Can good events lead to bad outcomes? Endogenous banking crises and fiscal policy responses

In this paper, we study the impact of labor market restructuring and foreign direct investment on the banking sector, using a dynamic general equilibrium model with a financial sector. Numerical simulations are performed using stylized Chinese data, and banks failures are generated through increase...

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Bibliographic Details
Main Authors: Feltenstein, A, Rochon, C
Format: Working paper
Published: University of Oxford 2008