We revisit the idea that textbook publishers revise frequently in order to "kill off" the market for used books. While a popular idea, conflicting durable good models suggest alternatives to planned obsolescence. To address this particular case, we develop a model of the textbook market that generates unique empirical predictions for each of the three most relevant theories to the textbook industry. We then compare these predictions to empirical findings, such as the effect of the stock of used books on prices and revision, as well as the common practices of durability reductions and leasing; to determine which one best describes the market. The theories we model are; optimal durability, quality differences and time inconsistency. Of these models, quality differences, which generates planned obsolescence, best fits the stylized facts.
{"title":"Optimal Durability vs. Planned Obsolescence in the Textbook Market","authors":"J. Peterson","doi":"10.2139/ssrn.2630503","DOIUrl":"https://doi.org/10.2139/ssrn.2630503","url":null,"abstract":"We revisit the idea that textbook publishers revise frequently in order to \"kill off\" the market for used books. While a popular idea, conflicting durable good models suggest alternatives to planned obsolescence. To address this particular case, we develop a model of the textbook market that generates unique empirical predictions for each of the three most relevant theories to the textbook industry. We then compare these predictions to empirical findings, such as the effect of the stock of used books on prices and revision, as well as the common practices of durability reductions and leasing; to determine which one best describes the market. The theories we model are; optimal durability, quality differences and time inconsistency. Of these models, quality differences, which generates planned obsolescence, best fits the stylized facts.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"2 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87162617","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper explores the effect of bargaining in vertical relationships on the profitability of suppliers' R&D investments. Studies on the relationship between R&D and firm profitability mostly concentrate on the impact of horizontal market structure and neglect vertical interac-tions. Building on theoretical and empirical evidence about the effects of bargaining in vertical relationships, the crucial determinants of a supplier's bargaining power are identified as the market position and the degree of concentration in the buyer portfolio. With respect to R&D profitability the latter is expected to diminish returns from R&D, while the former is expected to increase it. The hypotheses are tested using a sample of 472 German manufactur-ing firms. The empirical findings support all hypotheses and highlight the importance of tak-ing a supplier's bargaining power into account when estimating R&D profitability. The esti-mated effects are considerable: for an average R&D performing supplier an increase of R&D intensity in 2010 by a percentage point would reduce profits by about 14 % in 2012 given the supplier depends completely on the largest three buyers and does hold an average market share. Contrastingly, a monopolist R&D performing supplier with average buyer concentra-tion would experience a profit increase by 10 % in 2012.
{"title":"Bargaining in Vertical Relationships and Suppliers’ R&D Profitability","authors":"Christian Koehler","doi":"10.2139/ssrn.2523374","DOIUrl":"https://doi.org/10.2139/ssrn.2523374","url":null,"abstract":"This paper explores the effect of bargaining in vertical relationships on the profitability of suppliers' R&D investments. Studies on the relationship between R&D and firm profitability mostly concentrate on the impact of horizontal market structure and neglect vertical interac-tions. Building on theoretical and empirical evidence about the effects of bargaining in vertical relationships, the crucial determinants of a supplier's bargaining power are identified as the market position and the degree of concentration in the buyer portfolio. With respect to R&D profitability the latter is expected to diminish returns from R&D, while the former is expected to increase it. The hypotheses are tested using a sample of 472 German manufactur-ing firms. The empirical findings support all hypotheses and highlight the importance of tak-ing a supplier's bargaining power into account when estimating R&D profitability. The esti-mated effects are considerable: for an average R&D performing supplier an increase of R&D intensity in 2010 by a percentage point would reduce profits by about 14 % in 2012 given the supplier depends completely on the largest three buyers and does hold an average market share. Contrastingly, a monopolist R&D performing supplier with average buyer concentra-tion would experience a profit increase by 10 % in 2012.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"64 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73390202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Despite a substantial literature linking industry concentration, proprietary costs and disclosure, existing evidence is mixed. We discuss three challenges to the literature: lack of strong theoretical predictions, difficulty in measuring relevant aspects of industry concentration and difficulty in identifying disclosures that are likely to carry significant proprietary costs. We link each of the issues to the findings in Ali et al. (2014) and identify potential opportunities for future research.
