Mo.Fi.R. Working Papers (2008)


 
 
Mo.Fi.R. Working Papers (>> Mo.Fi.R. website)
 
Alberto Franco Pozzolo
Bank cross-border mergers and acquisitions (Causes, consequences and recent trends) [novembre 2008]
Keywords:
  Foreign direct investment, International banking
JEL Classification:
  E30- Macroeconomics and Monetary Economics - Prices, Business Fluctuations, and Cycles - General
  F21- International Economics - International Factor Movements and International Business - International Investment; Long-Term Capital Movements
  F23- International Economics - International Factor Movements and International Business - Multinational Firms; International Business
  G21- Financial Economics - Financial Institutions and Services - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
Abstract:
  In the past fifteen years, cross-border mergers and acquisitions have had an ever increasing role in the process of bank internationalization. Although a consensus view has developed on the determinants of a bankÆs decision to expand abroad and on the determinants of the patterns of expansion, the debate on the consequences of foreign bank presence is still open. The aim of this chapter is twofold. Firstly, it discusses the major results of the empirical literature studying the determinants, the patterns, and the consequences of bank foreign expansion. Secondly, it studies whether the determinants of bank foreign expansions have changed through time, estimating an econometric model of the patterns of cross-border bank M&As between 1990 and 2006.
Citations:   CitEc
 
Alessandra Del Boca, Michele Fratianni, Franco Spinelli, Carmine Trecroci
The Phillips Curve and the Italian Lira, 1861-1998 [novembre 2008]
Keywords:
  Inflation, Italian Lira, Phillips curve
JEL Classification:
  E31- Macroeconomics and Monetary Economics - Prices, Business Fluctuations, and Cycles - Price Level; Inflation; Deflation
  E32- Macroeconomics and Monetary Economics - Prices, Business Fluctuations, and Cycles - Business Fluctuations; Cycles
  E5- Macroeconomics and Monetary Economics - Monetary Policy, Central Banking, and the Supply of Money and Credit
  N10- Economic History - Macroeconomics and Monetary Economics; Growth and Fluctuations - General, International, or Comparative
Abstract:
  We examine Italian inflation rates and the Phillips curve with a very long-run perspective, one that covers the entire existence of the Italian lira from political unification (1861) to the entry of Italy in the European Monetary Union (end of 1998). We first study the volatility, persistence and stationarity of the Italian inflation rate over the long run and across various exchange-rate regimes that have shaped Italian monetary history. Next, we estimate alternative Phillips equations and investigate the extent to which nonlinearities, asymmetries and structural changes characterize the inflation-output trade-off in the long run. We capture the effects of structural changes and asymmetries on the estimated parameters of the inflation-output trade-off relying partly on sub-sample estimates and partly on time-varying parameters estimated with the Kalman filter. Finally, we investigate causal relationships between inflation rates and output and extend the analysis to include the US and the UK for comparison purposes. The inference is that Italy has experienced a conventional inflation-output trade-off only during times of low inflation and stable aggregate supply.
Citations:   CitEc
 
Pietro Alessandrini, Alberto Zazzaro
Bank Localism and Industrial Districts [novembre 2008]
Citations:   CitEc
 
Michele Fratianni
The Evolutionary Chain of International Financial Centers [ottobre 2008]
Keywords:
  Amsterdam, Antwerp, Banking, Evolution, Finance, Florence, Genoa, London, Money, New York, Venice
JEL Classification:
  G15- Financial Economics - General Financial Markets - International Financial Markets
  G21- Financial Economics - Financial Institutions and Services - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
  H63- Public Economics - National Budget, Deficit, and Debt - Debt; Debt Management; Sovereign Debt
  N20- Economic History - Financial Markets and Institutions - General, International, or Comparative
Abstract:
  Financial products are unstandardized and subject to a great deal of uncertainty. They tend to concentrate geographically because of the reduction in information costs resulting from close contacts. Concentration leads to economies of scale and encourages external economies. Great financial centers enjoy a high degree of persistence but are not immune from decline and eventual demise. Yet, their achievements are passed along in a an evolutionary manner. In revisiting the historical record of seven international financial centers ûFlorence, Venice, Genoa, Antwerp, Amsterdam, London and New Yorkù the paper finds evidence of a long evolutionary chain of banking and finance. As to the present and the future, the forces of integration are likely to give an additional boost to the persistence of international financial centers.
Citations:   CitEc
 
