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...

This paper presents a new approach to modelling credit restrictions by considering uncertain access to the asset market.The asset market and the stochastic process governing access are considered fully exogenous and independent of income.The model generates stable debt trajectories for a broader...