This paper examines the predictive power of credit spreads from the corporate bond market. The high-yield bond spread and investment-grade spread can explain 68 per cent and 42 per cent of output variations one year ahead, while the term spread based on government debts can explain only 12 per cent of them. For output forecasts up to one year ahead, the corporate bond spreads also outperform po...

Recent experimental and theoretical work on reinforcement learning has shed light on the neural bases of learning from rewards and punishments. One fundamental problem in reinforcement learning is the credit assignment problem, or how to properly assign credit to actions that lead to reward or punishment following a delay. Temporal difference learning solves this problem, but its efficiency can...

Micro-credit for poverty alleviation is an important financial measure of targeted reduction and rural revitalization in China. This paper employs the OLS model Logit to empirically test effect micro-credit on income level stability growth farmers based field survey data 458 registered poverty-stricken farmer households Fuping County Quyang Hebei Province. The results suggest that can increase ...

In recent years, the Chinese government has highly emphasized the development of bond market, which plays an important role during the development of macro-economy and finance sector in China, especially on some crucial steps concerning national economy and the people’s livelihood, as well as reforms in banking industry and the financial innovations. However, the bond market is smaller compared...

This paper studies incentives in a dynamic contracting framework of a levered firm. In particular, the manager selects long-term and short-term efforts, while shareholders choose initially optimal leverage and ex-post optimal default policies. There are three results. First, shareholders trade off the benefits of short-termism (current cash flows) against the benefits of higher growth from long...

Trade credit represents a substantial portion of short-term credit for most firms. A trade credit decision is usually limited to a comparison of the effective cost of trade credit with the annual cost of borrowing. If the cost of not taking the cash discount exceeds the firm’s borrowing cost, the decision is to take the cash discount. This article examines traditional trade credit analysis, and...

This study compares the short- and long-term relationships between house prices bank credit in developed Emerging Market Economies. fact is an essential issue because most financing facilitated by credit. Using quarterly data from 22 six Economies panel autoregressive distributed lag model method, this found that real are prominent factor of Moreover, magnitude gross domestic product relationsh...

This paper analyzes the adjustments in the structure of assets and liabilities of the Austrian banking sector taking place after a monetary tightening. Following increases in short-term interest rates, the share of loans to non-banks in interest-earning assets rises, which is at odds with predictions from the bank lending channel of monetary policy transmission. An extension of credit to nonfin...

We assess the credit market impact of allowing mortgage “strip-down” as a foreclosureprevention measure, where strip-down reduces the principal of underwater residential mortgages to the current market value of the property for homeowners in Chapter 13 bankruptcy. Our identification is provided by a series of U.S. court decisions that introduced strip-down in parts of the U.S. and a Supreme Cou...