Measuring Monetary Policy Stress for Fed District Representatives

This study provides a measure of the degree of stress that exists among Fed districts in the US. Stress in a district is defined as the difference between the desired interest rate of its representative and the actual policy rate implemented by the FOMC. I find that the degree of stress reflects the stance of the US monetary policy, a positive stress level in the 1990s (which corresponds to a policy rate higher than the desired rate of FOMC members), and a negative stress level from the 2000s (which corresponds to a policy rate lower than the desired rate of FOMC members). However, the economic and financial crisis exacerbated the degree of stress measure, suggesting an increase in monetary policy uncertainty among FOMC members from that time.     

Does ownership concentration affect banks’ credit risk? Evidence from MENA emerging markets

The purpose of this study is to explore the impact of ownership concentration on banks’ credit risk. The study employs a dynamic panel approach using data from 98 banks listed in the 10 Middle East and North African (MENA) emerging stock markets between 2003 and 2016. To better understand the nature of the relationship between ownership concentration and bank credit risk and how this relationship is shaped by the recent financial crisis, we conducted a pre- and postcrisis analysis. Our findings document a positive relationship between ownership concentration and nonperforming loans in the precrisis period, which surprisingly reverses during the postcrisis period. We argue that the reversal of this relationship is driven by changes in controlling shareholders’ risk aversion, behavior, and attitude prompted by the financial crisis. Given that central banks are entrusted with forestalling banks’ failure, incorporating ownership concentration, as a fundamental determinant of banks’ credit risk, is crucial to anticipate future financial calamities. Our findings highlight the gravity of agency problems in emerging MENA markets. Reinforcing firm-level as well as country-level governance mechanisms is crucial to restore a sound banking system, enhance markets’ integrity, and increase investors’ confidence.     

Development of a sustainable consumption measurement scale

Sustainable consumption has been recognized since the 1990s; however, advances in the studies have been modest and have not yielded significant breakthroughs. The urgent need to adopt sustainable consumption has been emphasized by consumers, practitioners, and researchers, but despite efforts by social and government agencies, progress in relation to adoption remains insufficient. The multivariate nature of sustainable consumption is one reason for this insufficient progress. Previously developed literature-based instruments have been univariate or limited in their dimensions and inadequate for measuring the phenomena they purport to measure. Hence, in this study, we develop a measurement scale to address this gap. The scale encompasses dimensions relevant to contemporary society and is informed by prior research and primary data. Data were collected through in-depth interviews with sustainability specialists, a nominal group technique with engaged consumers, a survey of 255 students, and a survey of 808 consumers from diverse regions of Brazil, all resulting in a heterogeneous sample. The final data analysis included an exploratory factor analysis and a confirmatory factor analysis, which resulted in a final model that comprised eight dimensions: activism, personal sacrifice, communitarianism, environmental concern, healthy food, perceived consumer effectiveness, search for information, and social concern. Of these dimensions, personal sacrifice, environmental concern, and social concern are the archetypes of the present generation. The variables of these dimensions have not been accounted for in previous scales, making our new scale more comprehensive and contributing to a better understanding of sustainable consumption. This new comprehensive scale will aid future studies in sustainable consumption, contributing to a better understanding of this construct. We expect that this scale will help improve the monitoring of the progress made in sustainable behavior and the assessment of management practices of sustainable consumption. Future studies should be carried out to validate the dimensions in different cultural contexts.