Money versus debt financed regime: Evidence from an estimated DSGE model
Chiara Punzo and
Giulia Rivolta ()
No def120, DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)
We estimate a money- nancing versus debt- nancing medium-scale dynamic stochastic general equilibrium for the US with Borrower-Saver framework. Our results suggest that the share of net borrowers in a MF regime (17%) is lower than the one in a DF regime (19%). The MF regime enhances the positive e¤ects of scal and risk premium shocks with respect to the DF regime. After an inationary shock the MF regime leads to a mild recession while the DF regime leads to a temporary expansion followed by a sharp recession. The scal shock mainly explains the variance in output and borrowers consumption in a MF regime. The variance of the savers consumption remains mainly linked to the risk premium shock in both regimes. In a DF regime, the wage mark-up shock plays the major role.
Keywords: Borrowers-Savers; Bayesian Estimation; Monetary Policy. (search for similar items in EconPapers)
JEL-codes: E32 E42 E52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-dge and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://dipartimenti.unicatt.it/economia-finanza-def120.pdf First version, 2022 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ctc:serie1:def120
Access Statistics for this paper
More papers in DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) Contact information at EDIRC.
Bibliographic data for series maintained by Simone Moriconi ( this e-mail address is bad, please contact ).