Annual Conference

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Corporate Finance

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May 2019

Can Technology Undermine Macroprudential Regulation? Evidence from Peer-to-Peer Credit in China

Alberto MANCONI, Fabio BRAGGION, Haikun ZHU
We study whether and to what extent peer-to-peer (P2P) credit helps circumvent loan-tovalue (LTV) caps, a key macroprudential tool to contain household leverage. We exploit the tightening of mortgage LTV caps in a number of cities in China in 2013 as our testing ground, in a difference-in-difference...
Keywords: peer-to-peer credit, household leverage, macroprudential regulation, loan-tovalue caps
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2019

On the Rise of FinTechs - Credit Scoring using Digital Footprints

Manju PURI, Ana GOMBOVIC, Valentin BURG, Tobias BERG
We analyze the information content of the digital footprint – information that people leave online simply by accessing or registering on a website – for predicting consumer default. We show that even simple, easily accessible variables from the digital footprint match the information content of ...
Keywords: FinTech, Lending, Unbanked Households, Privacy, Credit Bureau Scores
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2019

Financial Globalization vs. Income Inequality: The Surprising Role of Foreign Portfolio Flows in Taming the Top 1%

Hong ZHANG, Massimo MASSA, Si CHENG, Gur AMINADAV
We document a surprising finding that foreign portfolio inflows delegated through global mutual funds reduce the income of the top 1%. To rationalize this observation, we utilize a comprehensive database on the worldwide ownership of private and public firms for 2001–2013 to trace income inequalit...
Keywords: Financial Globalization, Income inequality, Delegated Portfolio Management, Mutual Funds
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2019

Financial structure and income inequality

Leonardo GAMBACORTA, Giovanni FERRI, Michael BREI
This paper empirically investigates the link between financial structure and income inequality. Using data for a panel of 97 economies over the period 1989-2012, we find that the relationship is not monotonic. Up to a point, more finance reduces income inequality. Beyond that point, inequality rises...
Keywords: inequality, finance, Banks, financial markets.
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2019

Industrial Revolutions and Global Imbalances

Kenichi UEDA, Alexander MONGE-NARANJO
Based on the historical data since 1845, we identify a stylized fact, that is, alternating waves in global imbalances generated by sequential industrial revolutions. We develop a new theory to explain this stylized fact. Our theory proposes a development-stage view for the optimal global imbalances....
Keywords: Global imbalance, external wealth, industrial revolution
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