Heterogeneous borrowers, liquidity, and the search for credit

Search Frictions, Credit Market Liquidity and Net Interest Margin Cyclicality

“…Wasmer and Weil () and Becsi et al . () also examine equilibrium interest rates in the credit matching model, but only at the steady state and not for the business cycle as addressed in the present study.…”

“…an aggregate matching function and a Nash bargaining process for interest rates) is used by Wasmer and Weil () and Petrosky‐Nadeau and Wasmer () in association with search frictions on the labour market, by Becsi et al . () with heterogeneous borrowers, by Petrosky‐Nadeau and Wasmer () in a model of search frictions on three markets (labour, credit, and goods), and by Chamley and Rochon () for loan rollovers. Note that Den Haan et al .…”

Distortions, Misallocation and the Endogenous Determination of the Size of the Financial Sector

“…Recent years have seen a renewed and increasing interest in the implementation of search environments for modeling the non-Walrasian features of the credit and investment markets (Wasmer and Weil (2004), Duffie, Garleânu, and Pedersen (2005), Silvera and Wright (2010), Besci, Li, and Wang (2005), Haan, Ramey, andWatson (2003), Dell'Ariccia andGaribaldi (2005)). 4 Following Diamond (1990), this literature highlights, in an encompassing manner, the quantitative importance of information frictions, time usage, and the positive value of establishing creditor-borrower relationships.…”

“…Unpublished papers include Dell'Ariccia and Garibaldi (1998),Besci, Li, and Wang (2009),Silvera and Wright (2007), andChiu and Koeppl (2011).…”

Credit Reallocation, Deleveraging, and Financial Crises

“…In our data, credit access and market participation effects thus appear to be more important than composition effects. This could help explain why reallocation exhibits a mildly procyclical pattern (Becsi, Li, and Wang 2005).…”