27 March
- Speaker: Professor Morten Ravn
- Title: Financial frictions: Micro vs. macro volatility
- Location: 3 East 2.2
- Time: 2.45pm - 4pm
Professor Morten Ravn (University College London (UCL)) will talk about his research paper Financial frictions: Micro vs. macro volatility.
About this research paper
Consumer credit spreads significantly impact consumption and asset dynamics, affecting indebted households’ spending behavior and the income sensitivity of consumption. Analyzing Danish data, we find that elevated credit spreads reduce consumption of indebted households. Our results suggest that the marginal propensity to consume (MPC) is countercyclical, with credit spreads playing a crucial role. We develop a HANK model, incorporating bank financing for both firms and households. Agency frictions generate a countercyclical credit spread, which induces heterogeneous incidence of aggregate shocks consistent with the data. Banking regulation, while stabilizing at the aggregate level, may induce volatility at the household level.
Please contact Dr Nikos Kokonas if you would like to meet with the speaker or join them for lunch.
24 April
- Speaker: Professor Sjak Smulders
- Title: TBC
- Location: 3 East 2.2
- Time: 2.45pm - 4pm
1 May
- Speaker: Dr Eleonora Guarnieri
- Title: TBC
- Location: 3 East 2.2
- Time: 2.45pm - 4pm
8 May
- Speaker: Dr Rocco d'Este
- Title: TBC
- Location: 3 East 2.2
- Time: 2.45pm - 4pm
15 May
- Speaker: Dr Hanna Wang
- Title: TBC
- Location: 3 East 2.2
- Time: 2.45pm - 4pm
22 May
- Speaker: Professor Patricia Funk
- Title: TBC
- Location: 3 East 2.2
- Time: 2.45pm - 4pm
29 May
- Speaker: Dr Ina Taneva
- Title: TBC
- Location: 3 East 2.2
- Time: 2.45pm - 4pm