This paper explores the time series implications of introducing credit constraints into a production based asset pricing model. Simulations are performed choosing parameter values which generate reasonable values for aggregate fluctuations. These results show that mean reversion in simulated...

This paper explores the time series implications of introducing credit constraints into a production based asset pricing model. Simulations are performed choosing parameter values which generate reasonable values for aggregate fluctuations. These results show that mean reversion in simulated...

"It is a measure of Professor Samuelson’s preeminence that the sheer scale of his work should be so much taken for granted," a reviewer for the Economist once observed, marking both Paul Samuelson’s influence and his astonishing prolificacy. Volumes 6 and 7 gather the Nobel Laureate’s...

Why do financial institutions, industrial companies, and households hold low-yielding money balances, Treasury bills, and other liquid assets? When and to what extent can the state and international financial markets make up for a shortage of liquid assets, allowing agents to save and share risk...