منابع مشابه
Self‐fulfilling Credit Cycles Self-fulfilling Credit Cycles
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The degree to which you expect others to behave in a trustworthy manner is crucial for your willingness to trust. An interesting question, however, is whether your expectation (if manifested) can affect the likelihood that your trust is repaid. The answer to this question has important implications for the stability of trust (or lack thereof). To observe whether expectations impact the repaymen...
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In U.S. data 1981–2012, unsecured firm credit moves procyclically and tends to lead GDP, while secured firm credit is acyclical; similarly, shocks to unsecured firm credit explain a far larger fraction of output fluctuations than shocks to secured credit. In this paper we develop a tractable dynamic general equilibrium model in which unsecured firm credit arises from self-enforcing borrowing co...
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(see next page for abstract) ∗Acknowledgements: this research forms part of the European Commission TMR network project on "Financial Market Efficiency and Economic Efficiency," grant contract no. FMRXCT96-0054. I thank Julian Franks and a referee for detailed comments on the previous draft, and Margaret Bray and Thierry Foucault for discussions on an earlier version of this paper.
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After a quarter century of unbroken development in the theory of allocation under uncertainty, it has become an obvious fact that randomness in endowments, preferences or technology will generally work its way to the prices and allocations which prevail in equilibrium. Is it true, as intuition may suggest in haste, that random prices necessarily reflect some intrinsic uncertainty in the structu...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2010
ISSN: 1556-5068
DOI: 10.2139/ssrn.1638932