| 000 | 02329cam a22003257 4500 | ||
|---|---|---|---|
| 001 | w2015 | ||
| 003 | NBER | ||
| 005 | 20211020115104.0 | ||
| 006 | m o d | ||
| 007 | cr cnu|||||||| | ||
| 008 | 210910s1986 mau fo 000 0 eng d | ||
| 100 | 1 | _aBernanke, Ben S. | |
| 245 | 1 | 0 |
_aAgency Costs, Collateral, and Business Fluctuations / _cBen S. Bernanke, Mark Gertler. |
| 260 |
_aCambridge, Mass. _bNational Bureau of Economic Research _c1986. |
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| 300 |
_a1 online resource: _billustrations (black and white); |
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| 490 | 1 |
_aNBER working paper series _vno. w2015 |
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| 500 | _aSeptember 1986. | ||
| 520 | 3 | _aBad economic times are typically associated with a high incidence of financial distress, e.g., insolvency and bankruptcy. This paper studies the role of changes in borrower solvency in the initiation and propagation of the business cycle. We first develop a model of the process of financing real investment projects under asymmetric information, extending work by Robert Townsend. A major conclusion here is that when the entrepreneurs who borrow to finance projects are more solvent (have more "collateral"), the deadweight agency costs of investment finance are lower. This model of investment finance is then embedded in a dynamic macroeconomic setting. We show that, first, since reductions in collateral in bad times increase the agency costs of borrowing, which in turn depress the demand for investment, the presence of these financial factors will tend to amplify swings in real output. Second, we find that autonomous factors which affect the collateral of borrowers (as in a "debt-deflation") can actually initiate cycles in output. | |
| 530 | _aHardcopy version available to institutional subscribers | ||
| 538 | _aSystem requirements: Adobe [Acrobat] Reader required for PDF files. | ||
| 538 | _aMode of access: World Wide Web. | ||
| 588 | 0 | _aPrint version record | |
| 690 | 7 |
_aE - Macroeconomics and Monetary Economics _2Journal of Economic Literature class. |
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| 700 | 1 |
_aGertler, Mark. _911300 |
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| 710 | 2 | _aNational Bureau of Economic Research. | |
| 830 | 0 |
_aWorking Paper Series (National Bureau of Economic Research) _vno. w2015. |
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| 856 | 4 | 0 | _uhttps://www.nber.org/papers/w2015 |
| 856 |
_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w2015 |
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| 942 |
_2ddc _cW-PAPER |
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| 999 |
_c346532 _d305094 |
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