Indrit Hoxha

University of Houston Downtown

 

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Working papers:

“Big Banks versus Small Banks: Good or Bad for Industries?”  Job Market Paper

 Abstract      Full Text

 “How Big are the Gains from International Financial Integration?”

with Sebnem Kalemli-Ozcan and Dietrich Vollrath, NBER Working Paper 14636

 Abstract      Full Text


We compare welfare in a calibrated neoclassical model of consumption under autarky to welfare under financial integration. The estimated welfare gains of integration depend intimately on the assumed speed of convergence between domestic and world rates of return. Using observed data from 1960-2000 to derive the initial fundamental characteristics for each of 92 countries, we parameterize the convergence process and calculate welfare under different assumptions regarding rates of convergence. Allowing for realistic rates, we calculate that welfare is nearly six times larger than previously found. Expanding our analysis to include the productivity gains from the inflow of FDI implies welfare gains twelve times larger than found before. Our results indicate substantial gains from international financial integration arising from persistent differences in fundamentals across nations.

 

 Work in Progress:

“Market Discipline in the Banking Sector” with Osman Nal

“Marginal Product of Capital across Countries”

“The Effect of Banking Concentration and Banking Competition on the Volatility of Manufacturing Sectors Output”