{"title":"Linking Industry Concentration to Proprietary Costs and Disclosure: Challenges and Opportunities","authors":"Mark Lang, Edward Sul","doi":"10.2139/ssrn.2481706","DOIUrl":"https://doi.org/10.2139/ssrn.2481706","url":null,"abstract":"Despite a substantial literature linking industry concentration, proprietary costs and disclosure, existing evidence is mixed. We discuss three challenges to the literature: lack of strong theoretical predictions, difficulty in measuring relevant aspects of industry concentration and difficulty in identifying disclosures that are likely to carry significant proprietary costs. We link each of the issues to the findings in Ali et al. (2014) and identify potential opportunities for future research.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-08-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76042450","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Firm turnover and growth recorded in administrative data sets differ from underlying firm dynamics. By tracing the employment history of the workforce of new and disappearing administrative firm identifiers, we can accurately identify de novo entrants and true economic exits, even when firms change identifier, merge, or split-up. For a well-defined group of new firms entering the Belgian economy between 2004 and 2011, we find highly regular post-entry employment dynamics in spite of the volatile macroeconomic environment. Exit rates decrease with age and size. Surviving entrants record high employment growth that is monotonically decreasing with age in every size class. Most remarkably, we find that Gibrat’s law is violated for very young firms. Conditional on age, the relationship between employment growth and current size is strongly and robustly positive. This pattern is obscured, or even reversed, when administrative entrants and exits are taken at face value. De novo entrants’ contribution to job creation is relatively small and not very persistent, in particular for (the large majority of) new firms that enter with fewer than five employees.
{"title":"Job Creation, Firm Creation, and De Novo Entry","authors":"Karen Geurts, Johannes Van Biesebroeck","doi":"10.2139/ssrn.2509285","DOIUrl":"https://doi.org/10.2139/ssrn.2509285","url":null,"abstract":"Firm turnover and growth recorded in administrative data sets differ from underlying firm dynamics. By tracing the employment history of the workforce of new and disappearing administrative firm identifiers, we can accurately identify de novo entrants and true economic exits, even when firms change identifier, merge, or split-up. For a well-defined group of new firms entering the Belgian economy between 2004 and 2011, we find highly regular post-entry employment dynamics in spite of the volatile macroeconomic environment. Exit rates decrease with age and size. Surviving entrants record high employment growth that is monotonically decreasing with age in every size class. Most remarkably, we find that Gibrat’s law is violated for very young firms. Conditional on age, the relationship between employment growth and current size is strongly and robustly positive. This pattern is obscured, or even reversed, when administrative entrants and exits are taken at face value. De novo entrants’ contribution to job creation is relatively small and not very persistent, in particular for (the large majority of) new firms that enter with fewer than five employees.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"31 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75475574","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper studies the effect of termination rates on the observed substitution between fixed and mobile calls and access, in a model where consumers can subscribe to one or both types of offers. Simulations show that each (fixed or mobile) termination rate has a positive effect on the take-up of the corresponding service, via the waterbed effect, and lowers subscriptions to the other service, via a cost effect. The prevailing asymmetric regulation, with very low fixed and higher mobile termination rates, tends to have implemented the optimal fee structure. However, the interests of the mobile operators and of the different customer groups did not coincide, and this fee structure may have reduced overall market participation. HighlightsWe study the effect of termination rates on fixed-mobile substitution.Consumers substitute between fixed and mobile calls and access.A higher termination rate increase uptake of the respective service.In early market phase, high mobile and low fixed rates seem to have been optimal.But this fee structure leads to lower overall participation.
