【Renewed Employment Talk】Lender Concentration of External Debts and Sudden Stops
2024/11/19
研討會日期 : 2024-11-19
時間 : 14:30
主講人 : Professor Chun-Che Chi (紀鈞哲)
地點 : Conference Room B110
主持人 : Professor Tsung-Hsien Li
演講者簡介 : Professor Chun-Che Chi received his Ph.D. in Economics from Columbia University in 2020. He is an Assistant Research Fellow at the Institute of Economics, Academia Sinica. His research interests are International Macroeconomics, Monetary Economics, and Macroeconomics.
演講摘要 : This paper studies how the lender structure of external debts affects international credit through a model with various lender sizes. While atomistic lenders take prices as given, large lenders internalize the pecuniary externality whereby selling collateral reduces the collateral price. Thus, concentrating debt among large lenders maintains the collateral price during downturns, leading borrowers to demand less precautionary savings and overborrow. I document that emerging countries borrow from fewer US banks, implying that emerging countries tend to overborrow. This mechanism complements the existing view of overborrowing due to borrowers' pecuniary externalities. Optimal lender concentration raises debt and improves borrower's welfare.
