Financing constraints, irreversibility and investment dynamics

We develop a model of an industry with many heterogeneous firms that face both financingconstraints and irreversibility constraints. The financing constraint implies that firmscannot borrow unless the debt is secured by collateral; the irreversibility constraint thatthey can only sell their fixed capital by selling their business. We use this model to examinethe cyclical behavior of aggregate fixed investment, variable capital investment, and outputin the presence of persistent idiosyncratic and aggregate shocks. Our model yields threemain results. First, the effect of the irreversibility constraint on fixed capital investmentis reinforced by the financing constraint. Second, the effect of the financing constraint onvariable capital investment is reinforced by the irreversibility constraint. Finally, the interactionbetween the two constraints is key for explaining why input inventories and materialdeliveries of US manufacturing firms are so volatile and procyclical, and also why they arehighly asymmetrical over the business cycle.

Adverse selection, credit and efficiency: The case of the missing market

We analyze a standard environment of adverse selection in credit markets. In our environment,entrepreneurs who are privately informed about the quality of their projects needto borrow in order to invest. Conventional wisdom says that, in this class of economies, thecompetitive equilibrium is typically inefficient.We show that this conventional wisdom rests on one implicit assumption: entrepreneurscan only access monitored lending. If a new set of markets is added to provide entrepreneurswith additional funds, efficiency can be attained in equilibrium. An important characteristic ofthese additional markets is that lending in them must be unmonitored, in the sense that it doesnot condition total borrowing or investment by entrepreneurs. This makes it possible to attainefficiency by pooling all entrepreneurs in the new markets while separating them in the marketsfor monitored loans.

Private borrowing during the financial revolution: Hoare’s Bank and its customers, 1702-1724

The financial revolution improved the British government s ability to borrow, andthus its ability to wage war. North andWeingast argued that it also permitted privateparties to borrow more cheaply and widely.We test these inferences with evidencefrom a London bank.We confirm that private bank credit was cheap in the earlyeighteenth century, but we argue that it was not available widely. Importantly, thegovernment reduced the usury rate in 1714, sharply reducing the circle of privateclients that could be served profitably.

Lending to the borrower from hell: Debt and default in the age of Philip II, 1556-1598

What sustained borrowing without third-party enforcement, in the early days of sovereignlending? Philip II of Spain accumulated towering debts while stopping all payments tohis lenders four times. How could the sovereign borrow much and default often? Weargue that bankers ability to cut off Philip II s access to smoothing services was key. Aform of syndicated lending created cohesion among his Genoese bankers. As a result,lending moratoria were sustained through a cheat the cheater mechanism (Kletzer andWright, 2000). Our paper thus lends empirical support to a recent literature emphasizingthe role of bankers incentives for continued sovereign borrowing.

Morfogénesis del valle de Sant Miquel de Campmajor

A series of circumstances which converge in a little valley in the province of Girona, result in a peculiar type of morphogenetic evolution and a quite singular mechanical instability of its buttons. Very recent tectonic movements as well as dissolution phenomena of its subsoil due to pressurized underground water have played an important role in the morphogenesis. Such conditions have resulted in a fast morphological evolution which a progressive lowering of the valley floor as well as peculiar morphological features which favour the existence of numerous pits caused by sudden collapses distributed in altitude and time

Previsió d'impactes en el medi físic, derivats de l'explotació de les formacions geològiques d'interés per a la producció d'àrids, a la zona del curs mitjà del Riu Fluvià (La Garrotxa)

Potential mining of the pliocene and quaternary geological formations for the aggregate production along the medium course of the Fluvil river is likely to be carried out through gravel pits. The most significant environmental impacts are envisaged to occur during site preparation and extraction of aggregate. Several environmental impacts types have been considered: variation of water table, reduction of soil and vegetation, development of unbalanced land-forms and deterioration of landscape

Is bank debt special for the transmission of monetary policy? Evidence from the stock market

We combine existing balance sheet and stock market data with two new datasets to studywhether, how much, and why bank lending to firms matters for the transmission of monetarypolicy. The first new dataset enables us to quantify the bank dependence of firms precisely,as the ratio of bank debt to total assets. We show that a two standard deviation increase inthe bank dependence of a firm makes its stock price about 25% more responsive to monetarypolicy shocks. We explore the channels through which this effect occurs, and find that thestock prices of bank-dependent firms that borrow from financially weaker banks display astronger sensitivity to monetary policy shocks. This finding is consistent with the banklending channel, a theory according to which the strength of bank balance sheets mattersfor monetary policy transmission. We construct a new database of hedging activities andshow that the stock prices of bank-dependent firms that hedge against interest rate riskdisplay a lower sensitivity to monetary policy shocks. This finding is consistent with aninterest rate pass-through channel that operates via the direct transmission of policy ratesto lending rates associated with the widespread use of floating-rates in bank loans and creditline agreements.

Els assentaments de les edats del bronze, ibèrica i romana d"Els Llirians del Mas i Les Torres (Salàs de Pallars, Pallars Jussà)

[cat] En els anys 2003 i 2004 una intervenció arqueològica preventiva en el terme de Salàs de Pallars va permetre documentar seixanta estructures excavades al subsòl. La majoria de les estructures foren identificades com a sitges, però també es documentaren cubetes i fosses de diversa funció, algunes utilitzades com a sepultures. L"estudi dels materials recuperats, complementats per datacions radiocarbòniques, indiquen dos períodes cronològics: el bronze inicial i l"etapa ibèrica plena, als quals s"ha d"afegir una única estructura que pertany a començaments de l"Imperi romà. Les dades obtingudes informen sobre les pràctiques de les comunitats agrícoles assentades en el sector meridional de la comarca del Pallars Jussà en tres moments històrics diferents. [eng]In 2003 and 2004 a Preventive Archaeological Excavation was done in the locality of Salàs de Pallars. This allowed to catalogue the sixty structures found in the subsoil. Most of the structures were identified as silos, but we also documented basins and pits with different functions, some used as graves. The study of the recovered materials, supported by a radiocarbon analysis technique, ages this around two chronological periods: the Early Bronze Age and Iberian Period. We must add a third period to classify a single structure that belongs to the Early Roman Empire. The obtained results provide us information about the farming methods used by the communities placed in the southern Region of the Pallars Jussà during the three different historical moments.

The El Masnou Infralittoral sedimentary environment (Barcelona province, NW Mediterranean Sea): morphology and Holocene seismic stratigraphy

A detailed analysis of the morphology and the Holocene seismic and sequence stratigraphy and architecture of the infralittoral sedimentary environment of the El Masnou coast (Catalonia, NW Mediterranean Sea) was carried out using multibeam bathymetry and GeoPulse seismic data. This environment extends down to 26-30 m water depth, and is defined morphologically by two depositional wedges whose seafloor is affected by erosive furrows, slides, fields of large- and small-scale wavy bedforms, and dredging trenches and pits. Erosive terraces are also identified in the transition domain toward the inner continental shelf. The Holocene stratigraphy of the infralittoral environment is defined by two major seismic sequences (lower and upper), each one formed by internal seismic units. The sequences and units are characterised by downlapping surfaces made up of deposits formed by progradation of coastal lithosomes. The stratigraphy and stratal architecture, displaying a retrogradational arrangement with progradational patterns of minor order, were controlled by different sea-level positions. The stratigraphic division represents the coastal response to the last fourth-order transgressive and highstand conditions, modulated by small-scale sea-level oscillations (≈1-2 m) of fith to sixth order. This study also highlights the advantage of an integrated analysis using acoustic/seismic methods for practical assessment of the anthropogenic effects on infralittoral domains based on the association of marine geological observations.

Impacto ambiental previsto en la explotación de gravas en la zona de concurso medio del riu Fluvià (Girona)

The main environmental impacts related to the gravel pits in the medium course of the Fluvià river have been assessed. In order to compute the global impact and index based on the numerical values of different impacts has been defined. This index is applied to different areas and the results reveal that the environmental impact expected for a gravel pit is high or moderate close to the main streams and low in the rest of the territory