An aggregate model of firm specific capital with and without commitment

• 成果类型: Article
• 署名作者: Kwok, C
• 署名单位: City University of Hong Kong
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(01)00068-X
• 发表日期: 2001
• 页码: 217-237
• 关键词: agency problems; Asset specificity; aggregate fluctuations

摘要

This paper considers an environment in which entrepreneurs cannot commit their human capitals to investment projects and the amount of external funds that they can raise is constrained by the salvage values of the physical capital goods. In order to raise sufficient external funds, entrepreneurs might have to use capital goods that are less project specific. In a two-period lived overlapping generations model with aggregate shocks, this paper shows that the presence of the agency problem can propagate aggregate shocks through the specificity of investments undertaken. (C) 2001 Elsevier Science B.V. All rights reserved.