منابع مشابه
Bank Leverage Regulation and Macroeconomic Dynamics
Regulatory constraints on bank leverage have been at the center of many policy discussions recently. One important question to emerge from these discussions has been whether these regulations should be time-dependent and how they would interact with the business cycle. We analyze this question using a dynamic stochastic general equilibrium model with banks and bank capital. In the model, bank c...
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I construct a macroeconomic model with a financial sector in which the severity of financial downturns depends on size differences in the banking sector and average bank leverage. In my model, a more concentrated banking sector deepens and prolongs financial downturns for two reasons: returns on assets decrease more, and banks sharply decrease the liquidity supply in the interbank market. Calib...
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I characterize cyclical fluctuations in the cross-sectional dispersion of firm-level productivity. Using the micro-estimated dispersion, or “risk,” stochastic process as an input to a baseline DSGE financial accelerator model, I assess how well the model reproduces cyclical movements in both real and financial conditions of the economy. In the model, risk shocks calibrated to micro data lead to...
متن کاملEconomic Cycles and Bank Health
Over the past two decades the United States has experienced substantial increases in the number of bank failures, however, surprisingly few banks have failed during the 2001 recession. This paper explores the relationship between economic cycles and bank health. We find that economic forecasts provide little additional information over bank-specific financial data during prosperous times, possi...
متن کاملReal interest rates, leverage, and bank risk-taking
Do low interest rate environments lead to greater bank risk-taking? We show that, when banks can adjust their capital structures, reductions in real interest rates lead to greater leverage and higher risk for any downward sloping loan demand function. However, if the capital structure is fixed, the effect depends on the degree of leverage: following a decrease in interest rates, well capitalize...
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ژورنال
عنوان ژورنال: American Economic Journal: Macroeconomics
سال: 2017
ISSN: 1945-7707,1945-7715
DOI: 10.1257/mac.20140084