This paper constructs new indicators of liquidity for equity, bond and money markets in major advanced and emerging … evidence of an historical increase in market liquidity since the early 1990s, in part as a result of advances in international … financial integration, but markets have been increasingly exposed to global systemic liquidity shocks. Second, liquidity …

empirical tests, motivated by a simple theory, demonstrate that low-liquidity firms amplified its transmission. … strategy exploits the heterogeneous impact of the shock on importers. The results indicate that this relatively minor, non …-localized shock had a non-trivial economic impact on exposed firms and propagated downstream through affected suppliers. Additional …

This paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households …

defaults, following a positive productivity shock, our behavioural model (BCC Mark I) generates hump-shaped impulse …-response functions that are more realistic than those generated by the same shock in a corresponding model with rational expectations … (RCC). When the behavioural model allows also for defaults (BCC Mark II), a productivity shock triggers ample and …

The paper analyzes the dynamic effects of a total factor productivity shock and an interest rate risk premium shock in … bargaining are introduced. We find that a negative total factor productivity shock primarily has effects on the economy … significantly reduces the initial response of the unemployment rate. In case of a temporary productivity shock, sticky wages imply …