Following the bankruptcy of Lehman Brothers, interbank borrowing and lending dropped, whereas reserve holdings of depository institutions skyrocketed, as the Fed injected liquidity into the U.S. banking sector. This paper introduces bank liquidity risk and limited market participation into a real business cycle model with ex ante identical financial intermediaries and shows, in an analytically ...

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 research discusses the negative social, environmental and economic impacts of tourism development in Barbados; describes the perceptions of residents and tourists to such; and measures their preferences for environmental management changes using the island’s lone marine reserve, the Folkestone Marine Reserve, as a case study. This research is underpinned by a number of policy and methodolo...

We have simulated the generation of Ca ii H2V bright grains by acoustic shocks. We employ a one-dimensional, non-LTE, radiation hydrodynamic code, with 6 level model atoms for hydrogen and singly ionized calcium. We drive acoustic waves through a stratiied radiative equilibrium atmosphere by a piston, whose velocity is chosen to match the Doppler shift observed in the FeI 396.68 line in the H l...

We model a run on a financial market, in which each risk-neutral investor fears having to liquidate shares after a run, but before prices can recover back to fundamental values. To avoid having to possibly liquidate shares at the marginal post-run price—in which case the risk-averse market-making sector will already hold a lot of share inventory and thus be more reluctant to absorb additional s...

Stylized facts for South Asia show the dominance of supply shocks, amplified by macroeconomic policies and procyclical current accounts. Interest and exchange rate volatility rose initially on liberalization, but fell as markets deepened. A gradual middling through approach to openness and market development are helping the region absorb shocks without reducing growth. Diverse sources of demand...

We study the relationship between bank geographic complexity and risk using a unique dataset of 96 global holding companies (BHCs) over 2008–2016. From data on affiliate network internationally active banking entities, we construct measure coverage for each BHC. find that higher heightens banks’ capacity to absorb local economic shocks, reducing their risk. However, can also help banks soften i...

3 DIW Economic Bulletin 1.2013 With the crisis in the euro area, the issue of the institutional structure of the monetary union has gained in significance. One problem with regard to the longer-term stability of the euro area is the absence of mechanisms to adequately absorb asymmetric cyclical shocks in the individual member states. Such an instrument is essential in order to be able to implem...

to both economists and policy makers. According to economic theory, the size of the response depends on the degree to which households are insured against such shocks and also whether the economic shock is permanent. Most shocks to wealth are not insured at all. Some shocks to income are insured, but often insurance, such as unemployment benefits, does not replace 100 percent of earnings. In th...