Credit market imperfections and macroeconomic instability

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

7 Scopus Citations
View graph of relations

Author(s)

  • TAKUMA KUNIEDA
  • AKIHISA SHIBATA

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)592-611
Journal / PublicationPacific Economic Review
Volume19
Issue number5
Online published23 Dec 2014
Publication statusPublished - Dec 2014

Abstract

Credit market imperfections typically characterize a low quality financial market, where the quality of information about borrowers is low and/or enforcement rules or institutions are not well developed. We consider an economy with credit market imperfections and analyse how changes in the degree of credit constraints affect economic fluctuations. The analysis demonstrates that if the degree of credit market imperfection is either severe or too soft, the economy converges to an asymptotically stable steady state, whereas if the degree of imperfection is moderate, the equilibrium involves deterministic cycles or chaos.

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

Credit market imperfections and macroeconomic instability. / KUNIEDA, TAKUMA; SHIBATA, AKIHISA.

In: Pacific Economic Review, Vol. 19, No. 5, 12.2014, p. 592-611.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review