Dindo, Pietro; Modena, Andrea; Pelizzon, Loriana - 2020 - This version: 25th February 2020
model a general equilibrium productive economy where financial intermediaries provide costly risk mitigation to households …This paper studies the impact of financial sector size and leverage on business cycles and risk-free rates dynamics. We … intermediaries' relative size, but may also mitigate the business cycle. Moreover, it makes risk-free rates pro-cyclical. Households …