2,570 research outputs found
The Infrared Emission from the Narrow Line Region
We present models for the mid- and far- infrared emission from the Narrow
Line Region (NLR) of Active Galactic Nuclei (AGN). Using the MAPPINGS III code
we explore the effect of typical NLR parameters on the spectral characteristics
of the IR emission. These include useful IR emission line ratio diagnostic
diagrams for the determination of these parameters, as well as Star
formation--AGN mixing diagnostics. We also examine emission line to continuum
correlations which would assist in separating the IR emission arising from the
NLR from that coming from the inner torus. We find for AGN like NGC 1068 and
NGC 4151 that the NLR only contributes ~10% to the total IRAS 25 mum flux, and
that other components such as a dusty torus are necessary to explain the total
AGN IR emission.Comment: 15 pages, 12 figures, accepted for publication in A&A. Paper with
full resolution figures available at
http://www.mpa-garching.mpg.de/~brent/publications/bgrovesnlrIRpaper.pd
Economic growth and financial statement verification
We use a proprietary data set of financial statements collected by banks to examine whether economic growth is related to the use of financial statement verification in debt financing. Exploiting the distinct economic growth and contraction patterns of the construction industry over the years 2002â2011, our estimates reveal that banks reduced their collection of unqualified audited financial statements from construction firms at nearly twice the rate of firms in other industries during the housing boom period before 2008. This reduction was most severe in the regions that experienced the most significant construction growth. These trends reversed during the subsequent housing crisis in 2008â2011 when construction activity contracted. Moreover, using bankâ and firmâlevel data, we find a strong negative (positive) relation between audited financial statements during the growth period, and subsequent loan losses (construction firm survival) during the contraction period. Collectively, our results reveal that macroeconomic fluctuations produce temporal shifts in the overall level of financial statement verification and temporal shifts in verification are related to bank loan portfolio quality and borrower performance.Accepted manuscrip
Financial globalization and monetary policy
Recent data show substantial increases in the size of gross external asset and liability positions. The implications of these developments for optimal conduct of monetary policy are analyzed in a standard open economy model which is augmented to allow for endogenous portfolio choice. The model shows that monetary policy takes on new importance due to its impact on nominal asset returns. Nevertheless, the case for price stability as an optimal monetary rule remains. In fact, it is reinforced. Even without nominal price rigidities, price stability is optimal because it enhances the risk sharing properties of nominal bonds. --Portfolio Choice,International Risk Sharing,Exchange Rate
Country Portfolio Dynamics
This paper presents a general approximation method for characterizing timevarying equilibrium portfolios in a two-country dynamic general equilibrium model. The method can be easily adapted to most dynamic general equilibrium models, it applies to environments in which markets are complete or incomplete, and it can be used for models of any dimension. Moreover, the approximation provides simple, easily interpretable closed form solutions for the dynamics of equilibrium portfolios.Country portfolios, solution methods.
Country portfolios in open economy macro models
This paper develops a simple approximation method for computing equilibrium portfolios in dynamic general equilibrium open economy macro models. The method is widely applicable, simple to implement, and gives analytical solutions for equilibrium portfolio positions in any combination or types of asset. It can be used in models with any number of assets, whether markets are complete or incomplete, and can be applied to stochastic dynamic general equilibrium models of any dimension, so long as the model is amenable to a solution using standard approximation methods. We first illustrate the approach using a simple two-asset endowment economy model, and then show how the results extend to the case of any number of assets and general economic structure.Econometric models ; Equilibrium (Economics) - Mathematical models ; Macroeconomics - Econometric models ; Monetary policy
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