{"title":"Fixed-Mobile Substitution and Termination Rates","authors":"Steffen Hoernig, M. Bourreau, C. Cambini","doi":"10.2139/ssrn.2470900","DOIUrl":"https://doi.org/10.2139/ssrn.2470900","url":null,"abstract":"This paper studies the effect of termination rates on the observed substitution between fixed and mobile calls and access, in a model where consumers can subscribe to one or both types of offers. Simulations show that each (fixed or mobile) termination rate has a positive effect on the take-up of the corresponding service, via the waterbed effect, and lowers subscriptions to the other service, via a cost effect. The prevailing asymmetric regulation, with very low fixed and higher mobile termination rates, tends to have implemented the optimal fee structure. However, the interests of the mobile operators and of the different customer groups did not coincide, and this fee structure may have reduced overall market participation. HighlightsWe study the effect of termination rates on fixed-mobile substitution.Consumers substitute between fixed and mobile calls and access.A higher termination rate increase uptake of the respective service.In early market phase, high mobile and low fixed rates seem to have been optimal.But this fee structure leads to lower overall participation.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86294969","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine the association between financial integration and capital market transparency of emerging-market firms. We use four intra-year price timeliness measures derived from the Beekes and Brown (2006, 2007) methods as indicators of the firm’s transparency. The sample comprises 57,465 firm-year observations on listed companies in 24 emerging economies over the period 1995-2010. As expected, we find that greater financial integration is associated with greater transparency, and that the effect is more pronounced when the news about the firm is bad. Using structural equation modelling (SEM), we find evidence of a mechanism through which financial integration enhances the information environment: improved corporate governance.
{"title":"Financial Integration and the Transparency of Firms in Emerging Capital Markets","authors":"Qiyu Zhang, Wendy Beekes, P. Brown","doi":"10.2139/ssrn.2168243","DOIUrl":"https://doi.org/10.2139/ssrn.2168243","url":null,"abstract":"We examine the association between financial integration and capital market transparency of emerging-market firms. We use four intra-year price timeliness measures derived from the Beekes and Brown (2006, 2007) methods as indicators of the firm’s transparency. The sample comprises 57,465 firm-year observations on listed companies in 24 emerging economies over the period 1995-2010. As expected, we find that greater financial integration is associated with greater transparency, and that the effect is more pronounced when the news about the firm is bad. Using structural equation modelling (SEM), we find evidence of a mechanism through which financial integration enhances the information environment: improved corporate governance.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"43 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89196950","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine firm lifecycles of 3,081 IPOs from 1996-2012. We find that small IPOs have a different lifecycle than other, larger companies. Within five years of an IPO, only 55% of small IPOs remain listed on a public exchange, compared to 61.3% and 67.1% for middle and large capitalized companies, respectively. Small IPOs largely either voluntarily or involuntarily delist while medium and large-sized companies largely exit the markets through takeover transactions. Those small companies that remain listed largely fail to grow, remaining in the small capitalized category. We use our findings to examine various theories explaining the decline of the small IPO. We find only minor evidence that regulatory changes caused the decline of the small IPO. The decline appears instead to be more attributable to the historical unsuitability of small firms for the public markets. Absent economic or market reforms which change small firm quality, further regulatory reforms to enhance the small IPO market are thus likely to be either ineffective or bring firms into the public markets which lack the horsepower to remain publicly listed.
