Costly Financial Intermediation and Relative Consumption Volatility
نویسنده
چکیده
This paper proposes a model that emphasizes housing market interactions and nancial intermediation costs to explain relative consumption volatility di¤erences between developed and emerging countries. The model improves upon existing dynamic stochastic general equilibrium (DSGE) models by incorporating a non-trivial nancial sector and by letting both households and rms face borrowing constraints in their borrowing constracts. Moments generated by this model match the data well by nding the relative consumption volatility to be four times higher in an average emerging Economics Department, Vanderbilt University, Nashville, TN 37235, USA. Email: [email protected]
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تاریخ انتشار 2013