Financial constraints, endogenous markups, and self-fulfilling equilibria

• 成果类型: Article
• 署名作者: Benhabib, Jess; Wang, Pengfei
• 署名单位: New York University; Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2013.06.004
• 发表日期: 2013
• 页码: 789-805
• 关键词: Financial constraints; Endogenous markups; Self-fulfilling equilibria; indeterminacy

摘要

Self-fulfilling equilibria and indeterminacy can easily arise in a simple financial accelerator model with reasonable parameter calibrations and without increasing returns in production. A key feature for generating indeterminacy in our model is the countercyclical markup due to the procyclical loan-to-output ratio. We illustrate, via simulations, that our financial accelerator model can generate rich business cycle dynamics, including hump-shaped output in response to demand shocks as well as autocorrelation in output growth rates. (C) 2013 Elsevier B.V. All rights reserved.