NDLI: Credit channel and industrial firms ’ market power

Please wait, while we are loading the content...

Credit channel and industrial firms ’ market power

Content Provider	Semantic Scholar
Author	Mazzoli, Marco
Copyright Year	2000
Abstract	The theoretical model presented here describes the interactions between a concentrated industrial sector and a perfectly competitive financial system where industrial firms can issue bonds or borrow from money from the banks in order to finance their investments. It is shown that an exogenous modification in the degree of concentration in the industrial sector does not only affects the equilibrium level of investments and the price of the final good, but also the transmission mechanism of the monetary policy. This paper also presents a first simplified framework to study the interactions between market power of industrial firms on the credit market and endogeneity of the composition of their external finance (in this context, bank credit and bonds). For this reason one of the main assumptions of the model is the existence of the “credit channel”. The endogeneity of the composition of industrial firms’ external finance also allows to formalise (although in a very simplified one-period context) a situation of simultaneity between financial and investment decisions for the firms. * I am very grateful to Giuseppe Marotta for his helpful comments and suggestions. All mistakes are mine.
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://morgana.unimore.it/marotta_giuseppe/murst/mazzoli2.pdf
Language	English
Access Restriction	Open
Subject Keyword	Bank (environment) Concentrate Dosage Form Endogeneity (econometrics) Interaction Investments Money Theory
Content Type	Text
Resource Type	Article

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in