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Leveraged Borrowing and Boom-Bust Cycles

Pintus, Patrick - 2012

that transforms a one-time productivity or financial shock into large and long-lasting boom-bust cycles. The predictions …

Persistent link: https://www.econbiz.de/10013115731

The Business Cycle Implications of Banks' Maturity Transformation

Andreasen, Martin M. - 2012

This paper develops a DSGE model where banks use short-term deposits to provide firms with long-term credit. The demand for long-term credit arises because firms borrow in order to finance their capital stock which they only adjust at infrequent intervals. Within an RBC framework, we show that...

Persistent link: https://www.econbiz.de/10013099027

The Business Cycle Implications of Banks’ Maturity Transformation

Andreasen, Martin M. - 2012

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 borrow in order to finance their capital stock which they only adjust at infrequent intervals. We show within a real business cycle...

Persistent link: https://www.econbiz.de/10013108678

Housing and Debt Over the Life Cycle and Over the Business Cycle

Iacoviello, Matteo - 2015

borrowing limit, and housing investment, home-ownership, and household debt closely track aggregate productivity. In the late …

Persistent link: https://www.econbiz.de/10013038658

Business Fluctuations and Leverage in the Collateral Constraints

Nah, Won Jun - 2015

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

Interest Rate Dynamics, Variable-Rate Loan Contracts, and the Business Cycle

Pintus, Patrick - 2019

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

Liquidity Premia, Price-Rent Dynamics, and Business Cycles

Miao, Jianjun - 2015

In the U.S. economy during the past 25 years, house prices exhibit fluctuations considerably larger than house rents, and these large fluctuations tend to move together with business cycles. We build a simple theoretical model to characterize these observations by showing the tight connection...

Persistent link: https://www.econbiz.de/10013026082

The impacts of credit standards on aggregate fluctuations in a small open economy : the role of monetary policy

Le, Hai - In: Economies : open access journal 9 (2021) 4, pp. 1-26

Empirical evidence demonstrates that credit standards, including lending margins and collateral requirements, move in a countercyclical direction. In this study, we construct a small open economy model with financial frictions to generate the countercyclical movement in credit standards. Our...

Persistent link: https://www.econbiz.de/10012800343

Is Capital Reallocation Really Procyclical?

Yang, Lingyan - 2021

capital, which is highly correlated with market valuation and bears no consistent relation to measures of productivity … productivity growth, both within industry and across industries. To rationalize these facts, I propose a heterogeneous agent model … reallocated for productivity gains only, whereas bundled capital is also reallocated for real, or perceived synergies in the …

Persistent link: https://www.econbiz.de/10013219435

Discount Shock, Price-Rent Dynamics, and the Business Cycle

Miao, Jianjun; Wang, Pengfei; Zha, Tao A. - 2022

productivity (TFP) in the nexus of the financial and real sectors …

Persistent link: https://www.econbiz.de/10013291978