Riccetti, Luca; Russo, Alberto; Gallegati, Mauro - Volkswirtschaftliche Fakultät, … - 2015
credit reduction follows further reducing the output; (ii) stock market accelerator - due to lower profit, firms …' capitalization on the stock market decreases, thus the distance-to-default (DD) diminishes and it reinforces the leverage accelerator … of bankruptcies. In this framework, we find that stock market volatility may damage the real economy if the stock market …