Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212405
Authors: 
Brand, Thomas
Isoré, Marlène
Tripier, Fabien
Year of Publication: 
2017
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 34/2017
Abstract: 
We develop a business cycle model with gross flows of firm creation and destruction.The credit market is characterized by two frictions. First,entrepreneurs undergo a costly search for intermediate funding to create a firm. Second, upon a match, a costlystate-verification contract is set up. When defaults occurs, banks monitor firms, seize their assets, and a fraction of financial relationships are severed. The model is estimated using Bayesian methods for the U.S. economy. Among other shocks, uncertainty in productivity turns out to be a major contributor to both macro-financial aggregates and firm dynamics.
JEL: 
D8
E3
E4
E5
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-197-9
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.