Markets and Housing Finance

We examine the extent to which markets enable the provision of housing finance across a wide range of countries. Housing is a major purchase requiring a long-term financing, and the factors that are associated with well functioning housing finance systems are those that enable the provision of long-term finance. Across all countries, controlling for country size, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws), deeper credit information systems, and a more stable macroeconomic environment have deeper housing finance systems. These same factors also help explain the variation in housing finance across emerging market economies. Across developed countries, which tend to have low macroeconomic volatility and relatively extensive credit information systems, variation in the strength of legal rights helps explain the extent of housing finance. We also examine another potential factor—the existence of sizeable government securities markets—that might enable the development of emerging markets’ housing finance systems, but we find no evidence supporting that.mortgage, housing finance, emerging markets

Markets and Housing Finance

We examine the extent to which markets enable the provision of housing finance across a wide range of countries. Housing is a major purchase requiring long-term financing, and the factors that are associated with well functioning housing finance systems are those that enable the provision of long-term finance. Across all countries, controlling for country size, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws), deeper credit information systems, and a more stable macroeconomic environment have deeper housing finance systems. These same factors also help explain the variation in housing finance across emerging market economies. Across developed countries, which tend to have low macroeconomic volatility and relatively extensive credit information systems, variation in the strength of legal rights helps explain the extent of housing finance. We also examine another potential factor--the existence of sizeable government securities markets--that might enable the development of emerging markets' housing finance systems, but we find no evidence supporting that.

International Capital Flows and U.S. Interest Rates

Foreign official purchases of U.S. government bonds have an economically large and statistically significant impact on long-term interest rates. Federal Reserve credibility, as evidenced by dramatic reductions in both long-term inflation expectations and the volatility of long rates, contributed much to the decline of long rates in the 1990s. More recently, however, foreign flows have become important. Controlling for various factors given by a standard macroeconomic model, we estimate that had there been no foreign official flows into U.S. government bonds over the past year, the 10-year Treasury yield would currently be 90 basis points higher. Our results are robust to a number of alternative specifications.

International Capital Flows and U.S. Interest Rates

Abstract: Foreign flows have an economically large and statistically significant impact on longterm interest rates. Controlling for various macroeconomic factors we estimate that had there been no foreign flows into U.S. bonds over the past year, the 10-year Treasury yield would currently be 150 basis points higher; even a step-down to average inflows would imply an increase of 105 basis points. The impact of the headline-making foreign official flows—a relatively small subset of total foreign accumulation of U.S. bonds—is also significant but markedly smaller. Our results are robust to a number of alternative specifications.bond yields, Japan, China

Emerging Local Currency Bond Markets

We assess the development of local currency bond markets in emerging market economies (EMEs). Supported by policies and laws that helped to improve macroeconomic stability and creditor rights, many local currency EME bond markets have grown substantially over the past decade and have also provided USD-based investors with attractive returns. U.S. investors have responded by increasing their holdings of EME local currency bonds from less than $2 billion in 2001 to over$27 billion by end-2008. While the increase in U.S. investment spanned many EMEs, empirical tests suggest that relatively more went to those with identifiable investor-friendly institutions and policies.

External Capital Structures and Oil Price Volatility

This paper assesses the extent to which a country’s external capital structure can aid in mitigating the macroeconomic impact of oil price shocks. Two Caribbean economies highly vulnerable to oil price shocks are considered: an oil importer (Jamaica) and an oil exporter (Trinidad and Tobago). From a risk-sharing perspective, a desirable external capital structure is one that, through international capital gains and losses, helps offset responses of the current account balance to external shocks. It is found that both countries could alter their international portfolio to provide a better buffer against such shocks.Hedging, Oil, Foreign assets and liabilities, International portfolios

Heavy Metal Pollution from Migori Gold Mining Area, Kenya: Health Implications for Consumers of Fish and Water

Potentially harmful elements (PHE) also referred to as heavy metals (HM) were analyzed in water, fish, nails and scalp hair in children between 5 and 10 years in Migori gold mining belt, Kenya. The samples were digested using acids and analyzed by atomic absorption spectrometry (AAS). The results revealed that the continued consumption of water and fish contaminated from gold mining activities within the vicinity, have significantly increased the concentrations of selected PHE in the nails and scalp hair. There was correlation between the HM in the water and fish and those established in the nails and scalp hair of the children going to school in the gold mine Region, Kenya. Mercury (Hg) and Arsenic (As) in water showed elevated levels above WHO maximum acceptable level in reported studies. Results showed that concentrations of cadmium (Cd), chromium (Cr), and lead (Pb) in water were recorded above the permissible limits set by WHO while zinc (Zn) and copper (Cu) were recorded below the permissible limits. Lead (Pd) and cadmium (Cd) concentrations in nails showed elevated levels above those reported in occupationally exposed residents. Concentrations of Pb, Cd, Cr, and Cu were significantly higher (p < 0.05) in the hair samples collected from the polluted area as compared to control area. Older children (10 years) tended to show higher mean concentrations of PHE as compared to the younger ones (5year) within the same area. The research indicate that the children in the study area are exposed to high health risks associated with ingestion of PHE through contaminated ingestion of fish and drinking water from the rivers flowing through the gold mining area. Education and drastic interventions need to be put in place to protect the young generation from multiple health risks associated with gold mining activities in Migori Gold Belt in Kenya. Keywords: Bioaccumulation; heavy metals; water, human hair; nails, fish matri

Amino acid analysis of P. monodon muscle

Figures for the amino acid composition of Penaeus monodon, are tabulated, and compared to those for white tuna meat

Ingredients for a well-functioning capital market

노트 : A publication of the Korea Economic Institute and the Korea Institute for International Economic Polic

External Capital Structures and Oil Price Volatility

We assess the extent to which a country’s external capital structure can aid in mitigating the macroeconomic impact of oil price shocks. We study two Caribbean economies highly vulnerable to oil price shocks, an oil-importer (Jamaica) and an oil-exporter (Trinidad and Tobago). From a risk-sharing perspective, a desirable external capital structure is one that, through international capital gains and losses, helps offset responses of the current account balance to external shocks. We find that both countries could alter their international portfolio to provide a more effective buffer against such shocks.