Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/97297
Authors: 
Kühl, Michael
Year of Publication: 
2014
Series/Report no.: 
Discussion Paper, Deutsche Bundesbank 08/2014
Abstract: 
This paper shows how the average maturity of corporate bonds can affect the transmission of shocks if financial frictions prevail. We modify a standard financial accelerator model à la Bernanke, Gertler, and Gilchrist (1999) and allow for market-based debt which has a market-determined price. Our results show that the average maturity of bonds is essential for the transmission of shocks. The dynamics are largely identical to the standard BGG model for shorter maturities, while the model behaves differently for longer maturities. In this case a prolongation channel becomes apparent which attenuates the original amplification mechanism.
Subjects: 
DSGE Model
Financial Frictions
Maturites
Financial Accelerator
Capital Market
JEL: 
E3
E44
G3
ISBN: 
978-3-95729-025-0
Document Type: 
Working Paper

Files in This Item:
File
Size





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