Abstract The unique feature of the rural credit market in China is dominance zero collateral and zero-interest reciprocal lending its long-term coexistence with formal loan. This paper investigates association between constraint prevalence loans China. Based on identification households’ status, we examine effects utilization informal loans. We find that significantly increases borrowers’ relia...

This paper explores contractual features of housing Þnance and uses data from international housing markets to provide evidence supporting the “Þnancial accelerator” (Bernanke et al. 1996, 1999). Among households whose housing demand is constrained by the availability of collateral, those who can borrow against a larger fraction of the housing value (achieve higher loan-to-value, or LTV ratio) ...

We analyze aggregate shocks in a general equilibrium model of firm dynamics with entry and exit financial frictions. Compared to the productivity shock, shock collateral constraint (credit shock) generates larger change exit. Calibrating credit Great Recession, we find that accounts for lower entry, higher exit, concentration among young firms during Recession. The changes account 19 24 percent...

The extent to which market imperfections or institutional distortions amplify business cycle fluctuations is controversial. Competitive real-business-cycle models (for example, Kydland and Prescott 1982, Hansen 1985) imply that these factors play a secondary role. Other types of model imply that market imperfections can have a significant, adverse effect on welfare. In particular, Bernanke and ...

The types and prevalence of soft tissue constraint injuries associated with complex elbow instability have been rarely investigated. The purpose of this study was to analyze the intraoperative findings of soft tissue constraint injuries in complex elbow instability and provide a comprehensive classification of these lesions. Forty-seven patients undergoing surgery for complex elbow instability ...

Abstract Background Access to finance has been identified as one of the biggest problems faced by small and medium-sized enterprises (SMEs) in most developing economies. Similarly, access a dominant constraint facing SME sector Lesotho. This paper established factors related that influence competitive growth The were include financial information access, bank business support services, structur...

This paper explores the interaction between long run economic growth, financial development, and intellectual property rights through a general equilibrium, over-lapping generation, infinite horizon, endogenous R&D model with heterogeneous agents. I find that a reduced collateral constraint leads to both an ability to engage more heavily in research and a reduced incentive to engage in research...

This document contains additional results for the paper “The Macroeconomics of Shadow Banking.” These results include robustness to alternative parameter values, evidence on the composition of the liquidity supply over the 2003–2015 cycle, and extensions for analyzing liquidity requirements and equity issuance costs. ∗Yale University School of Management, [email protected]. †New York Univer...

I study optimal capital flow management in a small open-economy DSGE model with two frictions: downward nominal wage rigidity and a pricedependent collateral constraint. Wage rigidity introduces an aggregate demand externality under fixed exchange rates and the collateral constraint introduces a pecuniary externality. I provide an analytical characterization of the optimal capital flow manageme...

People use to believe that no bubble can exist in an infinite-horizon model with a finite number of rational individuals. However, the opinion is true only for the baseline case. In the baseline model, wealth merely provides consumption flows, which individuals only care about. No one likes to hold an asset, whose price is above its fundamental value, forever. Sooner or later, individuals will ...