Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/106212
Authors: 
Punzi, Maria Teresa
Rabitsch, Katrin
Year of Publication: 
2014
Series/Report no.: 
FinMaP-Working Paper 24
Abstract: 
TWe 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 distri- bution 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.
Subjects: 
Collateral Constraints
Leverage
Heterogeneity
Financial Amplification
JEL: 
E32
E44
Document Type: 
Working Paper
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