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Heterogeneous households in a sticky-price model
Lee, Jae Won - 2009
-specific labor markets. Households differ in labor incomes and asset markets are incomplete. I show that household heterogeneity …. To quantify the importance of household heterogeneity in amplifying stickiness, I estimate and compare representative and … heterogeneous household models. The quantitative exercise shows the heterogenous household model performs better than its …
Persistent link: https://www.econbiz.de/10010282838
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Can intangible capital explain cyclical movements in the labor wedge?
Gourio, François; Rudanko, Leena - 2014
Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production...
Persistent link: https://www.econbiz.de/10010352192
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A moment-matching method for approximating vector autoregressive processes by finite-state Markov chains
Gospodinov, Nikolay; Lkhagvasuren, Damba - 2013
This paper proposes a moment-matching method for approximating vector autoregressions by finite-state Markov chains. The Markov chain is constructed by targeting the conditional moments of the underlying continuous process. The proposed method is more robust to the number of discrete values and...
Persistent link: https://www.econbiz.de/10010397710
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Theories of finance and financial crisis: Lessons for the Great Recession
Dodig, Nina; Herr, Hansjörg - 2015
This paper presents an overview of different models which explain financial crises, with the aim of understanding economic developments during and possibly after the Great Recession. In the first part approaches based on efficient markets and rational expectations hypotheses are analyzed, which...
Persistent link: https://www.econbiz.de/10010491264
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Debt portfolios
Hintermaier, Thomas; Koeniger, Winfried - 2009
We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized …
Persistent link: https://www.econbiz.de/10010280743
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A contribution to the theory of financial fragility and crisis
Bhaduri, Amit - 2010
The paper examines three aspects of a financial crisis of domestic origin. The first section studies the evolution of a debt-financed consumption boom supported by rising asset prices, leading to a credit crunch and fluctuations in the real economy, and, ultimately, to debt deflation. The next...
Persistent link: https://www.econbiz.de/10010286546
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Debt and financial crises
Koh, Wee Chian; Kose, M. Ayhan; Nagle, Peter; Ohnsorge, … - 2020
Emerging market and developing economies have experienced recurrent episodes of rapid debt accumulation over the past fifty years. This paper examines the consequences of debt accumulation using a three-pronged approach: an event study of debt accumulation episodes in 100 emerging market and...
Persistent link: https://www.econbiz.de/10012388929
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Can this time be different? Policy options in times of rising debt
Kose, M. Ayhan; Nagle, Peter; Ohnsorge, Franziska; … - 2020
Episodes of debt accumulation have been a recurrent feature of the global economy over the past fifty years. Since 2010, emerging and developing economies have experienced another wave of historically large and rapid debt accumulation. Similar past debt buildups have often ended in widespread...
Persistent link: https://www.econbiz.de/10012388936
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What determines the output drop after an energy price increase: Household or firm energy share?
Dhawan, Rajeev; Jeske, Karsten - 2007
During the past thirty-five years, energy use as a fraction of output has dropped significantly at both the household … energy price hike for different firm and household energy shares. Simulation results indicate that the economy's output … response is mainly determined by the firm energy share. Increasing the household energy share while keeping firm energy share …
Persistent link: https://www.econbiz.de/10010292312
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Why do borrowers pledge collateral? New empirical evidence on the role of asymmetric information
Berger, Allen N.; Espinosa-Vega, Marco A.; Frame, W. Scott - 2007
An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …
Persistent link: https://www.econbiz.de/10010292292