Institutions and financial crises

IF 3.3 2区经济学 Q1 ECONOMICS

Economic Systems Pub Date : 2025-06-01 DOI:10.1016/j.ecosys.2024.101267

Francesco Marchionne , Noemi Giampaoli , Matteo Renghini

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Abstract

We examine how institutional quality affects the probability of banking and sovereign debt crises using a panel of 138 countries from 1996 to 2017. Individually, proxies of institutional quality capture different institutional dimensions and suffer from measurement errors. Jointly, we find that their impact is heterogeneous, and multicollinearity slightly biases the estimates: measures more closely related to regulatory quality and corruption mitigation decrease the probability of financial instability, while those oriented toward social capital have perverse effects. This evidence questions the beneficial effect of institutions. On the contrary, when we extract the common component of institutional quality from multiple imprecise measures using a principal component analysis, better institutions unambiguously reduce the probability of financial distress. Such a shielding effect occurs regardless of whether institutions are considered exogenous or endogenous. Financial structure, cultural differences, and international agreements do not affect our findings. Estimates are robust to several econometric exercises.

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制度与金融危机

我们研究了机构质量如何影响银行危机和主权债务危机的概率，使用了从1996年到2017年的138个国家的小组。个别而言，制度质量的代理捕获不同的制度维度，并遭受测量误差。同时，我们发现它们的影响是异质的，多重共线性对估计有轻微的偏差：与监管质量和减少腐败更密切相关的措施降低了金融不稳定的可能性，而那些面向社会资本的措施则产生了反向效应。这一证据质疑制度的有益作用。相反，当我们使用主成分分析从多个不精确的度量中提取制度质量的共同成分时，更好的制度无疑会降低金融困境的可能性。无论制度是外生的还是内生的，这种屏蔽效应都会发生。金融结构、文化差异和国际协议不影响我们的研究结果。估计对几个计量经济学练习是可靠的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economic Systems ECONOMICS-

CiteScore

4.90

自引率

0.00%

发文量

审稿时长

48 days

期刊介绍： Economic Systems is a refereed journal for the analysis of causes and consequences of the significant institutional variety prevailing among developed, developing, and emerging economies, as well as attempts at and proposals for their reform. The journal is open to micro and macro contributions, theoretical as well as empirical, the latter to analyze related topics against the background of country or region-specific experiences. In this respect, Economic Systems retains its long standing interest in the emerging economies of Central and Eastern Europe and other former transition economies, but also encourages contributions that cover any part of the world, including Asia, Latin America, the Middle East, or Africa.