Publication:
The price of capital and the financial accelerator

Simple item page
dc.affiliation.dptoUC3M. Departamento de EconomĂ­aes
dc.contributor.authorPancrazi, Roberto
dc.contributor.authorSeoane, HernĂ¡n
dc.contributor.authorVukotic, Marija
dc.date.accessioned2017-09-12T14:38:39Z
dc.date.available2018-12-01T23:00:07Z
dc.date.issued2016-12
dc.description.abstractThe price of capital is a key determinant of the financial accelerator, a transmission mechanism of shocks generated through the capital accumulation process of entrepreneurs that borrow in credit markets with frictions. This paper shows that the procedure of approximating the price of old capital by the net-of-depreciation price of new capital, as used in many articles since Bernanke et al. (1999), has profound implications when the capital depreciation rate is positive. When accounting for the appropriate price of capital, the effects of the financial accelerator are even stronger than originally assessed. (C) 2016 Elsevier B.V. All rights reserved.en
dc.description.sponsorshipHernĂ¡n Seoane gratefully acknowledges support from Ministerio de EconomĂ­a y Competitividad (Spain), grants ECO2014-56676-C2-1-P, MDM 2014-0431, and Comunidad de Madrid, MadEco-CM (S2015/HUM-3444).en
dc.format.mimetypeapplication/pdf
dc.identifier.bibliographicCitationPancrazi, R., Seoane, H.D. and Vukotic, M. (2016). The price of capital and the financial accelerator. Economics Letters, v. 149, pp. 86-89.en
dc.identifier.doihttps://doi.org/10.1016/j.econlet.2016.10.022
dc.identifier.issn0165-1765
dc.identifier.publicationfirstpage86es
dc.identifier.publicationlastpage89es
dc.identifier.publicationtitleEconomics lettersen
dc.identifier.publicationvolume149es
dc.identifier.urihttps://hdl.handle.net/10016/25223
dc.identifier.uxxiAR/0000018588
dc.language.isoengen
dc.publisherElsevieren
dc.relation.projectIDGobierno de España. ECO2014-56676-C2-1-Pes
dc.relation.projectIDGobierno de España. MDM 2014-0431es
dc.relation.projectIDComunidad de Madrid. S2015/HUM-3444/MADECO-CMes
dc.rights© Elsevieren
dc.rightsAtribuciĂ³n-NoComercial-SinDerivadas 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.ecienciaEconomĂ­aes
dc.subject.jelE30
dc.subject.jelE44
dc.subject.jelE50
dc.subject.otherFinancial acceleratoren
dc.subject.otherBusiness fluctuationsen
dc.subject.otherInvestment adjustment costen
dc.subject.otherOptimal-contractsen
dc.titleThe price of capital and the financial acceleratoren
dc.typeresearch article*
dc.type.hasVersionAM*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
price_seoane_EL_2016_ps.pdf
Size:
393.09 KB
Format:
Adobe Portable Document Format
Download
Collections
DE - ArtĂ­culos de Revistas