{"title":"The Disappearing Small IPO and the Lifecycle of the Small Firm","authors":"Steven Davidoff Solomon, Paul Rose","doi":"10.2139/ssrn.2400488","DOIUrl":"https://doi.org/10.2139/ssrn.2400488","url":null,"abstract":"We examine firm lifecycles of 3,081 IPOs from 1996-2012. We find that small IPOs have a different lifecycle than other, larger companies. Within five years of an IPO, only 55% of small IPOs remain listed on a public exchange, compared to 61.3% and 67.1% for middle and large capitalized companies, respectively. Small IPOs largely either voluntarily or involuntarily delist while medium and large-sized companies largely exit the markets through takeover transactions. Those small companies that remain listed largely fail to grow, remaining in the small capitalized category. We use our findings to examine various theories explaining the decline of the small IPO. We find only minor evidence that regulatory changes caused the decline of the small IPO. The decline appears instead to be more attributable to the historical unsuitability of small firms for the public markets. Absent economic or market reforms which change small firm quality, further regulatory reforms to enhance the small IPO market are thus likely to be either ineffective or bring firms into the public markets which lack the horsepower to remain publicly listed.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78921415","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper explores the impact of being part of a supply chain on the internationalization of firms. We show that even small and less productive firms, if involved in production chains, can take advantage of reduced costs of entry and economies of scale that enhance their probability to become exporters. The empirical analysis is carried out on an original database, obtained by merging and matching balance sheet data with data from a survey on over 25,000 Italian firms, largely SMEs, which include direct information on the involvement in supply chains. We find a positive and significant impact of being part of a supply chain on the probability to export and on the intensive margin of trade. The number of foreign markets served (the extensive margin), on the other hand, does not seem to be affected. We also investigate whether being in different positions along the chain, i.e. upstream or downstream, matters and we find that downstream producers tend to benefit more. Our results are robust to different specifications, estimation methods, and to the inclusion of the control variables typically used in heterogeneous firm models.
{"title":"Supply Chains and the Internalization of SMEs: Evidence from Italy","authors":"G. Giovannetti, E. Marvasi, M. Sanfilippo","doi":"10.2139/ssrn.2441121","DOIUrl":"https://doi.org/10.2139/ssrn.2441121","url":null,"abstract":"This paper explores the impact of being part of a supply chain on the internationalization of firms. We show that even small and less productive firms, if involved in production chains, can take advantage of reduced costs of entry and economies of scale that enhance their probability to become exporters. The empirical analysis is carried out on an original database, obtained by merging and matching balance sheet data with data from a survey on over 25,000 Italian firms, largely SMEs, which include direct information on the involvement in supply chains. We find a positive and significant impact of being part of a supply chain on the probability to export and on the intensive margin of trade. The number of foreign markets served (the extensive margin), on the other hand, does not seem to be affected. We also investigate whether being in different positions along the chain, i.e. upstream or downstream, matters and we find that downstream producers tend to benefit more. Our results are robust to different specifications, estimation methods, and to the inclusion of the control variables typically used in heterogeneous firm models.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"11 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90615582","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study the optimal customer-acquisition and customer-retention decisions of the representative firm in a dynamic competitive industry. We find that the optimal per-customer retention effort depends positively on customer profitability and is constant over time. The endogenous effective retention rate is higher for more profitable customers, so their proportion in the customer base increases over time. Larger market size and lower competition strength result in higher acquisition and retention expenditures at the firm level, but they do not change per-capita values. The retention effort that maximize a firm's value also maximize individual Customer Lifetime Value, whereas the equilibrium acquisition expenditure maximize the expected average customer value in the corresponding cohort.
