LAUSR

Aggregate consequences of dynamic credit relationships

Sign Up to like & get
recommendations!
0 Published in 2018 at "Review of Economic Dynamics"

DOI: 10.1016/j.red.2017.12.001

Abstract: Which financial frictions matter in the aggregate? This paper presents a general equilibrium model in which entrepreneurs finance a firm with a long-term contract. The contract is constrained efficient because firm revenue is costly to… read more here.

Keywords: contract; consequences dynamic; moral hazard; aggregate consequences ... See more keywords