This paper investigates how the economic performance of four economies with floating exchange rates is affected by shocks in domestic and US policy uncertainty. We estimate a Bayesian VAR model describing dynamics ten local variables for each countries use it to evaluate response system structural shocks. The analysis reveals that increased uncertainty reduces industrial output all analysed, wh...

Our paper offers a minimalist model of a run on a financial market. The prime ingredient is that each investor fears having to liquidate after a run, but before prices can recover back to fundamental values. During the run, only the market-making sector is willing to absorb shares. To avoid having to possibly liquidate shares at the marginal post-run price—in which case the market-making sector...

Our paper offers a minimalist model of a run on a financial market. The prime ingredient is that each risk-neutral investor fears having to liquidate after a run, but before prices can recover back to fundamental values. During the run, only the risk-averse market-making sector is willing to absorb shares. To avoid having to possibly liquidate shares at themarginal post-run price—in which case ...

rural households in nigeria are vulnerable to shock because of their limited capacity to make informed decision on secured coping strategies which is further aggravated by some households’ specific socio-economic characteristics. attempts were made to identify shocks being faced by households’ heads and coping strategies. multistage sampling technique was used to select 80 respondents and well ...

This paper documents the short and long term balance sheet effect of cash flows. We show that cash savings in the short run and debt reduction in both the short and the long run account for a substantial fraction of cash flow use. Although, in the long run, investment exhibits substantial sensitivity to cash flows, investment does not absorb the entire cash flow shock. In fact, the tighter the ...

Recently there has been renewed interest in assessing economic models in the context of specific, empirically identified economic shocks. Typically, these shocks are identified one-at-a-time, ignoring potential correlations across shocks, or are identified in the context of a structural vector autoregression (SVAR) using zero restrictions only loosely tied to economic theory. In this paper, we ...