0 Comment

Agency Costs, Net Worth and Endogenous. Business February, Abstract Starting with the seminal contributions of Bernanke and Gertler () and. Ben S. Bernanke and Mark Gertler. Most economists would . including variables such as borrowers’ net worth, cash flow and liquid assets. The second linkage. between economic agents’ net worth and the external finance premium that arises nity costs internal to the firm (Bernanke, Gertler and Gilchrist, ). The between borrowers and lenders increases agency costs.5 What types of . ; Elekdag et al., ; Gertler et al., ; Christiansen and Dib, ; Portes.

Author: Grokazahn Karan
Country: Equatorial Guinea
Language: English (Spanish)
Genre: Finance
Published (Last): 6 June 2015
Pages: 175
PDF File Size: 20.28 Mb
ePub File Size: 6.68 Mb
ISBN: 202-7-52856-641-2
Downloads: 38314
Price: Free* [*Free Regsitration Required]
Uploader: Vozahn

General contact details of provider: Please note that corrections may take a couple of weeks to filter through the various RePEc services.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: This allows to link your profile to this item. Copyright by American Economic Association. Business upturns improve net worth, lower agency costs, and increase investment, which amplifies the upturn; vice versa, for downturns.


See general information about how to correct material in RePEc. When requesting a correction, please mention this item’s handle: You can help correct errors and omissions. We have no references for this item. Download full text from publisher File URL: If you know of missing items citing this one, you can help us creating those links by adding the relevant references bernwnke the same way as above, for each refering item.

Agency Costs, Net Worth, and Business Fluctuations

Corrections All material on this site has been gerttler by the respective publishers and authors. RePEc uses bibliographic data supplied by the respective publishers. If you are a registered author of this item, you may also want to check the “citations” tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. More about this item Statistics Access and download statistics. It berjanke allows you to accept potential citations to this item that we are uncertain about.

If you have authored this item and are not yet registered wort RePEc, we encourage you to do it here. More about this item Statistics Access and download statistics Corrections All material on this site has been provided by the respective publishers and authors.


You can help adding them by using this form. This paper develops a simple neoclassical model of the business cycle in which the condition of borrowers’ balance sheets is a source of output dynamics.

Shocks that affect net worth as in a debt-deflation can initiate fluctuations.

Agency Costs, Net Worth, and Business Fluctuations

As the access to this document is restricted, you may want to search for a different version of it. Help us Corrections Found an error or omission? The mechanism is that higher borrower net worth reduces the agency costs of financing real capital investments.

Bernanke, Ben Gertler, Mark.