抄録
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.
| 元の言語 | English |
|---|---|
| ジャーナル | Economic Inquiry |
| DOI | |
| 出版物ステータス | Accepted/In press - 2016 |
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ASJC Scopus subject areas
- Economics and Econometrics
- Business, Management and Accounting(all)
これを引用
Chained credit contracts and financial accelerators. / Hirakata, Naohisa; Sudo, Nao; Ueda, Kozo.
：: Economic Inquiry, 2016.研究成果: Article
}
TY - JOUR
T1 - Chained credit contracts and financial accelerators
AU - Hirakata, Naohisa
AU - Sudo, Nao
AU - Ueda, Kozo
PY - 2016
Y1 - 2016
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84978402428&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84978402428&partnerID=8YFLogxK
U2 - 10.1111/ecin.12376
DO - 10.1111/ecin.12376
M3 - Article
AN - SCOPUS:84978402428
JO - Economic Inquiry
JF - Economic Inquiry
SN - 0095-2583
ER -