Financial Factors and the Business Cycle

Financial contracting along the business cycle

The paper investigates the effects of macroeconomic conditions on firms’ capital structure. We introduce a repeated lender-borrower interaction that allows for debt and equity financing to co-exist as optimal securities in every period. The presence of asymmetric information in the market for loans is responsible for endogenous fluctuations to take place.It is possible to state sufficient condi...

Financial Liberalization and International Business Cycle

The majority of OECD countries has experienced a reduction in macroeconomic volatility during the last two decades. This period is also characterized by a gradual liberalization of the capital accounts of from these countries. The goal of this paper is to study whether capital markets liberalization can lead to lower macroeconomic volatility. We study a business cycle model with multiple countr...

Monetary aggregates, financial intermediate and the business cycle

Business Cycle Features In The Iranian Economy

Financial Sector Shocks, External Finance Premium and Business Cycle

This paper extends Nolan and Thoenissen (2009), hence NT, model with an explicit financial intermediary that transfer funds from households to entrepreneurs subject to a well defined loan production function. The loan productivity shock is treated as the supply side financial disturbance. Together with NT’s net worth shock that resembles the credit demand perturbation, both of the two-sided sho...