Aarón Tornell
Biographic Data
| ID | 5868865 |
|---|---|
| NAME | Aarón Tornell |
| GIVEN NAMES | Aarón |
| FAMILY NAME | Tornell |
| SIGNATURE | TORNELL A |
| AFFILIATIONS | Harvard University |
| VERIFIED | No |
| TOTAL WORKS | 9 |
| TOTAL CITATIONS | 29 |
| AUTHOR COUNT | 9 |
| EDITOR COUNT | 0 |
| FIRST PUBLICATION YEAR | 1990 |
| LATEST PUBLICATION YEAR | 2016 |
| H-INDEX | 2 |
Financial Liberalization, Debt Mismatch, Allocative Efficiency, and Growth
Financial liberalization increases growth, but leads to more crises and costly bailouts. We present a two-sector model in which liberalization, by allowing debt-denomination mismatch, relaxes borrowing limits in the financially constrained sector, but endogenously generates crisis risk. When regulation restricts external financing to standard debt, liberalization preserves financial discipline and may increase allocative efficiency, growth, and c…
Currency mismatch, systemic risk and growth in emerging Europe: Currency Mismatch
Currency mismatch is a vehicle that exposes the economy to systemic risk, but it is also an engine of growth. We analyse this dual role at the macro and the micro levels. At the aggregate level, we construct a new measure of currency mismatch in the banking sector that controls for bank lending to unhedged borrowers – that is, those with no foreign currency income. Using our measure, we find that across emerging European economies, increases in c…
Systemic Crises and Growth
Countries that have experienced occasional financial crises have, on average, grown faster than countries with stable financial conditions. Because financial crises are realizations of downside risk, we measure their incidence by the skewness of credit growth. Unlike variance, negative skewness isolates the impact of the large, infrequent, and abrupt credit busts associated with crises. We find a robust negative link between skewness and GDP grow…
Recovery from a currency crisis: Some stylized facts
The Voracity Effect
We analyze an economy that lacks a strong legal-political institutional infrastructure and is populated by multiple powerful groups. Powerful groups dynamically interact via a fiscal process that effectively allows open access to the aggregate capital stock. In equilibrium, this leads to slow economic growth and a “voracity effect,” by which a shock, such as a terms of trade windfall, perversely generates a more-than-proportionate increase in fis…
Why Aren't Savings Rates in Latin America Procyclical
Power, growth, and the voracity effect
The Tragedy of the Commons and Economic Growth: Why Does Capital Flow from Poor to Rich Countries
The authors analyze a differential game in which all interest groups have access to a common capital stock. They show that the introduction of a technology that has inferior productivity but enjoys private access may ameliorate the tragedy of the commons. The authors use this model to analyze capital flight: in many poor countries, property rights are not well defined; since "safe" bank accounts in rich countries (the inferior technology) are ava…
Real vs. financial investment can Tobin taxes eliminate the irreversibility distortion
The Tragedy of the Commons and Economic Growth: Why Does Capital Flow from Poor to Rich Countries
The authors analyze a differential game in which all interest groups have access to a common capital stock. They show that the introduction of a technology that has inferior productivity but enjoys private access may ameliorate the tragedy of the commons. The authors use this model to analyze capital flight: in many poor countries, property rights are not well defined; since "safe" bank accounts in rich countries (the inferior technology) are ava…
Real vs. financial investment can Tobin taxes eliminate the irreversibility distortion
Recovery from a currency crisis: Some stylized facts
Real vs. financial investment can Tobin taxes eliminate the irreversibility distortion
The Tragedy of the Commons and Economic Growth: Why Does Capital Flow from Poor to Rich Countries
The authors analyze a differential game in which all interest groups have access to a common capital stock. They show that the introduction of a technology that has inferior productivity but enjoys private access may ameliorate the tragedy of the commons. The authors use this model to analyze capital flight: in many poor countries, property rights are not well defined; since "safe" bank accounts in rich countries (the inferior technology) are ava…
Power, growth, and the voracity effect
Why Aren't Savings Rates in Latin America Procyclical
The Voracity Effect
We analyze an economy that lacks a strong legal-political institutional infrastructure and is populated by multiple powerful groups. Powerful groups dynamically interact via a fiscal process that effectively allows open access to the aggregate capital stock. In equilibrium, this leads to slow economic growth and a “voracity effect,” by which a shock, such as a terms of trade windfall, perversely generates a more-than-proportionate increase in fis…
Recovery from a currency crisis: Some stylized facts
Systemic Crises and Growth
Countries that have experienced occasional financial crises have, on average, grown faster than countries with stable financial conditions. Because financial crises are realizations of downside risk, we measure their incidence by the skewness of credit growth. Unlike variance, negative skewness isolates the impact of the large, infrequent, and abrupt credit busts associated with crises. We find a robust negative link between skewness and GDP grow…
Currency mismatch, systemic risk and growth in emerging Europe: Currency Mismatch
Currency mismatch is a vehicle that exposes the economy to systemic risk, but it is also an engine of growth. We analyse this dual role at the macro and the micro levels. At the aggregate level, we construct a new measure of currency mismatch in the banking sector that controls for bank lending to unhedged borrowers – that is, those with no foreign currency income. Using our measure, we find that across emerging European economies, increases in c…
Financial Liberalization, Debt Mismatch, Allocative Efficiency, and Growth
Financial liberalization increases growth, but leads to more crises and costly bailouts. We present a two-sector model in which liberalization, by allowing debt-denomination mismatch, relaxes borrowing limits in the financially constrained sector, but endogenously generates crisis risk. When regulation restricts external financing to standard debt, liberalization preserves financial discipline and may increase allocative efficiency, growth, and c…
Economics (9 works) · Monetary economics (9 works) · Macroeconomics (7 works) · Monetary Policy and Economic Impact (5 works) · Economic theories and models (4 works) · Financial crisis (4 works) · Fiscal Policy and Economic Growth (4 works) · Global Financial Crisis and Policies (4 works) · Banking stability, regulation, efficiency (3 works) · Finance (3 works)