Download or read book Essays on Business Cycles with Credit Shocks written by In Hwan Jo and published by . This book was released on 2015 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: A recent but growing literature in macroeconomics works to reconcile microeconomic data with the micro-level predictions of dynamic stochastic equilibrium models in an effort to improve the aggregate performance of macroeconomic models. My dissertation follows in this new tradition. It also contributes to a recently revitalized literature attempting to understand the links between financial markets and real economic activity. The essays discussed below examine how real and financial shocks affect the distribution of production in an economy, and how that distribution in turn influences aggregate quantity variables. The models I explore involve rich, time-varying distributions of firms differing in their capital stocks, debt, and productivities.
Download or read book Essays on Financial Frictions and Business Cycles written by Yankun Wang and published by . This book was released on 2011 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation I explore the relationship between the frictions in a country's financial market and its business cycle movements. It is well known that the financial market is far from perfect, and shocks originating in such market could have sizable impact on the real economy. On the other hand, evolvement in the financial market could also be a reflection of the real economy. For example, economic downturn often leads to high borrowing cost for a country in the international financial market. The essays in this dissertation present an analysis of this two-way relationship, both qualitatively and quantitatively. The first essay studies the link between country credit spreads - defined as the difference between a home country's cost of borrowing from the international credit market and the world riskless interest rate - and the domestic business cycle fluctuations. By combining both empirical and theoretical analysis, this essay shows that deteriorating credit markets are both reflections of a declining economy and a major factor that depresses economic activity. This study uses a quarterly dataset over the period 1972Q1 to 2010Q1 for South Korea. The second essay probes the importance of financial shocks in creating business cycles in the United States. It starts from a theoretical dynamic stochastic generating equilibrium model, which identifies positive financial shocks as those that drag down the corporate net worth while raising domestic output. An empirical analysis later uses this property to identify financial shocks and study their importance in creating business cycle movement for the U.S. in the past fifty years. This property is in stark contrast to technological shocks, which raise both corporate net worth and total output.
Download or read book Essays on Credit Frictions Debt Choice and the Business Cycle written by Julian Karl Douglas Wright and published by . This book was released on 1995 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on the Great Depression written by Ben S. Bernanke and published by Princeton University Press. This book was released on 2009-01-10 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: From the Nobel Prize–winning economist and former chair of the U.S. Federal Reserve, a landmark book that provides vital lessons for understanding financial crises and their sometimes-catastrophic economic effects As chair of the U.S. Federal Reserve during the Global Financial Crisis, Ben Bernanke helped avert a greater financial disaster than the Great Depression. And he did so by drawing directly on what he had learned from years of studying the causes of the economic catastrophe of the 1930s—work for which he was later awarded the Nobel Prize. This influential work is collected in Essays on the Great Depression, an important account of the origins of the Depression and the economic lessons it teaches.
Download or read book Essays on the Macroeconomic and Financial Causes of the Great Recession written by Juan Jose Ospina Tejeiro and published by . This book was released on 2017 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed of three essays that study the macroeconomic and financial causes of the Great Recession. The first chapter focuses on understanding some of the business cycle dynamics of different regions in the United States. In particular, I seek to understand what shocks and frictions are the drivers of consumption and employment differences across subnational economies, particularly states. I find that the shocks and frictions that drive the aggregate business cycle are not enough to understand regional business cycle dynamics. In this chapter I develop methodological contributions that can help researchers guide the construction of models whose goal is to understand regional business cycle dynamics and how it relates to aggregate business cycle dynamics. The second chapter focuses on understanding the link between regional and aggregate business cycles. We find that that the shocks that we can identify using cross-sectional variation are insufficient to understand the joint dynamics of prices, wages and employment at business cycle frequencies. In particular, demand shocks identified using cross-region variation are insufficient to explain the persistent decline in aggregate employment. This chapter develops methodological contributions to identify shocks in macroeconomic models and to construct regional indexes for prices and wages. The third chapter is an empirical analysis of the non-agency mortgage backed securities market, which has been at the core of the explanations of the causes of the Great Recession. By carefully studying the cash flows, returns, and how they relate to the credit ratings, we find that contrary to the conventional narrative of the crisis, AAA-rated subprime mortgage backed securities performed remarkably well. This calls into question some key aspects of the explanations that have been given as triggers of the crisis of 2008, and points at the need to better understand the forces behind this event in order to have a more accurate understanding and be able to prescribe appropriate policies.
Download or read book Essays on Business Cycles in Emerging Economies written by Tao Peng and published by . This book was released on 2008 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Business Cycles and Monetary Policy written by Jing Han and published by . This book was released on 2009 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Both technology shocks and monetary policy shocks are important sources of economic fluctuations. My dissertation studies how these shocks affect the economy and how these shocks are propagated in the economy. A main theme is to detect the main propagation mechanisms of these shocks via both statistical approach and structural estimation approach.
