Political Economy - Development: Political Institutions eJournal最新文献

{"title":"The Fall in Shadow Banking and the Slow U.S. Recovery","authors":"P. Fève, Alban Moura, O. Pierrard","doi":"10.2139/ssrn.3918148","DOIUrl":"https://doi.org/10.2139/ssrn.3918148","url":null,"abstract":"We argue that shocks to traditional and shadow banks were important drivers of the U.S. economy during the Great Recession and the Slow Recovery. This result follows from a DSGE model featuring a heterogeneous banking sector estimated from macroeconomic and financial observables. Our model attributes the Great Recession to negative shocks to the aggregate supply of loans. A more novel result is that a shock specific to shadow bank intermediation accounts for much of the Slow Recovery. According to our estimates, the collapse of shadow banking after the financial crisis can explain an important part of the subdued path of GDP, investment, and inflation several years into the recovery.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130425821","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Leviathan's Offer: State-Building with Elite Compensation in Early Medieval China","authors":"Joy Chen, Erik H. Wang, Xiaoming Zhang","doi":"10.2139/ssrn.3893130","DOIUrl":"https://doi.org/10.2139/ssrn.3893130","url":null,"abstract":"How to soften resistance to state-building efforts by reform losers? This paper highlights a strategy of compensation via the bureaucracy, in which the ruler offers meaningful government offices in exchange for elites’ acceptance of state-building reforms. We empirically explore this strategy in the context of the Northern Wei Dynasty (386 - 534 AD), which terminated an era of state weakness in early medieval China that initially resulted from entrenched landowning interests and fragile barbarian kingdoms. Our unique dataset combines geocoded family background and career histories of around 2,600 elites with information on medieval Chinese strongholds, which we use to infer state weakness. Leveraging a comprehensive state-building reform in the late 5textsuperscript{th} century, difference-in-differences estimates document that the reform led to a sustained, substantial increase in the total number of powerful aristocrats from localities with strongholds recruited into the imperial bureaucracy. Subsequent estimates provide evidence for three mechanisms through which compensation facilitates state-building. First, offices taken by these elites came with direct benefits of power and prestige. Second, by transforming these aristocrats from local powerfuls into national stakeholders, these offices potentially induced the realignment of their interests toward those of the dynasty. Third, bureaucracy provided the regime with institutional tools of power-sharing to mitigate credible commitment problems. Findings in this paper shed light on the causes of the ``First Great Divergence,’’ where similar barbarian invasions at similar times led to political fragmentation in Europe but further state consolidation in China.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114821874","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Assessing the double materiality of climate risks in the EU economy and banking sector","authors":"Régis Gourdel, I. Monasterolo, Nepomuk Dunz, Andrea Mazzocchetti, L. Parisi","doi":"10.2139/ssrn.3939895","DOIUrl":"https://doi.org/10.2139/ssrn.3939895","url":null,"abstract":"Financial supervisors and policy makers, including the Network for Greening the Financial System (NGFS), have recognized the existence of a double feedback between climate change and the financial system, i.e. the impact of climate risks on financial stability, and the impact of financial institutions on climate scenarios. This feedback loop is known as the \"double materiality of climate risks\". While recent studies contributed to understand the macro-financial relevance of climate scenarios, a methodological framework to assess the double materiality of climate risks is not available yet. We contribute to fill this gap by developing a dynamic climate assessment of NGFS climate physical and transition risks scenarios, for of the euro area economy and banking sector. By tailoring the EIRIN Stock-Flow Consistent model, we quantitatively assess the feedback from banks’ expectations about investment risk across NGFS scenarios and risk internalization (i.e. their climate sentiments), on (i) firms’ capital costs and performance, (ii) the decarbonization of the economy and banks’ lending portfolios, and (iii) the realization of climate mitigation scenarios. We find that, under the model conditions, an orderly transition achieves important co-benefits already in the mid-term, with respect to CO2 emissions abatement, banks’ financial stability and distributive effects. In contrast, a disorderly transition fosters banks’ financial instability. This, in turn, leads to indirect, spillover effects to the economy, affecting firms’ ability to invest in the low-carbon transition, fostering the realization of stranded assets, and increasing households’ inequality. Second, investors’ climate sentiments can affect climate policy effectiveness. Banks’ early adjustment of the cost of capital to reflect firms’ exposure to climate risks leads to alternative transition pathways, costs and co-benefits. Our results highlight the importance for financial supervisors to consider the role of investors’ expectations in the finance-economy-climate feedback, in order to design appropriate macroprudential policies for tackling climate risks.