The role of credit market friction in trade-dependent small open economy : examination of South Korea business fluctuations with DSGE approach

• Main Authors: Chen, Shuai, Liu, Qinyu, Goh, Qinghao
• Other Authors: Joseph Dennis Alba
• Format: Final Year Project
• Language: English
• Published: 2017
• Subjects: DRNTU::Social sciences::Economic theory::Macroeconomics
• Online Access: http://hdl.handle.net/10356/69755
• Institution: Nanyang Technological University

Recent literature suggests that credit market friction has a significant impact on the sources of the United States and Canadian business cycle. Our paper incorporates credit market friction and revised capital price in a small open economy DSGE model, and introduces a new entrepreneur’s equity shoc...