Similar Search Results

The impacts of credit standards on aggregate fluctuations in a small open economy: The role of monetary policy

Le, Hai - In: Economies 9 (2021) 4, pp. 1-26

Empirical evidence demonstrates that credit standards, including lending margins and collateral requirements, move in a … countercyclical movement in credit standards. Our analysis demonstrates that countercyclical fluctuations in credit standards work as … an amplifier of shocks to the economy. In particular, the existence of endogenous credit standards increases output …

Persistent link: https://www.econbiz.de/10013199941

The Aino 3.0 model

Silvo, Aino; Verona, Fabio - 2020

, and the presence of credit-constrained households, on the other hand, affect the transmission of key macroeconomic and …

Persistent link: https://www.econbiz.de/10012614203

Overborrowing and systemic externalities in the business cycle

Bianchi, Javier - 2009

Credit constraints that link a private agent’s debt to market-determined prices embody a credit externality that drives … shocks trigger the credit constraint. We quantify the effects of this inefficiency in a two-sector dynamic stochastic general … equilibrium model of a small open economy calibrated to emerging markets. The credit externality increases the probability of …

Persistent link: https://www.econbiz.de/10010292300

Bond finance, bank credit, and aggregate fluctuations in an open economy

Chang, Roberto; Fernández, Andrés; Gulan, Adam - 2016

bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …

Persistent link: https://www.econbiz.de/10012148291

Bond Finance, Bank Credit, and Aggregate Fluctuations in an Open Economy

Chang, Roberto; Fernández Martin, Andrés; Gulan, Adam - 2016

bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …

Persistent link: https://www.econbiz.de/10011535792

Labor Share Fluctuations in Emerging Markets: The Role of the Cost of Borrowing

Kabaca, Serdar - 2011

credit restrictions not only amplify the results for the variability of labor share but also help better explain some of the …

Persistent link: https://www.econbiz.de/10010500184

Default risk and economic activity: A small open economy model with sovereign debt and default

Roldán-Peña, Jessica - 2012

Empirical evidence shows that sovereign defaults are associated with significant downturns in economic activity in defaulting countries. However, the existing literature on sovereign debt and default mainly analyzes endowment economies and, therefore, does not address the relationship between...

Persistent link: https://www.econbiz.de/10010322557

Corporate Debt Structure and the Financial Crisis

De Fiore, Fiorella; Uhlig, Harald - 2015

We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...

Persistent link: https://www.econbiz.de/10011605804

Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations

Bleakley, Hoyt; Cowan, Kevin - 2005

Substantial attention has been paid in recent years to the risk of maturity mismatch in emerging markets. Although this risk is microeconomic in nature, the evidence advanced thus far has taken the form of macro correlations. This paper empirically evaluates this mechanism at the micro level by...

Persistent link: https://www.econbiz.de/10010327059

Slow Debt, Deep Recessions

Jungherr, Joachim; Schott, Immo - In: American Economic Journal: Macroeconomics 14 (2022) 1, pp. 224-259

Business credit lags GDP growth by about one year. This contributes to high leverage during recessions and slow …

Persistent link: https://www.econbiz.de/10012805460