Search Results - subject:"Occasionally binding constraints"

Bluwstein, Kristina - 2017

The 2008 financial crisis has shown that financial busts can influence the real economy. However, there is less evidence to suggest that the same holds for financial booms. Using a Markov-Switching vector autoregressive model and euro area data, I show that financial booms tend to be less...

Persistent link: https://www.econbiz.de/10011617592

Existence, uniqueness and computation of solutions to dynamic models with occasionally binding constraints

Holden, Tom D. - 2016

, returning to a given steady-state, in an otherwise linear model with occasionally binding constraints. We derive further …

Persistent link: https://www.econbiz.de/10011422742

Credit spreads, financial crises, and macroprudential policy

Akinci, Ozge; Queralto, Albert - 2016

Credit spreads display occasional spikes and are more strongly countercyclical in times of financial stress. Financial crises are extreme cases of this nonlinear behavior, featuring deep recessions and sharp losses in bank equity. We develop a macroeconomic model with a banking sector in which...

Persistent link: https://www.econbiz.de/10011796445

Computation of solutions to dynamic models with occasionally binding constraints

Holden, Tom D. - 2016

binding constraints, with fixed terminal conditions, that is guaranteed to return a solution in finite time, if one exists. We … binding constraints. …We construct the first algorithm for the perfect foresight solution of otherwise linear models with occasionally …

Persistent link: https://www.econbiz.de/10011514628

Existence and uniqueness of solutions to dynamic models with occasionally binding constraints.

Holden, Tom D. - 2016 - This version: 28 March 2016

otherwise linear dynamic model with occasionally binding constraints, given a fixed terminal condition. We derive further … binding constraints, much as Blanchard and Kahn (1980) did for linear models. In an application, we show that widely used New … conditions on the existence of a solution in such models. These results give determinacy conditions for models with occasionally …

Persistent link: https://www.econbiz.de/10011452241