Economies of Scale in Banking, Indeterminacy, and Business Cycles.pdf

下载文档 降价啦

5
0
约 33页
2017-04-06 发布于江苏
举报
版权申诉
保障服务

Economies of Scale in Banking, Indeterminacy, and Business Cycles.pdf

1、本文档共33页，可阅读全部内容。
2、有哪些信誉好的足球投注网站（book118）网站文档一经付费（服务费），不意味着购买了该文档的版权，仅供个人/单位学习、研究之用，不得用于商业用途，未经授权，严禁复制、发行、汇编、翻译或者网络传播等，侵权必究。
3、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。如您付费，意味着您自己接受本站规则且自行承担风险，本站不退款、不进行额外附加服务；查看《如何避免下载的几个坑》。如果您已付费下载过本站文档，您可以点击这里二次下载。
4、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等，请点击“版权申诉”（推荐），也可以打举报电话：400-050-0827(电话支持时间：9:00-18:30)。

Economies of Scale in Banking, Indeterminacy, and Business Cycles

Economies of Scale in Banking, Indeterminacy, and Business Cycles Scott J. Dressler? Villanova University April 2007 Abstract This paper investigates an environment featuring inside money, nominal rigidities and indeterminacy due to increasing returns to scale (IRS) in the financial intermediary. Although the size of the financial intermediary sector is calibrated to be approximately 1-2 percent of value added to output: (i) indeterminacy arises for very small degrees of IRS and standard parameter assumptions; (ii) sunspot shocks have significant effects due to the money multiplier; (iii) idiosyncratic sunspot shocks qualitatively resemble exogenous monetary shocks; and (iv) although endogenous monetary policy can in- crease the degree of IRS needed for indeterminacy, policy can only stabilize sunspot shocks under complete information. Keywords: Financial Intermediation, Inside Money, Indeterminacy, Business Cycles JEL: C68, E32, E44 ?First version: February 2007. Address: Villanova University; 800 Lancaster Avenue; Villanova, PA 19085-1699. Phone: (610) 519-5934. Fax: (610) 519-6054. Email: scott.dressler@villanova.edu. 1. Introduction Business cycle environments focusing on the beliefs of agents (or animal spirits) have become popular tools for analyzing economic fluctuations. Following Farmer (1993), much of the related literature has focused on environments featuring increasing returns to scale (IRS) in production which deliver indeterminate equilibria and allow an analysis of the economic impact of resulting sunspot shocks. While providing a rich environment to analyze the extent through which agents’ beliefs influence business cycle fluctuations, some features of IRS in the production technology are at odds with the empirical facts. For example, the degree of IRS needed to deliver indeterminacy in environments with one sector of production [i.e. Farmer and Guo (1994) and Gali (1994)] far exceeds the constant returns estimated by Basu and Fernald (1997).1 In co