Knightian uncertainty in banking crises

Alonzo, Davide (A.A. 2013/2014) Knightian uncertainty in banking crises. Tesi di Laurea in Macroeconomic analysis, LUISS Guido Carli, relatore Pietro Reichlin, pp. 62. [Master's Degree Thesis]

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This essay is about Knightian uncertainty in the banking system and its effects on the productive sector and on the rest of the economy. A real business cycle model that explicitly models the banking sector is considered to describe the main macroeconomic variables. Unlike other papers, here no particular assumption on bank capital requirements or market frictions are made. It turns out that uncertainty about the likelihood of future events hitting the banks' capital is sufficient to produce a consistent credit crunch and a consequent depression of economic activity. Moreover, in this setting standard expansionary scal policies are insufficient to restore the pre-shock situation.


Bibliografia: pp. 45-48.

Thesis Type: Master's Degree Thesis
Institution: LUISS Guido Carli
Degree Program: Master's Degree Programs > Master's Degree Program in Economics and Finance (LM-56)
Chair: Macroeconomic analysis
Thesis Supervisor: Reichlin, Pietro
Thesis Co-Supervisor: Ragusa, Giuseppe
Academic Year: 2013/2014
Session: Autumn
Deposited by: Maria Teresa Nisticò
Date Deposited: 27 Jan 2015 11:01
Last Modified: 20 May 2015 00:02


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