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A gains from trade perspective on macroeconomic fluctuations

Beaudry, Paul; Portier, Franck - 2012

Business cycles reflect changes over time in the amount of trade between individuals. In this paper we show that … incorporating explicitly intra-temporal gains from trade between individuals into a macroeconomic model can provide new insight into … gains from trade approach can easily explain why changes in perceptions about the future (including news about the future …

Persistent link: https://www.econbiz.de/10010307846

Is India's Long-Term Trend Growth Declining?

Patnaik, Ila; Pundit, Madhavi - 2014

The recent decline in gross domestic product (GDP) growth in India raised a debate about whether it is a trend or a business cycle slowdown. We observe a cyclical downturn post-global financial crisis due to external and domestic conditions. With global recovery strengthening and appropriate...

Persistent link: https://www.econbiz.de/10011432712

Stochastic mortality, macroeconomic risks, and life insurer solvency

Hanewald, Katja; Post, Thomas; Gründl, Helmut - 2009

Motivated by a recent demographic study establishing a link between macroeconomic fluctuations and the mortality index kt in the Lee-Carter model, we assess the impact of macroeconomic fluctuations on the solvency of a life insurance company. Liabilities in our stochastic simulation framework...

Persistent link: https://www.econbiz.de/10010265671

Cyclical implications of minimum capital requirements

Heid, Frank - 2005

Capital requirements play a key role in the supervision and regulation of banks. The Basel Committee on Banking Supervision is now changing the current framework by introducing risk-sensitive capital charges. There have been concerns that this will unduly increase volatility in the banks'...

Persistent link: https://www.econbiz.de/10010295899

Bank capital regulation, the lending channel and business cycles

Zhang, Longmei - 2009

This paper develops a Dynamic Stochastic General Equilibrium (DSGE) model to study how the instability of the banking sector can amplify and propagate business cycles. The model builds on Bernanke, Gertler and Gilchrist (BGG) (1999), who consider credit demand friction due to agency cost, but it...

Persistent link: https://www.econbiz.de/10010299852

Learning, liquidity preference, and business cycle

Horii, Ryo; Ono, Yoshiyasu - 2004

This paper examines a mechanism of liquidity-preference fluctuations caused by changes in people's belief about a random liquidity shock. When observing the shock, they rationally update their belief so that the shock probability is higher; consequently they raise liquidity preference and reduce...

Persistent link: https://www.econbiz.de/10010332232

Can intangible capital explain cyclical movements in the labor wedge?

Gourio, François; Rudanko, Leena - 2014

Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production...

Persistent link: https://www.econbiz.de/10010352192

A Banking Explanation of the US Velocity of Money: 1919-2004

Benk, Szilárd; Gillman, Max; Kejak, Michal - 2009

The paper shows that US GDP velocity of M1 money has exhibited long cycles around a 1.25% per year upward trend, during the 1919-2004 period. It explains the velocity cycles through shocks constructed from a DSGE model and annual time series data (Ingram et al., 1994). Model velocity is stable...

Persistent link: https://www.econbiz.de/10010494417

Fiscal Transparency and Procyclical Fiscal Policy

Andersen, Asger Lau; Holbøll Westh Nielsen, Lasse - 2010

This paper examines why fiscal policy is procyclical in developing as well as developed countries. We introduce the concept of fiscal transparency into a model of retrospective voting, in which a political agency problem between voters and politicians generates a procyclical bias in government...

Persistent link: https://www.econbiz.de/10010321001

Money velocity in an endogenous growth business cycle with credit shocks

Benk, Szilárd; Gillman, Max; Kejak, Michal - 2007

The paper sets the neoclassical monetary business cycle model within endogenous growth, adds exchange credit shocks, and finds that money and credit shocks explain much of the velocity variation. The role of the shocks varies across sub-periods in an intuitive fashion. Endogenous growth is key...

Persistent link: https://www.econbiz.de/10010322477