Macroeconomics Commons^™

Bureau De Recouvrement Des Crédits Du Burkina (Brcb), Mallory Dreyer

Journal of Financial Crises

In Burkina Faso, the pre-1990s banking system was characterized by a high level of government involvement and ownership, which led to government-induced lending rather than lending based on creditworthiness. Nonperforming loans in the Burkinabe banking system grew to 10 percent of total loans in 1991. In order to address the banking crisis in 1991, the Burkinabe government entered into a Structural Adjustment Facility with the IMF and other multilateral organizations which prioritized the privatization of government-owned enterprises and included rehabilitation of the financial system. As part of this restructuring, the government established the Bureau de Recouvrement des Crédits du Burkina …

Ghana Non-Performing Asset Recovery Trust (Npart), Riki Matsumoto

Journal of Financial Crises

The Ghanaian financial sector was in severe distress in 1985 after a decade of high and variable rates of inflation, low economic growth, and financial policies ill-suited to the country’s goals. Ghana, with World Bank support, implemented a Financial Sector Adjustment Program (FINSAP) between 1988-1997. To comply with the FINSAP, the Government established the Non-Performing Assets Recovery Trust (NPART) as a temporary public asset management company under Provisional National Defence Council Law 242 on February 28, 1990, with an initial 6-year statutory life, for the purpose of: 1) facilitating the restructuring and recapitalization of major state-owned banks; 2) expediting the …

Us Resolution Trust Corporation, Aidan Lawson, Lily S. Engbith

Journal of Financial Crises

The savings and loan (S&L) industry experienced a period of turbulence at the end of the 1970s as sharply increasing interest rates caused much of the value of the industry’s net worth to evaporate due to its focus on long-term, fixed-rate mortgages. As a result, a period of rapid deregulation followed, and S&Ls, also called thrifts, engaged in increasingly risky behavior despite many being clearly insolvent. This trend of yield-seeking growth on the part of zombie thrifts forced the government’s hand as huge losses rendered the insurance fund backing the industry, called the Federal Savings and Loan Insurance Corporation (FSLIC), …

Senegal Société Nationale De Recouvrement (Snr), Corey N. Runkel

Journal of Financial Crises

In the late 1980s, Senegal embarked on a comprehensive set of reforms to its banking sector. The reforms comprised changes to management, supervision, and lending standards after loose central bank refinancing standards had let the nonperforming loans (NPLs) caused by drought and public enterprise mismanagement linger on bank balance sheets. In the process, the country attempted to recover NPLs worth hundreds of billions of francs. Senegal closed several state-controlled banks, transferring bad assets and certain liabilities to a new asset management company, the Société Nationale de Recouvrement (SNR). The SNR’s debt recoveries would reimburse depositors in the liquidated banks and …

Uruguayan Non-Performing Portfolio Purchase Scheme, Sean Fulmer

Journal of Financial Crises

As the Latin American sovereign debt crisis spread through the continent during the early 1980s, foreign investors began to abandon Uruguay out of fear that it would devalue its currency like Argentina did in March 1981. Five small- to medium-sized commercial banks in Uruguay faced solvency crises as a result. Although the Central Bank of Uruguay (CBU) decided that a full, direct intervention into the failed banks was not necessary due to their size, the CBU arranged for the sale of the banks to foreign financial institutions, while assuming the non-performing portfolios of the failed banks to facilitate the transaction. …

Spain: Deposit Guarantee Fund Asset Management, Manuel León Hoyos

Journal of Financial Crises

The global oil shock in 1973-74 occurred at a time when Spain was embarking on a liberalization of its financial system that resulted in many new entrants, particularly small- and medium-sized institutions. The banking crisis that followed from 1977-85 affected 52 of the country’s 110 banks, most of them of small- and medium-sized, that comprised over 20% of bank deposits. Spain established the Deposit Guarantee Fund in November 1977 to provide limited deposit insurance, and, in March 1978, established a Banking Corporation to take control of and reorganize troubled banks. However, because the Banking Corporation lacked the legal authority to …

Broad-Based Asset Management Programs, Christian M. Mcnamara, Greg Feldberg, Mallory Dreyer, Andrew Metrick

Journal of Financial Crises

Dealing with high levels of nonperforming assets (NPAs) on bank balance sheets is one of the most challenging aspects of financial crisis management. High levels of NPAs can interfere with both bank profitability and general economic growth by increasing uncertainty about bank solvency and therefore funding costs, tying up resources and attention, and inhibiting new lending. One potential solution to the NPA problem is a centralized, government-driven effort to remove these assets from troubled institutions and then manage and sell them. Though such broad-based asset management (BBAM) programs existed even earlier in history, they appear to have become more common …

