Discussion Papers no. 569

Evidence using a procedure of structural model design

The financial accelerator

We find empirical evidence of a financial accelerator using a data based procedure of Structural Model Design. Credit to firms, asset prices and aggregate economic activity interact over the business cycle in our empirical model of a dynamic economy. Furthermore, the interdependence between credit and asset prices creates a mechanism by which the effects of shocks persist and amplify. However, while innovations to asset prices and credit do cause short-run movements in production, and while real activity spurs credit, such innovations do not precede real economy movements in the long run. Hence, there obviously is a case for Modigliani-Miller in the long run.

Om publikasjonen

Tittel

The financial accelerator. Evidence using a procedure of structural model design

Ansvarlige

Roger Hammersland, Dag Henning Jacobsen

Serie og -nummer

Discussion Papers no. 569

Utgiver

Statistics Norway, Reseach Department

Emne

Discussion Papers

Antall sider

33

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

Kontakt