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This paper introduces agent heterogeneity, liquidity, and endogenous default to a DSGE framework. Our model allows for … the economy. Due to liquidity and endogenous default, the transmission mechanism of shocks is well defined, and their …
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With public debt soaring across the world, a growing concern is whether current debt levels are a harbinger of fiscal crises, thereby restricting the policy space in a downturn. The empirical evidence to date is however inconclusive, and the true cost of debt may be overstated if interest rates...
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the U.S. and Japan across seven sectors. Ignoring parameter heterogeneity results in far riskier credit portfolios. …
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measure each firm's liquidity shortfall during and after COVID-19. Our framework allows for a rich combination of sectoral and …
Persistent link: https://www.econbiz.de/10012391969