黄晓东 宏观经济.pdfVIP

Financial Frictions: Amplification versus Persistence Professor Kevin X.D. Huang Alternative GE model with agency cost fric- tions Monetary sticky-price extension of Carlstrom- Fuerst (1997) Di§erent features relative to BGG 1. Agency cost friction applies to producers of capital (rather than buyers) 2. Asset prices are time-varying due to Önancial frictions per se (and not due to adjustment costs) 3. Model generates endogenous persistence Drawbacks 1. Default rate pro-cyclical 2. Finance premium pro-cyclical !