Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/54191 
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dc.contributor.authorScheffknecht, Lukasen
dc.contributor.authorGeiger, Felixen
dc.date.accessioned2011-12-14-
dc.date.accessioned2011-12-15T15:07:28Z-
dc.date.available2011-12-15T15:07:28Z-
dc.date.issued2011-
dc.identifier.piurn:nbn:de:bsz:100-opus-6628en
dc.identifier.urihttp://hdl.handle.net/10419/54191-
dc.description.abstractWe merge a financial market model with leverage-constrained, heterogeneous agents with a reduced-form version of the New-Keynesian standard model. Agents in both submodels are assumed to be boundedly rational. The fi nancial market model produces endogenously arising boom-bust cycles. It is also capable to generate highly non-linear deleveraging processes, fi re sales and ultimately a default scenario. Asset price booms are triggered via self-fulfilling prophecies. Asset price busts are induced by agents' choice of an increasingly fragile balance sheet structure during good times. Their vulnerability is inevitably revealed by small, randomly occurring shocks. Our transmission channel of financial market activity to the real sector embraces a recent strand of literature shedding light on the link between the active balance sheet management of financial market participants, the induced procyclical fluctuations of desired risk compensations and their final impact on the real economy. We show that a systematic central bank reaction on financial market developments dampens macroeconomic volatility considerably. Furthermore, restricting leverage in a countercyclical fashion limits the magnitude of financial cycles and hence their impact on the real economy.en
dc.language.isoengen
dc.publisher|aUniversität Hohenheim, Forschungszentrum Innovation und Dienstleistung (FZID) |cStuttgarten
dc.relation.ispartofseries|aFZID Discussion Paper |x37-2011en
dc.subject.jelE31en
dc.subject.jelE41en
dc.subject.jelE47en
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordbehavioral economicsen
dc.subject.keywordNew-Keynesian macroeconomicsen
dc.subject.keywordmonetary policyen
dc.subject.keywordagent-based financial market modelen
dc.subject.keywordleverageen
dc.subject.keywordmacroprudential regulationen
dc.subject.keywordfinancial stabilityen
dc.subject.keywordasset price bubblesen
dc.subject.keywordsystemic risken
dc.titleA behavioral macroeconomic model with endogenous boom-bust cycles and leverage dynamcis-
dc.typeWorking Paperen
dc.identifier.ppn679702776en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:fziddp:372011en

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