On May 29th, The Hujiang Economics and Management Forum Series (58th Session) was held in the second conference room on the fourth floor of Building A. Dr. Zhao Xuxia, a lecturer in the Finance Department, delivered an academic report titled Local Government Debt Expansion, Leverage ratio Regulation Pressure, and Shadow Banking. Dr. Xu Jiawen, an associate professor in the Finance Department, served as the commentator.
The report primarily analyzed the impact and mechanisms of local government debt expansion on shadow banking based on a multi-sector DSGE model framework. It also empirically tested the theoretical research conclusions using unbalanced panel data from 178 Chinese commercial banks from 2008 to 2018. The research findings of the report play a significant role in fully understanding the cross-sector risks that local government debt expansion may cause and fundamentally preventing the interweaving contagion of financial risks.
After the presentation, Associate Professor Xu Jiawen provided a brilliant summary and commentary on the main contributions, innovations, and future research directions of the article.
