Preview

Econophysics Gravity Model

Powerful Essays
Open Document
Open Document
14718 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Econophysics Gravity Model
econstor

www.econstor.eu

Der Open-Access-Publikationsserver der ZBW – Leibniz-Informationszentrum Wirtschaft
The Open Access Publication Server of the ZBW – Leibniz Information Centre for Economics

Buch, Claudia M.; Neugebauer, Katja; Schröder, Christoph

Working Paper

Changing forces of gravity: How the crisis affected international banking
ZEW Discussion Papers, No. 14-006
Provided in Cooperation with:
ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for
European Economic Research

Suggested Citation: Buch, Claudia M.; Neugebauer, Katja; Schröder, Christoph (2014) :
Changing forces of gravity: How the crisis affected international banking, ZEW Discussion
Papers, No. 14-006

This Version is available at: http://hdl.handle.net/10419/90142 Nutzungsbedingungen:
Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter
→ http://www.econstor.eu/dspace/Nutzungsbedingungen nachzulesenden vollständigen Nutzungsbedingungen zu vervielfältigen, mit denen die Nutzerin/der Nutzer sich durch die erste Nutzung einverstanden erklärt.

zbw

Leibniz-Informationszentrum Wirtschaft
Leibniz Information Centre for Economics

Terms of use:
The ZBW grants you, the user, the non-exclusive right to use the selected work free of charge, territorially unrestricted and within the time limit of the term of the property rights according to the terms specified at
→ http://www.econstor.eu/dspace/Nutzungsbedingungen
By the first use of the selected work the user agrees and declares to comply with these terms of use.

Dis­­cus­­si­­on Paper No. 14-006

Changing Forces of Gravity:
How the Crisis
Affected International Banking
Claudia M. Buch, Katja Neugebauer, and Christoph Schröder

Dis­­cus­­si­­on Paper No. 14-006

Changing Forces of Gravity:
How the Crisis
Affected International Banking
Claudia M. Buch, Katja Neugebauer, and Christoph



References: Anderson, J., and E. van Wincoop (2003). Gravity with Gravitas: A Solution to the Border Puzzle Aviat, A., and N. Coeurdacier (2007) The Geography of Trade in Goods and Asset Holdings Baldwin, R., and D. Taglioni (2006). Gravity for Dummies and Dummies for Gravity Equations Berger, A.N., C.M. Buch, G. DeLong, and R. DeYoung (2004). Exporting Financial Institutions Management via Foreign Direct Investment Mergers and Acquisitions. Bergin, P.R., and J.H. Pyun (2012). Multilateral Resistance to International Portfolio Diversification Brüggemann, B., J. Kleinert, and E. Prieto (2012). A Gravity Equation for Bank Loans. Buch, C.M. (2003). Information or Regulation: What Drives the International Activities of Commercial Banks? Buch, C.M., and A. Lipponer (2007). FDI versus Exports: Evidence from German Banks Buch, C.M., C.T. Koch, and M. Koetter (2011a). Crises, Rescues, and Policy Transmission Through International Banks Buch, C.M., C.T. Koch, and M. Koetter (2011b). Size, Productivity, and International Banking Buch, C.M., C.T. Koch, and M. Koetter (2013). Do Banks Benefit from Internationalization? Revisiting the Market Power-Risk Nexus Cerutti, E., G. Dell 'Ariccia, M.S.M Peria (2007). How Banks Go Abroad: Branches or Subsidiaries? Cetorelli, Nicola and Linda S Goldberg (2010). Global Banks and International Shock Transmission: Evidence from the Crisis Claessens, S., and N. van Horen (2012a). Foreign Banks: Trends, Impact and Financial Stability Claessens, S., and N. van Horen (2012b). Location Decisions of Foreign Bank and Competitor Remoteness Coeurdacier, N., and H. Rey (2013). Home Bias in Open Economy Financial Macroeconomics Devereux, M.B., and A. Sutherland (2011). Country Portfolios in Open Economy Macro‐Models Düwel, C. (2013). Repo funding and internal capital markets in the financial crisis. Düwel, C., R. Frey, and A. Lipponer (2011). Cross-Border Bank Lending, Risk Aversion and the Financial Crisis European Union (EU) (2009). State Aid: Overview of National Measures Adopted as a Response Fiorentino, E., C. Koch, and W. Rudek (2010). Technical Documentation Microdatabase: External Position Reports of German Banks Fitzgerald, D., (2012). Trade Costs, Asset Market Frictions and Risk Sharing. American Economic Review 102 (6): 2700-2733. Focarelli, D., and A.F. Pozzolo (2005). Where Do Banks Expand Abroad? An Empirical Analysis Giannetti, M., and L. Laeven (2011). The Flight Home Effect: Evidence from the Syndicated Loan Market During Financial Crises Hildebrand, T., J. Rocholl, and A. Schulz (2012). Flight to Where? Evidence from Bank Investments During the Financial Crisis International Monetary Fund (2011). Toward Operationalizing Macroprudential Policies: When to Act? Global Financial Stability Report Martin, P., and H. Rey (2004). Financial Super-Markets: Size Matters for Asset Trade. Niepmann, F. (2013). Banking across Borders. Deutsche Bundesbank Discussion Paper 19/2013 Okawa, Y. and E. van Wincoop (2012). Gravity in International Finance. Journal of International Economics (87): 205-215 Puri, M., J. Rocholl and S. Steffen (2011). Global Retail Lending in the Aftermath of the US Financial Crisis: Distinguishing between Supply and Demand Effects. Rose, A.K., and T. Wieladek (2011). Financial Protectionism: the First Test. National Bureau of Economic Research Wildmann, C. (2010). What Drives Portfolio Investments of German Banks in Emerging Capital Markets? Zimmer, D., und M. Blaschczok (2012). European Commission’s control of State aid to banks: Competition protection or market design? Universität Bonn

