dc.contributor.author | Benedictow, Andreas | |
dc.contributor.author | Hammersland, Roger | |
dc.date.accessioned | 2019-12-06T14:27:25Z | |
dc.date.accessioned | 2019-12-09T14:43:37Z | |
dc.date.available | 2019-12-06T14:27:25Z | |
dc.date.available | 2019-12-09T14:43:37Z | |
dc.date.issued | 2019 | |
dc.identifier.citation | Benedictow, A. & Hammersland, R. (2019). A financial accelerator in the business sector of a macro-econometric model of a small open economy. Economic Systems. doi: https://doi.org/10.1016/j.ecosys.2019.100731 | en |
dc.identifier.issn | 0939-3625 | |
dc.identifier.issn | 0939-3625 | |
dc.identifier.issn | 1878-5433 | |
dc.identifier.uri | https://hdl.handle.net/10642/7879 | |
dc.description.abstract | We have incorporated a financial accelerator mechanism operating through investments in the business sector in a dynamic macroeconometric model of the Norwegian economy. In this new and amended model aggregated credit and equity prices are determined simultaneously in a system characterized by a two-directional contemporaneous causal link, which has been designed and estimated by a new procedure for simultaneous structural model design. Combined with a mechanism where credit and asset prices are mutually influenced by real investments, this creates a financial accelerator amplified by a credit-asset price spiral. Simulations illustrate how the introduction of a financial accelerator significantly reinforces and extends the economic cycles in projections and forecasts, in particular when confronted by a severe shock. Furthermore, monetary policy has a markedly stronger effect in the short and medium term, while the impact of fiscal policy is affected to a relatively small degree as it is more remotely linked to financial markets. | en |
dc.language.iso | en | en |
dc.publisher | Elsevier | en |
dc.relation.ispartofseries | Economic Systems;2019 | |
dc.rights | Under a Creative Commons License: Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) | en |
dc.rights.uri | https://creativecommons.org/licenses/by-nc-nd/4.0/ | |
dc.subject | Financial variables | en |
dc.subject | Financial accelerators | en |
dc.subject | Business cycles | en |
dc.subject | Forecastings | en |
dc.subject | Impulse response analyses | en |
dc.subject | Real economies | |
dc.title | A financial accelerator in the business sector of a macro-econometric model of a small open economy | en |
dc.type | Journal article | en |
dc.type | Peer reviewed | en |
dc.date.updated | 2019-12-06T14:27:25Z | |
dc.description.version | publishedVersion | en |
dc.identifier.doi | https://doi.org/10.1016/j.ecosys.2019.100731 | |
dc.identifier.cristin | 1727985 | |
dc.source.journal | Economic Systems | |