Uncertainty shocks and firm dynamics : Search and monitoring in the credit market
Brand, Thomas; Isoré, Marlène; Tripier, Fabien (23.11.2017)
Numero
34/2017Julkaisija
Bank of Finland
2017
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201711231670Tiivistelmä
We develop a business cycle model with gross flows of firm creation and destruction.The credit market is characterized by two frictions. First,entrepreneurs undergo a costly search for intermediate funding to create a firm. Second, upon a match, a costlystate-verification contract is set up. When defaults occurs, banks monitor firms, seize their assets, and a fraction of financial relationships are severed. The model is estimated using Bayesian methods for the U.S. economy. Among other shocks, uncertainty in productivity turns out to be a major contributor to both macro-financial aggregates
and firm dynamics.
and firm dynamics.
Julkaisuhuomautus
Published in Journal of Economic Dynamics and Control 99 ; February ; 2019 http://urn.fi/URN:NBN:fi:bof-201905081176