A financial sector balance approach and the cyclical dynamics of the US economy

Arbeitspapier

This paper investigates the relationship between asset markets and business cycles with regard to the United States economy. We consider the Goldman Sachs approach (2003) developed to study the dynamics of financial balances. By means of a small econometric model we find that asset market dynamics are fundamental to determining the long-run financial sector balance dynamics. The gap between long-run equilibrium values and the actual values of the financial balances help to explain the cyclical path of the economy. Among all financial sectors balances, the financing gap in the corporate sector shows a leading effect on business cycles, in a Minskyan spirit. The last results appear innovative with respect to Goldman Sachs's findings. Furthermore, our econometric results are robust and quite stable.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 576

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Econometric Modeling: General ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; General Aggregative Models: Forecasting and Simulation: Models and Applications ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data)
• Thema: financial balance ; asset markets ; business cycle ; financing gap ; cointegration ; DLS

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Casadio, Paolo ; Paradiso, Antonio
• Ereignis: Veröffentlichung
• (wer): Levy Economics Institute of Bard College
• (wo): Annandale-on-Hudson, NY
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/57075
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