Financial Crises, Debt Maturity, and Capital Controls [PDF]
Overborrowing in short-term debt is especially severe because the repayment of short-term liabilities is larger than that of long-term liabilities in future constrained states, resulting in greater cost undervaluation of short-term financial obligations. Therefore, tightening of capital controls should tilt toward short maturities during financial crises.
Quality of Public Governance and the Capital Structure of Nations and Firms
[PDF | NBER WP] (with Shang-Jin Wei)
Better institutional quality tends to promote a higher share of foreign direct investment and equity investment in total foreign liabilities, and a higher share of long-term debt within the debt/loan category.
Real Exchange Rate and External Balance: How Important are Price Deflators?
[PDF | IMF WP| slides] (with JaeBin Ahn, Rui Mano)
Among real exchange rates deflated by various prices (CPI-, GDP deflator-, Unit Labor Cost-), only unit-labor-cost-based one shows significant negative correlation with external balance, and it can be rationalized by price and wage rigidity and intermediate goods trade.
Extensive Margin Adjustment of Multi-product Firms and Stock Returns