Chained credit contracts and financial accelerators

Naohisa Hirakata, Nao Sudo, Kozo Ueda

    研究成果: Article

    2 引用 (Scopus)


    Sufficiently high net worth of financial intermediaries (FIs) is considered a necessary condition for financial and macroeconomic stability. In this paper, we explore why the net worth of FIs is important as compared to that of nonfinancial firms using a dynamic general equilibrium model, in which both FIs and nonfinancial firms rely on costly external debt. We find that an exogenous disruption of the FIs' net worth has a greater aggregate impact than does the same-sized disruption of the nonfinancial firms' net worth. The key reason is that the net worth of the FIs in the United States is small.

    ジャーナルEconomic Inquiry
    出版物ステータスAccepted/In press - 2016


    ASJC Scopus subject areas

    • Economics and Econometrics
    • Business, Management and Accounting(all)