than 10 times greater than that in highest-income households (₮261, 95% CI=66; 454); in the highest-income households, food had a crowding-in effect (₮179, 95% CI=-445; 802) in absolute amounts. In terms of absolute amount, the crowding-out effect for food was up to 5 times greater in households without social health insurance (SHI) than in those with SHI. Conclusion: Our findings suggest that Mongolia’s OOP health expenses are associated with reduced essential expenditure on items such as durables, communication, transportation, rent, and food. The effect varies by household income level and SHI status, and the lowest-income families were most vulnerable. SHI in Mongolia may not protect households from large OOP health expenditures.

scholarly journals Credit Supply and the Housing Boom

2015 ◽  
Author(s):  
Alejandro Justiniano ◽  
Giorgio E. Primiceri ◽  
Andrea Tambalotti
Keyword(s):  
Credit Supply ◽  
Housing Boom

scholarly journals Credit Supply and the Housing Boom

2015 ◽  
Author(s):  
Alejandro Justiniano ◽  
Giorgio E. Primiceri ◽  
Andrea Tambalotti
Keyword(s):  
Credit Supply ◽  
Housing Boom

scholarly journals Cabo Verde

2016 ◽  
Vol 2016 (367) ◽  
Author(s):  
Keyword(s):  
Economic Development ◽  
Private Sector ◽  
Credit Market ◽  
Financial Sector ◽  
Business Environment ◽  
Banking Supervision ◽  
Credit Growth ◽  
Demand And Supply ◽  
Cabo Verde ◽  
Credit Demand

This Selected Issues paper examines whether the recent slowdown in private sector credit growth in Cabo Verde is demand or supply driven. Although in the late 2000s, demand factors have been the main drivers in Cabo Verde’s credit market, supply dynamics’ role has increased in recent years. For Cabo Verde to promote private sector-led growth and sustainable economic development, reforms aiming at strengthening both credit demand and supply will be essential. These include improving the business environment for the private sector as well as strengthening the financial sector by ensuring prudent banking supervision and an effective resolution of the nonperforming loan overhang.

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