Do Capital Market Imperfections Exacerbate Output Fluctuations?

Details

Serval ID
serval:BIB_8C1799A732F3
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Do Capital Market Imperfections Exacerbate Output Fluctuations?
Journal
European Economic Review
Author(s)
Bacchetta P., Caminal R.
ISSN
0014-2921
Publication state
Published
Issued date
2000
Peer-reviewed
Oui
Volume
44
Number
3
Pages
449-468
Language
english
Abstract
We develop a dynamic general equilibrium macroeconomic model where a proportion of firms are credit constrained due to asymmetric information. In general, a macroeconomic shock has additional effects created by a reallocation of funds between credit-constrained and unconstrained firms. We show, however, that the output response to shocks is not necessarily amplified and can be dampened by the presence of asymmetric information.
Keywords
Credit market imperfection, Agency costs, Business cycles
Web of science
Create date
19/11/2007 10:39
Last modification date
20/08/2019 14:50
Usage data