We look at the debt composition of industrial firms, using a unique micro-level database, and fin... more We look at the debt composition of industrial firms, using a unique micro-level database, and find that the share of foreign currency debt in total debt depends on its relative price and on the currency composition of income and expenses in the firm's balance sheet. In particular, the share of foreign currency debt increases with export income. This evidence of substitution between local and foreign currency debt indicates that the transmission of monetary policy is only partial.
Housing prices have risen rapidly over the past three years. Between December 2007 and August 201... more Housing prices have risen rapidly over the past three years. Between December 2007 and August 2010, prices rose by 35 percent in real terms – an average annual rise of 12 percent, much faster than their long-term rate of increase. Given this surge in prices, concerns have been raised that the price rise is unrelated to market fundamentals and has been driven by expectations of capital gains, which suggests the development of a bubble in house prices.The purpose of this article is to assess whether a bubble has developed in house prices in this period. To that end, we first review the course of prices retrospectively over the last few decades relative to rents and income; and then use three different approaches to derive the "fundamental price” from a standard asset-pricing equation. Our analysis suggests that while the prices at the end of the examined period are somewhat high relative to market fundamentals, from a long-term perspective their level is not exceptional in compar...
... Asher Blass, Gil Bufman, Zvi Hercowitz, Nissan Leviatan, Yona Rubinstein, Michael Sarel, Meir... more ... Asher Blass, Gil Bufman, Zvi Hercowitz, Nissan Leviatan, Yona Rubinstein, Michael Sarel, Meir Sokoler, Yishai Yafeh, the participants in the Research Department's Conference on Macroeconomic Issues in Israel, October 2002, and the participants in the Sapir Forum, for their ...
In this paper we examine the effect of monetary policy on the Israeli economy, and in particular ... more In this paper we examine the effect of monetary policy on the Israeli economy, and in particular on unemployment and the evolution of prices, for the period between 1990 and 1999, using the SVAR methodology. The four endogenous variables are the unemployment rate in deviations from its trend, the inflation rate, the Bank of Israel nominal interest rate and local-currency
We look at the debt composition of industrial firms, using a unique micro-level database, and fin... more We look at the debt composition of industrial firms, using a unique micro-level database, and find that the share of foreign currency debt in total debt depends on its relative price and on the currency composition of income and expenses in the firm's balance sheet. In particular, the share of foreign currency debt increases with export income. This evidence of substitution between local and foreign currency debt indicates that the transmission of monetary policy is only partial.
Housing prices have risen rapidly over the past three years. Between December 2007 and August 201... more Housing prices have risen rapidly over the past three years. Between December 2007 and August 2010, prices rose by 35 percent in real terms – an average annual rise of 12 percent, much faster than their long-term rate of increase. Given this surge in prices, concerns have been raised that the price rise is unrelated to market fundamentals and has been driven by expectations of capital gains, which suggests the development of a bubble in house prices.The purpose of this article is to assess whether a bubble has developed in house prices in this period. To that end, we first review the course of prices retrospectively over the last few decades relative to rents and income; and then use three different approaches to derive the "fundamental price” from a standard asset-pricing equation. Our analysis suggests that while the prices at the end of the examined period are somewhat high relative to market fundamentals, from a long-term perspective their level is not exceptional in compar...
... Asher Blass, Gil Bufman, Zvi Hercowitz, Nissan Leviatan, Yona Rubinstein, Michael Sarel, Meir... more ... Asher Blass, Gil Bufman, Zvi Hercowitz, Nissan Leviatan, Yona Rubinstein, Michael Sarel, Meir Sokoler, Yishai Yafeh, the participants in the Research Department's Conference on Macroeconomic Issues in Israel, October 2002, and the participants in the Sapir Forum, for their ...
In this paper we examine the effect of monetary policy on the Israeli economy, and in particular ... more In this paper we examine the effect of monetary policy on the Israeli economy, and in particular on unemployment and the evolution of prices, for the period between 1990 and 1999, using the SVAR methodology. The four endogenous variables are the unemployment rate in deviations from its trend, the inflation rate, the Bank of Israel nominal interest rate and local-currency
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Papers by Sigal Ribon