Nguyen, Xuan Lam
This thesis inquires into the role of financial factors underlying domestic and cross-border business cycles in a New Keynesian Dynamic Stochastic General Equilibrium framework of two asymmetric countries.
In the first paper, I develop a two asymmetric-country business cycle model in which independent banking sectors are subject to asset diversion. In particular, domestic bankers are able to divert funds away from the interests of shareholders due to the presence of a moral hazard problem....[Show more]
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