We build a business cycle model characterized by endogenous firms dynamics, where banks may prefer debt renegotiation, i.e. non-performing exposures, to outright borrowers default. find that renegotiations only do not have adverse effects in the event of financial crisis episodes, but large share is associated with sharp deterioration economic activity two cases. First, if there are congestion ...

in this paper asymmetric price transmission mechanism and nonlinear adjustment between producer and retail prices of milk were examined in zanjan province of iran. for this purpose, a two-regime threshold vector error correction model (tvecm) and a sup-lm test developed by hansen and seo (2002) were employed for checking presence of a threshold effect. application of unit root tests indicated t...

The flow of resources across sectors to their best use, with concomitant entry and exit, is central the functioning welfare properties a market economy. Nevertheless, most industrial organization research, including applications competition policy, undertakes partial equilibrium analysis in single sector, often fixed number firms. This article examines policy simple, multi-sector, general model...

 Trade liberalization is often the core attention of foreign economic strategies in developing countries. Findings in the literature confirm a significant effect of free trade on developing economies through which the economic sectors benefit from technology transfer and spillovers and increasing production capacities and input productivity leading to international competitiveness. On the other...