Institution
CEMFI
About: CEMFI is a based out in . It is known for research contribution in the topics: Unemployment & Estimator. The organization has 71 authors who have published 499 publications receiving 46553 citations. The organization is also known as: Center for Monetary and Financial Studies.
Papers published on a yearly basis
Papers
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TL;DR: In this article, the authors explore the effects of shifts in interest rates on corporate leverage and default and find that higher rates produce lower default rates in the longer run since they induce lower target leverage across all firms.
Abstract: This paper explores the effects of shifts in interest rates on corporate leverage and default. We develop a dynamic model in which the relationship between firms and their outside financiers is affected by a moral hazard problem and entrepreneurs' initial wealth is scarce. The endogenous link between leverage and default risk comes from the lower incentives of overindebted entrepreneurs to guarantee the survival of their firms. Firms start up with leverage typically higher than some state-contingent target leverage ratio, and adjust gradually to it through earnings retention. The dynamic response of leverage and default to cut and rises in interest rates is both asymmetric (since it is easier to adjust to a higher target leverage than to a lower one) and heterogeneously distributed across firms (since interest rates affect the burden of outstanding leverage, which differs across firms). We find that both interest rate rises and interest rate cuts increase the aggregate default rate in the short-run. Instead, higher rates produce lower default rates in the longer run since they induce lower target leverage across all firms. These results help rationalize some of the empirical evidence regarding the so-called risk-taking channel of monetary policy.
3 citations
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TL;DR: In this paper, an algorithm for updating the symmetric factorization of a positive semi-definite matrix after a positive rank-one modification is presented, which works even if the matrices involved do not have full rank.
Abstract: . We present an algorithm for updating the symmetric factorization of a positive semi-definite matrix after a positive rank-one modification, which works even if the matrices involved do not have full rank. Recursive least squares and factor analysis provide two important econometric applications. An illustrative simulation shows that it can be potentially very useful in recursive situations.
3 citations
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TL;DR: In this article, the authors present a case study on reform of a very dysfunctional labor market with a deep insider-outsider divide, namely the Spanish case, and show how a dual market, with permanent and temporary employees, makes real reform much harder, and leads to purely marginal changes that do not alter the fundamental features of labor market institutions.
Abstract: This paper presents a case study on reforming a very dysfunctional labor market with a deep insider-outsider divide, namely the Spanish case. We show how a dual market, with permanent and temporary employees makes real reform much harder, and leads to purely marginal changes that do not alter the fundamental features of labor market institutions. While the Great Recession and the start of the sovereign debt crisis triggered two labor reforms, the political economy equilibrium has not allowed them to be transformational enough.
3 citations
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TL;DR: In this paper, the authors present methods for the estimation of dynamic discrete choice structural models and discuss related econometric issues, including single agent models, competitive equilibrium models and dynamic games.
Abstract: This paper reviews methods for the estimation of dynamic discrete choice structural models and discusses related econometric issues. We consider single agent models, competitive equilibrium models and dynamic games. The methods are illustrated with descriptions of empirical studies which have applied these techniques to problems in different areas of economics. Programming codes for the estimation methods are available in a companion web page.
3 citations
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TL;DR: In this paper, a longitudinal approach is adopted to show that employment and earnings losses suffered by young workers during recessions are not made up in the subsequent expansions, and they also estimate the size of the scarring effects of entering the job market in a recession for college-educated workers during their first decade in the labor market.
Abstract: Young workers in Spain face the unprecedented impact of the Great Recession and the COVID-19 crisis in short sequence. Moreover, they have also experienced a deterioration in their employment and earnings over the last three decades. In this paper, we document this evolution and adopt a longitudinal approach to show that employment and earnings losses suffered by young workers during recessions are not made up in the subsequent expansions. We also estimate the size of the scarring effects of entering the job market in a recession for college-educated workers during their first decade in the labor market. Our empirical estimates indicate that while there is some evidence of scarring effects, the driving force is a trend worsening of youth labor market outcomes.
3 citations
Authors
Showing all 71 results
Name | H-index | Papers | Citations |
---|---|---|---|
Juan J. Dolado | 53 | 240 | 19084 |
Luis Servén | 52 | 182 | 10163 |
Diego Puga | 47 | 101 | 17073 |
Javier Suarez | 37 | 115 | 5501 |
Manuel Arellano | 36 | 85 | 45041 |
Samuel Bentolila | 32 | 85 | 7037 |
David Dorn | 31 | 60 | 9395 |
Enrique Moral-Benito | 30 | 113 | 2701 |
Rafael Repullo | 30 | 90 | 6363 |
Marco Becht | 29 | 72 | 4851 |
Nezih Guner | 29 | 112 | 3416 |
Enrique Sentana | 26 | 53 | 4156 |
Claudio Michelacci | 24 | 68 | 2752 |
Jorge Padilla | 24 | 90 | 2294 |
Gabriele Fiorentini | 22 | 73 | 1506 |