Download or read book Essays on Business Cycles in Emerging Economies written by Andrés Fernández Martin and published by . This book was released on 2010 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Three Essays on Banking Frictions Uncertainty and Business Cycles written by Byoung Ho Bae and published by . This book was released on 2012 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstracts: This dissertation studies the role of financial frictions and uncertainty on business cycles in the context of a DSGE (Dynamic Stochastic General Equilibrium) model. In the first chapter, I study the role of the banking sector on business cycles, mainly by focusing on the friction that arises from a bank's portfolio adjustment. Based on empirical evidence, I construct a DSGE model with a banking sector, in which banks adjust the composition of their asset portfolios in response to the economic environment. The quantitative experiment shows that the credit supply-side friction arising from a bank's time-varying portfolio adjustment generates an amplification mechanism and leads to a deeper credit crunch. Furthermore, an economy with an inefficient financial system that requires higher intermediation costs creates a higher level of credit supply-side frictions and that, in turn, leads to the amplification effect of business cycles. The second chapter studies the role of bank capital requirements on business cycles. To this end, I develop a DSGE model with financial frictions arising from moral hazard problems as in Holmstrom and Tirole (1997) together with regulatory capital requirements on the banking sector. I find that financial deepening as measured by a decrease of a financial intermediary's monitoring costs could contribute to mitigating business cycle fluctuations. In addition, this study finds that imposing and increasing capital requirements on the banking sector could lead to a decrease in bank lending, thereby amplifying business cycles. The third chapter studies the effect of uncertainty shocks on the housing market with collateral constraints under a DSGE framework. The quantitative experiment shows that with a standard calibration, increasing volatility in structural shock processes negatively affects housing prices and investment, and that leads to a decrease in output. I also find that higher leverage with a large loan-to-value parameter in collateral constraints amplifies business cycles under uncertainty shocks. In addition, a monetary policy experiment shows that flexible monetary policy with a lower interest smoothing parameter helps to mitigate the fluctuation caused by uncertainty shocks.
Download or read book The Causes of American Business Cycles written by Peter Temin and published by . This book was released on 1998 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper surveys the causes of American business cycles for the century 1890 - 1990. Causes are taken to be exogenous shocks to a model with largely endogenous policy makers. Causes are classified as either real or monetary and domestic or foreign. All four causes were found to have led to cycles in the past century. This diversity was found in all time periods and for all size cycles. There were more domestic than foreign causes, confirming the relative independence of the American economy from external conditions. There were more real than monetary causes, conflicting with the popular view that monetary shocks are the source of most cycles.
Download or read book Business Cycles and Financial Crises written by A. W. Mullineux and published by Bookboon. This book was released on 1990 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Three Essays on Business Cycles written by John Bailey Jones and published by . This book was released on 1998 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays in the International Economics of Credit and Banking written by Bekele Sinkie Gebregiorgis and published by . This book was released on 2008 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Analysing Modern Business Cycles Essays Honoring Geoffrey H Moore written by Philip A. Klein and published by Routledge. This book was released on 2019-07-25 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: This "Festschrift" honours Geoffrey H. Moore's life-long contribution to the study of business cycles. After some analysts had concluded that business cycles were dead, renewed economic turbulence in the 1970s and 1980s brought new life to the subject. The study of business cycles now encompasses the global economic system, and this work aims to push back the frontiers of knowledge.
Download or read book Beyond Shocks written by Jeffrey C. Fuhrer and published by . This book was released on 2003-11-01 with total page 398 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proceedings of a conf. held in 1998 by the Fed. Reserve Bank of Boston. Papers: Beyond Shocks: What Causes Bus. Cycles? An Overview; Summing Up on Bus. Cycles: Opening Address; The Causes of American Bus. Cycles: An Essay in Economic Historiography; Historical Evidence on Bus. Cycles: The International Experience; The Role of Interest Rate Policy in the Generation & Propagation of Bus. Cycles: What Has Changed Since the Ô30s?; Financial Markets & Bus. Cycles: Lessons from Around the World: A Panel Discussion; Technology & Bus. Cycles: How Well Do Standard Models Explain the Facts?; Job Reallocation & the Bus. Cycle: New Facts for an Old Debate; & Policy Implications: A Panel Discussion. Charts & graphs. Also includes an 18-page report issued by the Fed. Reserve Bank of Dallas, Business Cycles: The Role of Energy Prices.Ó
Download or read book Credit Market Imperfections and Business Cycles written by Imen Ben Mohamed and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The crisis of 2009 raised the question whether the financial conditions matter for the business cycles and the propagation of shocks originating in the financial sphere. I tried to drive a fine analysis of this issue using micro-founded general equilibrium models. The modelling choice was backed by empirical motivations. In three essays, i study the impact of monetary and financial shocks on growth and labour market dynamics. First, an expansionary monetary policy eases credit conditions, raises risk tolerance and the quality of borrowers and generates a liquidity effect. The potency of the monetary policy and the size of the credit channel depend considerably on the degree of financial frictions in the credit market. Second, a restrictive monetary policy shock, an positive credit shock and a positive uncertainty shocks have similar effects on the economy: they plunge the economy in a recession, with output, job creations, and hours worked decreasing, while unemployment and job destructions increase. In all cases the interest rate spread increase, therefore indicating that financial conditions deteriorate, which is interpreted as a sign that financial frictions play a critical role in the propagation of these shocks. Third, the interaction between financial and labour market frictions does exist. The interplay between the two indeed plays a role in propagating the shocks. A shock to net worth, a credit shock and an uncertainty shock play a non-trivial role for the dynamics on the labour market.
Download or read book Money and Credit Shocks in Business Cycle Models with Limited Participation written by Marian Meller and published by GRIN Verlag. This book was released on 2005-03-28 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt: In business cycle theory, credit can be regarded either as enhancement mechanism for monetary policy or as source of random shocks to the economy. The current paper compares the effects of monetary shocks via the credit channel (“money shocks”) with non-monetary shocks to bank lending (“credit shocks”) by introducing them into a single benchmark model. The lending channel serves as a propagation mechanism for both type of disturbances that both come from the supply side and affect the financial sector first. The key feature of the model framework is limited participation: households have to make their portfolio decision before observing the shock. To generate a credit shock, stochastic bank capital and a capital adequacy constraint are added to the model. Each of the models can only explain some of the business cycle phenomena observed in U.S. data. In particular, the money shock model can account for the positive correlation of money, loans, and prices. The bank capital shock scenario is more approriate to replicate the countercyclical movements of prices. Both models produce a strong, short-lived liquidity effect on nominal interest rates.
