WALQUE, Gregory DE; PIERRARD, Olivier; ROUABAH, Abdelaziz - Institut de Recherche Économique et Sociale (IRES), … - 2009
We develop a dynamic stochastic general equilibrium model with an heterogeneous banking sector. We introduce endogenous default probabilities for both firms and banks, and allow for bank regulation and liquidity injection into the interbank market. Our aim is to understand the interactions...