Hail the gatekeepers!
Yael Hochberg, Carlos Serrano, and Rosemarie Ziedonis estimate the effect of patent trading activity on the rate of startup lending and the role of venture capital in accessing lending markets.
Topic Archive: Financial Markets
Big or small: a look at bank size and loan quality
How does bank size relate to the quality of loans? New work by Hugo Rodríguez Mendizábal presents evidence of a large and opposite relationship in loan quality between large and small banks in the U.S.
More or less competitive banking?
Xavier Freixas and Kebin Ma reexamine the classical issue of the possible trade-offs between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model, they show that competition can affect portfolio risk, insolvency risk, liquidity risk, and systemic risk in different ways.
Financial bubbles exist
In the economy we observe stock price booms and busts. How do these cycles come about, could there be a way of smoothing them and, in that case, should we? Klaus Adam, Johannes Beutel, and Albert Marcet show that a very simple model of stock prices can explain very well the stock price volatility found in the data assuming that investors do not understand perfectly well how prices are formed.
