Showing 1 - 10 of 6,864
We explore the implications of shocks to expected future productivity. In a setting with limited enforcement of financial contracts, firms have to post collateral to obtain external finance. In a real one-sector model with this type of "collateral constraint", positive news about future...
Persistent link: https://www.econbiz.de/10014203416
This paper studies the macroeconomic effects of shocks to idiosyncratic business risk in an economy with endogenously incomplete markets. I develop a model in which firms face idiosyncratic risk and obtain insurance from intermediaries through contracts akin to credit lines. Insurance is...
Persistent link: https://www.econbiz.de/10014114625
This paper develops an accounting oriented general equilibrium model that represents macro statistical systems by aggregating journal entries of micro accounting. The aim of the model is integrating microeconomics and macroeconomics by the different way from modern macroeconomics. From a reverse...
Persistent link: https://www.econbiz.de/10012964770
Housing market is documented with several observations: considerably larger fluctuations in housing prices than in rents, correlation between housing prices and investment, lead-lag pattern of housing and macroeconomic variables. This paper constructs a two-sector housing model with home...
Persistent link: https://www.econbiz.de/10013028092
This paper describes an equilibrium life-cycle model of housing where non-convex adjustment costs lead households to adjust their housing choice infrequently and by large amounts when they do so. In the cross-sectional dimension, the model matches the wealth distribution; the age profiles of...
Persistent link: https://www.econbiz.de/10013038658
This paper develops a simple model with collateralized borrowing constraints to explore the business cycle implications of financial leverage. The degree of leverage is shown to be an important factor in the amplifying role of collateral constraints, suggesting that the financial vulnerability...
Persistent link: https://www.econbiz.de/10013039013
The interest rate at which US firms borrow funds has two features: (i) it moves in a countercyclical fashion and (ii) it is an inverted leading indicator of real economic activity: low interest rates forecast booms in GDP, consumption, investment, and employment. We show that a Kiyotaki-Moore...
Persistent link: https://www.econbiz.de/10012903888
Aggregate reallocation is procyclical. This empirical observation is puzzling given the documented fact that the benefits to reallocation are countercyclical. I show that this procyclicality is entirely driven by reallocation of bundled capital, which is highly correlated with market valuation...
Persistent link: https://www.econbiz.de/10013219435
Using a structural vector autoregression, we document that a contractionary monetary policy shock triggers a decline in durable and non-durable outputs as well as a contraction in bank equity and a rise in the excess bond premium. The latter points to an important transmission channel of...
Persistent link: https://www.econbiz.de/10013223029
This paper develops a DSGE model in which banks use short term deposits to provide firms with long-term credit. The demand for long-term credit arises because firms must borrow in order to finance their capital stock which they only adjust at infrequent intervals. We show that the presence of...
Persistent link: https://www.econbiz.de/10013133828