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What does structural analysis of the external finance premium say about financial frictions? / by Jelena Zivanovic.FB3-5/2019-38E-PDF

"I use a structural vector autoregression (SVAR) with sign restrictions to provide conditional evidence on the behavior of the US external finance premium (EFP). The results indicate that the excess bond premium, a proxy for the EFP, reacts counter cyclically to supply and monetary policy shocks and procyclically to demand shocks. I confront my empirical evidence with the predictions from financial dynamic stochastic general equilibrium (DSGE) models with respect to the finance premium in order to identify an empirically relevant financial friction. The Bernanke, Gertler and Gilchrist (1999) model generates transmission mechanisms that are favored by the data"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.879714&sl=0

Publication information
Department/Agency
  • Bank of Canada.
TitleWhat does structural analysis of the external finance premium say about financial frictions? / by Jelena Zivanovic.
Series title
  • Bank of Canada staff working paper, 1701-9397 ; 2019-38
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "September 2019."
  • Includes bibliographical references (pages 23-25).
  • Includes abstract in French.
Publishing information
  • Ottawa : Bank of Canada, 2019.
  • ©2019
Author / Contributor
  • Zivanovic, Jelena, author.
Description1 online resource (ii, 27 pages)
Catalogue number
  • FB3-5/2019-38E-PDF
Subject terms
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