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We study the aggregate implications of sectoral shocks in a multi-sector New Keynesian model featuring sectoral heterogeneity in price stickiness, sector size, and input-output linkages. We calibrate a 341 sector version of the model to the United States. Both theoretically and empirically,...
Persistent link: https://www.econbiz.de/10011804417
We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the...
Persistent link: https://www.econbiz.de/10011605394
accompanied by higher and more rapidly increasing rates of investment in EMDEs relative to advanced economies, suggesting that …
Persistent link: https://www.econbiz.de/10012515454
We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the...
Persistent link: https://www.econbiz.de/10013124891
accompanied by higher and more rapidly increasing rates of investment in EMDEs relative to advanced economies, suggesting that …
Persistent link: https://www.econbiz.de/10013233716
We study the aggregate implications of sectoral shocks in a multi-sector New Keynesian model featuring sectoral heterogeneity in price stickiness, sector size, and input-output linkages. We calibrate a 341 sector version of the model to the United States. Both theoretically and empirically,...
Persistent link: https://www.econbiz.de/10012945756
How do housing bubbles affect other economic sectors? We show that in the presence of collateral constraints, a bubble initially raises housing credit demand and crowds out credit to non-housing firms. If the bubble lasts, however, housing credit repayments raise banks' net worth and expand...
Persistent link: https://www.econbiz.de/10012142089
decline of output, investment, stock prices, and interest rates, and an increase in the expected return on risky assets. The … level and cyclicality of credit spreads, and in particular the relation between investment and credit spreads. …
Persistent link: https://www.econbiz.de/10011605508
We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … are found to impair firm-level investment in all firms in our sample, but in particular for small firms and those with no … 20-40% of aggregate investment dynamics. …
Persistent link: https://www.econbiz.de/10011605959
their investment more after the crisis. This negative effect is stronger for firms linked to weak banks with exposures to … corporate investment …
Persistent link: https://www.econbiz.de/10012892581