Dmitriev, Mikhail (2009): Confidence of Agents and Market Frictions.
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In this paper financial frictions are represented by agents heterogeneity. Presence of savers and borrowers permits to analyse financial frictions in a simple and tractable framework. Different types of borrowers create an effect of costly state verification models. Comparatively to these standard CSV framework different types of shocks are modelled, such as expected increase in the income of borrowers or change in the distribution of borrowers quality. Modellin these effects is hard in representative agent framework and such shocks were not analysed in CSV framework before.
|Item Type:||MPRA Paper|
|Original Title:||Confidence of Agents and Market Frictions|
|Keywords:||Financial Frictions; DSGE; Business Cycles|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E21 - Consumption; Saving; Wealth
|Depositing User:||Mikhail Dmitriev|
|Date Deposited:||08. Mar 2010 14:44|
|Last Modified:||12. Feb 2013 19:58|
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