You May Also Find These Documents Helpful

  • Powerful Essays

    Busi 620 - Group Project 1

    • 1211 Words
    • 5 Pages

    Jennings, M.. (2007). The lessons of the subprime loaning market. Corporate Finance Review, 12(3), 44-48. Retrieved November 3, 2011, from ProQuest. (Document ID: 1411474191).…

    • 1211 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Foreclosure 1 1

    • 1152 Words
    • 4 Pages

    Shiller, R. J. (2008). The Subprime Solution: How Today 's Global Financial Crisis Happened and What to Do about It. Princeton, NJ: Princeton University Press. Retrieved from http://www.questia.com…

    • 1152 Words
    • 4 Pages
    Better Essays
  • Good Essays

    What are the possible consequences of HSBC changing its approach to subprime lending? How might these changes affect the business? How might they affect the…..…

    • 409 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Global Banking Crisis

    • 734 Words
    • 3 Pages

    After so much worldwide financial turmoil, learning the right lessons from the global banking crisis is a challenge for the advanced economies and the larger emerging economies whose policies will determine the global financial system over the next several years. The most difficult challenge is not only learning, but applying the lessons learned from the crisis, which proves to be very difficult for all the affected nations and their people whom must live with the consequences. There are various lessons that were learned from the chaotic and disastrous global banking crisis. One of the first lessons that banks discovered is that they must establish an effective governance structure which includes policies dealing with credit risk and specifically with risk tolerance levels. This goes hand in hand with the fact that it is clearly realized from this crisis that credit rating agencies need to reclassify their models used to evaluate cryptic credit risk created in both Mortgage-Backed Securities (MBS) and Collateralized Debt Obligations (CDOs). (Eun & Resnick) Furthermore, the banking crisis has taught borrowers that they must be cautious of placing their faith in its entirety on credit ratings and therefore must question any discrepancies ahead of time. Another insight that was derived from the crisis is the fact that banks must work and build on credit analyses from the bottom up. Banks must ensure that they will be able to resist a severe market hence their liquidity positions, credit reserves and capital bases must be verified. The global banking crisis has also taught us that bankers do not examine credit risk as strictly when they are only acting as mortgage originators and then pass it on to MBS investors instead of holding it themselves. (Eun & Resnick) Bankers seem…

