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Risk pooling, leverage, and the business cycle

Dindo, Pietro; Modena, Andrea; Pelizzon, Loriana - 2019 - This version: 10th July 2019

This paper investigates the interdependence between the risk-pooling activity of the financial sector and: output, consumption, risk-free rate, and Sharpe ratio in a dynamic general equilibrium model of a productive economy. Due to their exposure to idiosyncratic shocks and market segmentation,...

Persistent link: https://www.econbiz.de/10012040094

Endogenous business cycles and growth

Wälde, Klaus - 2003

&D investment. As this is very controversial from an empirical perspective, a stochastic Poisson model of endogenous business cycles … and growth is presented where the determinants of the cyclical behaviour of R&D investment are analytically studied …

Persistent link: https://www.econbiz.de/10011507773

Credit channel and business cycle : the role of tax evasion

Chiarini, Bruno; Ferrara, Maria; Marzano, Elisabetta - 2018

margin of flexibility in coping with adverse shocks. In this setting, we simulate a risk shock that propagates its effects in …

Persistent link: https://www.econbiz.de/10011882444

Appropriate fiscal policy over the business cycle : proper stimulus policies can work

Graves, Philip E. - 2010

Fiscal policy has become quite controversial in the post-Keynesian era, the debate over the Obama stimulus package being a contentious recent example. Some pundits go so far as to take the position that macroeconomic theory has failed to meaningfully progress in terms of providing useful...

Persistent link: https://www.econbiz.de/10008653412

Tax smoothing in a business cycle model with capital-skill complementarity

Angelopulos, Kōnstantinos; Asimakopoulos, Stylianos; … - 2014

This paper undertakes a normative investigation of the quantitative properties of optimal tax smoothing in a business cycle model with state contingent debt, capital-skill complementarity, endogenous skill formation and stochastic shocks to public consumption as well as total factor and capital...

Persistent link: https://www.econbiz.de/10010340166

Trade shocks and macroeconomic fluctuations in Africa

Kose, M. Ayhan; Riezman, Raymond Glenn - 1999

exported primary commodities, imported capital goods and intermediate inputs, and a financial shock, modeled as fluctuations in …

Persistent link: https://www.econbiz.de/10009781698

Perceived uncertainty shocks, excess optimism-pessimism, and learning in the business cycle

Chatterjee, Pratiti; Milani, Fabio - 2020

What are the effects of beliefs, sentiment, and uncertainty, over the business cycle? To answer this question, we develop a behavioral New Keynesian macroeconomic model, in which we relax the assumption of rational expectations. Agents are, instead, boundedly rational: they have a...

Persistent link: https://www.econbiz.de/10012294890

Firm-specific productivity risk over the business cycle : facts and aggregate implications

Bachmann, Ruediger; Bayer, Christian - 2009

-varying uncertainty, highlighted in the literature. -- Ss model ; RBC model ; lumpy investment ; countercyclical risk ; aggregate shocks …

Persistent link: https://www.econbiz.de/10003898815

What drives aggregate investment?

Bachmann, Ruediger; Zorn, Peter - 2013 - This Version: April 13, 2013

-driven business cycle hypothesis for the case of aggregate investment. We construct a survey-based measure of technology shocks to … gauge their contribution to short-run investment fluctuations. We estimate an upper bound for the contribution of technology … shocks to the variance of the aggregate investment growth rate of 19 percent. The larger part of fluctuations in aggregate …

Persistent link: https://www.econbiz.de/10009736762

The cross-section of firms over the business cycle : new facts and a DSGE exploration

Bachmann, Ruediger; Bayer, Christian - 2009

-level investment is procyclical. We show that a heterogeneous-firm RBC model with quantitatively realistic countercyclically disperse … state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a …-sectional firm dynamics ; lumpy investment ; countercyclical risk ; aggregate shocks ; idiosyncratic shocks ; heterogeneous firms …

Persistent link: https://www.econbiz.de/10003888063