CARLSTROM, CHARLES T.; FUERST, TIMOTHY S.; PAUSTIAN, … - In: Journal of Money, Credit and Banking 42 (2010) s1, pp. 37-70
This paper integrates a fully explicit model of agency costs into an otherwise standard Dynamic New Keynesian model in a particularly transparent way. A principal result is the characterization of agency costs as endogenous markup shocks in an output-gap version of the Phillips curve. The...