Endogenous cycles in a Stiglitz-Weiss economy
成果类型：
Article; Proceedings Paper
署名作者：
Suarez, J; Sussman, O
署名单位：
Ben-Gurion University of the Negev
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1997.2297
发表日期：
1997
页码：
47-71
关键词：
摘要：
The literature on financial imperfections and business cycles has focused on propagation mechanisms. In this paper we model a pure reversion mechanism, such that the economy may converge to a two-period equilibrium cycle. This mechanism confirms that financial imperfections may have a dramatic amplification effect. Unlike in some related models, contracts are complete. Indexation is not assumed away. The welfare properties of a possible stabilizing policy are analyzed. The model itself is a dynamic extension of the well-known Stiglitz-Weiss model of lending under moral hazard. Although stylized the model still captures some important features of credit cycles. (C) 1997 Academic Press.