منابع مشابه
Liquidity, Assets and Business Cycles
Equity price is cyclical and often leads the business cycle. These observations have led to the hypothesis that shocks to equity market liquidity are an independent source of the business cycle. In this paper I construct a tractable model to evaluate this hypothesis. After calibrating the model to the US data, I find that a negative liquidity shock in the equity market can generate large reduct...
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Banks and their financial transactions have a positive impact on corporate income and the economy of the country. The purpose aimed to identify the relationship between liquidity risk and credit risk and their impact on bank stability. Therefore, paying attention to their stability conditions can have a stable economy. The present study is based on the correlation between variables in terms of ...
متن کاملLiquidity and Credit Risk
We develop a structural bond valuation model to simultaneously capture liquidity and credit risk. Our model implies that renegotiation in financial distress is influenced by the illiquidity of the market for distressed debt. As default becomes more likely, the components of bond yield spreads attributable to illiquidity increase. When we consider finite maturity debt, we find decreasing and con...
متن کاملLiquidity Constraints and Cycles
In this paper, we modify the model of Benhabib and Laroque in which the behaviour of non steady-state equilibria in the neighborhood of the golden rule steady state are studied, to include liquidity constraints. We observe, in an example, the appearance of new cycles.
متن کاملBank Liquidity and Bank Performance: Looking for a Nonlinear Nexus
Liquid assets are critical for banking operations. They guarantee avoiding liquidity risk and widens managerial decision options to invest in emerging profitable projects; however, holding extra liquidity entails opportunity costs. Accordingly, empirical literature does not provide a conclusive relationship between liquidity and profitability. The purpose of this research is to analyze the asym...
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ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 2019
ISSN: 0165-1889
DOI: 10.1016/j.jedc.2019.06.003