Revisiting Subprime Pricing Irrationality During The Global Financial Crisis, Rasheed Saleuddin, Walter Jansson

Journal of Financial Crises

During the depths of the global financial crisis of 2008-09, many holders of subprime mortgage securitizations and related derivatives were forced to mark their investments to fair values based on observable prices in mortgage index credit default swap markets. Research has generally claimed that crisis pricing of such indices cannot be explained by fundamental analysis of the underlying markets, while marking portfolios to such “irrational” benchmarks may have contributed to severe distress in the financial sector. This paper econometrically demonstrates significant fundamentally-driven components in subprime mortgage index returns throughout the crisis. Our findings suggest that such benchmarks must be considered …

Measuring The Productivity Of The Foods And Beverages Industries In Indonesia: What Factors Matter?, Mohamad Zeqi Yasin

Economics and Finance in Indonesia

The foods and beverages industries have shown the largest share of output in the manufacturing sector of Indonesia for more than a decade. This study aims to investigate its performance indicators through the growth of total factor productivity (TFP) and its determinants, such as imported raw materials, exports, absorptive capacity, firm size, market concentration, and capital ownership. This study employed firm-level panel data from 2008 - 2015 and the Growth Accounting method of Solow residual in addition to the fixed effects model to estimate TFP growth and its determinants. The results show that the foods and beverages industries in Indonesia …

Is Egypt On A Sustainable Path Of Debt Repayment: Evidence From Imf Framework And Fiscal Reaction Function, Maha Rashied

Theses and Dissertations

Fiscal policy is the starting point for an economy to achieve solid economic and social objectives through macroeconomic stability. Risks associated with excessive borrowing and the required fiscal adjustments are threatening especially to developing countries whose debt to GDP ratios are on the rise. Those countries’ fiscal policies’ sustainability is questioned; hence this research aims at testing for Egypt public debt sustainability and assessing the method capitalized on by the Egyptian authorities; the IMF Approach. By comparing the IMF Debt Sustainability Analysis Approach to the fiscal reaction function with ARDL and VAR as estimation methods, the results of both methods …

Essays On Economic Uncertainty And Housing Market In China, Humenghe Zhao

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters that covers topics in macroeconomics.

Chapter 1. Literature Survey of China’s Housing Market and Macroeconomic Uncertainty is a survey of the literature on the history and development of China’s housing market, its unique characteristics, the driving forces behind rising housing prices, and the empirical interactions among housing market, economic uncertainty and the macroeconomy in China.

Chapter 2. The Spatial Correlation of Regional Housing Prices and Economic Uncertainty in China

Rapid real estate development and house price growth in China have garnered significant attention in academia and policy circles. Investigation into highly differentiated but interrelated …

Essays On Universal Basic Income, Nana Mukbaniani

Dissertations, Theses, and Capstone Projects

Universal Basic Income (UBI) is a program in which individuals receive a regular sum of money, usually from the government. The transfer amount is thought to be unconditional of income and enough to cover all subsistence needs. Such a system is easy and cheap to administer because the government does not need to check the eligibility of each applicant. UBI programs are growing as more cities, states and countries (Stockton, California, Newark, New Jersey, Ontario, Canada, Kenya, Finland, Germany, Spain, China, etc) implement experiments of such programs. The idea of a UBI is gaining ground in the U.S.. One of …

Essays On Market Structure, Price-Setting, And Spillovers, Nicholas J. Bauer

Dissertations, Theses, and Capstone Projects

Chapter 01: This paper explores the firm’s pricing-setting behavior through the lens of market structure and exchange rate pass-through. The basis for this chapter stems from a four-tiered nested constant elasticity of substitution demand function, where firms have non-negligible sector and subsector market shares. This model allows the firm to compete against firms within the same subsector, as well as against firms within other subsectors. From this model, I identify three propositions. First, a u-shaped price response in both sector and subsector market shares to an exchange rate movement. Second, a hump-shaped price response in subsector market share and a …

The Impact Of Mother's Bargaining Power On The Nutritional Status Of Children In Indonesia, Ahmad Yeyen Fidyani, Arief Anshori Yusuf

