Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Maria Teresa Punzi
Investor borrowing heterogeneity in a Kiyotaki-Moore style macro model
() and Katrin Rabitsch
Abstract: We allow for heterogeneity in investors’ ability to borrow
from collateral in a Kiyotaki- Moore style macro model. We calibrate the
model to match the quintiles of the distribution of leverage ratios of US
non-financial firms. We show that financial amplification of the model with
heterogeneous investors can be orders of magnitude higher, because of more
pronounced asset price reactions.
Keywords: Collateral Constraints, Leverage, Heterogeneity, Financial Amplification; (follow links to similar papers)
JEL-Codes: E32,; E44; (follow links to similar papers)
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design Joakim Ekebom