Monetary economy
Mahshid Shahchera
Abstract
Since moral hazard in behaviors of banking system may jeopardize efficiency of debt mechanisms to fund rising, it is important to examine the empirical and theoretical evidences of moral hazard in the Iranian banking system. Risky behavior of banking system is caused by the asymmetric information problems ...
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Since moral hazard in behaviors of banking system may jeopardize efficiency of debt mechanisms to fund rising, it is important to examine the empirical and theoretical evidences of moral hazard in the Iranian banking system. Risky behavior of banking system is caused by the asymmetric information problems between creditors and central bank. This paper considers the simultaneous effects between changing risk and leverage that justifies existence of moral hazard in the Iranian banking system. To do so, we use dynamic panel data model for the period 2006-2019 in Iranian banking system. According to the obtained results, there is a significant positive relationship between the level of risk and leverage. This relationship implies the existence of moral hazard that can be caused unsuccessfully performance of central bank in supervision and supporting in the banking system.
Javad Harati; Gholamreza Zamanian; Hojat Tagizadeh
Abstract
Energy, one of the most essential and important factors of production and the final product, has an important role in the growth and economic development. This research examines the dynamic relationship between financial development and energy consumption based on GMM estimation in 53 developing countries ...
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Energy, one of the most essential and important factors of production and the final product, has an important role in the growth and economic development. This research examines the dynamic relationship between financial development and energy consumption based on GMM estimation in 53 developing countries and 47 advanced countries over the period 2000-2014. The results showed the positive impact of direct foreign investment and national income on energy consumption in the two groups of countries. Energy prices had a completely opposite effect on energy consumption in developing and advanced countries. The results also indicated that in both developed and advanced countries the money market plays a more effective role in reducing energy consumption in comparison with the capital markets. While the effect of financial development through the money market on energy consumption is U- inverse shape in both groups of countries, this effect through the capital market is U-shape and U-shape inverse for developing countries and advanced countries, respectively. These results might have important policy implications for energy management policymakers and authorities to achieve sustainable development in different countries.
