EconPapers    
Economics at your fingertips  
 

Collateralized capital and News-driven cycles

Keiichiro Kobayashi and Kengo Nutahara

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Kobayashi, Nakajima, and Inaba (2007) show that in the neoclassical business cycle models with collateral constraints, a boom can be generated in response to an optimistic change in expectations on the future state of the economy. They call this business cycle a news-driven cycle. In their models, land is used as collateral, and borrowing for working capital is limited by the value of collateralized land. We simplify their model to one without land. We show that in an economy where capital goods are used as collateral, news-driven cycles can be generated.

New Economics Papers: this item is included in nep-bec, nep-dge and nep-mac
Date: 2007-12
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/07e062.pdf (application/pdf)

Related works:
Journal Article: Collateralized capital and news-driven cycles (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:07062

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by MATSUKURA, Taeko ().

 
Page updated 2018-12-02
Handle: RePEc:eti:dpaper:07062