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This paper describes how imperfect information in both capital and labor markets can, in a context of maximizing firms and perfectly flexible prices and wages, give rise to cyclical variations in unemployment whose character closely resembles that of observed business cycles
Persistent link: https://www.econbiz.de/10013238717
This paper describes how imperfect information in both capital and labor markets can, in a context of maximizing firms and perfectly flexible prices and wages, give rise to cyclical variations in unemployment whose character closely resembles that of observed business cycles
Persistent link: https://www.econbiz.de/10012476976
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loans and defaults, we estimate models of demand for credit, loan use, pricing, and firm default. We find evidence of …
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credit. We estimate a structural model of credit demand, loan use, pricing, and firm default using matched firm-bank data … of demand for credit and default. Our counterfactual experiments show that while increases in adverse selection increase … prices and defaults on average, reducing credit supply, banks' market power can mitigate these negative effects …
Persistent link: https://www.econbiz.de/10012971793