EconPapers    
Economics at your fingertips  
 

Credit Cycles Redux

Juan Cordoba and Marla Ripoll ()

Macroeconomics from University Library of Munich, Germany

Abstract: Theoretical studies have shown that under unorthodox assumptions on preferences and production technologies, collateral constraints can act as a powerful amplification and propagation mechanism of exogenous shocks. We investigate whether or not this result hold under more standard assumptions. We find that collateral constraints generate a typically small output amplification. Large amplification is a "knife- edge" type of result.

Keywords: Credit Constraints; financial constraints; business cycles; heterogenous agents; amplification (search for similar items in EconPapers)
JEL-codes: E32 E44 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2002-10-16
New Economics Papers: this item is included in nep-dge
Note: Type of Document - pdf; pages: 35 ; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0210/0210004.pdf (application/pdf)

Related works:
Working Paper: Credit Cycles Redux (2010)
Journal Article: CREDIT CYCLES REDUX (2004) Downloads
Working Paper: Credit Cycles Redux (2002) 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:wpa:wuwpma:0210004

Access Statistics for this paper

More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

 
Page updated 2020-02-23
Handle: RePEc:wpa:wuwpma:0210004