Liquidity flows and fragility of business enterprises

• 成果类型: Article
• 署名作者: den Haan, WJ; Ramey, G; Watson, J
• 署名单位: University of California System; University of California San Diego; University of London; London Business School; National Bureau of Economic Research; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(03)00077-1
• 发表日期: 2003
• 页码: 1215-1241
• 关键词: propagation; financial intermediation; collapse; matching model

摘要

This paper develops a macroeconomic model in which funds are channeled to entrepreneurs through long-term relationships between entrepreneurs and lenders. The flow of funds to a relationship may be low, causing it to break up due to insufficient liquidity. Multiple Pareto ranked steady states emerge from complementarity between financial intermediation, reflected by the number of relationships, and households' incentives to provide funds. This complementarity also serves as a mechanism for propagating aggregate shocks. Financial collapse may become inescapable if a shock destroys sufficiently many relationships. (C) 2003 Elsevier B.V. All rights reserved.