    • 734 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Trumbull, G., Corsi, E., Barron, A. (2010), Santander Consumer Finance, Harvard Business School, 13th December 2010…

    • 3049 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Defying Gravity

    • 1542 Words
    • 10 Pages

    Geddes, S.M. 1981, Advanced Physics: Gravitation - The Acceleration due to Gravity, Macmillian Education Limited, Hampshire, pp. 116-118.…

    • 1542 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Great Recession Essay

    • 732 Words
    • 3 Pages

    The importance of consumer lending became obvious during the Great Recession. One key factor of the Great Recession was due to the increase subprime and near-prime lending which was further aggravated by the securitization of these loans. The Financial Crisis of 2008 followed similar trends to other crisis (Demyanyk & Van Hemert, 2011). First, there was an evident boom in the subprime mortgage market. Second, a bust occurred in 2007 which is signaled by house foreclosures, high delinquencies and default rates. The subprime crisis led to spill over into other credit markets. The crisis intensified when underwriting standards deteriorated along with loan quality which led to an increase in loan risk that was not reflected by an increase in price, which led to a collapse…

    • 732 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Over the past several decades, the number of businesses expanding globally has increased tremendously. Improved technology and removal of trade barriers has made it significantly easier for firms to expand overseas and take advantage of unsaturated markets and growth opportunities. This increased expansion has led to today’s businesses becoming “globally-interdependent and interconnected” (Okoro, 2012). This interdependency between businesses is clearly evidenced in the recent global economic crisis. As the United States experienced its sub-prime mortgage defaults…

    • 3861 Words
    • 16 Pages
    Best Essays
  • Good Essays

    6. Opportunities and challenges to both banks, FIs and investors in loan sales and securitisation after global financial crisis…

    • 523 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Rise and Fall Housing Market

    • 2385 Words
    • 10 Pages

    [ 11 ]. Bianco, K. (2008). The subprime lending crisis: causes and effects of the mortgage meltdown.…

    • 2385 Words
    • 10 Pages
    Best Essays
  • Good Essays

    One of the most intellectual and renowned scientist of the world, Albert Einstein, gave his Theory of Gravitation called General Theory of Relativity in the year 1916. This theory is still considered to be an irreplaceable theory and poses challenges while learning. It is no where simplicity, it is to complex. In this theory Einstein had a problem with the static universe, his theory somethings stating that universe a whole would not remain static, gravity should play the role of attracting the things together. But, there was no such evidence and hence to cancel this Einstein had to put cosmological constant in his General Theory of Relativity.…

    • 1354 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Retail Banking Industry

    • 6586 Words
    • 27 Pages

    Huertas, T. 2007. The Future of Retail Banking in the UK. The Institute of Economic Affairs ' 10th Anniversary Conference.…

    • 6586 Words
    • 27 Pages
    Powerful Essays
  • Powerful Essays

    (1986), A German Identity (1989), and International Monetary Cooperation Since Bretton Woods (1996). He is also a…

    • 17986 Words
    • 72 Pages
    Powerful Essays
  • Powerful Essays

    References: Dr.Nutts (2010) Definition of Gravimetric Analysis [online] Available from : http://www.chm.davidson.edu/ronutt/che115/viii_gravi.pdf - INFORMATION FOR GRAVIMETRIC ANALYSIS (THEORY SECTION)…

    • 1624 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    austerity measures

    • 509 Words
    • 3 Pages

    The crisis has exposed flaws in many policy frameworks. In particular, it has shown the limits of traditional macroeconomic policy measures in dealing with deep recessions associated with financial meltdowns. It has highlighted the shortcomings associated with the lack of clear mechanism for the resolution of financial institutions operating across borders. These flaws have reignited some old debates on whether macroeconomic policy should deal with asset price booms and has highlighted that national and international financial architectures had fallen behind rapidly integrating financial systems.…

    • 509 Words
    • 3 Pages
    Good Essays

Related Topics