{"title":"Customer Profitability and Optimal CLV-Based Strategies in a Model of Dynamic Competition","authors":"Gerasimos Lianos, Igor Sloev","doi":"10.2139/ssrn.2520328","DOIUrl":"https://doi.org/10.2139/ssrn.2520328","url":null,"abstract":"We study the optimal customer-acquisition and customer-retention decisions of the representative firm in a dynamic competitive industry. We find that the optimal per-customer retention effort depends positively on customer profitability and is constant over time. The endogenous effective retention rate is higher for more profitable customers, so their proportion in the customer base increases over time. Larger market size and lower competition strength result in higher acquisition and retention expenditures at the firm level, but they do not change per-capita values. The retention effort that maximize a firm's value also maximize individual Customer Lifetime Value, whereas the equilibrium acquisition expenditure maximize the expected average customer value in the corresponding cohort.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"199 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74822422","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Russian Abstract: Целью данной работы является анализ роли Банка России в формировании денежного предложения с учетом внутренних и внешних факторов экономического развития. Во-первых, мы изучили базовые теоретические и эмпирические модели предложения денег и проанализировали основные различия между теориями экзогенного и эндогенного денежного предложения; мы также выявили механизмы влияния спроса коммерческих банков на ликвидность центрального банка на предложение денег. Во-вторых, были сформулированы и проанализированы основные факторы денежного предложения в России до и после мирового финансового кризиса. При этом первые признаки влияния спроса коммерческих банков на кредиты на денежное предложение появились лишь после кризиса. В работе показано, что формирование денежного предложения в России хорошо описывается моделью мультипликатора. Наиболее важными факторами денежного предложения в РФ были чистые иностранные активы, денежная база, процентные ставки и уровень экономической активности. В-третьих, в работе было рассмотрено воздействие шока спроса на ликвидность на функционирования рынка межбанковского кредитования. English Abstract: The goal of this work is to conduct a comprehensive analysis of the role of Bank of Russia in the formation of money supply, taking into account internal and external factors that determine the development of the economy. First, we examined base theoretical and empirical models of money supply and analyzed main differences of the exogenous and endogenous theories of money, we also identified the mechanisms of influence of commercial banks' demand for central bank liquidity on the money supply. Secondly, the nature and main factors of money supply in Russia before and after the world financial crisis were defined and analyzed. Money supply was found to be exogenous before the crisis. However after the crisis there were identified the first indications of the influence of the commercial banks’ credit demand on money stock. The money supply in Russia was also found to be consistent with multiplier model. The most important factors of money stock were net foreign assets, monetary base, interest rates, level of economic activity. Thirdly, the influence of liquidity demand shock on interbank market operation was examined.
{"title":"Анализ Факторов Спроса Банков На Ликвидность Цб Рф и Роль Инструментов Денежно-Кредитной Политики Банка России (Analysis of Bank Demand Factors for Liquidity of Central Bank of Russia and Meaning of Its Monetary Policy)","authors":"Pavel Trunin, N. Vashchelyuk, A. Bozhechkova","doi":"10.2139/SSRN.2430184","DOIUrl":"https://doi.org/10.2139/SSRN.2430184","url":null,"abstract":"Russian Abstract: Целью данной работы является анализ роли Банка России в формировании денежного предложения с учетом внутренних и внешних факторов экономического развития. Во-первых, мы изучили базовые теоретические и эмпирические модели предложения денег и проанализировали основные различия между теориями экзогенного и эндогенного денежного предложения; мы также выявили механизмы влияния спроса коммерческих банков на ликвидность центрального банка на предложение денег. Во-вторых, были сформулированы и проанализированы основные факторы денежного предложения в России до и после мирового финансового кризиса. При этом первые признаки влияния спроса коммерческих банков на кредиты на денежное предложение появились лишь после кризиса. В работе показано, что формирование денежного предложения в России хорошо описывается моделью мультипликатора. Наиболее важными факторами денежного предложения в РФ были чистые иностранные активы, денежная база, процентные ставки и уровень экономической активности. В-третьих, в работе было рассмотрено воздействие шока спроса на ликвидность на функционирования рынка межбанковского кредитования. English Abstract: The goal of this work is to conduct a comprehensive analysis of the role of Bank of Russia in the formation of money supply, taking into account internal and external factors that determine the development of the economy. First, we examined base theoretical and empirical models of money supply and analyzed main differences of the exogenous and endogenous theories of money, we also identified the mechanisms of influence of commercial banks' demand for central bank liquidity on the money supply. Secondly, the nature and main factors of money supply in Russia before and after the world financial crisis were defined and analyzed. Money supply was found to be exogenous before the crisis. However after the crisis there were identified the first indications of the influence of the commercial banks’ credit demand on money stock. The money supply in Russia was also found to be consistent with multiplier model. The most important factors of money stock were net foreign assets, monetary base, interest rates, level of economic activity. Thirdly, the influence of liquidity demand shock on interbank market operation was examined.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":"93 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2014-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91053660","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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