?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F32905%2F&rft.title=Costly+default+and+asymetric+real+business+cycles&rft.creator=F%C3%A8ve%2C+Patrick&rft.creator=Garcia+Sanchez%2C+Pablo&rft.creator=Moura%2C+Alban&rft.creator=Pierrard%2C+Olivier&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=We+augment+a+simple+Real+Business+Cycle+model+with+financial+intermediaries+that+may+default+on+their+liabilities+and+a+financial+friction+generating+social+costs+of+default.+We+provide+a+closed-form+solution+for+the+general+equilibrium+of+the+economy+under+specific+assumptions%2C+allowing+for+analytic+results+and+straightforward+simulations.+Endogenous+default+generates+asymmetric+business+cycles+and+our+model+replicates+both+the+negative+skew+of+GDP+and+the+positive+skew+of+credit+spreads+found+in+US+data.+Stronger+financial+frictions+cause+a+rise+in+asymmetry+and+amplify+the+welfare+costs+of+default.+A+Pigouvian+tax+on+financial+intermediation+mitigates+most+of+these+negative+effects+at+the+cost+of+a+steady-state+distortion.&rft.publisher=TSE+Working+Paper&rft.date=2019-11&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F32905%2F1%2Fwp_tse_1048.pdf&rft.identifier=++F%C3%A8ve%2C+Patrick+%3Chttps%3A%2F%2Fwww.idref.fr%2F080518311%3E%2C+Garcia+Sanchez%2C+Pablo%2C+Moura%2C+Alban+and+Pierrard%2C+Olivier++(2019)+Costly+default+and+asymetric+real+business+cycles.++TSE+Working+Paper%2C+n.+19-1048%2C+Toulouse+++++&rft.relation=https%3A%2F%2Fwww.tse-fr.eu%2Fsites%2Fdefault%2Ffiles%2FTSE%2Fdocuments%2Fdoc%2Fwp%2F2019%2Fwp_tse_1048.pdf&rft.language=en