Found 1693 article(s) in category 'Q1: Economic Growth'

Coordination Frictions in Venture Capital Syndicates

Coordination Frictions in Venture Capital Syndicates. Ramana Nanda, Matthew Rhodes-Kropf, 2019, Book Chapter, “A clear implication of these potential frictions is that entrepreneurs need to be careful about how to select and build the syndicate of VC investors that back their firm … 18–037). Harvard Business School…Link

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China’s Overseas Lending

China’s Overseas Lending. Carmen Reinhart, July 2017, Paper, “Compared with China’s dominance in world trade, its expanding role in global finance is poorly documented and understood. Over the past decades, China has exported record amounts of capital to the rest of the world. Many of these financial flows are not reported to the IMF, the BIS or the World Bank. “Hidden debts” to China are especially significant for about three dozen developing countries, and distort the risk assessment in both policy surveillance and the market pricing of sovereign debt. We establish the size, destination, and characteristics of China’s overseas lending. We identify three key distinguishing features. First, almost all of China’s lending and investment abroad is official. As a result, the standard “push” and “pull” drivers of private cross-border flows do not play the same role in this case. Second, the documentation of China’s capital exports is (at best) opaque. China does not report on its official lending and there is no comprehensive standardized data on Chinese overseas debt stocks and flows. Third, the type of flows is tailored by recipient. Advanced and higher middle-income countries tend to receive portfolio debt flows, via sovereign bond purchases of the People’s Bank of China. Lower income developing economies mostly receive direct loans from China’s state-owned banks, often at market rates and backed by collateral such as oil. Our new dataset covers a total of 1,974 Chinese loans and 2,947 Chinese grants to 152 countries from 1949 to 2017. We find that about one half of China’s overseas loans to the developing world are “hidden”.Link

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Four Things No One Will Tell You About ESG Data

Four Things No One Will Tell You About ESG Data. George Serafeim, July 2, 2019, Paper, “As the ESG finance field and the use of ESG data in investment decision‐making continue to grow, the authors seek to shed light on several important aspects of ESG measurement and data. This article is intended to provide a useful guide for the rapidly rising number of people entering the field. The authors focus on the following…Link

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Climate Change, Climate Policy, and Economic Growth

Climate Change, Climate Policy, and Economic Growth. James Stock, July 1, 2019, Paper, “The topics of climate change and climate change policy encompass a complex mixture of the natural sciences, economics, and a mass of institutional, legal, and technical details. This complexity and multidisciplinary nature make it difficult for thoughtful citizens to reach their own conclusions on the topic and for potentially interested economists to know where to start. This essay aims to provide a point of entry for macroeconomists interested in climate change and climate change policy but with no special knowledge of the field. I therefore start at the beginning, with some basic background on climate change, presented through the eyes of an econometrician. I then turn to climate policy in the United States. That discussion points to a large number of researchable open questions which macroeconomists are particularly well-suited to tackle.Link

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Carmen Reinhart Discusses Global Economic Risks

Carmen Reinhart Discusses Global Economic Risks. Carmen Reinhart, June 28, 2019, Audio, “Carmen Reinhart, economist and the Minos A. Zombanakis Professor of the International Financial System at Harvard Kennedy School, discusses the panorama of risks facing the global economy. She speaks with Bloomberg Global Economics and Policy editor Kathleen Hayes on “Politics, Policy, Power and Law.”Link



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Be very skeptical about how much revenue Elizabeth Warren’s wealth tax could generate

Be very skeptical about how much revenue Elizabeth Warren’s wealth tax could generate. Lawrence Summers, June 28, 2019, Opinion, “Sen. Elizabeth Warren, D-Mass., has made her proposed 2 percent wealth tax on those worth more than $50 million a central part of her presidential campaign. Emmanuel Saez and Gabriel Zucman, two economists at the University of California at Berkeley, who helped developed the proposal, estimated it it would rake in $187 billion a year. In April, we published a piece in the Washington Post suggesting that this estimate was likely overly optimistic. This week, Saez and Zucman published a rejoinder.” Link

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A Compact, Logical Approach to Large-Market Analysis

A Compact, Logical Approach to Large-Market Analysis. Scott Duke Kominers, June 26, 2019, Paper, “In game theory, we often use infinite models to represent “limit” settings, such as markets with a large number of agents or games with a long time horizon. Yet many game-theoretic models incorporate finiteness assumptions that, while introduced for simplicity, play a real role in the analysis. Here, we show how to extend key results from (finite) models of matching, games on graphs, and trading networks to infinite models by way of Logical Compactness, a core result from Propositional Logic. Using Compactness, we prove the existence of man-optimal stable matchings in infinite economies, as well as strategy-proofness of the man-optimal stable matching mechanism. We then use Compactness to eliminate the need for a finite start time in a dynamic matching model. Finally, we use Compactness to prove the existence of both Nash equilibria in infinite games on graphs and Walrasian equilibria in infinite trading networks.Link

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