A Model of Financial Crises in Emerging Markets

By Roberto Chang, Andrés Velasco. 2001

510 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3c56ccc7b615dbff0e2716127cab30189eb918ed

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Citations in the corpus

Uncertainty and Currency Crises: Evidence from Survey Data (2010, background): “The equilibrium exchange rate conditional on a successful attack (the so-called shadow exchange rate), can be obtained by plugging ft into equation (9); namely:”
Financial Intermediaries and Markets (2004, background): “Important contributions were also made by Chari and Jagannathan (1988), Chari (1989), Champ, Smith, and Williamson (1996), Jacklin (1986), Jacklin and Bhattacharya (1988), Postlewaite and Vives (1986), Wallace (1988; 1990) and others.”
Fear of appreciation (2007, background): “31 This is the channel popularized by the sudden stop literature (Krugman, 1999; Chang and Velasco, 2001) that led to the unipolar view of exchange rate policy.”
The US Dollar Shortage in Global Banking and the International Policy Response (2009, unknown): “In the open economy version of the traditional bank run model, depositors run the bank and convert their domestic deposits to foreign currency (Chang and Velasco (2000, 2001)) or, in the case of liability dollarization, directly withdraw dollars (Rajan and Tokatlidis (2005)).”
Leverage Cycles and the Anxious Economy (2008, background): “the von-Neumann-Morgenstern expected utility to country ks is U = ∑ α∈{s}∪ST (s) q̄ α (δ )u(xα) (14)”
Regulating Capital Flows to Emerging Markets: An Externality View (2018, background): “The resulting fluctuations in the availability of external finance from international investors has been viewed as a key factor of financial instability in emerging markets by the literature on third generation crises (see e.g. Krugman, 1999; Chang and Velasco, 2001).”
Emerging Markets Finance (2003, background): “Inspired by the Asian crisis, these models may stress moral hazard driven excessive investment (Corsetti et al., 1999) or bank runs in a fragile banking system (Chang and Velasco, 2001) as the source of an eventual exchange rate collapse.”
Bank competition, crisis and risk taking: Evidence from emerging markets in Asia (2013, unknown): “…bank risk taking, the decline in the franchise value of banks during liberalization periods as a source of banking crisis has also been reported by Stiglitz and Weiss (1981), Taylor (1983), Cho (1986), Fry (1988), Dornbusch and Reynoso (1989), Jensen (1989) and Chang and Velasco (2001).”
Strategic Complementarities and the Twin Crises (2005, unknown): “The list includes: Allen and Gale (2000), Burnside et al. (2001a,b), Chang and Velasco (2000, 2001), Goldfajn and Valdes (1997), Miller (1996, 1998a) and Velasco (1987).”
China’s Financial System: Opportunities and Challenges (2011, unknown): “China’s interbank market grew very quickly since its inception in 1981; in 31 Chang and Velasco (2001) develop a model of twin crises based on the Diamond and Dybvig (1983) model of bank runs.”
The Asian flu and Russian virus: the international transmission of crises in firm-level data (2004, methodology): “Also see Chang and Velasco (2001). 22 For each crisis, I use the sample median as the division between more and less dependent firms.”