The real effects of financial (dis)integration: A multi-country equilibrium analysis of Europe

• 成果类型: Article
• 署名作者: Chakraborty, Indraneel; Hai, Rong; Holter, Hans A.; Stepanchuk, Serhiy
• 署名单位: University of Miami; University of Miami; University of Oslo; University of Southampton
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.11.003
• 发表日期: 2017
• 页码: 28-45
• 关键词: financial integration; Global financial crisis; Europe; Financial institutions; Cross-border financing

摘要

Using data from 15 European Union economies, we quantify the real effects of supply-side frictions due to the financial disintegration of European countries since the 2008 financial crisis. We develop a multi-country general equilibrium model with heterogeneous countries and destination-specific financial frictions. Financial institutions allocate capital endogenously across countries, determining the cost of capital to firms and the wealth of nations. The cost of financial disintegration is reduced access to capital for firms which results in lower output. Financial disintegration leads to a 0.54% fall in output in Europe since the crisis. We also estimate benefits of further financial integration. (C) 2017 Elsevier B.V. All rights reserved.