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Financial Market Imperfections and Business Cycles / Bruce C. Greenwald, Joseph E. Stiglitz.
- Format:
- Book
- Author/Creator:
- Greenwald, Bruce C.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w2494.
- NBER working paper series no. w2494
- Language:
- English
- Subjects (All):
- Economic development--Mathematical models.
- Economic development.
- Foreign exchange.
- Capital movements.
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1988.
- Cambridge, Mass. : National Bureau of Economic Research, 1988.
- Summary:
- This paper develops a simple model of macroeconomic behavior which incorporates the impact of financial market "imperfections," such as those generated by asymmetric information in financial markets. These information asymmetries may lead to breakdowns in markets, like that for equity, in which risks arm shared. In particular, we analyze firm behavior in the presence of equity rationing and imperfect futures markets, in which there are lags in production. Aft a consequence, firms act in a risk-averse manner. We trace out the macroeconomic consequences, and show that they are able to account for many of the widely observed aspects of actual business cycles.
- Notes:
- Print version record
- 1988.
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