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dc.contributor.authorCasadio, Paoloen_US
dc.contributor.authorParadiso, Antonioen_US
dc.date.accessioned2010-12-20en_US
dc.date.accessioned2012-04-12T14:22:04Z-
dc.date.available2012-04-12T14:22:04Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/57054-
dc.description.abstractThis paper investigates private net saving in the US economy - divided into its principal components, households and (nonfinancial) corporate financial balances - and its impact on the GDP cycle from the 1980s to the present. Furthermore, we investigate whether the financial markets (stock prices, BAA spread, and long-term interest rates) have a role in explaining the cyclical pattern of the two private financial balances. We analyze all these aspects estimating a VAR - between household and (nonfinancial) corporate financial balances (also known as the corporate financing gap), financial markets, and the economic cycle - and imposing restrictions on the matrix A to identify the structural shocks. We find that households and corporate balances react to financial markets as theoretically expected, and that the economic cycle reacts positively to corporate balance, in accordance with the Minskyan view of the operation of the economy that we have embraced.en_US
dc.language.isoengen_US
dc.publisherLevy Economics Inst. Annandale-on-Hudson, NYen_US
dc.relation.ispartofseriesWorking paper, Levy Economics Institute 632en_US
dc.subject.jelC32en_US
dc.subject.jelE12en_US
dc.subject.jelE20en_US
dc.subject.ddc330en_US
dc.subject.keywordhousehold financial balanceen_US
dc.subject.keywordfinancing gapen_US
dc.subject.keywordbusiness cycleen_US
dc.subject.keywordfinancial marketsen_US
dc.subject.keywordSVARen_US
dc.titleThe household sector financial balance, financing gap, financial markets, and economic cycles in the US economy: A structural VAR analysisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn642190402en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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