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  • firms
  • While the hurricane's negative shock appeared to propagate among firms within the US, the shock does not seem to have spread internationally. (voxeu.org)
  • The findings suggest that access to global opportunities and to alternative partners can be a source of resilience against disaster shocks for internationalised firms. (voxeu.org)
  • Using large natural disasters and industrial accidents to identify bad shocks across countries, I document that after disasters occur, firms that are more sensitive to US flows are less likely to tap capital markets and tend to cut their real behaviors at higher rates. (aeaweb.org)
  • implies
  • Introducing idiosyncratic shocks into the model implies that plants have non-constant operating profits and as a result there is an endogenous exit margin and incumbent plants must decide in each period whether or not to remain in the industry. (repec.org)
  • exogenous
  • Robust and easy-to-apply comparative statics results are established with respect to exogenous parameters as well as various kinds of changes in the Markov processes governing the law of motion of the idiosyncratic shocks. (nber.org)
  • large
  • It is shown that there is a unique equilibrium, provided that the idiosyncratic shocks are not too large. (repec.org)
  • Had the common international shocks in the 1980s and 1990s been as large as they were in the 1960s and 1970s, G7 business cycles would have been substantially more volatile and more highly synchronized than they actually were. (nber.org)
  • model
  • Using a model that microfounds a bank's decision on whether and how to expand into foreign markets, it quantifies the extent of shock transmission and examines the effects of counterfactual regulatory and monetary policies across borders. (voxeu.org)
  • For forecasting nonperforming loans, we develop a model that can capture both macro shocks and idiosyncratic shocks to financial institutions in a vector error correction model. (adb.org)
  • We build a general equilibrium model that features uninsurable idiosyncratic shocks, search frictions and an operative labor supply choice along the extensive margin. (princeton.edu)
  • common
  • The classical method of principal components analysis (PCA) does not efficiently estimate the factor loadings or common factors because it essentially treats the idiosyncratic error to be homoskedastic and cross sectionally uncorrelated. (uni-muenchen.de)
  • After documenting these twin facts, we interpret G7 output data using a structural VAR that separately identifies common international shocks, the domestic effects of spillovers from foreign idiosyncratic shocks, and the effects of domestic idiosyncratic shocks. (nber.org)
  • Role
  • Since the Global Crisis, cross-border lending among banks and its role in the transmission of financial shocks have gained a lot of attention. (voxeu.org)
  • financial
  • Concern about appreciations is therefore well-founded when they are due to shocks in global financial markets. (voxeu.org)
  • domestic
  • These trade shocks capture, in a reduced form way, preference/technological shifts between domestic and imported goods, and changes in trade costs/protectionism. (aeaweb.org)
  • foreign
  • This column discusses the effects that the presence of foreign banking institutions has on the transmission of shocks during crises. (voxeu.org)
  • results
  • We present the results of a study that uses forecasts from professional forecasters to extract non-fundamental shocks to expectations. (repec.org)
  • We describe results of a laboratory experiment designed to test whether a simple sharing institution can sustain risk pooling in a social dilemma with idiosyncratic risk. (ecologyandsociety.org)
  • We describe results from a laboratory experiment designed to test the conditions under which idiosyncratic risk is pooled. (ecologyandsociety.org)
  • effects
  • Both direct and indirect connections have economically significant effects, supporting the notion that interconnected systems are prone to shock transmission. (voxeu.org)
  • real
  • A positive shock to a country's local spending bias appreciates the country's real exchange rate and boosts its output. (aeaweb.org)
  • risk
  • Specifically, risk-based solvency requirements carry the risk of homogenising the behaviour of all players, potentially amplifying shocks and destabilising markets. (voxeu.org)
  • We focus on idiosyncratic risk and voluntary sharing within a social dilemma, which is representative of many types of activities in a rural context. (ecologyandsociety.org)
  • cross
  • Forex market liquidity is in turn tied to market-wide liquidity of other asset classes such as equities and bonds, highlighting that liquidity shocks are a cross market phenomenon. (voxeu.org)