Bankruptcy costs, liability dollarization, and vulnerability to sudden stops

• 成果类型: Article
• 署名作者: Aysun, Uluc; Honig, Adam
• 署名单位: University of Connecticut; Amherst College
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2010.04.005
• 发表日期: 2011
• 页码: 201-211
• 关键词: Sudden stops; Bankruptcy costs; Financial accelerator; Liability dollarization

摘要

Countries with intermediate levels of institutional quality suffer larger output contractions following sudden stops of capital inflows than less developed nations. However, countries with strong institutions seldom experience significant falls in output after capital flow reversals. We reconcile these two observations using a calibrated DSGE model that extends the financial accelerator framework developed in Bernanke. Gertler and Gilchrist (1999). The model captures financial market institutional quality with creditors' ability to recover assets from bankrupt firms. Bankruptcy costs affect vulnerability to sudden stops directly but also indirectly by affecting the degree of liability dollarization. Simulations reveal an inverted U-shaped relationship between bankruptcy costs and the output loss following sudden stops. (c) 2010 Elsevier B.V. All rights reserved.