, the equilibrium loan rate spread increases, which raises bank profitability and the market-to-book value of bank capital … model’s dynamic implications in a panel VAR estimation, which suggests that bank lending has even increased in the long …

&D investment. As this is very controversial from an empirical perspective, a stochastic Poisson model of endogenous business cycles … and growth is presented where the determinants of the cyclical behaviour of R&D investment are analytically studied …

explaining the consumption path after a Marginal Efficiency of Investment shock. We use an otherwise standard medium-scale New …

-level investment is procyclical. We show that a heterogeneous-firm RBC model with quantitatively realistic countercyclically disperse … state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a …-sectional firm dynamics ; lumpy investment ; countercyclical risk ; aggregate shocks ; idiosyncratic shocks ; heterogeneous firms …

-varying uncertainty, highlighted in the literature. -- Ss model ; RBC model ; lumpy investment ; countercyclical risk ; aggregate shocks …

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending …

shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles. …

.e. the largest feasible shock should be administered for the shortest possible amount of time. Depending on the particular …

financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and … habit persistence in consumption behaviour. -- bank credit ; financial intermediation ; firm heterogeneity and defaults …

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