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Credit Constraints, Firms' Precautionary Investment, and the Business Cycle

Orive, Ander Pérez - Barcelona Graduate School of Economics (Barcelona GSE) - 2010

This paper studies the macroeconomic implications of firmsprecautionary investment behavior in response to the anticipation of future financing constraints. Firms increase their demand for liquid and safe investments in order to alleviate future borrowing constraints and decrease the probability...

Persistent link: https://www.econbiz.de/10010547113

Credit Lines: The Other Side of Corporate Liquidity

Ippolito, Filippo; Perez, Ander - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

is widespread and that average undrawn credit is of the same order of magnitude as cash holdings. We test the trade …-off theory of liquidity according to which firms target an optimum level of liquidity, computed as the sum of cash and undrawn … credit lines. We provide support for the existence of a liquidity target, but also show that the reasons why firms hold cash …

Persistent link: https://www.econbiz.de/10010851340

The Strategic Impact of Resource Flexibility in Business Groups

Cestone, Giacinta; Fumagalli, Chiara - Barcelona Graduate School of Economics (Barcelona GSE) - 2003

of group membership. Affiliation to a monopolistic subsidiary can make a cash-rich (poor) stand-alone more (less …

Persistent link: https://www.econbiz.de/10010547515

Banking Competition and Stability: The Role of Leverage

Freixas, Xavier; Ma, Kebin - Barcelona Graduate School of Economics (Barcelona GSE) - 2014

stability by highlighting different types of risk and the role of leverage. By means of a simple model we show that competition …

Persistent link: https://www.econbiz.de/10010950599

Rule-of-Thumb Consumers and the Design of Interest Rate Rules

Galí, Jordi; Pérez-Salido, J. David - Barcelona Graduate School of Economics (Barcelona GSE) - 2003

We introduce rule-of-thumb consumers in an otherwise standard dynamic sticky price model, and show how their presence can change dramatically the properties of widely used interest rate rules. In particular, the existence of a unique equilibrium is no longer guaranteed by an interest rate rule...

Persistent link: https://www.econbiz.de/10010851326

Fiscal Foresight, Forecast Revisions and the Effects of Government Spending in the Open Economy

Gambetti, Luca - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

This paper investigates the effects of government spending on the real exchange rate and the trade balance in the US using a new VAR identification procedure based on spending forecast revisions. I find that the real exchange rate appreciates and the trade balance deteriorates after a government...

Persistent link: https://www.econbiz.de/10010851329

Macroeconomic Shocks and the Business Cycle: Evidence from a Structural Factor Model fiscal

Forni, Mario; Gambetti, Luca - Barcelona Graduate School of Economics (Barcelona GSE) - 2010

We obtain the following results. (ii) Both supply and demand shocks are important sources of fluctuations; supply prevails for GDP, while demand prevails for employment and information. (ii) Policy matters: Both monetary and fiscal policy shocks have sizeable effects on output and prices, with...

Persistent link: https://www.econbiz.de/10010851335

Has the Euro-Mediterranean Partnership Affected Mediterranean Business Cycles?

Canova, Fabio; Schlaepfer, Alain - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

We date turning points of the reference cycle for 19 countries in the Mediterranean, for selected regions, and for the area. Cycles phases are asymmetric, with expansions lasting, on average, much longer than recessions. Cyclical fluctuations are volatile and not highly correlated across...

Persistent link: https://www.econbiz.de/10010851371

Man-Bites-Dog Business Cycle

Nimark, Kristoffer - Barcelona Graduate School of Economics (Barcelona GSE) - 2013

The newsworthiness of an event is partly determined by how unusual it is and this paper investigates the business cycle implications of this fact. In particular, we analyze the consequences of information structures in which some types of signals are more likely to be observed after unusual...

Persistent link: https://www.econbiz.de/10010851373

Do Institutions and Culture Matter for Business Cycles?

Altug, Sumru; Canova, Fabio - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

We examine the relationship between institutions, culture and cyclical fluctuations for a sample of 45 European, Middle Eastern and North African countries. Better governance is associated with shorter and less severe contractions and milder expansions. Certain cultural traits, such as lack of...

Persistent link: https://www.econbiz.de/10010851386