Sudden Stops, Output Drops, and Credit Collapses /

This paper proposes a tractable Sudden Stop model to explain the main patterns in firm level data in a sample of Southeast Asian firms during the Asian crisis. The model, which features trend shocks and financial frictions, is able to generate the main patterns observed in the sample during and foll...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Dagher, Jihad
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2010.
سلاسل:IMF Working Papers; Working Paper ; No. 2010/176
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper proposes a tractable Sudden Stop model to explain the main patterns in firm level data in a sample of Southeast Asian firms during the Asian crisis. The model, which features trend shocks and financial frictions, is able to generate the main patterns observed in the sample during and following the Asian crisis, including the ensuing credit-less recovery, which are also patterns broadly shared by most Sudden Stop episodes as documented in Calvo and others (2006). The model also proposes a novel explanation as to why small firms experience steeper declines than their larger peers as documented in this paper. This size effect is generated under the assumption that small firms are growth firms, to which there is support in the data. Trend shocks when combined with financial frictions in this model also generate strong leverage effects in line with what is observed in the sample, and with other observations from the literature.
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وصف مادي:1 online resource (34 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students