Thu 19 May 13:00: Title to be confirmed
Abstract not available
- Speaker: Lira Mota (Princeton)
- Thursday 19 May 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 16 Jun 13:00: Title to be confirmed
Abstract not available
- Speaker: Constantine Yannelis (University of Chicago Booth School of Business)
- Thursday 16 June 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 09 Jun 13:00: Title to be confirmed
Abstract not available
- Speaker: Jawad M. Addoum (Cornell)
- Thursday 09 June 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 19 May 13:00: Title to be confirmed
Abstract not available
- Speaker: Speaker to be confirmed
- Thursday 19 May 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 05 May 13:00: Title to be confirmed
Abstract not available
- Speaker: Speaker to be confirmed
- Thursday 05 May 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 10 Mar 13:00: Title to be confirmed
Abstract not available
- Speaker: Enrichetta Ravina (Chicago Fed)
- Thursday 10 March 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 14 Oct 13:00: The Aggregate Consequences of Forbearance Lending: Evidence from Japan
We study the impact of forbearance on aggregate economic performance in Japan over the period 2007-2017. Forbearance is a practice whereby banks accommodate bad borrowers instead of terminating their loans, with negative consequences for aggregate productivity. The Japanese policy response to the global financial crisis of 2007-2008 (SME Financing Facilitation Act) has revived this practice. Our novel theory-driven empirical approach enables us to perform a quantitative assessment of the aggregate impact of forbearance, including its positive effects, namely the avoidance of a large number of bankruptcies and increased unemployment. We develop a search-theoretic model of credit markets with severance costs that capture forbearance frictions and estimate those frictions using the Tokyo Shoko Research (TSR) dataset. Our estimates indicate a marked increase in forbearance frictions from 2010 onwards, suggesting that the SME Financing Facilitation Act of 2009 has revived the practice of forbearance in Japan. Our counterfactual exercises indicate that, in the absence of forbearance, the capital productivity of survivors would on average be 4.22% higher. On average, there would be 6.89% fewer jobs and 3.93% fewer firms. Finally, we provide regression-based evidence in support of our channel. First, we relate our estimates of forbearance frictions to the zombieness measure of Caballero, Hoshi and Kashyap (2008), and show that higher frictions are associated with a higher probability that a firm is classified as a zombie firm. Second, we exploit geographical variation in search frictions across Japanese prefectures to show that forbearance frictions are more significant when search frictions are more stringent. This shows that our model captures a unique margin in the data, which is not explained by models that are not based on search and matching.
- Speaker: Isabelle Roland (University of Cambridge, Economics)
- Thursday 14 October 2021, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 24 Feb 13:00: Title to be confirmed
Abstract not available
- Speaker: Speaker to be confirmed
- Thursday 24 February 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 10 Feb 13:00: Title to be confirmed
Abstract not available
- Speaker: Speaker to be confirmed
- Thursday 10 February 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 27 Jan 13:00: Title to be confirmed
Abstract not available
- Speaker: Speaker to be confirmed
- Thursday 27 January 2022, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: Cerf Admin.
Thu 25 Nov 13:00: Title to be confirmed
Abstract not available
- Speaker: Speaker to be confirmed
- Thursday 25 November 2021, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 11 Nov 13:00: Title to be confirmed
Abstract not available
- Speaker: Sebastian Ebert (Frankfurt School of Finance & Management)
- Thursday 11 November 2021, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 28 Oct 13:00: Title to be confirmed
Abstract not available
- Speaker: Martin Szydlowski (Carlson School of Management)
- Thursday 28 October 2021, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.
Thu 14 Oct 13:00: The Aggregate Consequences of Forbearance Lending: Evidence from Japan
We study the impact of forbearance on aggregate economic performance in Japan over the period 2007-2017. Forbearance is a practice whereby banks accommodate bad borrowers instead of terminating their loans, with negative consequences for aggregate productivity. The Japanese policy response to the global financial crisis of 2007-2008 (SME Financing Facilitation Act) has revived this practice. Our novel theory-driven empirical approach enables us to perform a quantitative assessment of the aggregate impact of forbearance, including its positive effects, namely the avoidance of a large number of bankruptcies and increased unemployment. We develop a search-theoretic model of credit markets with severance costs that capture forbearance frictions and estimate those frictions using the Tokyo Shoko Research (TSR) dataset. Our estimates indicate a marked increase in forbearance frictions from 2010 onwards, suggesting that the SME Financing Facilitation Act of 2009 has revived the practice of forbearance in Japan. Our counterfactual exercises indicate that, in the absence of forbearance, the capital productivity of survivors would on average be 4.22% higher. On average, there would be 6.89% fewer jobs and 3.93% fewer firms. Finally, we provide regression-based evidence in support of our channel. First, we relate our estimates of forbearance frictions to the zombieness measure of Caballero, Hoshi and Kashyap (2008), and show that higher frictions are associated with a higher probability that a firm is classified as a zombie firm. Second, we exploit geographical variation in search frictions across Japanese prefectures to show that forbearance frictions are more significant when search frictions are more stringent. This shows that our model captures a unique margin in the data, which is not explained by models that are not based on search and matching.
- Speaker: Speaker to be confirmed
- Thursday 14 October 2021, 13:00-14:00
- Venue: Online.
- Series: Cambridge Finance Workshop Series; organiser: CERF/CF Admin.