Economics and Finance in Indonesia

Poor nutritional status, especially during childhood, has a negative impact on one's early life as well as throughout their life. One of the factors that influences the improvement of children's nutritional status is the bargaining power of the mother. Previous studies have limitations in that they often use cross-sectional data and indirect approaches to measuring bargaining power. This study aims to measure the impact of maternal bargaining power on children's nutritional status in Indonesia. The unit of analysis is children aged 7 - 19 years (IFLS5) who still have and live with their parents (IFLS4). Using the OLS estimation method, …

Embracing Entrepreneurship, Naomy Sengebwila, Naomy Nyendwa Sengebwila

Doctor of Ministry Projects and Theses

Embracing Entrepreneurship

How Christian Social Innovation and Entrepreneurship can Lead to Sustainable Communities in Zambia and Globally

Embracing Entrepreneurship

A Dissertation Presented to the Faculty of Perkins School of Theology Southern Methodist University in Partial Fulfillment of the Requirements for the degree of Doctor of Ministry by

Name of Student

Naomy Nyendwa Sengebwila

Name of Student: Naomy Nyendwa Sengebwila

Date: 03/31/2021

How Christian Social Innovation and Entrepreneurship Can Lead to Sustainable Communities in Zambia and globally

TABLE OF CONTENTS

ACKNOWLEDGMENTS . . . . . . . . . . . . . . . . . . . . …

An Inferentially Robust Look At Two Competing Explanations For The Surge In Unauthorized Migration From Central America, Nick Santos

Dissertations

The last 8 years have seen a dramatic increase in the flow of Central American apprehensions by the U.S. Border Patrol. Explanations for this surge in apprehensions have been split between two leading hypotheses. Most academic scholars, immigrant advocates, progressive media outlets, and human rights organizations identify poverty and violence (the Poverty and Violence Hypothesis) in Central America as the primary triggers responsible. In contrast, while most government officials, conservative think tanks, and the agencies that work in the immigration and border enforcement realm admit poverty and violence may underlie some decisions to migrate, they instead blame lax U.S. immigration …

The Federal Funds Rate Effect On Subprime Mortgage Crisis Management: An Ardl Approach, Mostafa Aboelsoud, Anas Alqudah, Dimitrios Paparas, Ahmed Bani-Mustafa

Economics

Purpose: This research empirically investigated the effectiveness of the interest rate policy of the Federal Reserve (Fed) on managing the subprime mortgage crisis.

Design/methodology/approach: The study employed the autoregressive distributed lag model (ARDL) to analyze the stability of the Fed’s monetary policy, thereby providing an alternative analysis tool.

Findings: Correlation analysis results showed a strong positive and statistically significant relationship between Fed funds rate and the labor market, a strong negative and statistically significant relationship between Fed funds rate and the housing market, and a strong negative and statistically significant relationship between Fed funds rate and price stability. In contrast, …

An Exploration Of The Impact Of Economic Recessions On The S&P 500 And Its Sectors, Weston Sizemore

Finance Undergraduate Honors Theses

The Capital Asset Pricing Model (CAPM) is a method of predicting future stock prices based on past returns. Specific areas of CAPM analysis utilize regression analysis to accomplish this goal. Historic prices and returns for a specific stock in a company, or even whole sectors of the economy, are compared with the corresponding returns for the market. There have been several historical recessions in United States history, as well as a current, ongoing recession. These recessions, along with their causes and effects, will be discussed extensively in this paper. This paper utilizes an analysis of the Capital Asset Pricing Model …

The Cost Of Crime: A Study On Human Trafficking, Kirsten Krug

Applied Economics Theses

Human trafficking is a billion dollar industry that impacts hundreds of thousands of individuals each year. Each year the United States alone spends millions of dollars on law enforcement programs designated to combat human trafficking.

This thesis examines the impact of those programs as deterrents for individuals who are willing to commit this type of violent crime, as well as why they might commit crime in the first place. In addition to providing an economic analysis of the impact of arrest and jail as deterrents on trafficking, the thesis will also look into what may cause an individual to fall …

Bankruptcy And The Debt-Unemployment Relationship: Evidence From A Natural Experiment, Gina C.M. Jouaneh

Senior Honors Projects

This paper examines the effect of a change in bankruptcy law on the relationship between household debt and longer-run unemployment in the United States. In consumer bankruptcy cases, filers can be eligible for two different types of bankruptcies: Chapter 7 and Chapter 13. Chapter 7 frees filers from debt repayment by liquidating their assets and using those proceeds to pay creditors, while Chapter 13 allows filers to enter a debt repayment plan of three to five years rather than discharge debt altogether. In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which greatly increased the difficulty …