Publication:
Insurance and Liquidity : Panel Evidence

Simple item page
dc.contributor.authorShankar, Rashmi
dc.date.accessioned2012-06-18T18:31:25Z
dc.date.available2012-06-18T18:31:25Z
dc.date.issued2005-06
dc.description.abstractThe author presents evidence that balance sheet effects are critical determinants of both the likelihood of a crisis and of income losses following a crisis. She tests the validity of "insurance" and "liquidity" models of currency crisis. Both models predict that the occurrence of a balance of payments crisis is conditional on the health of the nation's accounts in relation to the rest of the world. Problems in the balance sheet either cause a financial crisis that develops into a run on the central bank, or generate a run on the central bank once contingent liabilities exceed reserves and the yield differential moves against domestic assets. Estimations of crisis likelihoods based on several specifications of single and simultaneous equation probit models confirm that output losses following the crisis are persistent and conditional on the balance sheet indicator, that is, the ratio of the stock of gross external liabilities to assets. Measures of contingent liabilities, capital flight, and financial depth perform well as crisis predictors, and the marginal effects on the probability of a crisis are of the expected sign. The panel data set covers the time period 1973 through 2003 for 90 countries.en
dc.identifierhttp://documents.worldbank.org/curated/en/2005/06/5866215/insurance-liquidity-panel-evidence
dc.identifier.doi10.1596/1813-9450-3648
dc.identifier.urihttps://hdl.handle.net/10986/8304
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3648
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGENTS
dc.subjectASSETS
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEET EFFECTS
dc.subjectBANK FOR INTERNATIONAL SETTLEMENTS
dc.subjectBANK RESERVES
dc.subjectBANKING CRISES
dc.subjectBANKING SECTOR
dc.subjectBID
dc.subjectCAPITAL FLIGHT
dc.subjectCAPITAL FLOWS
dc.subjectCENTRAL BANK
dc.subjectCOMMISSIONS
dc.subjectCONTINGENT LIABILITIES
dc.subjectCONTINGENT LIABILITY
dc.subjectDEBT
dc.subjectDEVALUATION
dc.subjectDEVELOPED COUNTRIES
dc.subjectDIRECT INVESTMENT
dc.subjectDISEQUILIBRIUM
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMIC ACTIVITY
dc.subjectELASTICITY
dc.subjectEMERGING MARKETS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPLOYMENT
dc.subjectEQUATIONS
dc.subjectEXCESS DEMAND
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXPROPRIATION
dc.subjectEXTERNAL FINANCING
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL REFORM
dc.subjectFINANCIAL REGULATION
dc.subjectFINANCIAL SECTOR
dc.subjectFLOW OF CAPITAL
dc.subjectFORECASTS
dc.subjectFOREIGN ASSETS
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN INVESTORS
dc.subjectGDP
dc.subjectIMPERFECT INFORMATION
dc.subjectINCOME
dc.subjectINFLATION
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL RESERVES
dc.subjectLATIN AMERICAN
dc.subjectLEADING INDICATORS
dc.subjectLENDER OF LAST RESORT
dc.subjectLIBERALIZATION
dc.subjectLIQUIDITY
dc.subjectM2
dc.subjectMACROECONOMIC PERFORMANCE
dc.subjectMACROECONOMICS
dc.subjectMARGINAL PRODUCT
dc.subjectMAXIMUM LIKELIHOOD ESTIMATION
dc.subjectMONETARY AUTHORITIES
dc.subjectMONETARY POLICY
dc.subjectMONEY SUPPLY
dc.subjectMORAL HAZARD
dc.subjectNATIONAL OUTPUT
dc.subjectPENALTIES
dc.subjectPOLICY INSTRUMENTS
dc.subjectPORTFOLIO
dc.subjectPROBABILITY OF DEFAULT
dc.subjectPRODUCTIVITY
dc.subjectPROFIT RATE
dc.subjectPUBLIC DEBT
dc.subjectPURCHASE PRICE
dc.subjectPURCHASING POWER
dc.subjectRANDOM WALK
dc.subjectREAL GDP
dc.subjectREAL WAGES
dc.subjectRECESSION
dc.subjectRESERVE
dc.subjectRESERVE ASSETS
dc.subjectRESERVE BANK OF AUSTRALIA
dc.subjectRISK OF DEFAULT
dc.subjectRISK PREMIUM
dc.subjectSTOCK PRICES
dc.subjectSUSTAINABILITY
dc.subjectWAGES
dc.titleInsurance and Liquidity : Panel Evidenceen
dspace.entity.typePublication
okr.crossref.titleInsurance And Liquidity : Panel Evidence
okr.date.doiregistration2025-04-10T09:31:03.061563Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2005/06/5866215/insurance-liquidity-panel-evidence
okr.globalpracticeFinance and Markets
okr.guid969441468140404010
okr.identifier.doi10.1596/1813-9450-3648
okr.identifier.externaldocumentum000016406_20050616094227
okr.identifier.internaldocumentum5866215
okr.identifier.reportWPS3648
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/06/16/000016406_20050616094227/Rendered/PDF/wps3648.pdfen
okr.topicEconomic Theory and Research
okr.topicInsurance and Risk Mitigation
okr.topicBanks and Banking Reform
okr.topicEnvironmental Economics and Policies
okr.topicInternational Terrorism and Counterterrorism
okr.topicFinance and Financial Sector Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
wps3648.pdf
Size:
441.78 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
wps3648.txt
Size:
57.76 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers