Measuring the Procyclicality of Impairment Accounting Regimes: A Comparison Between IFRS 9 and US GAAP

Abstract

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Forward Looking Loan Provisions: Credit Supply and Risk-Taking

“…More recent literature analyzes the effect of switching from the ICL model to the ECL model, whose relevance is enhanced by the recent introduction of IFRS9 around the world and the impending implementation of ASU 2016-13 in the United States. A strand of this literature studies theoretically the potential effect of the ECL on the economic cycle (Abad and Suarez, 2018;Buesa, Población and Tarancón, 2019;Mathieux, Sapra, and Zhang, 2020). Other recent papers exploit newly published data on the implementation of IFRS9 to test empirically the effect of the ECL model.…”

Real-time Weakness of the Global Economy: A First Assessment of the Coronavirus Crisis

“…For the sake of space, the estimated probability of low growth regime is plotted in Chart A of Figure 10 in the Online Appendix. The model attains a high probability of low growth only to the slowdown associated to the Great Recession, and fails to detect other periods of negative (2012)(2013) or weak (2001)(2002)(2003)(2004) output growth. This is because during the Great Recession, the Euro Area exhibited an unprecedented deterioration in real activity, which fully dominates the estimated low mean growth.…”

“…Instead, when dealing with indicators at the quarterly frequency, y q j,t , we follow Mariano and Murasawa (2003) and express quarter-on-quarter growth rates into month-on-month unobserved growth rates:…”

From secular stagnation to robocalypse? Implications of demographic and technological changes

“…Second, in models with factor-augmenting technological progress, substitutability between factors of production may prevent the economy from reaching a BGP (see Acemoglu (2003)). As such, automation may generate an imbalance between the labour and robot income shares.…”