V. V. Chari
- Published in print:
- 2014
- Published Online:
- January 2015
- ISBN:
- 9780226077734
- eISBN:
- 9780226092645
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226092645.003.0016
- Subject:
- Economics and Finance, Financial Economics
Developing an understanding of how financial market disturbances affect the broader economy is crucial for designing regulatory policy on financial markets. Recent research on general equilibrium ...
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Developing an understanding of how financial market disturbances affect the broader economy is crucial for designing regulatory policy on financial markets. Recent research on general equilibrium models with financial frictions offers a great deal of promise in understanding links between financial markets and the rest of the economy. In particular, many recent models focus on how frictions in financial markets impede firms' investment decisions. Further development of this class of models may require data on the financial statements of nonfinancial firms. Such data is available for publicly traded firms but is not available for privately held firms in the United States. Such data is available from the tax returns that corporations file, as well as the statements firms make available to financial intermediaries when they seek to borrow funds, but detailed data on individual firms is not publicly available.Less
Developing an understanding of how financial market disturbances affect the broader economy is crucial for designing regulatory policy on financial markets. Recent research on general equilibrium models with financial frictions offers a great deal of promise in understanding links between financial markets and the rest of the economy. In particular, many recent models focus on how frictions in financial markets impede firms' investment decisions. Further development of this class of models may require data on the financial statements of nonfinancial firms. Such data is available for publicly traded firms but is not available for privately held firms in the United States. Such data is available from the tax returns that corporations file, as well as the statements firms make available to financial intermediaries when they seek to borrow funds, but detailed data on individual firms is not publicly available.
Eduardo Borensztein, Kevin Cowan, Barry Eichengreen, and Ugo Panizza (eds)
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262026321
- eISBN:
- 9780262269025
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262026321.001.0001
- Subject:
- Economics and Finance, Econometrics
Developing local bond markets is high on the policy agenda of Latin America. Bond markets are an essential component of a well-functioning financial market. Facilitating the efforts of public and ...
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Developing local bond markets is high on the policy agenda of Latin America. Bond markets are an essential component of a well-functioning financial market. Facilitating the efforts of public and private borrowers to issue domestic-currency-denominated, long-term, fixed-rate bonds insulates them from the rollover and balance sheet risks that have been central elements in past financial crises. In addition, a robust bond market is a way for nonfinancial firms to retain their capacity to borrow when the banking system grows reluctant to lend. Latin American bond markets are growing, and may even approach a “big bang”-like surge, although significant challenges remain. This comprehensive examination of the importance of local bond market development in Latin America provides conceptual and comparative assessments, case studies of six countries, surveys of firms and investors, and a cross-country economic analysis of the determinants of bond market development. The book’s case studies of Argentina, Brazil, Chile, Colombia, Mexico, and Uruguay, written by country experts, follow a common methodology, with each offering a history of that country’s bond market development, a comprehensive and unique data set on both private and public bond markets, surveys of firms and investors, and (in many chapters) firm-level analysis. A Web appendix makes available the unique data sets, including results of specially designed surveys of firms and investors participants, used in the book’s studies.Less
Developing local bond markets is high on the policy agenda of Latin America. Bond markets are an essential component of a well-functioning financial market. Facilitating the efforts of public and private borrowers to issue domestic-currency-denominated, long-term, fixed-rate bonds insulates them from the rollover and balance sheet risks that have been central elements in past financial crises. In addition, a robust bond market is a way for nonfinancial firms to retain their capacity to borrow when the banking system grows reluctant to lend. Latin American bond markets are growing, and may even approach a “big bang”-like surge, although significant challenges remain. This comprehensive examination of the importance of local bond market development in Latin America provides conceptual and comparative assessments, case studies of six countries, surveys of firms and investors, and a cross-country economic analysis of the determinants of bond market development. The book’s case studies of Argentina, Brazil, Chile, Colombia, Mexico, and Uruguay, written by country experts, follow a common methodology, with each offering a history of that country’s bond market development, a comprehensive and unique data set on both private and public bond markets, surveys of firms and investors, and (in many chapters) firm-level analysis. A Web appendix makes available the unique data sets, including results of specially designed surveys of firms and investors participants, used in the book’s studies.
