Leverage away your wedge : an analysis of banks' impact on output

In this paper we present a general equilibrium model where heterogeneous agents endogenously choose whether to become workers, consumers or entrepreneurs in order to analyze how limits on the leverage of banks affect real output. In our model tighter limits on the leverage of banks cause an increase...

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Autores Principales: Hill, Enoch, Pérez Reyna, David Alejandro
Formato: Desconocido (Unknown)
Lenguaje:Inglés (English)
Publicado: Universidad de los Andes, Facultad de Economía, CEDE 2018
Materias:
Acceso en línea:http://hdl.handle.net/1992/8650
id ir-1992-8650
recordtype dspace
spelling ir-1992-86502020-09-16T20:23:41Z Leverage away your wedge : an analysis of banks' impact on output Apalancando la cuña : un análisis del impacto de los bancos en la producción Hill, Enoch Pérez Reyna, David Alejandro Banking leverage Misallocation Intermediación financiera Industria de servicios financieros Bancos E44, G21, G28 In this paper we present a general equilibrium model where heterogeneous agents endogenously choose whether to become workers, consumers or entrepreneurs in order to analyze how limits on the leverage of banks affect real output. In our model tighter limits on the leverage of banks cause an increase in the spread between the interest rate that banks charge for loans and the interest rate that banks pay for deposits. A higher spread results in two types of distortions: First, firms with the same productivity will have different size. Second, productive firms will cease to exist, while nonproductive ones will enter. These distortions result in lower production. En este artículo presentamos un modelo de equilibrio general donde agentes heterogéneos escogen entre ser trabajadores, consumidores o empresarios para analizar cómo los limites en el apalancamiento de los bancos afecta la producción real. En nuestro modelo limites más estrictos en el apalancamiento de los bancos causa un aumento en el margen de intermediación de los bancos. Un margen más amplio tiene como consecuencia dos distorsiones: primero, empresas con la misma productividad tienen tamaño diferente. Segundo, empresas productivas dejan de existir, mientras que empresas no productivas entran. Estas distorsiones resultan en una menor producción. 2018-09-27T16:55:26Z 2018-09-27T16:55:26Z 2016 document publishedVersion 1657-5334 http://hdl.handle.net/1992/8650 1657-7191 eng Documentos CEDE No. 18 Mayo de 2016 Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores. openAccess Universidad de los Andes, Facultad de Economía, CEDE instname:Universidad de los Andes reponame:Repositorio Institucional Séneca
institution Universidad de los Andes
collection DSpace
language Inglés (English)
topic Banking leverage
Misallocation
Intermediación financiera
Industria de servicios financieros
Bancos
E44, G21, G28
spellingShingle Banking leverage
Misallocation
Intermediación financiera
Industria de servicios financieros
Bancos
E44, G21, G28
Hill, Enoch
Pérez Reyna, David Alejandro
Leverage away your wedge : an analysis of banks' impact on output
description In this paper we present a general equilibrium model where heterogeneous agents endogenously choose whether to become workers, consumers or entrepreneurs in order to analyze how limits on the leverage of banks affect real output. In our model tighter limits on the leverage of banks cause an increase in the spread between the interest rate that banks charge for loans and the interest rate that banks pay for deposits. A higher spread results in two types of distortions: First, firms with the same productivity will have different size. Second, productive firms will cease to exist, while nonproductive ones will enter. These distortions result in lower production.
format Desconocido (Unknown)
author Hill, Enoch
Pérez Reyna, David Alejandro
author_facet Hill, Enoch
Pérez Reyna, David Alejandro
author_sort Hill, Enoch
title Leverage away your wedge : an analysis of banks' impact on output
title_short Leverage away your wedge : an analysis of banks' impact on output
title_full Leverage away your wedge : an analysis of banks' impact on output
title_fullStr Leverage away your wedge : an analysis of banks' impact on output
title_full_unstemmed Leverage away your wedge : an analysis of banks' impact on output
title_sort leverage away your wedge : an analysis of banks' impact on output
publisher Universidad de los Andes, Facultad de Economía, CEDE
publishDate 2018
url http://hdl.handle.net/1992/8650
_version_ 1705932437728526336
score 11,828437