Vertaisarvioidut artikkelit – Peer-Reviewed Articles (2018- )


The collection contains information about peer-reviewed articles published in academic journals by Bank of Finland researchers and research fellows. Most of the articles are available on the journal’s website and the repository contains only the metadata and link to the article.

Recent Submissions

  • Korhonen, Iikka (2019)
    Comparative Economic Studies 3
    This introductory essay explores some of the key issues in China's economic reforms during the past 40 years. Reforms and liberalization have progressed unevenly, but generally the trend has been towards more market-oriented economic system. However, the primacy of Chinese Communist Party has never been seriously challenged. China's membership in the World Trade Organization has fostered much deeper integration with the rest of the global economy, and therefore effects of China's reforms have spread to other countries as well. In the recent years China's reform drive seems have faltered. Also, demographic trends have turned, and working-age population is declining. These developments together may mean clearly lower growth going forward.
  • Francis, Bill; Hasan, Iftekhar; Liu, Liuling; Wang, Haizhi (2019)
    Journal of Business Ethics 4
    First Online: 27 October 2017
    Adopting an instrumental approach for stakeholder management, we focus on two primary stakeholder groups (employees and creditors) to investigate the relationship between employee treatment and loan contracts with banks. We find strong evidence that fair employee treatment reduces loan price and limits the use of financial covenants. In addition, we document that relationship bank lenders price both the levels and changes in the quality of employee treatment, whereas first-time bank lenders only care about the levels of fair employee treatment. Taking a contingency perspective, we find that industry competition and firm asset intangibility moderate the relationship between good human resource management and bank loan costs. The cost reduction effect of fair employee treatment is stronger for firms operating in a more competitive industry and having higher levels of intangible assets.
  • Ambrocio, Gene; Hasan, Iftekhar (2019)
    Journal of Banking & Finance September
    Available also as Bank of Finland Research Discussion Papers 17/2018
    We assess the extent to which discretion, unexplained variations in the terms of a loan contract, has varied across time and lending institutions and show that part of this discretion is due to private information that lenders have on their borrowers. We find that discretion is lower for secured loans and loans granted by a larger group of lenders, and is larger when the lenders are larger and more profitable. Over time, discretion is also lower around recessions although the private information content is higher. The results suggest that bank discretionary and private information acquisition behavior may be important features of the credit cycle.
  • Silvo, Aino (2019)
    Journal of Money, Credit and Banking 4 ; June
    Available also as Bank of Finland Research Discussion Papers 1/2016
    I analyze a New Keynesian dynamic stochastic general equilibrium (DSGE) model where the financing of productive investment is affected by a moral hazard problem. I solve for jointly Ramsey‐optimal monetary and macroprudential policies. I find that when a financial friction is present in addition to the standard nominal friction, the optimal policy can replicate the first‐best allocation if the social planner can conduct both monetary and macroprudential policy. Using monetary policy alone is not enough: a policy trade‐off between stabilizing inflation and output gap emerges. When policy follows simple rules, the source of fluctuations is relevant for the choice of the appropriate policy mix.
  • Granziera, Eleonora; Sekhposyan, Tatevik (2019)
    International Journal of Forecasting 4 ; October-December
    Online First May 2019.
    The relative performances of forecasting models change over time. This empirical observation raises two questions. First, is the relative performance itself predictable? Second, if so, can it be exploited in order to improve the forecast accuracy? We address these questions by evaluating the predictive abilities of a wide range of economic variables for two key US macroeconomic aggregates, namely industrial production and inflation, relative to simple benchmarks. We find that business cycle indicators, financial conditions, uncertainty and measures of past relative performances are generally useful for explaining the models’ relative forecasting performances. In addition, we conduct a pseudo-real-time forecasting exercise, where we use the information about the conditional performance for model selection and model averaging. The newly proposed strategies deliver sizable improvements over competitive benchmark models and commonly-used combination schemes. The gains are larger when model selection and averaging are based on both financial conditions and past performances measured at the forecast origin date.