Liu, Guangling; Seeiso, Nkhahle E. - In: Economic Modelling 29 (2012) 3, pp. 848-857
This paper studies the impact of bank capital regulation on business cycle fluctuations. In particular, we study the procyclical nature of Basel II claimed in the literature. To do so, we adopt the Bernanke et al. (1999) “financial accelerator” model (BGG), to which we augment a banking...
