Research Newsletter Second half of 2016

Editorial

Maintaining financial stability requires the highest standard of research to back systemic risk prevention and policy making, by Laurent Clerc

Interviews

Hervé Le Bihan: Individual price data and monetary policy analysis
Laurent Ferrara: Uncertainty and economic policy

Focus

Credit risk in the Euro area

Building on their innovative credit risk indices, Simon Gilchrist and Benoît Mojon show that credit spreads revealed that the financial crisis of 2008 dramatically increased the cost of market funding for both financial and non-financial firms in the euro area.

International banking and cross-border effects of regulation: lessons from France

To explore how regulatory changes abroad as well as in France affect cross-border lending, Matthieu Buissière, Julia Schmidt and Frédéric Vinas looked at various regulatory measures and reserve requirements imposed on banks. They especially show that banks’ balance sheet characteristics are important when it comes to the cross-border transmission of domestic capital regulation.

Land collateral and labor market dynamics in France

In French data over 1978-2011, Leo Kaas, Patrick Pintus and Simon Ray find positive and significant correlation between the market value of firms’ real estate holdings and their levels of investment and hiring at an aggregate level. They also show why it matters to understand the macroeconomic dynamics of investment, hiring and unemployment.

Local labor markets and taste-based discrimination

Using a spatial competition model, Clémence Berson examines worker preference with regard to geographical location when firms are located around a circle city. She shows, inter alia, that the wage gap does not disappear with more competition and public policies are needed to reduce it.

Growth effect of FDI in developing economies: the role of institutional quality

Cristina Jude and Grégory Levieuge note that countries with the same level of foreign direct investment (FDI) experience different growth outcomes depending on their institutional quality. Thus they examine the modulating role of institutions in the FDI-growth relationship in numerous emerging and developing countries.

Variable trade costs, composition effects, and the intensive margin of trade

Antoine Berthou and Lionel Fontagné use an innovative empirical strategy to reply to the following question: How does globalisation through the trade openness of economies affect the wealth of France? They show that an increase in foreign tariffs of 1% lead to a decline in individual firms’ exports of about 2.5%.

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publication
Research Newsletter Second half of 2016
  • Published on 12/19/2016
  • 18 pages
  • EN
  • PDF (470.64 KB)
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Updated on: 12/26/2016 14:04