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A General Equilibrium Analysis of Inflation and Microfinance in Developing Countries

Müller, Daniel - 2013

This paper analyses the welfare effects of microfinance and inflation in developing countries. Therefore, we introduce a moral hazard problem into a monetary search model with money and credit. We show how access to basic financial services affects households' decisions to borrow, to save and to...

Persistent link: https://www.econbiz.de/10011390685

Consumer bankruptcy, mortgage default and labour supply

Li, Wenli; Meghir, Costas; Oswald, Florian - 2022

We specify and estimate a lifecycle model of consumption, housing demand and labor supply in an environment where individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks, education specific productivity shocks, and catastrophic...

Persistent link: https://www.econbiz.de/10013479037

Optimal lender of last resort policy in different financial systems

Fecht, Falko; Tyrell, Marcel - 2004

In a framework closely related to Diamond and Rajan (2001) we characterize different financial systems and analyze the welfare implications of different LOLR-policies in these financial systems. We show that in a bank-dominated financial system it is less likely that a LOLR-policy that follows...

Persistent link: https://www.econbiz.de/10010295666

Evaluation asset pricing models with limited commitment using household consumption data

Krueger, Dirk; Lustig, Hanno; Perri, Fabrizio - 2006

We evaluate the asset pricing implications of a class of models in which risk sharing is imperfect because of the limited enforcement of intertemporal contracts. Lustig (2004) has shown that in such a model the asset pricing kernel can be written as a simple function of the aggregate consumption...

Persistent link: https://www.econbiz.de/10010298336

Consumer default with complete markets: Default-based pricing and finite punishment

Mateos-Planas, Xavier; Seccia, Giulio - 2013

This paper studies economies with complete markets where there is positive default on consumer debt. In a simple tractable two-period model, households can default partially, at a finite punishment cost, and competitive intermediaries price loans of different sizes separately. This environment...

Persistent link: https://www.econbiz.de/10010368154

Centralized trading of corporate bonds

Huber, Samuel; Kim, Jaehong - 2015

In the post-crisis period, increased regulation of financial intermediaries led to a significant decline in corporate bond market liquidity. In order to stabilize these markets, policy makers recently proposed that the trading of corporate bonds should be more centralized. In this paper, we show...

Persistent link: https://www.econbiz.de/10011420570

Securitization and aggregate investment efficiency

Mirza, Afrasiab; Stephens, Eric - 2016

, which enables increased leverage and investment. In the absence of frictions in the securitization process, we show that the … be constrained inefficient due to the existence of a pecuniary externality that can result in over or under-investment …. We examine policies to correct over-investment and find that a leverage ratio restriction generates a Pareto improvement …

Persistent link: https://www.econbiz.de/10012058895

Prolonged reserves accumulation, credit booms, asset prices and monetary policy in Asia

Filardo, Andrew J.; Siklos, Pierre L. - 2013

This paper examines past evidence of prolonged periods of reserve accumulation in Asian emerging market economies and the direct and indirect implications for monetary stability through the potential impact of such episodes on financial stability. The empirical research focuses on identifying...

Persistent link: https://www.econbiz.de/10012148691

Monetary Policy, Financial Constraints, and Redistribution

Loenser, Christian; Schabert, Andreas - 2020

This paper examines how financial constraints affect redistribution via monetary policy. We explore a novel mechanism of monetary non-neutrality, which is based on debt limits imposed in nominal terms. Specifically, when debt is constrained by current income, monetary policy can alter the real...

Persistent link: https://www.econbiz.de/10012290550

Endogenous incomplete markets, enforcement constraints, and intermediation

Abraham, Arpad; Carceles-Poveda, Eva - In: Theoretical Economics 1 (2006) 4, pp. 439-459

Alvarez and Jermann (2000) show that the constrained efficient allocations of endowment economies with imperfect risk sharing due to limited commitment can be decentralized as competitive equilibria with endogenous debt constraints that are not too tight. These are the loosest possible borrowing...

Persistent link: https://www.econbiz.de/10011599378