Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity
Bibliographic Data
| ID | 10174783 |
|---|---|
| Authors | Aubhik Khan (The Ohio State University), Julia K Thomas (The Ohio State University) |
| Year | 2013 |
| Volume | 121 |
| Issue | 6 |
| Pages | 1055-1107 |
| Publication date | 2013-12-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/674142 |
| OpenAlex | W3096447669 |
| Language | EN |
| Citations received | 15 |
| References cited | 31 |
We study the cyclical implications of credit market imperfections in a quantitative dynamic, stochastic general equilibrium model wherein firms face persistent shocks to aggregate and individual productivity. In our model economy, optimal capital reallocation is distorted by two frictions: collateralized borrowing and partial investment irreversibility. We find that a negative shock to borrowing conditions can, on its own, generate a large and persistent recession through disruptions to the distribution of capital. This recession, and the subsequent recovery, is distinguished both quantitatively and qualitatively from that driven by an exogenous shock to total factor productivity
Aggregate (composite · Business cycle · Capital (architecture · Capital accumulation · Collateral · Collateralized debt obligation · Distribution (mathematics · Dynamic stochastic general equilibrium · Economics · General equilibrium theory · Investment (military · Macroeconomics · Microeconomics · Monetary economics · Monetary policy · Production (economics · Productivity · Recession · Shock (circulatory · Total factor productivity · Banking stability, regulation, efficiency · Economic theories and models · Economic Theory and Policy · Finance
The Economic Crisis from a Neoclassical Perspective
Equilibrium Shirking, Access to Credit and Endogenous TFP Fluctuations
Really Uncertain Business Cycles
Financial Intermediaries and the Macroeconomy
Firm value adjustment speed through financial friction in the presence of earnings management and productivity growth
Loans to Different Groups and Economic Activity at Times of Crisis and Growth
The Real Effects of Zombie Lending in Europe
Monetary Policy, Markup Dispersion, and Aggregate TFP
The TFP Channel of Credit Supply Shocks
Endogenous Liquidity and Capital Reallocation
Capital reallocation
Inequality, Heterogeneity, and Consumption in the Journal of Political Economy
Financial Frictions and Fluctuations in Volatility
Real Effects of Financial Distress
Firm Ex Ante Heterogeneity, Entry and the Labour Share
Bank lending during the financial crisis of 2008
The Growth and Failure of U. S. Manufacturing Plants
Gross Job Creation, Gross Job Destruction, and Employment Reallocation
Policy distortions and aggregate productivity with heterogeneous establishments
Finance and Misallocation
Displaced Capital
Aggregate Consequences of Limited Contract Enforceability
Financial Frictions and the Persistence of History
Income and Wealth Heterogeneity in the Macroeconomy
Credit Cycles
The Economic Crisis from a Neoclassical Perspective
| Citations per year | 0.94 |
|---|---|
| Citation span | 2010 - 2025 (16) |
| Highly cited | No |