1. Discussion and Working Paper // 2015

    From Bad to Worse? Individuals in Financial Distress

    In this paper, we examine the behavior of individual consumers in financial distress. We provide a novel description of consumer delinquency and investigate whether or not consumers recover from delinquency. We…

  2. Discussion and Working Paper // 2015

    What Kinds of Bank-Client Relationships Matter in Reducing Loan Defaults and Why?

    The value of bank relationships is typically thought to arise from repeat lending. However, relationships can be of many kinds, e.g., they could be non-credit based marked by a simple savings or checking…

  3. Discussion and Working Paper // 2015

    Does the Lack of Financial Stability Impair the Transmission of Monetary Policy?

    We investigate the transmission of central bank liquidity to bank deposit and loan spreads in Europe over the January 2006 to June 2010 period. We find evidence consistent with an impaired transmission channel…

  4. Discussion and Working Paper // 2015

    Covenant Violations, Loan Contracting, and Default Risk of Bank Borrowers

    Are borrowers rewarded for repaying their loans? This paper investigates the consequences of covenant violations on subsequent loans to the same borrower using a hand-collected sample of US syndicated loans…

  5. Discussion and Working Paper // 2015

    Zero Risk Contagion - Banks' Sovereign Exposure and Sovereign Risk Spillovers

    We investigate whether the application of risk weights impairs financial stability. Zero risk weight regulation associated with euro-denominated sovereign debt creates a “sovereign subsidy” for European banks,…

  6. Discussion and Working Paper // 2015

    Carbon Price and Wind Power in Denmark

    This paper aims at characterizing the conditions of wind power deployment in order to infer a carbon price level that would provide wind power with comparable advantage over fossil fuel technologies as effective…

  7. Discussion and Working Paper // 2015

    Flexibility in the Market for International Carbon Credits and Price Dynamics Difference with European Allowances

    We analyze the price dynamics of European allowances and international carbon credits in the second phase of the European carbon market. We develop and use a model combining fundamental drivers associated with…