1,209 research outputs found
The Impact of Public Guarantees on Bank Risk Taking: Evidence from a Natural Experiment
In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural experiment to examine the effect of government guarantees on bank risk taking, using a large data set of matched bank/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest borrowers from credit. At the same time, the banks also increased interest rates on their remaining borrowers. The effects are economically large: the Z-Score of average borrowers increased by 7% and the average loan size declined by 13%. Remaining borrowers paid 57 basis points higher interest rates, despite their higher quality. Using a difference-in-differences approach we show that the effect is larger for banks that ex ante benefitted more from the guarantee. We show that both the credit quality of new customers improved (screening) and that the loans of existing riskier borrowers were less likely to be renewed (monitoring), after the removal of public guarantees. Public guarantees seem to be associated with substantial moral hazard effects.banking;public guarantees;credit risk;moral hazard
Who Invests in Home Equity to Exempt Wealth from Bankruptcy?
Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home equity. Using US household data from the Survey of Income and Program Participation for the period 1996-2006, we find that especially households with low net worth maintain a larger share of their wealth as home equity if a larger homestead exemption applies. This home equity bias is also more pronounced if the household head is in poor health, increasing the chance of bankruptcy on account of unpaid medical bills. The bias is further stronger for households with mortgage finance, shorter house tenures, and younger household heads, which taken together reflect households that face more financial uncertainty.Homestead exemptions;Personal bankruptcy;Portfolio allocation;Home ownership
Quantum Monte Carlo Study of Strongly Correlated Electrons: Cellular Dynamical Mean-Field Theory
We study the Hubbard model using the Cellular Dynamical Mean-Field Theory
(CDMFT) with quantum Monte Carlo (QMC) simulations. We present the algorithmic
details of CDMFT with the Hirsch-Fye QMC method for the solution of the
self-consistently embedded quantum cluster problem. We use the one- and
two-dimensional half-filled Hubbard model to gauge the performance of CDMFT+QMC
particularly for small clusters by comparing with the exact results and also
with other quantum cluster methods. We calculate single-particle Green's
functions and self-energies on small clusters to study their size dependence in
one- and two-dimensions.Comment: 14 pages, 18 figure
Managing Forests for Water Quality: Forest Roads
Access to privately owned forest land is necessary for many reasons: forest management activities such as site preparation, planting, and harvesting; recreational activities such as hunting, fi shing, hiking and camping; fi re suppression; and access to home or cabin sites
Learning from the Success of MPI
The Message Passing Interface (MPI) has been extremely successful as a
portable way to program high-performance parallel computers. This success has
occurred in spite of the view of many that message passing is difficult and
that other approaches, including automatic parallelization and directive-based
parallelism, are easier to use. This paper argues that MPI has succeeded
because it addresses all of the important issues in providing a parallel
programming model.Comment: 12 pages, 1 figur
Risks associated with endotoxins in feed additives produced by fermentation
Acknowledgements We thank Jordi Tarrés Call, who recorded the discussions and offered advice about procedures, and Nicole Reisinger and Gerd Schatzmayr, who provided valuable information about endotoxins in animal feeds. The Rowett Institute of Nutrition and Health is funded by the Rural and Environment Science and Analytical Services Division (RESAS) of the Scottish Government.Peer reviewedPublisher PD
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