A simple RBC model with financial intermediaries

[Daniel Bendel]

Hey guys,

after working hard for the last weeks I finally get a small model with banks run. This model has a bank working as financial intermediary, collecting funds (deposits) from patient households and extend new loans to impatient households. But the bank has to fulfill a capital requirement ratio as suggested by the Basel comittee, so you can now investigate the welfare effects of introducing such a macroprudential policy.

I wrote a pdf file which should explain the model quite well.

There a two files: one is the mod file with the model code. The other calculates the steady state of the dynamic system.

I hope you find it helpful.
I was working on it very long, and I think I should share it with you, as I have benefited much from this forum.

Cheers,
Daniel Bendel

[federico]

At a first ( and very superficial) sight it seems that your model is very close to "Financial business cycle" written by Matteo Iacoviello ( and this is a very good check for the quality of your model). I'm waiting for a WP or a draft to read.

[Daniel Bendel]

Sorry, I found a mistake again. I will upload a corrected version as soon as possible.

[Daniel Bendel]

Here the corrected version.

[pippo]

Hi Daniel,
I was looking for your model, it seems very interesting. Where can i find the link to download it?

[Daniel Bendel]

Actually, I found a mistake in my model. So I deleted the file. I will not work further with these kind of models, since they are not fully microfunded. But if you like send me a pm and I will send you the test mod-file.