1,721,369 research outputs found
"The private sector is much more likely to misuse Aadhar than the government." - Abhijit Banerjee
No full textIn May 2018, LSE South Asia Centre hosted a workshop where Abhijit Banerjee, the Ford Foundation International Professor of Economics at MIT, discussed why Indian democracy doesn't to deliver more. Ahead of the event, Anshuman Tiwari interviewed Abhijit Banerjee
Volatility and Growth: Credit Constraints and Productivity-Enhancing Investment
Full text linkWe examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less procyclical return but also a higher liquidity risk. Under complete financial markets, long-term investment is countercyclical, thus mitigating volatility. But when firms face tight credit constraints, long-term investment turns procyclical, thus amplifying volatility. Tighter credit therefore leads to both higher aggregate volatility and lower mean growth for a given total investment rate. We next confront the model with a panel of countries over the period 1960-2000 and find that a lower degree of financial development predicts a higher sensitivity of both the composition of investment and mean growth to exogenous shocks, as well as a stronger negative effect of volatility on growth.
2019 års ekonomipris till Abhijit Banerjee, Esther Duflo och Michael Kremer
No full textKungl Vetenskapsakademien har beslutat dela ut årets ekonomipris till Abhijit Banerjee, MIT, Ester Duflo, MIT och Michael Kremer, Harvard University ”för deras experimentella ansats för att mildra global fattigdom”. Pristagarnas ansats har på bara tjugo år helt stöpt om forskningen i utvecklingsekonomi. Den nya forskningen levererar en stadig ström av konkreta resultat som bidrar till att lindra de globala fattigdomsproblemen.</p
External constraint and financial crises with balance sheet effects.
Full text linkThis paper examines a model of financial and exchange crises with balance-sheet effects by explicitly taking account of wealth accumulation and external equilibrium condition. We have found that, in a general equilibrium analysis, there are two stationary equilibria. Since foreign debt is always zero at these equilibria, financial crises in emerging market economies cannot be interpreted as jumps between equilibria but between trajectories leading to one equilibrium or another one. The mechanisms of financial crises due to monsoon or spill-over effects are also analysed in this framework.Financial crisis, exchange crisis, balance sheet effect, external solvency constraint.
Abhijit Banerjee et Esther Duflo, Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty
No full textComment améliorer la vie des pauvres ? Le dernier ouvrage d’Esther Duflo et Abhijit Banerjee, Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty (2011 ; traduction française en 2012, Repenser la pauvreté), se propose d’apporter des réponses concrètes à cette question. Les auteurs posent toutefois un préalable : il est impossible de savoir si une politique est efficace sans avoir conduit une évaluation rigoureuse et précise des politiques de développement. Or justement, Du..
External constraint and financial crises with balance sheet effects
Full text linkThis paper investigates the dynamic implications of Krugman’s (1999) model of financial crises with balance-sheet effects, which has a considerable impact on the literature as well as the teaching of international financial crisis. By explicitly taking account of wealth accumulation and external equilibrium condition, it is shown that a financial crisis in emerging market economies, instead of being interpreted as a jump from a good to a bad equilibrium with zero investment and zero foreign debt, could be explained as a jump from an unstable dynamic trajectory to a stable one. The dynamic framework illustrates well the analysis of different factors at the origin of financial vulnerability and crisis. By discriminating the financial crises according to the severity of their negative impacts on the domestic economy, the present study also adds some insights in the analysis of policy implications.Financial crisis, currency crisis, balance sheet effect, external solvency constraint.
External constraint and financial crises with balance sheet effects.
Full text linkThis paper investigates the dynamic implications of Krugman’s (1999) model of financial crises with balance-sheet effects, which has a considerable impact on the literature of international financial crisis. Considering explicitly the wealth-accumulation constraint and the external equilibrium condition, I describe an emerging-market financial crisis as a jump from an unstable dynamic trajectory to a stable one, instead of a jump from a “good” to a “bad” equilibrium with zero investment and zero foreign debt. By discriminating the financial crises according to the severity of the negative impacts of some internal and external factors, this paper also adds some insights into the anti-crisis policy.Currency crisis, balance sheet effect, external solvency constraint, financial crisis.
Volatility and growth: credit constraints and productivity-enhancing investment
Full text linkWe examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less procyclical return but also a higher liquidity risk. Under complete financial markets, long-term investment is countercyclical, thus mitigating volatility. But when firms face tight credit constraints, long-term investment turns procyclical, thus amplifying volatility. Tighter credit therefore leads to both higher aggregate volatility and lower mean growth for a given total investment rate. We next confront the model with a panel of countries over the period 1960-2000 and find that a lower degree of financial development predicts a higher sensitivity of both the composition of investment and mean growth to exogenous shocks, as well as a stronger negative effect of volatility on growth
Investment Prices and Exchange Rates: Some Basic Facts
Full text linkThis paper documents four basic facts about investment goods and investment prices. First, investment has a very significant nontradable component in the form of construction services. Second, distributions services (wholesaling, retailing, and transportation) are much less important for investment than for consumption. Third, the import content of investment is much larger than that of consumption. Finally, in the aftermath of three large devaluations, the rate of exchange rate pass-through is, perhaps not surprisingly, highest for imported equipment and lowest for construction services.
Experimental approach to global poverty alleviation. Alfred Nobel memorial prize of the Bank of Sweden in 2019: Esther Duflo, Abhijit Banerjee, Michael Kremer
No full textArtykuł przedstawia dorobek naukowy laureatów Nagrody Banku Szwecji im. Alfreda Nobla w dziedzinie nauk ekonomicznych przyznanej w 2019 r.: E. Duflo, A. Banerjee i M. Kremera. Omówiony został ich wkład do badań nad przyczynami i sposobami łagodzenia ubóstwa na świecie, a przede wszystkim wkład do rozwoju badań eksperymentalnych w naukach społecznych wykorzystujących schemat randomizowanych badań kontrolowanych (RCT). W tym kontekście autorzy wyjaśniają także przyczyny wzrostu popularności podejścia eksperymentalnego w ekonomii rozwoju oraz omawiają jego silne strony i ograniczenia.The article presents scientific achievements of Alfred Nobel Memorial Prize Laureates
in economic sciences in 2019: Esther Duflo, Abhijit Banerjee, and Michael Kremer. The paper describes their contribution to the research on the sources of poverty in the world
and the ways of alleviating it, and their contribution to the development of experimental
research in social sciences using randomized control trials (RCT). In this context, the
authors explain the reasons for growing popularity of this approach in development
economics and discuss its strengths and weaknesses
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