Institutional Investors and Agency Issues in Latin American Financial Markets: Issues and Policy Options
In: Emerging Issues in Financial Development: Lessons from Latin America, S. 265-315
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In: Emerging Issues in Financial Development: Lessons from Latin America, S. 265-315
In: Journal of development economics, Band 84, Heft 1, S. 155-187
ISSN: 0304-3878
In: Policy research working paper 3680
In: Policy research working paper 3161
In: Policy research working paper 3160
In: Journal of development economics, Band 84, Heft 1, S. 155-187
ISSN: 0304-3878
World Affairs Online
Natural disasters may constitute a major shock to public finances and debt sustainability because of their impact on output and the need for government response with reconstruction and relief expenses. The question arises of whether governments can use financial development policy as the means to mitigate or insure against this negative fiscal impact. This paper uses a panel vector autoregressive model, estimated on annual data for high- and middle-income countries over 1975–2008, to study the role of debt market development and insurance penetration in enabling fiscal response after catastrophes. The authors find that countries with higher debt market development suffer smaller real consequences from disasters but that their deficits expand further following the mitigating fiscal response. Disasters in countries with high insurance penetration also experience smaller real consequences of disasters but without the need for further deficit expansions. From an ex-post perspective, the availability of insurance could offer the best mitigation approach against the real and fiscal consequences of disasters.
BASE
In: Economia: journal of the Latin American and Caribbean Economic Association, Band 15, Heft 1, S. vii-xiii
ISSN: 1533-6239
New data are presented for a large number of countries on how frequently former high-ranking politicians become bank directors. Politician-banker connections at this level are relatively rare, but their frequency is robustly correlated with many important characteristics of banks and institutions. At the micro level, banks that are politically connected are larger and more profitable than other banks, despite being less leveraged and having less risk. At the country level, this connectedness is strongly negatively related to economic development. Controlling for this, the analysis finds that the phenomenon is more prevalent where institutions are weaker and governments more powerful but less accountable. Bank regulation tends to be more pro-banker and the banking system less developed where connectedness is higher. A benign, public-interest view is hard to reconcile with these patterns.
BASE
In: Journal of development economics, Band 82, Heft 2, S. 315-347
ISSN: 0304-3878
In: Journal of international economics, Band 88, Heft 2, S. 357-374
ISSN: 0022-1996
In: World Bank Policy Research Working Paper No. 5564
SSRN
Working paper
In: Journal of development economics, Band 93, Heft 1, S. 137-151
ISSN: 0304-3878
In: Economia: journal of the Latin American and Caribbean Economic Association, Band 8, Heft 1, S. 1-53
ISSN: 1533-6239
In: Journal of development economics, Band 82, Heft 2, S. 315-347
ISSN: 0304-3878
World Affairs Online