Jarko Fidrmuc (Zeppelin University Friedrichshafen): Macroeconomic impact of Basel III: Evidence from a meta-analysis

Jarko Fidrmuc (Zeppelin University Friedrichshafen): Macroeconomic impact of Basel III: Evidence from a meta-analysis

Abstract

We present a meta-analysis of the impact of higher capital requirements imposed by regulatory reforms on the macroeconomic activity (Basel III). The empirical evidence derived from a unique dataset of 48 primary studies indicates that there is a negative, albeit moderate GDP level effect in response to a change in the capital ratio. Meta-regression results suggest that the estimates reported in the literature tend to be systematically influenced by a selected set of study characteristics, such as econometric specifications, the authors’ affiliations, and the underlying financial system. Finally, we document a significant positive publication bias.

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