Replication data for: Sudden Stops, Financial Crises, and Leverage
Principal Investigator(s): View help for Principal Investigator(s) Enrique G. Mendoza
Version: View help for Version V1
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AERplots.for | text/x-fortran | 97.6 KB | 10/11/2019 11:05:AM |
AERresub.for | text/x-fortran | 57.5 KB | 10/11/2019 11:05:AM |
AERsimulation.for | text/x-fortran | 33.4 KB | 10/11/2019 11:05:AM |
Figuresformatted.xls | application/vnd.ms-excel | 201 KB | 10/11/2019 11:05:AM |
LICENSE.txt | text/plain | 14.6 KB | 10/11/2019 11:05:AM |
ReadmeDataMsNo20060850R2.pdf | application/pdf | 7 KB | 10/11/2019 11:05:AM |
ReadmeDataMsNo20060850R2.txt | text/plain | 1.7 KB | 10/11/2019 11:05:AM |
mexicandata.wf1 | application/octet-stream | 32.1 KB | 10/11/2019 11:05:AM |
Project Citation:
Mendoza, Enrique G. Replication data for: Sudden Stops, Financial Crises, and Leverage. Nashville, TN: American Economic Association [publisher], 2010. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112378V1
Project Description
Summary:
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Financial crashes were followed by deep recessions in the Sudden Stops of emerging economies. An equilibrium business cycle model with a collateral
constraint explains this phenomenon as a result of the amplification and asymmetry that the constraint induces in the responses of macro-aggregates to
shocks. Leverage rises during expansions, and when it rises enough it triggers the constraint, causing a Fisherian deflation that reduces credit and the price and quantity of collateral assets. Output and factor allocations fall because access to working capital financing is also reduced. Precautionary saving makes Sudden Stops low probability events nested within normal cycles, as observed in the data. (JEL E21, E23, E32, E44, G01, O11, O16)
Scope of Project
JEL Classification:
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E21 Macroeconomics: Consumption; Saving; Wealth
E23 Macroeconomics: Production
E32 Business Fluctuations; Cycles
E44 Financial Markets and the Macroeconomy
G01 Financial Crises
O11 Macroeconomic Analyses of Economic Development
O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
E21 Macroeconomics: Consumption; Saving; Wealth
E23 Macroeconomics: Production
E32 Business Fluctuations; Cycles
E44 Financial Markets and the Macroeconomy
G01 Financial Crises
O11 Macroeconomic Analyses of Economic Development
O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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