Thesis / Dissertation

Essays on financial stability

Xianglong Liu, Tim Robinson (ed.)

Published : 2020

Abstract

This thesis investigates several aspects of economic activity that are strongly linked to the stability of the financial system. First, I examine the possible build-up of systemic risk in the shadow banking system as an unintended consequence of the implementation of macroprudential policies. Second, I analyze the short-run and long-run interactions between house prices and household debt in Australia and study relevant policy implications. Finally, I propose the use of automatic model selection, namely Least Absolute Shrinkage and Selection Operator (LASSO) with cross-validation, to improve the forecasting performance of the conventional early warning system for systemic banking crises. The..

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