Suomen Pankin Julkaisuarkisto
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Market Selection with Idiosyncratic Uncertainty
No full textI analyze the survival probabilities of different types of agents in a general equilibrium model with disagreement over idiosyncratic uncertainties. I find that such biases create a separation between individual and group level survival: even when the survival probability of a single irrational agent tends to zero, these agents may still succeed as a whole. Effectively the irrational agent population can survive due to a vanishingly small group of increasingly rich agents. Disagreement over idiosyncratic uncertainties distorts savings decisions and interest rates, but idiosyncratic risks are not priced. Simulations confirm that the limiting results are relevant when the population of irrational agents is large
The economic impact of changes in local bank presence
No full textThis study analyzes the economic consequences of changes in the local bank presence. Using a unique data set of banks, firms and counties in Poland over the period 2009–14, it is shown that changes strengthening the relationship banking model are associated with local labour market improvements and easier small and medium-sized enterprise access to bank debt. However, only the appearance of new, more aggressive owners of large commercial banks stimulates new firm creation
Forty Years of Chinese Reforms : An Overview
No full textThis introductory essay explores some of the key issues in China's economic reforms during the past 40 years. Reforms and liberalization have progressed unevenly, but generally the trend has been towards more market-oriented economic system. However, the primacy of Chinese Communist Party has never been seriously challenged. China's membership in the World Trade Organization has fostered much deeper integration with the rest of the global economy, and therefore effects of China's reforms have spread to other countries as well. In the recent years China's reform drive seems have faltered. Also, demographic trends have turned, and working-age population is declining. These developments together may mean clearly lower growth going forward
Finlands Banks årsberättelse 2018
No full textCHEFDIREKTÖRENS HÄLSNING 4
VERKSAMHETSBERÄTTELSE 6
PENNINGPOLITIK 8
FINANSIELL STABILITET 34
INFLYTANDE OCH SAMARBETE 47
PENGAR OCH BETALNINGAR 66
TILLGÅNGSFÖRVALTNING OCH SAMHÄLLSANSVAR 82
BOKSLUT 118
BOKSLUT 119
RESULTATRÄKNING 122
DIREKTIONENS FÖRSLAG TILL VINSTUTDELNING 124
REDOVISNINGSPRINCIPER 125
NOTER TILL BALANSRÄKNINGEN 132
NOTER TILL RESULTATRÄKNINGEN 153
BOKSLUTSBILAGOR 163
NOTER OM RISKHANTERINGEN 165
REVISIONSBERÄTTELSE 171
UTLÅTANDE OM REVISION I ENLIGHET MED ARTIKEL 27 I STADGAN FÖR EUROPEISKA CENTRALBANKSSYSTEMET OCH EUROPEISKA CENTRALBANKEN 172
ORGANISATION 17
Enforcement of banking regulation and the cost of borrowing
No full textWe show that borrowing firms benefit substantially from important enforcement actions issued on U.S. banks for safety and soundness reasons. Using hand-collected data on such actions from the main three U.S. regulators and syndicated loan deals over the years 1997–2014, we find that enforcement actions decrease the total cost of borrowing by approximately 22 basis points (or $4.6 million interest for the average loan). We attribute our finding to a competition-reputation effect that works over and above the lower risk of punished banks post-enforcement and survives in a number of sensitivity tests. We also find that this effect persists for approximately four years post-enforcement.Available also as Bank of Finland Research Discussion Papers 19/201
Koulutus, inhimillinen pääoma ja talouskasvu
No full textLuku 11 kirjassa "Vaurastumisen vuodet : Suomen taloushistoria teollistumisen jälkeen
Corruption in China : What Shapes Social Attitudes Toward It?
No full textThis research investigates the determinants of attitudes toward corruption in China using micro-level data. We use survey data on 6000 individuals from 28 provinces to estimate logit models that show how individual and provincial determinants shape attitudes toward corruption. Respondents who have higher education, belong to higher social class, live in rural areas, and are members of the Communist Party of China, think corruption is less useful than the other respondents. Negative attitude toward corruption is related to higher education, lower social class, and membership in the Communist Party of China.Available also as BOFIT DP 18/2016
The macroeconomic implications of measurement problems due to digitalisation
No full textThe impact of digitalisation is not fully reflected in economic statistics. Even though commonly used economic metrics such as GDP are still relevant in assessing the state of the economy, the production of statistics should be developed to measure the digital economy better. The most significant measurement challenges caused by digitalisation relate to new goods, free services, changes in quality and the movement of intellectual capital between countries. Due to digitalisation, GDP and productivity growth may have been understated and the rate of price inflation overstated. Measurement errors alone do not explain the exceptionally weak development in recent years, nor do they eliminate the problems of the Finnish economy and the key challenges for economic policy. Digital technology has, however, improved our well-being in ways that are difficult to measure in money
National culture and risk-taking : Evidence from the insurance industry
No full textThe gravity of insurance within the financial sector is constantly increasing. Reasonably, after the events of the recent financial turmoil, the domain of research that examines the factors driving the risk-taking of this industry has been signified. The purpose of the present study is to investigate the interplay between national culture and risk of insurance firms. We quantify the cultural overtones, measuring national culture considering the dimensions outlined by the Hofstede model and risk-taking using the ‘Z-score’. In a sample consisting of 801 life and non-life insurance firms operating across 42 countries over the period 2007–2016, we find a strong and significant relationship among insurance firms' risk-taking and cultural characteristics, such as individualism, uncertainty avoidance and power distance. Results remain robust to a variety of firm and country-specific controls, alternative measures of risk, sample specifications and tests designed to alleviate endogeneity
Cognitive Abilities and Inflation Expectations
No full textCognitive abilities help explain the large cross-sectional variation in inflation expectations at the household level. But which type of cognitive abilities are important? We find that not only quantitative abilities but also logical and verbal abilities are important to explain the accuracy and plausibility of households' inflation expectations. We discuss the channels through which different forms of cognition might shape households' abilities to forecast future macroeconomic variables. We also draw implications for the effectiveness of policies that aim to manage households' expectations