The 2020 International Workshop on Quantitative Economics, Jilin University, Lecture 3
The 2020 International Workshop on Quantitative Economics, Jilin University, Lecture 3
Default Cycle
Lecturer : Pengfei Wang, Peking University/Jilin University
Presenter : Shiwei Zhang, Jilin University
Location : ZOOM Meeting Room, ID: 9625852673
Time :
2020/8/29 18：00-20：00（UTC+8）
2020/8/29 06：00-08：00（UTC-5）
2020/8/29 11：00-13：00（UTC+0）
2020/8/29 20：00-22：00（UTC+10）
Introduction：Debt defaults are clearly cyclical as large numbers of companies defaulting simultaneously during recessions. To study this phenomenon, an endogenous general equilibrium model of debt default is developed in this paper. Debt defaults of firms are affected by aggregate output and interest rates, and possesses two externalities. Firstly, due to the relationship between output and input, debt default of firms reduces the income of other enterprises. Secondly, debt default of firms raises interest rate and increases the debt cost of other enterprises. Both of them increase the risk of default by other enterprises, thus making default contagious and forming cyclical fluctuation.
About the Lecturer: Born in February 1978, Professor Wang Pengfei obtained his bachelor's degree from Business School of Jilin University, his master's degree from National School of Development at Peking University, and his PhD in economics from Cornell University. He is now a professor and deputy dean of Peking University HSBC Business School, part-time professor of Jilin University, and ranked the top 1% of economists in the world by an authoritative economics RePEc nearly 10 years ago. He used to be a visiting professor in School of Economics and Management, Wuhan University and a distinguished Professor in Wudaokou School of Finance, Tsinghua University. His research interests involve macroeconomics, financial economics, and monetary economics, Professor Wang makes pioneering contributions in the field of asset bubbles and endogenous economic cycle.Since his graduation in 2007, Professor Wang published more than 40 papers in top journals of Economics and Finance, such as American Economic Review, Econometrica, Journal of Finance, Journal of Financial Economics, Journal of Monetary Economics, and Journal of Economic Theory.
