Search Results - subject:"Borrowing constraints"

Asset prices and wealth inequality in a simple model with idiosyncratic shocks

Salas, Sergio - In: Estudios de Economía 44 (2017) 1, pp. 105-119

This paper analytically solves a heterogeneous agent model with idiosyncratic shocks to marginal utility of consumption and explores the effects of the borrowing constraint on the price of the asset, the composition of borrowers and lenders in the credit market, and wealth inequality. Results...

Persistent link: https://www.econbiz.de/10011985523

Optimal Consumption and Investment under Time-Varying Liquidity Constraints

Ahn, Seryoong - 2017

We study the consumption and investment model under time-varying liquidity constraints (TVLC) that are widely used in reality. We first develop a martingale method to analyze the case in which the borrowing limit is specified by the debt-to-income ratio limit and then extend this framework to...

Persistent link: https://www.econbiz.de/10012973620

Capital misallocation and secular stagnation

Caggese, Andrea; Pérez, Ander - 2017 - This version: January 17, 2017

The widespread emergence of intangible technologies in recent decades may have significantly hurt output growth -- even when these technologies replaced considerably less productive tangible technologies -- because of structurally low interest rates caused by demographic forces. This insight is...

Persistent link: https://www.econbiz.de/10011708126

On the effectiveness of loan-to-value regulation in a multiconstraint framework

Grodecka-Messi, Anna - 2017

Models in the infinite horizon macro-housing literature often assume that borrowers are constrained exclusively by the loan-to-value (LTV) ratio. Motivated by the Swedish micro-data, I explore an alternative arrangement where borrowers are constrained by the feasibility of repayment, but choose...

Persistent link: https://www.econbiz.de/10011763051

Young innovative firms, investment-cash flow sensitivities and technological misallocation

Valencia, Oscar M.; Gómez González, José Eduardo; … - 2017

Persistent link: https://www.econbiz.de/10011868846

Unemployment, borrowing constraints and stabilization policies

Auray, Stéphane; Eyquem, Aurélien - 2017

Persistent link: https://www.econbiz.de/10012199999

Heterogeneity, convergence and imbalances in the euro area

Auray, Stéphane; Eyquem, Aurélien - 2017

Persistent link: https://www.econbiz.de/10012200006

Asset prices and wealth inequality in a simple model with idiosyncratic shocks

Salas, Sergio - In: Estudios de economía 44 (2017) 1, pp. 105-119

Persistent link: https://www.econbiz.de/10011980140

Borrowing constraints, search, and life-cycle inequality

Griffy, Benjamin - 2017 - This Version: Nov. 24th, 2017

This paper quantifies the impact of borrowing constraints on consumption and earnings inequality in a life-cycle model … face borrowing constraints, accumulate human capital endogenously, and search both on and off the job. I use indirect … as slower human capital accumulation when workers face borrowing constraints. A standard deviation decrease in initial …

Persistent link: https://www.econbiz.de/10011963363

Borrower heterogeneity within a risky mortgage-lending market

Punzi, Maria Teresa; Rabitsch, Katrin - 2017

Persistent link: https://www.econbiz.de/10011632601