Kollmann, Robert; Enders, Zeno; Müller, Gernot J. - In: European Economic Review 55 (2011) 3, pp. 407-426
This paper incorporates a global bank into a two-country business cycle model. The bank collects deposits from households and makes loans to entrepreneurs, in both countries. It has to finance a fraction of loans using equity. We investigate how such a bank capital requirement affects the...
