Can financial innovation help to explain the reduced volatility of economic activity
TLDR
In this article, the authors employ a variety of simple empirical techniques to identify links between the observed moderation in economic activity and the influence of financial innovation on consumer spending, housing investment, and business fixed investment.About:
This article is published in Journal of Monetary Economics.The article was published on 2005-11-01 and is currently open access. It has received 352 citations till now. The article focuses on the topics: Financial innovation & Financial ratio.read more
Citations
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Credit Spreads and Business Cycle Fluctuations
Simon Gilchrist,Egon Zakrajsek +1 more
TL;DR: In this paper, the authors examined the relationship between credit spreads and economic activity, by constructing a credit spread index based on an extensive data set of prices of outstanding corporate bonds trading in the secondary market and found that the predictive content of credit spreads for economic activity is due primarily to movements in the excess bond premium.
Journal ArticleDOI
Housing Market Spillovers: Evidence from an Estimated DSGE Model
Stefano Neri,Matteo Iacoviello +1 more
TL;DR: In this paper, the authors investigated the ability of a two-sector model to quantify the contribution of the housing market to business fluctuations using U.S. data and Bayesian methods and found that a large fraction of the upward trend in real housing prices over the last 40 years can be accounted for by slow technological progress in the housing sector.
Journal ArticleDOI
The Time-Varying Volatility of Macroeconomic Fluctuations
TL;DR: The authors investigated the sources of the important shifts in the volatility of US macroeconomic variables in the postwar period and proposed the esti- mation of DSGE models allowing for time variation in the variance of the structural innovations, and applied their estimation strategy to a large-scale model of the business cycle.
Journal ArticleDOI
Capital regulation, risk-taking and monetary policy: A missing link in the transmission mechanism?
Claudio Borio,Haibin Zhu +1 more
TL;DR: In this article, the authors argue that insufficient attention has so far been paid to the link between monetary policy and the perception and pricing of risk by economic agents, what might be termed the "risk-taking channel" of monetary policy.
Journal ArticleDOI
Housing market spillovers : evidence from an estimated DSGE model
Matteo Iacoviello,Stefano Neri +1 more
TL;DR: This paper studied the sources and consequences of fluctuations in the US housing market and showed that the spillovers are nonnegligible, concentrated on consumption rather than business investment, and have become more important over time.
References
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Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Posted Content
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.
Journal ArticleDOI
Monetary policy rules and macroeconomic stability: Evidence and some theory
TL;DR: In this article, the authors estimate a forward-looking monetary policy reaction function for the postwar United States economy, before and after Volcker's appointment as Fed Chairman in 1979, and compare some of the implications of the estimated rules for the equilibrium properties of ineation and output, using a simple macroeconomic model.
Posted Content
Capital-Market Imperfections and Investment
TL;DR: In this paper, the authors present a review of the development and challenges in this empirical research, and uses advances in models of information and incentive problems to motivate those developments and challenges, and discuss implications of this research program for analysis of investment on monetary policy and tax policy.
ReportDOI
Capital-market imperfections and investment
TL;DR: This article reviewed developments and challenges in this empirical research, and used advances in models of information and incentive problems to motivate those developments and challenge, and discussed implications of this research program for analysis of effects of investment of monetary policy and tax policy.
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