Theses and Dissertations at Montana State University (MSU)
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Item Assessing credit riskiness around the world(Montana State University - Bozeman, College of Agriculture, 2014) Castiblanco Calderon, Jorge Luis; Chairperson, Graduate Committee: Myles WattsDuring the last few decades, the theoretical literature highlighting the importance of institutional frameworks on economic performance has exhibited much growth. Furthermore, given that modern advancements have allowed the collection of panel institutional data to become a more reliable procedure, a growing body of empirical research examining several of these theoretical claims has recently begun to flourish. This new empirical literature has given much attention to studying the connection between institutions and economic growth; however, the empirical connection between institutional development and several other important measures of economic performance remains largely unexplored. This thesis partially alleviates this insufficiency by presenting the first empirical study on the relationship between institutional development and private credit riskiness around the world. The analysis consists of applying a variety of model specifications to a select group of panel datasets on institutions. The results obtained suggest that, on average, a higher level of institutional development is associated with interest rate reductions that may, in turn, be due to lower levels of credit riskiness. Moreover, these results appear to be very robust to a wide array of sensitivity tests.Item Loan refinancing decision model(Montana State University - Bozeman, College of Agriculture, 1984) Pidruchney, PatriciaItem The effect of inflation on interest rates(Montana State University - Bozeman, College of Agriculture, 1988) Calvert, Paul Wesley; Chairperson, Graduate Committee: Douglas J. Young.This thesis addresses the effect of expected inflation on interest rates, and in so doing attempts to., replicate the findings of John Makin. In order to obtain an unbiased estimate of the effect of expected inflation on interest rates, other variables, such as inflation uncertainty, Federal budget deficits, the state of the business cycle and Federal Reserve policy, were included in the model. The model is a reduced form, modified IS-LM macroeconomic model with a money sub-model to separate expected from unexpected monetary policy. The regressions showed that a 1% change in expected inflation causes about a .915% change in short-term Treasury Bill yields; however, the results depend on the sample period and heteroscedasticity .correction employed. The point estimate of .915 for the expected inflation coefficient is similar to what many researchers have estimated. The coefficients for inflation uncertainty, the Federal budget deficits, and the business cycle were not significant. The attempt to replicate the results of John Makin was not successful. The R ² and coefficients for expected inflation and inflation uncertainty were different; however, the coefficients for unexpected monetary policy and the intercept term were quite similar.