Motivated by the apparent failure of the credit multiplier mechanism (CM) to deliver amplification in DSGE models, we …

investment behavior. The bilateral external benefits induce an investment multiplier effect. This multiplier effect depends in a … characterize how the multiplier effect hinges on market size, and how it interacts with other important factors such as the costs … of investment and the signaling incentives induced by competition. …

properties of the equilibrium investment behavior. The bilateral external benefits induce an investment multiplier effect. This … multiplier effect depends in a complex way on agents' uncertainty about their rank within their own market side and on their … uncertainty about the types and investments of potential partners. We study how the multiplier effect depends on market size and …

properties of the equilibrium investment behavior. The bilateral external benefits induce an investment multiplier effect. This … multiplier effect depends in a complex way on agents' uncertainty about their rank within their own market side and on their … uncertainty about the types and investments of potential partners. We study how the multiplier effect depends on market size and …

firms through intermediate goods deliver a multiplier similar to the one associated with capital accumulation in a … neoclassical growth model. Because the intermediate goods' share of revenue is about 1/2, this multiplier is substantial. Second …