scholarly journals The role of financial frictions during the crisis: An estimated DSGE model

2015 ◽  
Vol 48 ◽  
pp. 70-82 ◽  
Author(s):  
Rossana Merola
Keyword(s):  
Financial Frictions ◽  
Dsge Model

scholarly journals Interest Rates, Leverage, and Business Cycles in Emerging Economies: The Role of Financial Frictions

2015 ◽  
Vol 7 (3) ◽  
pp. 153-188 ◽  
Author(s):  
Andrés Fernández ◽  
Adam Gulan
Keyword(s):  
Business Cycles ◽  
Interest Rates ◽  
Open Economy ◽  
Emerging Economies ◽  
Financial Frictions ◽  
Small Open Economy ◽  
Financial Data ◽  
Cycle Model ◽  
Business Cycle Model

Countercyclical country interest rates have been shown to be an important characteristic of business cycles in emerging markets. In this paper we provide a microfounded rationale for this pattern by linking interest rate spreads to the dynamics of corporate leverage. For this purpose we embed a financial accelerator into a business cycle model of a small open economy and estimate it on a novel panel dataset for emerging economies that merges macroeconomic and financial data. The model accounts well for the empirically observed countercyclicality of interest rates and leverage, as well as for other stylized facts. (JEL E13, E32, E43, E44, F41, O11)

scholarly journals Identifying the Role of Labor Markets for Monetary Policy in an Estimated DSGE Model

2006 ◽  
Author(s):  
Kai Philipp Christoffel ◽  
Keith Kuester ◽  
Tobias Linzert
Keyword(s):  
Monetary Policy ◽  
Labor Markets ◽  
Dsge Model

scholarly journals Financial Repression in a DSGE Model with Financial Frictions

2020 ◽  
Vol 24 (4) ◽  
pp. 475-502
Author(s):  
Mariia Elkina ◽  
◽  
Sergey Pekarski ◽  
Keyword(s):  
Financial Frictions ◽  
Dsge Model ◽  
Financial Repression

Credit and the Labour Share: Evidence from US States

2020 ◽  
Vol 130 (630) ◽  
pp. 1782-1816 ◽  
Author(s):  
Aslı Leblebicioğlu ◽  
Ariel Weinberger
Keyword(s):  
Financial Development ◽  
Financial Frictions ◽  
Us States ◽  
Banking Deregulation ◽  
Interstate Banking ◽  
Percentage Points ◽  
Labour Share ◽  
The Us ◽  
The Relationship

Abstract We investigate the role of credit markets as a cause for changes in the US labour share. Causal evidence is provided that the labour share declined between 0.8 and 1.2 percentage points following the interstate banking deregulation, explaining more than half of the overall reduction during that period. The lower costs of credit and greater bank competition in each state are mechanisms that led to the decline. To quantify the relationship between credit and factor payments, we calibrate a model with financial frictions and highlight financial development as a potential channel for the reduction in labour share observed globally.

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