Narrow search
Showing 1 - 10 of 8,003
Cover Image
Financial Frictions and the Wealth Distribution
Fernández-Villaverde, Jesús - 2019
particular, we find that the recovery after a negative aggregate shock is more sluggish when the economy is more leveraged …
Persistent link: https://www.econbiz.de/10012862408
Cover Image
Financial Market Shocks and the Macroeconomy
Subrahmanyam, Avanidhar - 2013
Feedback from stock prices to cash flows occurs because information revealed by firms' stock prices influences the actions of competitors. We explore the implications of feedback within a noisy rational expectations setting with incumbent publicly traded firms and privately held new entrants. In...
Persistent link: https://www.econbiz.de/10013076911
Cover Image
Financial Frictions, Investment and Tobin's Q
Lorenzoni, Guido - 2007
We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …
Persistent link: https://www.econbiz.de/10012776954
Cover Image
Liquidity and Trading Dynamics
Guerrieri, Veronica - 2010
How do financial frictions affect the response of an economy to aggregate shocks? In this paper, we address this question, focusing on liquidity constraints and uninsurable idiosyncratic risk. We consider a search model where agents use liquid assets to smooth individual income shocks. We show...
Persistent link: https://www.econbiz.de/10012759970
Cover Image
Leverage, Moral Hazard and Liquidity
Acharya, Viral V. - 2010
the asset shock and the system-wide distribution of leverage. This distribution of leverage is, however, itself endogenous …
Persistent link: https://www.econbiz.de/10013146273
Cover Image
Overborrowing, Financial Crises and 'Macro-Prudential' Taxes
Bianchi, Javier - 2010
An equilibrium model of financial crises driven by Irving Fisher's financial amplification mechanism features a pecuniary externality, because private agents do not internalize how the price of assets used for collateral respond to collective borrowing decisions, particularly when binding...
Persistent link: https://www.econbiz.de/10013142089
Cover Image
Asset Pricing with Countercyclical Household Consumption Risk
Constantinides, George M. - 2014
We show that shocks to household consumption growth are negatively skewed, persistent, countercyclical, and drive asset prices. We construct a parsimonious model where heterogeneous households have recursive preferences. A single state variable drives the conditional cross-sectional moments of...
Persistent link: https://www.econbiz.de/10013054039
Cover Image
Consumption, Asset Markets, and Macroeconomic Fluctuations
Shiller, Robert J. - 2008
A broad exploratory data analysis is conducted to assess the promise of a kind of model in which long-term asset prices change through time primarily due to consumption related changes in the rate of discount. Aggregate consumption data are used to infer ex-post marginal rates of substitution....
Persistent link: https://www.econbiz.de/10012774609
Cover Image
Disasters Risk and Business Cycles
Gourio, Francois - 2010
probability of disaster leads to a collapse of investment and a recession, an increase in risk spreads, and a decrease in the … of business cycle dynamics, especially sharp downturns in investment and output such as 2008-IV …
Persistent link: https://www.econbiz.de/10013150731
Cover Image
Endogenous Sudden Stops in a Business Cycle Model with Collateral Constraints : A Fisherian Deflation of Tobin's Q
Mendoza, Enrique G. - 2007
predictions of a large class of models in which the current account is a vehicle for consumption smoothing and investment …
Persistent link: https://www.econbiz.de/10012778286