MACROPRUDENTIAL POLICY – A LITERATURE REVIEW

The recent financial crisis has highlighted the need to go beyond a purely micro approach to financial regulation and supervision. As a consequence, the number of policy speeches, research papers and conferences that discuss a macro perspective on financial regulation has grown considerably. The policy debate is focusing in particular on macroprudential tools and their usage, their relationship with monetary policy, their implementation and their effectiveness. Macroprudential policy has recently also attracted considerable attention among researchers. This paper provides an overview of research on this topic. We also identify important future research questions that emerge from both the literature and the current policy debate.     

Ein empirischer Test der Annahme der permanenten Einkommenshypothese von Milton Friedman

Summary We apply the Variate-Difference-Method to yearly Austrian data from 1956 to 1975 to test the permanent-income-hypothesis byM. Fiedman.First we determe the degree of the polynomial, which is sufficient to eliminate the trend (i.e. the permanent part) from time series of disposable income. Then the permanent income variable is constructed in two alternative ways: first, as a polynomial in time and second bySheppard's smoothing formulae. Transitory consumption is identified with the residuals of the consumption function. A correlation analysis shows that, transitory income and consumption are correlated, if permanent income is determined by a trend polynomial, while this is not the case ifSheppard's smoothing formulae is used to estimate permanent income.Consumption functions are specified for total consumption, durables and non-durables and eleven sub-groups of total private consumption. The results indicate that autocorrelation can considerably be reduced by usingSheppard's smoothing formulae.     

A Constitutional Interpretation of the GATT/WTO

Constitutional analysis is used to evaluate the role of the WTO. The following questions are addressed: - can the WTO define and implement its own decisions, rather than those of its members? - if so, does this make it an ‘organised player’, capable of having its own role? - what allows it to exist as an ‘organised player’? My main conclusion is that the WTO's legitimisation depends not only on its safeguarding of existing rules, but also on its long-term ability to maintain equity in the distribution of benefits and costs among member Countries.     

Lending technologies,banking relationships,and firms’ access to credit in Italy: the role of firm size

This paper analyses the role of lending technologies and banking relationships on firms’ credit access in Italy. Using EFIGE firm-level data, we show that the depth and strength of firm–bank relationships have heterogeneous effects on credit demand and rationing probabilities depending on the size of the borrower. Multiple banking relationships alleviate financial constraints for small firms, while borrowing from a large number of lenders hinders access to credit for large companies. Small and medium-sized enterprises with a higher share of debt with the main bank have a lower probability of being credit denied, as debt concentration contributes to overcome the opacity problems typical of the SMEs. Long-lasting relationships, by reducing information asymmetries, significantly improve access to credit for small and large firms. Conversely, we find that medium-sized enterprises are more exposed to financing constraints as relationship duration increases, due to possible lock-in effects. Finally, firms maintaining banking relationships based on transactional technologies are more likely to be credit denied, while the use of relationship lending technologies improves credit availability for both small and large enterprises.     

Trading horizons and the value of money

This paper shows that fiat money can be feasible and essential even if the trading horizon is finite and deterministic. The result hinges on two features of our model. First, individual actions can affect the future availability of productive resources. So, agents may be willing to sell for money, even if on that date they have no reason to accept it. This makes monetary trade feasible in all preceding dates. Second, agents are anonymous and direct their search for partners. So, gift-giving arrangements may be prevented because agents can misrepresent their consumption needs. This makes money essential in exploiting any gains from specialization and trade.     

The adequacy of measures of gender roles attitudes: a review of current measures in omnibus surveys

The measures of attitudes toward gender roles included in many representative international and national omnibus surveys were developed mostly in the 1970s and 1980s with a focus on the male breadwinner model. This article deals with the issue of whether the measures provided in these omnibus surveys need to be adjusted to specific social changes. A review of these measures has found that adjustments have occurred in a limited way that focused on the role of women and disregarded the role of men. Furthermore, most of these measures only examined the traditional roles of men and women. More egalitarian role models have not been considered sufficiently. In addition, most items that have been measured are phrased in a general form and, for example, do not specify parents’ employment or the ages of children. A specification of these aspects of measurement would help to clarify the conceptual meaning of the results and increase the possibility of more accurately analyzing gender role attitudes over time.

     

Alternative approaches for the reformulation of economics

Journal of Economic Interaction and Coordination -