988 research outputs found
The perils of credit booms
We present a dynamic general equilibrium model of production economies with adverse selection in the financial market to study the interaction between funding liquidity and market liquidity and its impact on business cycles. Entrepreneurs can take on short-term collateralized debt and trade long-term assets to finance investment. Funding liquidity can erode market liquidity. High funding liquidity discourages firms from selling their good long-term assets since these good assets have to subsidize lemons when there is information asymmetry. This can cause a liquidity dry-up in the market for long-term assets and even a market breakdown, resulting in a financial crisis. Multiple equilibria can coexist. Credit booms combined with changes in beliefs can cause equilibrium regime shifts, leading to an economic crisis or expansion.Published versio
Metal-Free Flat Lens Using Negative Refraction by Nonlinear Four-wave Mixing
A perfect lens with unlimited resolution has always posed a challenge to both
theoretical and experimental physicists. Recent developments in optical
meta-materials promise an attractive approach towards perfect lenses using
negative refraction to overcome the diffraction limit, improving resolution.
However, those artificially engineered meta-materials usually company by high
losses from metals and are extremely difficult to fabricate. An alternative
proposal using negative refraction by four-wave mixing has attracted much
interests recently, though most of existing experiments still require metals
and none of them has been implemented for an optical lens. Here we
experimentally demonstrate a metal-free flat lens for the first time using
negative refraction by degenerate four-wave mixing with a thin glass slide. We
realize optical lensing effect utilizing a nonlinear refraction law, which may
have potential applications in microscopy
Numerical Simulation of Nonoptimal Dynamic Equilibrium Models
In this paper we present a recursive method for the computation of dynamic competitive equilibria in models with heterogeneous agents and market frictions. This method is based upon a convergent operator over an expanded set of state variables. The fixed point of this operator defines the set of all Markovian equilibria. We study approximation properties of the operator as well as the convergence of the moments of simulated sample paths. We apply our numerical algorithm to two growth models, an overlapping generations economy with money, and an asset pricing model with financial frictions.Heterogeneous agents, taxes, externalities, financial frictions, competitive equilibrium, computation, simulation
Numerical simulation of nonoptimal dynamic equilibrium models
In this paper we present a recursive method for the computation of dynamic competitive equilibria in models with heterogeneous agents and market frictions. This method is based on a convergent operator over an expanded set of state variables. The fixed point of this operator defines the set of all Markovian equilibria. We study approximation properties of the operator as well as the convergence of the moments of simulated sample paths. We apply our numerical algorithm to two growth models, an overlapping generations economy with money, and an asset pricing model with financial frictions.Econometric models
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