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"118 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129647298","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Local Journalism under Private Equity Ownership","authors":"M. Ewens, Arpita Gupta, Sabrina T. Howell","doi":"10.2139/ssrn.3939405","DOIUrl":"https://doi.org/10.2139/ssrn.3939405","url":null,"abstract":"Local daily newspapers have historically played an important role in U.S. democracy by providing citizens with information about local policy issues. However, in recent decades local newspapers have struggled to compete with new online platforms for readers’ attention. Private equity investors—who specialize in reorganizing struggling firms in distressed sectors—have entered the industry. How do these new owners affect newspaper content, survival, and local civic engagement? We document nuanced effects, contrasting with the polarized debate on this topic in the media and political discourse. On one hand, we find that private equity ownership leads to higher digital circulation and lower chances of newspaper exit. On the other hand, we document a change in news composition away from information about local governance, and lower employment of reporters and editors. Finally, we find declines in participation in local elections, consistent with local newspaper content being relevant for civic engagement. The results have implications for knowledge about local policy issues and highlight trade-offs surrounding media ownership.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125974465","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Is Flood Risk Priced in Bank Returns?","authors":"Valentin Schubert","doi":"10.2139/ssrn.3933031","DOIUrl":"https://doi.org/10.2139/ssrn.3933031","url":null,"abstract":"Climate change related disasters are projected to increase considerably over our lifetime, and storms and floods cause the highest financial damages. Using a comprehensive future flood risk measure matched to bank holding companies in the United States, I find that a higher exposure to future flood risk results in higher excess returns. This is consistent with the interpretation that investors demand compensation for their increased risk exposure. The result is stronger for smaller and less levered banks. Furthermore, I construct a flood risk factor from bank returns that cannot be entirely explained by the conventional bank risk factors. And, I show that the flood risk factor can explain up to 30% of the variance of bank stock returns.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"162 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124540350","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Professionalization of Financial Planning in Australia: an Institutional Logics Perspective","authors":"Daniel W. Richards, Sarath Lal Ukwatte Jalathge, Prem W. Senarath Yapa","doi":"10.1108/jpbafm-11-2020-0182","DOIUrl":"https://doi.org/10.1108/jpbafm-11-2020-0182","url":null,"abstract":"PurposeThis paper researches the professionalization of financial planning in Australia. The authors investigate how the institutional logic of major institutions inhibits this occupation from moving toward a professional status.Design/methodology/approachThe study uses documentary analysis of government inquiries into Australian financial services from 1997 to 2017 to ascertain the various institutional logics relating to the professionalization of financial planning. The method involves generating ideas from the data and applying an institutional logic framework to make sense of impediments to the professionalization of financial planning in Australia.FindingsThe regulator adopted a self-regulation logic that empowered financial institutions to govern financial advice. These financial institutions have a logic of profit maximization that creates conflicts of interest in financial planning. The financial planning professional bodies adopted a logic of attracting and retaining members due to a competitive professional environment. Thus, financial planners have not been defined as fiduciaries, professional standards have not increased and an ineffective disciplinary resolution system exists.Research limitations/implicationsThis research illustrates the various institutional logics that need to be addressed to professionalize financial planning in Australia. However, the data used is limited to that drawn from the parliamentary inquiries.Originality/valuePrior research on the emergence of professions such as accounting has shown that financial institutions are sites of professionalization. This research shows that financial institutions impede professionalization in financial planning. Also, where the state granted legitimacy to other professions, this research indicates that the state regulator's logic of self-regulation has not legitimized financial planning.