Similar Search Results

Chapter 10. Recursive Contracts and Endogenously Incomplete Markets

Golosov, M.; Tsyvinski, A.; Werquin, N. - In: Handbook of macroeconomics : volume 2, v. 2A-2B SET, (pp. 725-841). 2016

In this chapter we study dynamic incentive models in which risk sharing is endogenously limited by the presence of informational or enforcement frictions. We comprehensively overview one of the most important tools for the analysis such problems—the theory of recursive contracts. Recursive...

Persistent link: https://www.econbiz.de/10014024287

Moral Hazard and Efficiency in General Equilibrium with Anonymous Trading

Acemoglu, Daron; Simsek, Alp - C.E.P.R. Discussion Papers - 2010

A 'folk theorem' originating, among others, in the work of Stiglitz maintains that competitive equilibria are always or 'generically' inefficient (unless contracts directly specify consumption levels as in Prescott and Townsend, thus bypassing trading in anonymous markets). This paper critically...

Persistent link: https://www.econbiz.de/10008468520

Credit mismatch and breakdown

Becsi, Zsolt; Li, Victor E.; Wang, Ping - In: European Economic Review 59 (2013) C, pp. 109-125

This paper studies the phenomenon of mismatch in a decentralized credit market where borrowers and lenders must engage in costly search to establish credit relationships. Our dynamic general equilibrium framework integrates incentive based informational frictions with a matching process...

Persistent link: https://www.econbiz.de/10010688154

The influence of moral hazard on investment in financially constrained and unconstrained firms

Keefe, Michael O’Connor; Kieschnick, Robert - In: Finance Research Letters 11 (2014) 3, pp. 272-281

We extend Triole (2006) to link together two seemingly different cases – firms facing potential free cash flow problems versus firms facing financial constraints. The model predicts a large number of disparate findings in the empirical literature and so demonstrates its usefulness.

Persistent link: https://www.econbiz.de/10010940017

Chapter 2. Agency, Information and Corporate Investment

Stein, Jeremy C. - 2003

This essay surveys the body of research that asks how the efficiency of corporate investment is influenced by problems … that the marginal return to investment in firm i is the same as the marginal return to investment in firm j ? Second, do … capital budgeting process get within-firm allocations right, so that the marginal return to investment in firm i ’s division A …

Persistent link: https://www.econbiz.de/10014023874

Moral hazard in high-risk environments : optimal follow-on investing in venture capital finance

Tennert, Julius; Lambert, Marie; Burghof, Hans-Peter - In: Venture capital : an international journal of … 20 (2018) 4, pp. 323-338

Persistent link: https://www.econbiz.de/10011988233

Financing capacity with stealing and shirking

Véricourt, Francis de; Gromb, Denis - In: Management science : journal of the Institute for … 65 (2019) 11, pp. 5128-5141

Persistent link: https://www.econbiz.de/10012125937

Moral hazard and the property rights approach to the theory of the firm

Schmitz, Patrick W. - 2019

Persistent link: https://www.econbiz.de/10012179468

Chapter 11. Financial Intermediation and Credit Policy in Business Cycle Analysis

Gertler, Mark; Kiyotaki, Nobuhiro - In: Handbook of monetary economics : volume 3, (pp. 547-599). 2010

We develop a canonical framework to think about credit market frictions and aggregate economic activity in the context of the current crisis. We use the framework to address two issues in particular: first, how disruptions in financial intermediation can induce a crisis that affects real...

Persistent link: https://www.econbiz.de/10014025669

Income and Consumption Smoothing Among US States: Regions or Clubs?

Sørensen, Bent E; Yosha, Oved - C.E.P.R. Discussion Papers - 1997

We measure the amount of income insurance and cross-sectional consumption smoothing (lending and borrowing) achieved within subgroups of states, such as regions or clubs, e.g. the club of rich states. We find that there is as much income insurance between, as well as within, regions. By...

Persistent link: https://www.econbiz.de/10005504778