China up close: understanding the Chinese economy and financial system (special issue)

In March 2007, the authors paid a weeklong visit to Beijing and Shanghai, China. In this article, they summarize some of the most striking impressions from their visit concerning the Chinese economy and financial system.Banks and banking, Foreign ; Economic conditions - China ; Banks and banking - China

ENTRY INTO FARMING: THE EFFECTS OF LEASING AND LEVERAGE ON FIRM SURVIVAL

Agribusiness,

Ex Ante Evaluation ofthe Economic Impact of Agricultural Biotechnology: The C~of Porcine Somatotropin

Introduction of a new growth hormone, porcine somatotropin, will have a significant impact on the U.S. pork industry. Ex ante effects are estimated using a linear elasticity model, which accounts for interrelationships between domestic and international markets for hogs and pork, different adoption rates and lengths of run for supply, and consumer demand shifts from leaner pork. The paper shows how to use experimental data to quantify production function and supply shifts. Results indicate that, for a five-year adjustment period, producers' surplus will increase between $250 million and$720 million; consumers' surplus will increase between $900 million and$1.95 billion

Stumbling Blocks to Increasing Market Discipline in the Banking Sector: A Note on Bond Pricing and Funding Strategy Prior to Failure. Emerging Issues Series, Supervision and Regulation Department, Federal Reserve Bank of Chicago

Abstract This paper examines pricing behavior for bonds and certificates of deposit issued by bank holding companies (BHCs) and their subsidiary banks in the period prior to failure. It is evident that strong market discipline exists in the market for BHC bonds, but there is little or no evidence of market discipline in the uninsured CD market. We also observe a significant increase in the banking firm's reliance on insured deposits as the organization's financial condition deteriorates prior to failure and following a Moody's downgrade. These results have several implications for bank supervision and regulation. First, bond spreads could potentially be useful to bank supervisors as a warning signal from the financial markets. Second, proposals to increase market discipline at the BHC level through the bond market would likely be effective. However, BHCs tend to avoid market discipline by replacing uninsured debt with insured deposits as the spreads on uninsured debt rise -thus, transferring the responsibility of disciplining the organization from the market to bank supervisors. Finally, our investigation suggests that market information such as bond spreads and changes in Moody's ratings may not add value over and above information already collected in the supervisory process

Agricultural lending: What have we learned?

The current economic expansion is now the longest in US history. While most industries are prospering, the same cannot be said of agriculture. In 1999, turmoil in international markets meant decreased demand for agricultural products at a time when the safety net for agriculture had been vastly altered

Agricultural lending: What have we learned?

The current economic expansion is now the longest in US history. While most industries are prospering, the same cannot be said of agriculture. In 1999, turmoil in international markets meant decreased demand for agricultural products at a time when the safety net for agriculture had been vastly altered