Consumer Welfare and Product Creation: The Credit Supply Channel

2019 ◽  
Author(s):  
Poorya Kabir
Keyword(s):  
Consumer Welfare ◽  
Credit Supply ◽  
Supply Channel ◽  
Product Creation

scholarly journals THE CREDIT SUPPLY CHANNEL OF MONETARY POLICY TRANSMISSION MECHANISM: AN EMPIRICAL INVESTIGATION OF ISLAMIC BANKS IN PAKISTAN VERSUS MALAYSIA

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Syed Muhammad Abdul Rehman Shah
Keyword(s):  
Monetary Policy ◽  
Balance Sheet ◽  
Banking System ◽  
Real Income ◽  
Transmission Mechanism ◽  
Islamic Banks ◽  
Differential Impact ◽  
Credit Supply ◽  
Balance Sheet Channel ◽  
Supply Channel

The transmission mechanism of monetary policy is explained through the relationshipsbetween a change in money supply and the level of real income. Monetary policytransmits to the real sector through several different channels. Such channels includethe interest rate channel, the exchange rate channel, the asset-pricing channel, the creditsupply channel, and the bank balance sheet channel. This paper empirically investigatesthe credit supply channel of monetary policy and explores the differential impact ofmonetary policy on credit supply of Islamic banks in Pakistan versus Malaysia. Therobust two-step System-Generalize Method of Moments (GMM) estimator is appliedon an unbalanced panel dataset over the period 2005-2016. While estimating the effectsof three alternative measures of monetary policy on banks’ credit supply, several bankspecificvariables are included in the specification as control variables. We providestrong evidence on the existence of credit supply channel in the baseline models forboth countries and differential impact of monetary policy through Islamic banks inPakistan versus Malaysia in the extended models. Our findings suggest that there isa vital need to consider the nature of Islamic banks while devising the instrumentsof an effective monetary policy in countries with dual banking system like Pakistan,Malaysia, Indonesia, Bahrain, Saudi Arabia, Qatar and others.

scholarly journals The credit supply channel of monetary policy: evidence from a FAVAR model with sign restrictions

2019 ◽  
Vol 59 (5) ◽  
pp. 2443-2472 ◽  
Author(s):  
Juan S. Holguín ◽  
Jorge M. Uribe
Keyword(s):  
Monetary Policy ◽  
Credit Supply ◽  
Sign Restrictions ◽  
Supply Channel

scholarly journals Informal Sector and Economic Development: The Credit Supply Channel

2015 ◽  
Author(s):  
Baptiste Massenot ◽  
Sttphane Straub
Keyword(s):  
Economic Development ◽  
Informal Sector ◽  
Credit Supply ◽  
Supply Channel

Effect of Bank Mergers on Client Firms: Evidence from the Credit Supply Channel

2017 ◽  
Vol 69 (4) ◽  
pp. 438-449 ◽  
Author(s):  
Heather Montgomery ◽  
Yuki Takahashi
Keyword(s):  
Bank Mergers ◽  
Credit Supply ◽  
Supply Channel

scholarly journals INFORMAL SECTOR AND ECONOMIC DEVELOPMENT: THE CREDIT SUPPLY CHANNEL

2015 ◽  
Vol 54 (2) ◽  
pp. 1046-1067 ◽  
Author(s):  
Baptiste Massenot ◽  
Stéphane Straub
Keyword(s):  
Economic Development ◽  
Informal Sector ◽  
Credit Supply ◽  
Supply Channel

Know-how as a product creation, exploitation and national benefit

IEE Review ◽  
1992 ◽  
Vol 38 (10) ◽  
pp. 339
Author(s):  
Peter J. Lawrenson
Keyword(s):  
Know How ◽  
Product Creation

The Micro and Macro of Managerial Beliefs

2020 ◽  
Author(s):  
Jose Maria Barrero
Keyword(s):  
Rational Expectations ◽  
Asset Price ◽  
Heterogeneous Firms ◽  
Adjustment Costs ◽  
Consumer Welfare ◽  
Sales Growth ◽  
Firm Level ◽  
Managerial Decisions ◽  
Managerial Beliefs ◽  
Growth Volatility

This paper studies how biases in managerial beliefs affect managerial decisions, firm performance, and the macroeconomy. Using a new survey of US managers I establish three facts. (1) Managers are not over-optimistic: sales growth forecasts on average do not exceed realizations. (2) Managers are overprecise (overconfident): they underestimate future sales growth volatility. (3) Managers overextrapolate: their forecasts are too optimistic after positive shocks and too pessimistic after negative shocks. To quantify the implications of these facts, I estimate a dynamic general equilibrium model in which managers of heterogeneous firms use a subjective beliefs process to make forward-looking hiring decisions. Overprecision and overextrapolation lead managers to overreact to firm-level shocks and overspend on adjustment costs, destroying 2.1 percent of the typical firm’s value. Pervasive overreaction leads to excess volatility and reallocation, lowering consumer welfare by 0.5 to 2.3 percent relative to the rational expectations equilibrium. These findings suggest overreaction may amplify asset-price and business cycle fluctuations.

Digital Product Creation

2002 ◽  
Vol 97 (6) ◽  
pp. 307-310
Author(s):  
Gustav J. Olling
Keyword(s):  
Digital Product ◽  
Product Creation
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