Michele Fratianni
Financial Crises, Safety Nets and Regulation [ottobre 2008]
Keywords:
  Bailout, Credit, Crisis, Money, Moral hazard, Regulation, Safety net, Subprime
JEL Classification:
  E58- Macroeconomics and Monetary Economics - Monetary Policy, Central Banking, and the Supply of Money and Credit - Central Banks and Their Policies
  F30- International Economics - International Finance - General
  G21- Financial Economics - Financial Institutions and Services - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
  N20- Economic History - Financial Markets and Institutions - General, International, or Comparative
Abstract:
  The historical record shows that financial crises are far from being a rare a phenomenon; they occur often enough to be considered part of the workings of finance capitalism. While there is no single hypothesis that can best explain all crises, the implications of the credit boom-and-bust hypothesis, supplemented with asymmetric information, are consistent with the onset and development of many crises, including the current subprime crisis. Governments have reacted to crises by erecting a vast and growing safety net. In turn, to minimize their risk exposure, they have also put in place expansive systems of regulation and supervision. The unwinding of the current crisis will mark a big enlargement of the safety net and moral hazard, as well as a predictable flurry of policy proposals aimed at closing past regulatory loopholes. The maintained hypothesis is that regulatory and market failures are inexorably intertwined.
Citations:   CitEc
 
Pietro Alessandrini, Andrea Filippo Presbitero, Alberto Zazzaro
Global Banking and Local Markets [ottobre 2008]
Keywords:
  Functinal distance, Global banking development, Local banking
JEL Classification:
  G21- Financial Economics - Financial Institutions and Services - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
  G34- Financial Economics - Corporate Finance and Governance - Mergers; Acquisitions; Restructuring; Corporate Governance
  R12- Urban, Rural, and Regional Economics - General Regional Economics - Size and Spatial Distributions of Regional Economic Activity
  R51- Urban, Rural, and Regional Economics - Regional Government Analysis - Finance in Urban and Rural Economies
Abstract:
  In the early 1990s, a widely-shared opinion among scholars and practitioners was that the importance of physical proximity between banks and borrowers would be doomed to drastically decrease over time and, put in extreme terms, the end of banking geography would become a real possibility. However, the empirical evidence show an unrelenting importance of local credit markets for small borrowers and local economic development. In the paper, we selectively review the literature on the real effects of bank consolidation and produce new evidence on the role of headquarter-to-branch functional distance on relationship lending.
Citations:   CitEc
 
Pietro Alessandrini, Andrea Filippo Presbitero, Alberto Zazzaro
Geographical Organization of Banking Systems and Innovation Diffusion [settembre 2008]
Citations:   CitEc
 
Pietro Alessandrini, Andrea Filippo Presbitero, Alberto Zazzaro
Bank Size or Distance: What Hampers Innovation Adoption by SMEs? [settembre 2008]
Keywords:
  Bank size, Functional distance, Innovation, SMEs
JEL Classification:
  G21- Financial Economics - Financial Institutions and Services - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
  G34- Financial Economics - Corporate Finance and Governance - Mergers; Acquisitions; Restructuring; Corporate Governance
  O31- Economic Development, Technological Change, and Growth - Technological Change; Research and Development - Innovation and Invention: Processes and Incentives
  R51- Urban, Rural, and Regional Economics - Regional Government Analysis - Finance in Urban and Rural Economies
Abstract:
  A growing body of research is focusing on banking organizational issues, emphasizing the difficulties encountered by hierarchically organized banks in lending to informationally opaque borrowers. While the two extreme cases of hierarchical and non{hierarchical organizations are typically contrasted, what shapes the degree of hierarchy and how to measure it remain fairly vague. In this paper we compare bank size and distance between a bank's branches and headquarter as possible sources of organizational frictions, by studying their impact on small rms' likelihood of introducing innovations. Results show that SMEs located in provinces where the local banking system is functionally distant are less inclined to introduce innovations, while the market share of large banks is only slightly correlated with rms' propensity to innovate.
Citations:   CitEc
 
Pietro Alessandrini, Michele Fratianni
Resurrecting Keynes to Stabilize the International Monetary System [ottobre 2008]
Keywords:
  Keynes Plan, exchange rates, external imbalances, international monetary system, key currency, supranational banl money
JEL Classification:
  E42- Macroeconomics and Monetary Economics - Money and Interest Rates - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
  E52- Macroeconomics and Monetary Economics - Monetary Policy, Central Banking, and the Supply of Money and Credit - Monetary Policy
  F33- International Economics - International Finance - International Monetary Arrangements and Institutions
  F36- International Economics - International Finance - Financial Aspects of Economic Integration
Abstract:
  We adapt the basic principles of the Keynes Plan and argue for the creation of a supranational bank money that would coexist along side national currencies and for the establishment of a new international clearing union (NICU). These principles remain timely because the fundamental causes of the instability of the international monetary system are as valid today as they were in the early Forties. The new international money would be created against domestic earning assets of the Fed and the ECB. The quantity of this supranational bank money would be demand driven and thus would differ from the helicopter-money Special Drawing Rights. NICU would not hold open positions in assets denominated in national currency and consequently would not bear exchange rate risk. NICU would be more than an office where to record credit and debit entries of the supranational bank money. The financial tsunami that has hit the United States in 2007-2008 provides a unique opportunity for a coordinated strategy.
Citations:   CitEc