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The agent-based (behavioural) model is extended to include a financial friction on the supply side. Firms finance capital purchases using external financing, but need to pay for it in advance. In addition, firm financing constraint and net worth are determined by stock market prices, which can...
Persistent link: https://www.econbiz.de/10011288358
bounded rationality behavioural models. Both models are extended to include a financial friction on the supply side.The result … in both models is that production, supply of credit and the front payment to capital producers depend heavily on the … limitations of economic agents result in exacerbation of the contraction. While both models capture the empirical regularities …
Persistent link: https://www.econbiz.de/10011388233
The agent-based (behavioural) model is extended to include a financial friction on the supply side. Firms finance capital purchases using external financing, but need to pay for it in advance. In addition, firm financing constraint and net worth are determined by stock market prices, which can...
Persistent link: https://www.econbiz.de/10011283037
bounded rationality behavioural models. Both models are extended to include a financial friction on the supply side.The result … in both models is that production, supply of credit and the front payment to capital producers depend heavily on the … limitations of economic agents result in exacerbation of the contraction. While both models capture the empirical regularities …
Persistent link: https://www.econbiz.de/10011374197