Source Themes

Banking Catch-22: Trading off Mark-To-Market and Default Risk in the Presence of Guaranteed Deposits

We provide evidence that the deposit franchise of privately owned banks is driven by their deposit market concentration while state owned banks derive their franchise value from government guarantees. Using the boom period of the 2000s in India as a …

The Financial Premium and Real Cost of Bureaucrats in Businesses

This paper studies the relevance of bureaucrats in businesses on the allocation of finance across firms. Using a novel firm-level database containing information about the ownership structure of firms operating in 24 European countries during the …

From Financial to Real Misallocation: Evidence from a Global Sample

Financial market imperfections are a key determinant of the large differences in aggregate productivity across countries. This study leverages a novel methodology proposed by Whited and Zhou (2021) to measure the allocative efficiency of financial …

The Insurer Channel of Monetary Policy

Do Creditor Rights Reduce Tunneling? Evidence from India's Bankruptcy Law Reforms