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Federal and Local Resources Help Small Businesses Strive for New Normal
In May, we released an in-depth look at the experiences of small business owners across Texas in the first month of the crisis. In the subsequent months, there have been updates to existing resources, and more initiatives have launched to support small firms across the country and state.
Working Paper
Insurance, Weather, and Financial Stability
In this paper, we introduce a model to study the interaction between insurance and banking. We build on the Federal Crop Insurance Act of 1980, which significantly expanded and restructured the decades-old federal crop insurance program and adverse weather shocks—over-exposure of crops to heat and acute weather events—to investigate some insights from our model. Banks increased lending to the agricultural sector in counties with higher insurance coverage after 1980, even when affected by adverse weather shocks. Further, while they increased risky lending, they were sufficiently ...
Working Paper
Partial Homeownership: A Quantitative Analysis
Partial Ownership (PO), which allows households to buy a fraction of a home and rent the remainder, is increasing in many countries with housing affordability challenges. We incorporate an existing for-profit PO contract into a life-cycle model to quantify its impact on homeownership, households’ welfare, and its implications for financial stability. We have the following results: 1) PO increases homeownership rates. 2) Willingness to pay increases with housing unaffordability and is highest among low-income and renting households. 3) PO increases aggregate debt as renters become partial ...
Women Veteran Business Owners: We Want to Hear From You
Women veteran-owned small businesses are an important part of our regional economy, but little is known about their needs and challenges.
Women-Veteran Entrepreneurs Face Hardships Made Worse by Pandemic
Businesses that were already vulnerable before the COVID-19 pandemic have become even more so during the ensuing recession the last few months. These businesses tend to be smaller and younger and are disproportionately owned by Hispanic and especially Black entrepreneurs.
Working Paper
Black Swans and Financial Stability: A Framework for Building Resilience
This article refines the concept of black swans, typically described as highly unlikely and catastrophic events, by clearly distinguishing between knowable and unknowable events. By emphasizing that black swans are “unknown unknowns,” the article highlights that the realization of new black swans cannot be prevented and motivates a need for policies that build the financial system's resilience to unforeseeable crises. The article introduces a "resilience principle" that calls for policies that are adaptable, universal, and systemic. Examples are provided of policies with these features, ...
Hard-Hit Child Care Industry May Need Multisector Response to Revive and Thrive
Millions of U.S. workers have lost their jobs during the pandemic. When they are ready to return to work, their child care options may be few.
The Federal Reserve Is Updating the Community Reinvestment Act. Here’s How You Can Help.
Whether you are a community-service organization member, an economic development professional or simply interested in helping communities in our region thrive, your comments and ideas are a critical part of ensuring an inclusive financial services industry.