How the credit channel works: differentiating the bank lending channel and the balance sheet channel

The credit channel of monetary policy transmission operates through changes in lending. To examine this channel, we explore how movements in the real federal funds rate affect bank lending. Using data on individual loans from the Survey of Terms of Bank Lending, we are able to differentiate two ways the credit channel can work: by affecting overall bank lending (the bank lending channel) and by affecting the allocation of loans (the balance sheet channel). We find evidence consistent with the operation of both internal credit channels. During periods of tight monetary policy, banks adjust their stock of loans by reducing the maturity of loan originations and they reallocate their short-term loan supply from small firms to large firms. These results are stronger for large banks than for small banks.Monetary policy ; Bank loans

How the credit channel works: Differentiating the bank lending channel and the balance sheet channel

The credit channel of monetary policy transmission operates through changes in lending. To examine this channel, we explore how movements in the real federal funds rate affect bank lending. Using data on individual loans from the Survey of Terms of Bank Lending, we are able to differentiate two ways the credit channel can work: by affecting overall bank lending (the bank lending channel) and by affecting the allocation of loans (the balance sheet channel). We find evidence consistent with the operation of both internal credit channels. During periods of tight monetary policy, banks adjust their stock of loans by reducing the maturity of loan originations and they reallocate their short-term loan supply from small firms to large firms. These results are stronger for large banks than for small banks

Electro-kinetic technology as a low-cost method for dewatering food by-product

Increasing volumes of food waste, intense environmental awareness, and stringent legislation have imposed increased demands upon conventional food waste management. Food byproducts that were once considered to be without value are now being utilized as reusable materials, fuels, and energy in order to reduce waste. One major barrier to the valorization of food by-products is their high moisture content. This has brought about the necessity of dewatering food waste for any potential re-use for certain disposal options. A laboratory system for experimentally characterizing electro-kinetic dewatering of food by-products was evaluated. The bench scale system, which is an augmented filter press, was used to investigate the dewatering at constant voltage. Five food by-products (brewer’s spent grain, cauliflower trimmings, mango peel, orange peel, and melon peel) were studied. The results indicated that electro-kinetic dewatering combined with mechanical dewatering can reduce the percentage of moisture from 78% to 71% for brewer’s spent grain, from 77% to 68% for orange peel, from 80% to 73% for mango peel, from 91% to 74% for melon peel, and from 92% to 80% for cauliflower trimmings. The total moisture reduction showed a correlation with electrical conductivity (R2¼0.89). The energy consumption of every sample was evaluated and was found to be up to 60 times more economical compared to thermal processing

Firm-Level Evidence of Shifts in the Supply of Credit

Using panel data of 68,800 small and large firms, I examine whether firms are subject to shifts in the supply of credit over the business cycle. Shifts in the supply of credit are identified by exploring how firms substitute between commitment credit - lines of credit - and non-commitment credit. I find that firms on average rely more on commitment credits when monetary policy is tight and when the financial health of banks is weaker. The results are consistent with a bank lending channel of monetary policy and with shifts in the supply of credit following deteriorations in banks' balance sheets

The Intentional Use of Service Recovery Strategies to Influence Consumer Emotion, Cognition and Behaviour

Service recovery strategies have been identified as a critical factor in the success of. service organizations. This study develops a conceptual frame work to investigate how specific service recovery strategies influence the emotional, cognitive and negative behavioural responses of . consumers., as well as how emotion and cognition influence negative behavior. Understanding the impact of specific service recovery strategies will allow service providers' to more deliberately and intentionally engage in strategies that result in positive organizational outcomes. This study was conducted using a 2 x 2 between-subjects quasi-experimental design. The results suggest that service recovery has a significant impact on emotion, cognition and negative behavior. Similarly, satisfaction, negative emotion and positive emotion all influence negative behavior but distributive justice has no effect

An analysis of material consumption culture in the Muslim world

In this paper, we examine the notion of material consumption culture in Islamic societies. We differentiate between institutionalised religion and religion as culture. We contest the Orientalist portrayal of Islam as a fanatic ideology opposed to Western Modernity’s features of secularism, individualism, and pluralism. With reference to the Qur’anic text, we discuss that such qualities are embedded with Islam. We do not interpret the Qur’an from a theological perspective; rather, we seek to demonstrate the possibilities of its multiple interpretations. We argue that, in their everyday life consumption practices, Muslims (re)interpret religious guidelines in different ways and refer to Islam, as a transcendental set of guidelines, to make better sense of their cultural practices in different ways. We summarise our discussion by highlighting the importance of analysing the culture of consumption from the lens of insiders and offer directions for future research

In-Sample and Out-of-Sample Prediction of Stock Market Bubbles: Cross-Sectional Evidence

We evaluate the informational content of ex post and ex ante predictors of periods of excess stock (market) valuation. For a cross section comprising 10 OECD economies and a time span of at most 40 years alternative binary chronologies of price bubble periods are determined. Using these chronologies as dependent processes and a set of macroeconomic and financial variables as explanatory variables, logit regressions are carried out. With model estimates at hand, both in-sample and out-of-sample forecasts are made. Overall, the degree of ex ante predictability is limited if an analyst targets the detection of particular turning points of market valuation. The set of 13 potential predictors is classified in measures of macroeconomic or monetary performance, stock market characteristics, and descriptors of capital valuation. The latter turn out to have strongest in-sample and out-of-sample explanatory content for the emergence of price bubbles. In particular, the price to book ratio is fruitful to improve the ex-ante signalling of stock price bubbles