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Financial frictions : micro vs. macro volatility

Faccini, Renato; Lee, Seungcheol; Luetticke, Ralph; … - 2024

consistent with the data. Banking regulation, while stabilizing at the aggregate level, may induce volatility at the household …

Persistent link: https://www.econbiz.de/10014480275

Booms, Recessions and Financial Turmoil : A Fresh Look at Investment Decisions under Cyclical Uncertainty

Chen, Yu-Fu - 2009

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … where demand shifts stochastically between three different states, each with different rates of drift and volatility. In our … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

Persistent link: https://www.econbiz.de/10013156881

Post-crisis business investment in the euro area and the role of monetary policy

Ademmer, Martin; Jannsen, Nils - 2018

Business investment in the euro area strongly declined during the Global Financial Crisis and the Sovereign Debt Crisis … analyse the sluggish recovery in business investment in the euro area and the role of monetary policy in three steps. We … investigate the main factors that have impeded business investment since the Global Financial Crisis. We empirically analyse how …

Persistent link: https://www.econbiz.de/10011878290

Switching-Track after the Great Recession

Vinci, Francesca; Licandro, Omar - 2021

We propose a theoretical framework to reconcile episodes of V-shaped and L-shaped recovery, encompassing the behaviour of the U.S. economy before and after the Great Recession. In a DSGE model with endogenous growth, negative demand shocks destroy productive capacity, moving GDP to a lower...

Persistent link: https://www.econbiz.de/10013224093

Switching-track after the Great Recession

Vinci, Francesca; Licandro, Omar - 2021

We propose a theoretical framework to reconcile episodes of V-shaped and L-shaped recovery, en- compassing the behaviour of the U.S. economy before and after the Great Recession. In a DSGE model with endogenous growth, negative demand shocks destroy productive capacity, moving GDP to a lower...

Persistent link: https://www.econbiz.de/10012627907

Switching-track after the great recession

Vinci, Francesca; Licandro, Omar - 2021

Persistent link: https://www.econbiz.de/10012533939

Switching-Track after the Great Recession

Vinci, Francesca; Licandro, Omar - 2021

Persistent link: https://www.econbiz.de/10013210843

Financial Policies and the Financial Crisis : How Important was the Systemic Credit Contraction for Industrial Corporations?

Kahle, Kathleen M. - 2013

the start of the financial crisis (third quarter of 2007) to its peak (first quarter of 2009), both large and investment … sharply (by 17.8% in the case of investment-grade firms) after the fall of Lehman. Though small and unrated firms have …

Persistent link: https://www.econbiz.de/10013094404

Uncertainty shocks, banking frictions, and economic activity

Bonciani, Dario; Roye, Björn van - 2013

In this paper we investigate the effects of uncertainty shocks on economic activity using a Dynamic Stochastic General Equilibrium (DSGE) model with heterogenous agents and a stylized banking sector. We show that frictions in credit supply amplify the effects of uncertainty shocks on economic...

Persistent link: https://www.econbiz.de/10009761866

Credit crunches from occasionally binding bank borrowing constraints

Holden, Tom D.; Levine, Paul; Swarbrick, Jonathan M. - 2017

We present a model in which banks and other financial intermediaries face both occasionally binding borrowing constraints and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through retained earnings. However, even moderately large shocks...

Persistent link: https://www.econbiz.de/10011777841