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Booms de Consumo e Inversión: El Rol del Crédito a las Firmas y de los Hábitos en el Consumo

Author

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  • Natalia Pecorari

    (CONICET & UNS)

Abstract

The purpose of this article is to provide a theoretical study about the mechanisms and channels through which both the credit taken by firms and the existence of habits in consumption, help generate and develop investment and consumption booms after a positive and transitory shock to productivity. An exogenous increase in firms' profits sets in motion an endogenous process of sustained growth in consumption through what we call the "wellness effect". The rising consumption, in turn, reinforces the initial increase in profits in a dynamic feedback interaction. At the same time, the persistent growth in profits causes a fall in the cost of credit over time, which facilitates the development of the boom.

Suggested Citation

  • Natalia Pecorari, 2017. "Booms de Consumo e Inversión: El Rol del Crédito a las Firmas y de los Hábitos en el Consumo," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 32(1), pages 95-144, April.
    • Handle: RePEc:ila:anaeco:v:32:y:2017:i:1:p:95-144
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    More about this item

    Keywords

    Investments and consumption booms; credit; financial accelerator; habits;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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