Huixin Bi

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Non-Performing Loans, Fiscal Costs and Credit Expansion in China

Staff Working Paper 2018-53 Huixin Bi, Yongquan Cao, Wei Dong
This paper studies how the credit expansion policy pursued by the Chinese government in an effort to stimulate its economy in the post-crisis period affects bank–firm loan contracts and the macroeconomy. We build a structural model with financial frictions in which the optimal loan contract reflects the trade-off between leverage and the probability of default.

Analyzing Fiscal Sustainability

Staff Working Paper 2013-27 Huixin Bi, Eric M. Leeper
The authors study the implications of fiscal policy behaviour for sovereign risk in a framework that determines a country’s fiscal limit, the point at which, for economic or political reasons, taxes and spending can no longer adjust to stabilize debt.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Fiscal Policy JEL Code(s): E, E6, E62, E65, H, H6, H63

Uncertain Fiscal Consolidations

Staff Working Paper 2013-26 Huixin Bi, Eric M. Leeper, Campbell Leith
The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax- or spending-based - are uncertain.

Sovereign Default Risk Premia, Fiscal Limits and Fiscal Policy

Staff Working Paper 2011-10 Huixin Bi
We develop a closed economy model to study the interactions among sovereign risk premia, fiscal limits, and fiscal policy. The stochastic fiscal limits, which measure the ability and willingness of the government to service its debt, arise endogenously from a dynamic Laffer curve.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Fiscal Policy, International topics JEL Code(s): E, E6, E62, H, H3, H30, H6, H60

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