The external finance premium and the macroeconomy: US post-WWII evidence

The central variable of theories of financial frictions--the external finance premium--is unobservable. This paper distils the external finance premium from a DSGE model estimated on U.S. macroeconomic data. Within the DSGE framework, movements in the premium can be given an interpretation in terms of shocks driving business cycles. A key result is that the estimate--based solely on nonfinancial macroeconomic data--picks up over 70 percent of the dynamics of lower grade corporate bond spreads. The paper also identifies a gain in fitting key macroeconomic aggregates by including financial frictions in the model and documents how shock transmission is affected.Financial markets ; Corporate bonds ; Corporations - Finance

The External Finance Premium and the Macroeconomy: US post-WWII Evidence

This paper embeds the financial accelerator into a medium-scale DSGE model and estimates it using Bayesian methods. Incorporation of financial frictions enhances the model's description of the main macroeconomic aggregates. The financial accelerator accounts for approximately ten percent of monetary policy transmission. The model-consistent premium for external finance compares well to observable proxies of the premium, such as the high-yield spread. Fluctuations in the external finance premium are primarily driven by investment supply and monetary policy shocks. In terms of recession prediction, false signals of the premium can be given an economic interpretationfinancial accelerator, external finance premium, DSGE model, Bayesian estimation

The External Finance Premium and the Macroeconomy: US post-WWII Evidence

This paper embeds the financial accelerator into a medium-scale DSGE model and estimates it using Bayesian methods. Incorporation of financial frictions enhances the model's description of the main macroeconomic aggregates. The financial accelerator accounts for approximately ten percent of monetary policy transmission. The model-consistent premium for external finance compares well to observable proxies of the premium, such as the high-yield spread. Fluctuations in the external finance premium are primarily driven by investment supply and monetary policy shocks. In terms of recession prediction, false signals of the premium can be given an economic interpretationfinancial accelerator, external finance premium, DSGE model, Bayesian estimation

The researcher’s erotic subjectivities : epistemological and ethical challenges

Aquest article pretén aprofundir en la qüestió de la rellevància potencial i la importància d’incloure reflexions sobre el desig i la sexualitat de la persona que investiga en els resultats de la seva recerca. Analitzem críticament l’excepcionalització de les interaccions sexual(itzade) s en la recerca: quines són les raons per les quals el contacte sexual(itzat) entre la persona que investiga i les persones participants es considera no ètic o problemàtic, i quines són les conseqüències del fet d’evitar la intimitat —o l’(auto)censura en relació amb el debat— en el treball de camp? Aquest debat ens porta a defensar una aproximació ètica alternativa a la prescrita pels protocols ètics institucionals. L’aproximació ètica que plantegem es basa en la premissa que la producció de coneixement mai no es dona fora dels nostres cossos i que la relació de recerca no és fonamentalment diferent de cap altre tipus de relació. El que proposem és una ètica relacional de la recerca que creï espais per al debat obert i en diàleg amb altres persones sobre les conseqüències (potencials) de les nostres accions com a investigadors/es/éssers humans en unes relacions d’asimetria de poder canviants.This paper aims to deepen the conversation about the potential relevance and importance of including reflection on the desire and sexuality of the researcher in research outputs. We critically scrutinise the exceptionalisation of sexual(ised) interactions in research: why is sexual(ised) contact between researchers and participants considered unethical or problematic, and what are the consequences of the avoidance of—and/or the (self-)censorship with regard to discussin —intimacy in the field? This discussion leads us to argue for an alternative ethical approach than that prescribed by institutional ethical protocols. The ethical approach that we envision is based on the premise that knowledge production never occurs apart from our bodies and that a research relationship is not fundamentally different from any other human relationship. What we propose is a relational research ethics that creates space for discussing openly and in dialogue with others the (potential) consequences of our actions as researchers/human beings within relationships of shifting power asymmetry

Monetary policy and bank distress: an integrated micro-macro approach

Evidence on the interdependency between monetary policy and the state of the banking system is scarce. We suggest an integrated micro-macro approach with two core virtues. First, we measure the probability of bank distress directly at the bank level. Second, we integrate a microeconomic hazard model for bank distress and a standard macroeconomic model. The advantage of this approach is to incorporate micro information, to allow for non-linearities and to permit general feedback effects between bank distress and the real economy. We base the analysis on German bank and macro data between 1995 and 2004. Our results confirm the existence of a relationship between monetary policy and bank distress. A monetary contraction increases the mean probability of distress. This effect disappears when neglecting micro effects, underlining the crucial importance of the former. Distress responses are economically most significant for weak distress events and at times when capitalization is low. --Stress testing,bank distress,monetary policy

FeS corrosion products formation and hydrogen uptake in a sour environment for quenched & tempered steel

Surface corrosion product formation is one of the important factors affecting the corrosion rate and hydrogen uptake in a H2S environment. However, it is still unclear how the base material composition will affect the corrosion products that are generated, and consequently their impact on the corrosion rate. In this paper, corrosion product formation and the impact of the Mo content of the base material on the composition of the corrosion products and hydrogen absorption in a sour environment was investigated. The corrosion layer was composed of a double layered mackinawite (FeS1−x) structure, which was enriched with molybdenum and chromium. The layers were formed via two different mechanisms, i.e., the inner layer was created via a general oxide film formation corrosion mechanism, whereas the upper layer was formed by a precipitation mechanism. The presence of this double corrosion layer had a large influence on the amount of diffusible hydrogen in the materials. This amount decreased as a function of contact time with the H2S saturated solution, while the corrosion rate of the materials shows no significant reduction. Therefore, the corrosion products are assumed to act as a physical barrier against hydrogen uptake. Mo addition caused a decrease in the maximal amount of diffusible hydrogen

Electrochemical hydrogen charging of duplex stainless steel

This study evaluates the electrochemical hydrogen charging behavior and interaction between hydrogen and the microstructure of a duplex stainless steel. A saturation level of approximately 650 wppm is reached after 10 d of charging. The data are compared with a model resulting in a diffusion coefficient of 2.1 x 10(-14) m(2)/s. A two-step increase of the concentration is observed and ascribed to saturation of ferrite followed by charging of austenite grains. Microstructural changes are observed during charging, i.e., formation and interaction of dislocations, as a result of the high residual stresses inherent to the production process of duplex stainless steels