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Notes on Collateral Constraints in a Simple Model of Housing

Hornstein, Andreas - 2012

These notes provide the derivations of results stated without proof in Hornstein (2009). For a simple model of the demand for housing, it is shown that on a balanced growth path, the rate at which the relative price of housing changes over time is determined by the relative productivity growth...

Persistent link: https://www.econbiz.de/10013096663

Monitoring Costs, Credit Constraints and Entrepreneurship

Banerji, Sanjay - 2012

The vast majority of firms in developing economies are micro and small enterprises owned by families whose members also provide the labour to the units. Often, they fail to grow in size even with the relaxation of credit constraints. In this paper, we show that frictions in the labour market...

Persistent link: https://www.econbiz.de/10013104968

A Theory of Operational Cash Holding, Endogenous Financial Constraints and Credit Rationing

Kling, Gerhard - 2013

The paper develops a theory of operational cash holding considering short-term liquidity shocks due to uncertain net … constraints endogenous. Debt holders have an incentive to impose constraints to force firms to hold cash. The theory shows that … credit rationing can occur in the absence of market frictions. The paper illustrates the theory using US data from 1989 to …

Persistent link: https://www.econbiz.de/10013093785

Exporters, Importers and Credit Constraints

Muûls, Mirabelle - 2014

This paper analyses the interaction between credit constraints and trading behavior, decomposing trade in extensive and intensive margins. I construct a unique dataset containing firm-level trade transactions data, balance sheets and credit scores from an independent credit insurance company for...

Persistent link: https://www.econbiz.de/10013069206

A Penalty Function Approach to Occasionally Binding Credit Constraints

Brzoza-Brzezina, Michal - 2013

Occasionally binding credit constraints (OBC) have recently been explored as a promising way of modeling financial frictions. However, given their highly non-linear nature, most of the literature has concentrated on small models that can be solved using global methods. In this paper, we...

Persistent link: https://www.econbiz.de/10013073417

On the Price of Commitment Assets in a General Equilibrium Model with Credit Constraints and Tempted Consumers

Wozny, Lukasz Patryk - 2015

We analyze a three period production economy, where households exhibit problems of self-control and face credit constraints. Apart from liquid assets, a single commitment (illiquid) asset is available that allows to commit to a planned consumption path. We compare general equilibrium allocations...

Persistent link: https://www.econbiz.de/10013014722

Credit constraint and firm's export mode choice

Li, Zhiyuan; Ye, Haichun - In: China economic quarterly international : CEQI 1 (2021) 1, pp. 43-58

How do firms’ credit constraint affect their export mode choices between direct exporting and indirect exporting through intermediaries? This study explores this issue in a heterogeneous firm model where firms differ not only in productivity but also in credit levels. Our model predicts that...

Persistent link: https://www.econbiz.de/10013163671

Parental transfers, incomplete credit markets and economic growth

Hatcher, Michael; Pourpourides, Panayiotis M. - 2019 - First draft: December 15, 2019

Persistent link: https://www.econbiz.de/10013164750

On the role of the collateral constraint friction in the North-South transmission of the 2008-2009 financial crisis

Nguyen, Ha - In: Journal of money, credit and banking : JMCB 54 (2022) 2/3, pp. 707-728

Persistent link: https://www.econbiz.de/10013167533

Educational Choices, Subjective Expectations, and Credit Constraints

Attanasio, Orazio - 2010

In this paper we analyze the link between people's "subjective" expectations of returns to schooling and their decision to invest into schooling. We use data from a household survey on Mexican junior and senior high school graduates that elicits their own and their parents' beliefs about future...

Persistent link: https://www.econbiz.de/10013152231