Costly default and skewed business cycles
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DOI: 10.1016/j.euroecorev.2020.103630
Abstract: Abstract We augment a simple Real Business Cycle model with financial intermediaries that may default on their liabilities and a financial friction generating social costs of default. We derive a closed-form solution for the general… read more here.
Keywords: skewed business; default; business cycles; default skewed ... See more keywords