scholarly journals The role of credit in regional divergence: Spanish regions and Eurozone countries

2020 ◽  
Vol 40 (4) ◽  
pp. 712-727
Author(s):  
SHEILA C. DOW ◽  
CARLOS J. RODRÍGUEZ-FUENTES
Keyword(s):  
Regional Differences ◽  
Bank Credit ◽  
Regional Convergence ◽  
Credit Availability ◽  
Spanish Regions ◽  
Economic Divergence ◽  
The Business Cycle ◽  
Regional Capital ◽  
Peripheral Regions

ABSTRACT This paper provides a theoretical account of the role of regional differences in cyclical patterns of credit availability for patterns of regional convergence or divergence. While mainstream theories imply either equalising regional capital flows, or else lower credit availability for peripheral regions due to market imperfections, Post-Keynesian theory of liquidity preference and financial structure imply the scope for greater credit volatility for peripheral regions, especially in downturns, contributing to real economic divergence. This latter account is assessed by means of an empirical analysis of patterns in bank credit over the business cycle among the Spanish regions and Eurozone countries.

scholarly journals Regional differences in quality of care for heart failure: the role of patient, physician, and hospital characteristics

2002 ◽  
Vol 39 ◽  
pp. 452-453
Author(s):  
Edward P. Havranek ◽  
Pam Wolfe ◽  
Frederick A. Masoudi ◽  
Harlan M. Krumholz ◽  
Saif S. Rathore ◽  
...  
Keyword(s):  
Heart Failure ◽  
Quality Of Care ◽  
Regional Differences ◽  
Hospital Characteristics

scholarly journals Inequality over the business cycle: the role of distributive shocks

2021 ◽  
pp. 1-30
Author(s):  
Marius Clemens ◽  
Ulrich Eydam ◽  
Maik Heinemann
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Business Cycle ◽  
Parameter Estimates ◽  
Panel Estimation ◽  
Bayesian Techniques ◽  
Elasticity Of Intertemporal Substitution ◽  
Ex Ante ◽  
The Business Cycle

Abstract This paper examines how wealth and income inequality dynamics are related to fluctuations in the functional income distribution over the business cycle. In a panel estimation for OECD countries between 1970 and 2016, although inequality is, on average countercyclical and significantly associated with the capital share, one-third of the countries display a pro- or noncyclical relationship. To analyze the observed pattern, we incorporate distributive shocks into an RBC model, where agents are ex ante heterogeneous with respect to wealth and ability. We find that whether wealth and income inequality behave countercyclically or not depends on the elasticity of intertemporal substitution and the persistence of shocks. We match the model to quarterly US data using Bayesian techniques. The parameter estimates point toward a non-monotonic relationship between productivity and inequality fluctuations. On impact, inequality increases in response to TFP shocks but subsequently declines. Furthermore, TFP shocks explain 17% of inequality fluctuations.

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