We observed that ADRF may have a negative or positive slope; i.
We start with parameters that do not influence the sign of the slope of ADRF.
Parameters Influencing Only the Magnitude of the Slope of ADRF
Thus, the effects of an increase in [beta] on the slope of ADRF are the same as in the case of an increase in [gamma].
Parameters Influencing the Sign of the Slope of ADRF
If the slope of ADRF already has a negative sign (compare Figure 2), a decrease in [lambda] makes ADRF even steeper.
Here, the effect on the ADRF depends on whether the borrowing constraint is binding.
This parameter's influence on ADRF depends on whether or not the borrowing constraint binds.
As a consequence, the effects of variations in the parameter v on ADRF are less clear-cut.
The influence on ADRF of variations in model input parameters as discussed in this section is summarized in Table 5.
As we have seen, the sign of the slopes of the individual's respective ADRF changed.
20) The ADRF turning tendencies observed here do also hold for "asset meltups," i.