Essays in Macroeconomics
2021
Online
Hochschulschrift
Zugriff:
Dissertation ; This dissertation has three independent essays. The first essay “Macro Shocks and Firm Dynamics with Oligopolistic Financial Intermediaries” studies the macroeconomic effects of oligopolistic competition in the financial intermediation sector. Motivated by a recent in- crease in the concentration of the US banking industry and several empirical facts about the effects of bank competition on firm dynamics, I develop a novel dynamic general equilib- rium model with oligopolistic banks and heterogeneous firms. Strategic interactions among oligopolistic banks generate endogenous financial frictions that shape firm investment and financing dynamics, affecting aggregate productivity. I introduce two sources of aggregate shocks: a sudden increase in the aggregate firms’ default probability and a “big bank” fail- ure (e.g., Lehman Brothers in 2008). When the probability of firms’ default increases, banks exploit their marker power to extract higher markups and credit spreads increase. This mechanism allows banks to compensate for the larger losses due to defaults, but it leads to a larger decline in real activity. When the economy is also hit by a “Lehman shock”, the model accounts both qualitatively and quantitatively for key macroeconomic and financial features of the Great Recession. In an extension, I also study banks’ market power in a model with idiosyncratic firms’ TFP shocks and endogenous default. Higher concentration in the banking sector reduces the frequency of firms’ default but makes the economy less productive. The second essay “Capital and Labor Taxes with Costly State Contingency” studies op- timal capital and labor taxes in a model where (i) the government makes noncontingent announcements about future policies, and (ii) ex-post statecontingent deviations from these announcements are costly. We find that costly state contingency has important implications for the response of taxes and allocations to government spending shocks. Different from previous results based on freely ...
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Essays in Macroeconomics
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Autor/in / Beteiligte Person: | Villa, Alessandro Tenzin ; Lanteri, Andrea |
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Veröffentlichung: | 2021 |
Medientyp: | Hochschulschrift |
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