{"product_id":"banks-and-the-swiss-economy-von-dirk-sven-bjorn-drechsel","title":"Banks and the Swiss Economy","description":"\u003cp\u003eThe topic of the thesis is banks and the Swiss economy. It consists of four main parts\u003c\/p\u003e\u003cp\u003ewhich make empirical contributions to the fields of banking, productivity analysis,\u003c\/p\u003e\u003cp\u003efinancial economics, macroeconomics and economic history. The first part describes\u003c\/p\u003e\u003cp\u003ethe construction of a newly developed data set, containing balance sheets and profit\u003c\/p\u003e\u003cp\u003e\u0026amp; loss accounts of Swiss banks from 1906-2007.\u003c\/p\u003e\u003cp\u003eThe second part is about banking intermediation efficiency in Switzerland. Banking\u003c\/p\u003e\u003cp\u003eefficiency is estimated utilizing stochastic frontier analysis. The results show that\u003c\/p\u003e\u003cp\u003estate owned cantonal banks and co-operatives are more stable in terms of efficiency\u003c\/p\u003e\u003cp\u003ethan big universal banks. There is little variation in cost efficiency. Scale effects are\u003c\/p\u003e\u003cp\u003epresent, while banks with market power do not seem to obstruct smaller banks. A\u003c\/p\u003e\u003cp\u003erisk measure based on the Basel II standardized approach is included to incorporate\u003c\/p\u003e\u003cp\u003ethe cost of risk.\u003c\/p\u003e\u003cp\u003eThe third part investigates Swiss banking crises and their effect on the Swiss economy.\u003c\/p\u003e\u003cp\u003eBanking crises are determined by estimating deviations from potential return\u003c\/p\u003e\u003cp\u003eon equity with Bayesian dynamic stochastic frontier analysis. Several periods of distress\u003c\/p\u003e\u003cp\u003eare revealed. The most prominent are the Great Depression, the mortgage crisis\u003c\/p\u003e\u003cp\u003eof the 1990s, the burst of the dot-com bubble and the onset of the sub-prime crisis in\u003c\/p\u003e\u003cp\u003e2007. These are put in historical perspective. The deviations from potential output\u003c\/p\u003e\u003cp\u003eare included in a Bayesian dynamic factor model in order to generate an aggregated\u003c\/p\u003e\u003cp\u003ebanking distress measure. To estimate the macroeconomic effects of banking crises\u003c\/p\u003e\u003cp\u003ethis indicator is used in a time-varying coefficients Bayesian vector autoregression\u003c\/p\u003e\u003cp\u003ewith sign restrictions identification setup. The results show that GDP growth, the\u003c\/p\u003e\u003cp\u003ebanking sector and credit conditions responded strongly to banking shocks. The\u003c\/p\u003e\u003cp\u003edependence of the Swiss economy on its banking industry is strongest during the\u003c\/p\u003e\u003cp\u003eGreat Depression, weak in the mid 20th century and regains importance during the\u003c\/p\u003e\u003cp\u003e1990s\/2000s. Credit conditions relax earlier now than in the 1930s, while banks\u003c\/p\u003e\u003cp\u003erecover more quickly.\u003c\/p\u003e\u003cp\u003eThe fourth part studies the reduction in macroeconomic volatility in Switzerland\u003c\/p\u003e\u003cp\u003efrom 1949-2006 with respect to an abatement in economic shocks. The data for a\u003c\/p\u003e\u003cp\u003eset of variables are compared with the predictions from a dynamic stochastic general\u003c\/p\u003e\u003cp\u003eequilibrium model with financial frictions using a relative mean square approximation\u003c\/p\u003e\u003cp\u003eerror. The hypothesis, that a large part of the reduction in macroeconomic\u003c\/p\u003e\u003cp\u003evolatility in the last 25-30 years could be the consequence of ¿good luck¿ in form of\u003c\/p\u003e\u003cp\u003esmaller shocks, cannot be rejected.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783869553276\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783869553276","offer_id":39742656512093,"sku":"9783869553276","price":36.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/e2c329db-f3b1-4a75-9e00-cd3b180d23bb.jpg?v=1775364696","url":"https:\/\/shop.autorenwelt.de\/products\/banks-and-the-swiss-economy-von-dirk-sven-bjorn-drechsel","provider":"Autorenwelt Shop","version":"1.0","type":"link"}