March/April 2011

In This Edition

  • Can Rising Housing Prices Explain China's High Household Saving Rate?

    China's average household saving rate is one of the highest in the world. One popular view attributes the high saving rate to fast-rising housing prices and other living costs in China. This article uses simple economic logic to show that rising housing prices and living costs per se cannot explain China's persistently high household saving rate.

  • Corporate Response to Distress: Evidence from the Asian Financial Crisis

    This paper provides a comprehensive examination of corporate responses to financial distress during an economy-wide crisis, specifically through the restructuring of assets (through asset sales, mergers, or liquidations) and/or liabilities. Using firm-level data from five countries hardest hit by the East Asian financial crisis of 1997-98, this study contrasts the effects that financial and corporate governance variables have on restructuring choices.

  • Political Economy Determinants of Non-agricultural Trade Policy

    The authors investigate several existing political economy hypotheses on trade policy using crosscountry trade-protection data for non-agricultural goods. The authors find that a left-leaning political regime leads to pro-labor trade policies only for a subset of trade policy measures.

  • TARP Beneficiaries and Their Lending Patterns During the Financial Crisis

    This paper provides a systematic analysis of the lending performance of U.S. commercial banks and savings institutions that received financial support through the Capital Purchase Program (CPP) established in October 2008. The authors combine U.S. Treasury data on recipients of the CPP with quarterly financial data for the entire population of depository institutions to reconstruct aggregate lending and gross credit flows (expansion and contraction).



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