Calendrier du 05 novembre 2015
Macroeconomics Seminar
Du 05/11/2015 de 16:30 à 17:45
Maison des Sciences Economiques, 6th floor conference room
BACCHETTA Philippe (HEC LAUSANNE)
Macro Workshop
Du 05/11/2015 de 15:00 à 16:00
MSE Campus (106-112 boulevard de l’Hôpital, 75013 Paris), room B. 3.1
ASRIYAN Vladimir (CREI, BARCELONA GSE)
Balance Sheet Recessions with Informational and Trading Frictions
Balance sheet recessions result from concentration of macroeconomic risks on the balance sheets of leveraged agents. In this paper, I argue that information dispersion about the future states of the economy combined with trading frictions in financial markets can explain why such concentration of risk may be privately but not socially optimal. I show that borrowers face a trade off between the insurance benefits of financing with macro contingent contracts and the illiquidity premia they need to pay creditors for holding such contracts. In aggregate, as borrowers sacrifice contingency in order to provide liquidity, the severity of macroeconomic fluctuations becomes endogenously linked to the magnitudes of information dispersion and trading frictions. In this setting, I study the policy implications of the theory and I find that imposing (or subsidizing) contingencies in private contracts is welfare improving.
TOM (Théorie, Organisation et Marchés) Lunch Seminar
Du 05/11/2015 de 12:45 à 13:45
Campus jourdan,Bâtiment B, 1er étage, Salle CMH
SZECH Nora (KALSRUHE)
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