Arbeitspapier
The financial accelerator and market-based debt instruments: A role for maturities?
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.
- ISBN
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978-3-95729-025-0
- Language
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Englisch
- Bibliographic citation
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Series: Bundesbank Discussion Paper ; No. 08/2014
- Classification
-
Wirtschaft
Financial Markets and the Macroeconomy
- Subject
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DSGE Model
Financial Frictions
Maturites
Financial Accelerator
Capital Market
- Event
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Geistige Schöpfung
- (who)
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Kühl, Michael
- Event
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Veröffentlichung
- (who)
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Deutsche Bundesbank
- (where)
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Frankfurt a. M.
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kühl, Michael
- Deutsche Bundesbank
Time of origin
- 2014
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