Aggregate consequences of dynamic credit relationships
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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
Credit Relationships and Business Bankruptcy During the Great Depression
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DOI: 10.1257/mac.20150218
Abstract: Credit relationships are sticky. Stickiness makes relationships beneficial for borrowers in distress, but potentially problematic for them when lenders face distress. To examine stickiness in a time of distress, we exploit a natural experiment during… read more here.
Keywords: depression; credit; bankruptcy; business ... See more keywords