Browsing by Subject "Institutionenökonomie"

Now showing 1 - 4 of 4

Die Integration der Marktperspektive in der Steuerung von Problemkrediten
(2015) Englert, Jan Patrick; Burghof, Hans-Peter
The treatment of non-performing loans by banks will remain relevant for the foreseeable future given the recurring nature of bad loan cycles. These cycles differ in their origins as they are triggered by different industries, different countries or a variety of economic contexts. Examples include the bursting of the dotcom bubble and the real estate bubble or the financial crisis in 2008. Likewise, political instability (Russia-Ukraine conflict, financial sanctions), ever-shorter and more volatile economic cycles, cross-border and cross-industry interdependencies, or crises and scandals can cause micro- and macroeconomic uncertainty with the accompanying risk of contagion to the real economy, the financial markets and thereby the credit markets. Almost ten years after the emergence of the financial crisis, European financial institutions are still under pressure, facing high levels of problem- and non-strategic loans. German banks are no exception in having to face these challenges too. Since bank lending still accounts for a dominant share of the market for corporate financing, portfolio steering and credit risk management were, for many years, limited in scope to banks’ internal processes only. An interaction between internal loan processes and capital markets was not foreseen. This has been fundamentally transformed with the emergence of functioning secondary markets for non- and sub-performing loans. These challenges are compelling European banks to address problem loan situations and the efficiency of their loan management processes, something that can only be accomplished through a clean-up of loan portfolios and the institutionalization of professional loan management practices along the entire value chain for problem loans. This requires a re-alignment of the traditional lending business and an anchoring of market-oriented problem loan management within banks’ credit processes. Accordingly, this research paper is based on the hypothesis that the sustainable management of problem loans is impossible without close interaction with capital markets, requiring a reorientation of the traditional lending business to deal with the bad loan business as a core business, even though precisely the opposite is the case.
North-South trade agreements and the quality of institutions: panel data evidence
(2018) Schneider, Sophie Therese
Since 1990, not only the number of signed preferential trade agreements (PTAs) has increased, but also their depth. That means, PTAs include comprehensive rules, which go way beyond tariff reductions, such as property rights, competition or investment provisions. This paper argues that especially in North-South agreements there is a diffusion of institutional quality from developed to developing countries. First, a PTA may affect institutions because it can serve as a network for political exchange and second, the regulations and commitments stipulated in it may affect local institutions in the South. I empirically investigate if there are positive effects of being a member in a PTA on the quality of institutions in developing countries by accounting for the number and the depth of PTAs using the Design of Trade Agreements (DESTA) database, established by Dür, Baccini and Elsig (2014). I create a large panel data set covering 32 years to account for endogeneity of several controls. The results support the hypothesis that deep PTAs lead to an improved quality of institutions in the South. The results differ with respect to the type of agreement and region.
The impact of formal and informal institutions on per capita income
(2009) Dobler, Constanze
Despite the many approaches of neoclassical and endogenous growth theory, economists still face problems explaining the reasons for income differences between countries. Institutional economics and the deep determinants of growth literature try to depart from pure economic facts to examine economic development. Therefore, this article analyses the impact of institutions, geography and integration on per capita income. Concerning theoretical reasoning, emphasis is on the emergence of institutions and their effect on economic growth. However, institutions can appear in different shapes since political, legal and economic restrictions are not the only constraints on human behaviour. Norms and values also limit possible actions. Therefore, a differentiation between formal and informal institutions is made. The regression results affirm a crucial role of informal and formal institutionsconcerning economic development.
The impact on institutions, culture and religion on per capita income
(2009) Dobler, Constanze
Despite many approaches of neoclassical and endogenous growth theory, economists still face problems in explaining the reasons for income differences between countries. Institutional economics and the deep determinants of growth literature try to depart from pure economic facts to examine economic development. Therefore, this article analyzes the impact of institutions, geography, and integration on per capita income. Concerning theoretical reasoning, emphasis is on the emergence of institutions and their effect on economic growth. However, institutions can appear in different shapes since political, legal, and economic restrictions are not the only constraints on human behaviour. Norms and values also limit possible actions. Therefore, a differentiation between formal and informal institutions is made. Informal institutions are defined as beliefs, attitudes, moral, conventions, and codes of conduct. Property rights are assumed to be the basic formal institutional feature for economic success. Despite their direct impact on growth through individual utility maximization, property rights also make a statement concerning the political and legal environment of a country. Regarding the regression analysis, different religious affiliations are used as instrumental variables for formal and informal institutions. The regression results affirm a crucial role of informal and formal institutions concerning economic development. However, a high proportion of Protestant citizens encourage informal institutions that support economic growth, while a high Muslim proportion of the population is negatively correlated with growth-supporting formal institutions.