منابع مشابه
CyCliCal Capital StoCk
It is common to assume in business cycle analysis that the capital stock is homogenous and constant in aggregate value. We explore the alternative concept that capital is heterogeneous, and whether it exhibits cyclical changes. A multiperiod model of investment implies that acquisition of specific components of capital responds to changes in relative interest rates, and we further show that the...
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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’ capital. Furthermore, when the credit supply is rationed, capital requirements may exacerbate an economic d...
متن کاملThe Cyclical Behavior of Optimal Bank Capital
This paper presents a dynamic model of optimal bank capital in which the bank optimizes over costs associated with failure, holding capital, and flows of external capital. The solution to the infinite-horizon optimization problem is related to period-by-period value-at-risk (var) in which the optimal probability of failure is endogenously determined. Over a cycle, var is positively correlated w...
متن کاملThe Relationship between Capital Investment Choice and Capital Productivity: A Test of Firm Life Cycle Theory (A Comparative Investigation of Cyclical and Non-Cyclical Companies)
According to the firm life cycle theory, companies go through certain behavioral patterns in various stages of their life. A thorough understanding and recognition of these behavioral patterns, new investment in assets and the optimal use of assets can considerably enhance the capital productivity. In the current study, the relationship between the stages of firm life cycle and capital producti...
متن کاملWhy Are Recessions Good for your Health? Understanding Pro-cyclical Mortality
A growing literature has established a link between mortality and the business cycle and documented robust countercyclical movements in health in the United States and elsewhere. We examine these findings more closely and attempt to identify mechanisms that may be driving this connection. Specifically we examine the link between mortality from different causes and in different age ranges over t...
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ژورنال
عنوان ژورنال: Journal of Financial Intermediation
سال: 2004
ISSN: 1042-9573
DOI: 10.1016/s1042-9573(03)00044-5