کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
986339 1480814 2013 17 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Leveraged borrowing and boom–bust cycles
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Leveraged borrowing and boom–bust cycles
چکیده انگلیسی

Investment booms and asset “bubbles” are often the consequence of heavily leveraged borrowing and speculations of persistent growth in asset demand. We show theoretically that dynamic interactions between elastic credit supply (due to leveraged borrowing) and persistent credit demand (due to consumption habit) can generate a multiplier–accelerator mechanism that transforms a one-time productivity or financial shock into large and long-lasting boom–bust cycles. The predictions are consistent with the basic features of investment booms and the consequent asset-market crashes led by credit expansions.


► We show that collateral constraints and consumption habits generate credit cycles.
► The modelʼs predictions accord with the basic features of documented credit booms.
► Our main results remain under financial shocks and in extensions of the model.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Review of Economic Dynamics - Volume 16, Issue 4, October 2013, Pages 617–633
نویسندگان
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