Abstract We show that politically connected banks influence economic activity. exploit shocks to individual banks’ political capital following close U.S. congressional elections. find regional output growth increases when active in the region experience an average positive shock their capital. The effect is economically large, but temporary, and due lower restructuring economy, not increased pr...

The present paper thoroughly explores second-best efficient allocations in an adverse selection insurance economy. We start from a natural extension of the classical model, assuming less than perfect risk perceptions. We propose first and second welfare theorems, by means of which we describe efficiencyenhancing policies. Notions of weak and strong adverse selection are promising for interpreti...

The role of real estate during the global financial and economic crisis has prompted efforts to better incorporate housing channels into macro models, improve develop macroprudential tools, reform system. This article provides an overview major, recent contributions literature in relation earlier research on what drives prices how they affect activity. Particularly emphasized are studies, both ...

Payments systems operate virtually unnoticed in our daily lives and yet are crucial to a wellfunctioning economy and financial system. Because they explicitly link financial institutions, payments systems provide a way to transmit risk within, and between, financial systems. Ideally, payments systems should be designed and operated so as not to add risk in the event of a crisis. The author exam...

This paper proposes an approach to estimate the impact of adverse climatic events on profitability small European banks (LSIs). By considering river flooding phenomena, we construct a unique database matching information location, frequency and severity floods with location balance sheet data institutions mainly operating in areas where they are headquartered (territorial LSIs). We compare perf...

This present study aims at analyzing how microfinance affects household income of its participants as well to find out the factors that influence adopt loan for which a logit model was applied. run on three villages Daulatpur Upazila Kushtia district namely Khalishakundi, Malipara and Silimpur from 350 respondents were chosen randomly. The result reveals Age (p<0.05), size (p<0.01) credit...

what are the main success factors of microfinance institutions in providing financial services to poor people in a sustainable manner? in this article we try to answer this question. in one hand, we analyze the core compatibility between microeconomics of asymmetric information, transaction cost and risk, and new different operational mechanisms applied by microfinance institutions. on the othe...