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124170406","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A Banking System That Facilitates Wealth Transfer Rather Than Wealth Creation","authors":"S. Savvides","doi":"10.2139/ssrn.3920022","DOIUrl":"https://doi.org/10.2139/ssrn.3920022","url":null,"abstract":"The paper suggests that concentration of money and a loosely regulated financial market as the main culprits impeding the efficient allocation of economic resources through a banking system that seems to have lost its way and mission. The pursuit of return without risk inevitably leads to the transfer of wealth through a failing banking system which collaborates with hedge funds and global wealth management groups who constantly pursue low risk and high returns for the benefit of their wealthy clients.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114910791","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Liquidity Provision and Co-Insurance in Bank Syndicates","authors":"Kevin Kiernan, Vladimir Yankov, Filip Žikeš","doi":"10.17016/FEDS.2021.060","DOIUrl":"https://doi.org/10.17016/FEDS.2021.060","url":null,"abstract":"We study the capacity of the banking system to provide liquidity to the corporate sector in times of stress and how changes in this capacity affect corporate liquidity management. We show that the contractual arrangements among banks in loan syndicates co-insure liquidity risks of credit line drawdowns and generate a network of interbank exposures. We develop a simple model and simulate the liquidity and insurance capacity of the banking network. We find that the liquidity capacity of large banks has significantly increased following the introduction of liquidity regulation, and that the liquidity co-insurance function in loan syndicates is economically important. We also find that borrowers with higher reliance on credit lines in their liquidity management have become more likely to obtain credit lines from syndicates with higher liquidity. The assortative matching on liquidity characteristics has strengthened the role of banks as liquidity providers to the corporate sector.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123849439","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Political Uncertainty and Asset Prices: Evidence from Hong Kong Political Crisis","authors":"Xing Xiao, Mengfan Yin, Ning Zhang","doi":"10.2139/ssrn.3939781","DOIUrl":"https://doi.org/10.2139/ssrn.3939781","url":null,"abstract":"Triggered by the Hong Kong government’s action to amend the extradition law, the political crisis happened in Hong Kong, raising substantial local political uncertainty during the second half year of 2019. Measuring the daily political uncertainty shocks by the violence intensity reported by the local newspapers, we document that Hong Kong stock prices drop more on the days with higher political uncertainty, especially for the firms with higher political risk exposures. By focusing on the AH dual-listed stocks and comparing the differential effect of the political uncertainty on their returns in Hong Kong and Mainland China stock market, we find that stock prices in Hong Kong are much more negatively affected by the political uncertainty than the counterparts in Mainland China, though they have same fundamentals. By further ruling out the expected cash flow effect, our results provide evidence that political uncertainty influence asset prices through the discount rate effect. Utilizing the Stock Connect Programs to proxy for the exposure to investors in the other market, we show that the political uncertainty effect on A shares is more negative for the stocks with higher exposure to foreign investors, while the effect on H shares is less negative for the stocks with higher exposure to mainland investors.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116378655","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Disrespect as the Essence of Constitutional Right Violations","authors":"Rosalind J Wright","doi":"10.2139/ssrn.3913654","DOIUrl":"https://doi.org/10.2139/ssrn.3913654","url":null,"abstract":"This Article presents a simple, broad-sweeping, unifying account of the underlying logic and limits of the important constitutional rights. The underlying logic of constitutional rights turns out to be a matter of respect and disrespect. The essential focus of this account is thus on the idea of respect, and often more incisively, on the idea of disrespect. Certainly, no single idea can fully account for all phases of all constitutional rights. But the idea of respect, and of disrespect in particular, can aptly describe much of the territory of the most important constitutional rights, whether the rights in question are officially acknowledged, or as yet unacknowledged. It is certainly true that many of the harms associated with constitutional rights violations are not entirely reducible to matters of respect and disrespect. And certainly, constitutional protection of particular rights may serve a variety of purposes, not all of which are fully expressed in terms of fundamental respect and disrespect. The recognition, the threshold enforcement, and the eventual limitation of constitutional rights is in this sense inevitably pluralistic. The argument herein, though, is that considerations of respect and disrespect, in a fundamental sense, generally structure and make distinctive sense of the pluralism of constitutional rights.","PeriodicalId":443031,"journal":{"name":"Political Economy - Development: Political Institutions eJournal","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126765371","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}