Browsing by Subject "Business cycles."

Now showing 1 - 4 of 4

Open Access
Agency costs, fiscal policy, and business cycle fluctuations
(2009) Kısacıkoğlu, Burçin
This paper studies the relationship between scal policy, nancial market frictions and business cycle uctuations. It is shown that in an economy where balance sheets play a role in the propagation of shocks, using countercyclical scal policy net worth and output uctuations can be reduced. This countercyclical scal policy requires to distribute resources to the entrepreneurs when a negative technology shock is realized and levy taxes on entrepreneurs after the technology shock is back to zero. It is shown that after the realization of a negative shock, countercyclical scal policy reduces agency costs which would make entrepreneurs increase investment and dampen the business cycle uctuations via decreasing uctuations in net worth. By this increase in investment, nancial fragility decreases, which reduces the slowdown of economic activity.
Open Access
Firm entry, credit shocks and business cycles
(2012) Karasoy, Hatice Gökçe
In this thesis, we investigate whether, modelling firm dynamics together with credit markets in a two country frame, can provide additional information on international real business cycles in matching certain moments and explain other stylized statistics on business entry. Our motivation is the fact that, in the latest financial crisis, firm entry behavior is quite different between high income and low income countries. Solution of the model is provided with both productivity and credit shocks. Both kinds of shocks match a subset of stylized international business cycle facts. Plus in both kinds of shocks model exhibits the fact that volatility of new entrant firms are higher than incumbent ones. We show that credit shocks are better at explaining highly volatile business cycles in financially less developed countries. In the existence of country-specific credit shocks we observe contagion of crisis, comovements across countries do only exist with global credit shocks. We find out that the firm entry behaviour seen in latest financial crisis that financially developed countries has more volatile firm entry, is only possible with global shocks.
Open Access
The inflation tax and period length in cash-in-advance models
(2002) Çubuk, Bedriye
The aim of this study is to focus on the frequency with which consumers conduct financial transactions, and the role that this plays in the determination of the money velocity, price level, transactions cost and consequently determination of welfare cost of inflation. We introduce a CIA model with a Baumol-Tobin transactions mechanism. This provides a contribution to the CIA literature by allowing the transactions period to be endogenous and contributes to the BaumolTobin model by placing the decision rules in a general equilibrium setting. We find that the transactions period length is an integral part of the behavior of the monetary economy.
Open Access
On the existence of Hopf cycles in optimal growth models with time delay
(2008) Yüksel, Mustafa Kerem
In this thesis, we analyzed the existence of cycles `a la Poincar´e-AndronovHopf in optimal growth models with time delay. The analysis builds upon a new method developed, which investigates the number of pure imaginary roots of the characteristic equation. The method was applied to the time-tobuild models of Asea and Zak (1999) and Winkler (2004).