1,197 research outputs found
How Trade Credits Foster International Trade
Internationally active firms rely intensively on trade credits even though they are considered particularly expensive. This phenomenon has been little explored so far. Our theoretical analysis shows that trade credits can alleviate financial constraints arising from asymmetric information because they serve as a quality signal and reduce the uncertainty related to international transactions. We use unique survey data on German enterprises to test the effect of the use of trade credits on firms' exporting and importing behavior, both at the extensive and intensive margins. Our results support the assertion that trade credits have a positive impact on firms' exporting and importing activities
Business cycle measures
Business cycle measures can provide timely statistical evidence of turning points.Business cycles
When do recessions begin and end?
With the funds rate driven to levels far below its target, the FOMC had no recourse but to adjust the target accordingly.Recessions
Extra credit: the rise of short-term liabilities
Not only are more American families in debt, but the median value of the debt more than doubled between 1989 and 2004. Credit cards and payday loans are two of the favorite tools for digging the hole deeper.Credit
Whatever happened to the business cycle? a Bayesian analysis of jobless recoveries
During the typical recovery from U.S. post-War period economic downturns, employment recovers to its pre-recession level within months of the output trough. However, during the last two recoveries, employment has taken up to two years to achieve its pre-recession benchmark. We propose a formal empirical model of business cycles with recovery periods to demonstrate that the last two recoveries have been statistically different from previous experiences. We find that this difference can be attributed to a shift in the speed of transition between business cycle regimes. Moreover, we find this shift results from both durable and non-durable manufacturing sectors losing their cyclical characteristics. We argue that this finding of acyclicality in post-1980 manufacturing sectors is consistent with previous hypotheses (e.g., improved inventory management) regarding the reduction in macroeconomic volatility over the same period. These results suggest a link between the two phenomena, which have heretofore been studied separately.Business cycles ; Labor market
A journal ranking for the ambitious economist
The authors devise an "ambition-adjusted" journal ranking based on citations from a short list of top general-interest journals in economics. Underlying this ranking is the notion that an ambitious economist wishes to be acknowledged not only in the highest reaches of the profession, but also outside his or her subfield. In addition to the conceptual advantages that they find in their ambition adjustment, they see two main practical advantages: greater transparency and a consistent treatment of subfields. They compare their 2008 ranking based on citations from 2001 to 2007 with a ranking for 2002 based on citations from 1995 to 2001.Research ; Economics ; Economists
Can a summer hike cause a surprise fall for mortgage rates?
Federal funds rate ; Mortgages ; Interest rates
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