Seminario Patricio Valenzuela: “Capital Controls and the Cost of Debt”

El pasado miércoles 11 de Noviembre, en las dependencias del Departamento de Administración, Facultad de Economía y Negocios, Universidad de Chile, se llevó a cabo un workshop dirigido por Patricio Valenzuela, quien es Investigador del Centro de Finanzas del Departamento de Ingeniería Industrial, Universidad de Chile. A este seminario asistieron académicos del Departamento de Administración, FEN UChile, como otros académicos invitados, pertenecientes a otras universidades.

En este ocasión, Patricio presentó acerca de “Capital Controls and the Cost of Debt”, la cual trata sobre “Using a novel panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, we find that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads. By contrast, we find no robust significant effect of restrictions on outflows. The effect of capital account restrictions on inflows is particularly strong for bonds maturing in the short-term, issued by small firms and in countries with underdeveloped financial markets. Additionally, the paper shows that capital account restrictions on inflows have a greater effect during periods of financial distress than during periods of financial stability. These results are suggestive of a causal interpretation of the estimated effects and establish a novel channel through which capital controls affect economic outcomes”.