Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74465
Authors: 
Hagen, Tobias
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Fachhochschule Frankfurt am Main, Fachbereich Wirtschaft und Recht 02
Abstract: 
Using cross-country data, this paper estimates the impact of the 2007 financial shock on countries' macroeconomic developments conditional on national financial regulations before the crisis. For this purpose, the financial reform index developed by Abiad et al. (2008) is used. The econometric analyses indicate that countries with more deregulated financial markets experienced deeper recessions, stronger employment losses, and larger government budget deficits. Against the background of the ongoing global crisis and the results of other studies, the usefulness of liberalized financial markets for macroeconomic stability and economic development should be rigorously reconsidered.
Subjects: 
Financial Crisis
Financial Regulation
Great Recession
Robust Regression
Semi-Parametric Regression
JEL: 
E32
G18
C21
Document Type: 
Working Paper

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