The DOI matches its DataCite record; 7 of the 7 references it cites were found in a registry or an index.
Agency Costs, Net Worth, And Business Fluctuations
Open accessAbstract
This paper constructs a simple neoclassical model of intrinsic business cycle dynamics in which borrowers' balance sheet positions play an important role. The critical insight is that the agency costs of undertaking physical investments are inversely related to the entrepreneur's/borrower's net worth. As a result, accelerator effects on investment emerge: Strengthened borrower balance sheets resulting from good times expand investment demand, which in turn tends to amplify the upturn; weakened balance sheets in bad times do just the opposite. Further, redistributions or other shocks that affect borrowers' balance sheets (as in a debt-deflation} may have aggregate real effects.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Moral Hazard and Observability
Holmstrom, B. R. (1979) · The Bell Journal of Economics · doi:10.2307/3003320 · Cited by 8,159
Optimal contracts and competitive markets with costly state verification
Townsend, R. M. (1979) · Journal of Economic Theory · doi:10.1016/0022-0531(79)90031-0 · Cited by 3,204
Theory ahead of business-cycle measurement
Prescott, E. C. (1986) · Carnegie-Rochester Conference Series on Public Policy · doi:10.1016/0167-2231(86)90035-7 · Cited by 1,664
Limited liability contracts between principal and agent
Sappington, D. E. M. (1983) · Journal of Economic Theory · doi:10.1016/0022-0531(83)90120-5 · Cited by 520
The Household Balance Sheet and the Great Depression
Mishkin, F. S. (1978) · The Journal of Economic History · doi:10.1017/s0022050700087167 · Cited by 356
Financial Intermediation, Business Failures, and Real Business Cycles
Williamson, S. D. (1987) · Journal of Political Economy · doi:10.1086/261511 · Cited by 348
Monetary factors in the great depression
Hamilton, J. D. (1987) · Journal of Monetary Economics · doi:10.1016/0304-3932(87)90045-6 · Cited by 280
Flagged first, then by citations
Cited by
Sorted by citations
Items 201–300 of 1,001
How Foreign Participation and Market Concentration Impact Bank Spreads: Evidence from Latin America
Pería, M. S. M., Mody, A., & Bank, W. (2004) · World Bank policy research working paper · doi:10.1596/1813-9450-3210 · Cited by 316
Credit-Market Sentiment and the Business Cycle*
López‐Salido, D., Stein, J. C., & Zakrajšek, E. (2017) · The Quarterly Journal of Economics · doi:10.1093/qje/qjx014 · Cited by 299
Which Financial Frictions? Parsing the Evidence from the Financial Crisis of 2007 to 2009
Adrian, T., Colla, P., & Shin, H. S. (2011) · NBER Macroeconomics Annual · doi:10.1086/669176 · Cited by 310
The New Economics of Prudential Capital Controls: A Research Agenda
Korinek, A. (2011) · IMF Economic Review · doi:10.1057/imfer.2011.19 · Cited by 308
Corporate digital transformation and trade credit financing
Zhou, Z., & Li, Z. (2023) · Journal of Business Research · doi:10.1016/j.jbusres.2023.113793 · Cited by 313
Credit Expansion and Neglected Crash Risk*
Baron, M., & Xiong, W. A. (2017) · The Quarterly Journal of Economics · doi:10.1093/qje/qjx004 · Cited by 298
The Cost Channel of Monetary Transmission
Marvin J. Barth, & Ramey, V. (2001) · NBER Macroeconomics Annual · doi:10.1086/654443 · Cited by 306
How Bad Are Twins? Output Costs of Currency and Banking Crises
Hutchison, M. M., & Noy, I. (2005) · Journal of money credit and banking · doi:10.1353/mcb.2005.0043 · Cited by 306
Is Monetary Policy Effective During Financial Crises?
Mishkin, F. S. (2009) · American Economic Review · doi:10.1257/aer.99.2.573 · Cited by 302
A Macroeconomic Model with a Financial SectorPreprint
Brunnermeier, M. K., & Sannikov, Y. (2012) · SSRN Electronic Journal · doi:10.2139/ssrn.2160894 · Cited by 301
Monetary Theory and Policy, 2nd Edition
Walsh, C. E. (2003) · Cited by 304
Optimal interest rate rules, asset prices, and credit frictions
Faia, E., & Monacelli, T. (2007) · Journal of Economic Dynamics and Control · doi:10.1016/j.jedc.2006.11.006 · Cited by 298
Reallocation in the Great Recession: Cleansing or Not?
Foster, L., Grim, C., & Haltiwanger, J. (2015) · Journal of Labor Economics · doi:10.1086/682397 · Cited by 298
Financing constraints and unemployment: Evidence from the Great Recession
Duygan-Bump, B., Levkov, A., & Montoriol-Garriga, J. (2015) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2014.12.011 · Cited by 296
Asymmetric Information, Liquidity Constraints, and Canadian Investment
Schaller, H. (1993) · Canadian Journal of Economics/Revue canadienne d économique · doi:10.2307/135887 · Cited by 291
An Anatomy of Credit Booms and their Demise
Mendoza, E. G., & Terrones, M. E. (2012) · National Bureau of Economic Research · doi:10.3386/w18379 · Cited by 294
North-South lending and endogenous domestic capital market inefficiencies
Gertler, M. L., & Rogoff, K. (1990) · Journal of Monetary Economics · doi:10.1016/0304-3932(90)90022-v · Cited by 291
Self-citationFinancial development and the instability of open economies
Aghion, P., Bacchetta, P., & Banerjee, A. (2004) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2003.12.001 · Cited by 287
The Macroeconomics of Shadow Banking
Moreira, A., & Savov, A. (2017) · The Journal of Finance · doi:10.1111/jofi.12540 · Cited by 286
Collateralization, Bank Loan Rates, and Monitoring
Cerqueiro, G., Ongena, S. R. G., & Roszbach, K. F. (2014) · The Journal of Finance · doi:10.1111/jofi.12214 · Cited by 285
Oil Price Shocks and the U.S. Economy: Where Does the Asymmetry Originate?
Balke, N. S., Brown, S. P. A., & Yücel, M. K. (2002) · The Energy Journal · doi:10.5547/issn0195-6574-ej-vol23-no3-2 · Cited by 281
Jiménez, G., Ongena, S. R. G., Peydró, J., & Salas, J. S. (2009) · SSRN Electronic Journal · doi:10.2139/ssrn.1333538 · Cited by 274
Capital Market Imperfections and Countercyclical Markups: Theory and Evidence
Chevalier, J. A., & Scharfstein, D. S. (1994) · National Bureau of Economic Research · doi:10.3386/w4614 · Cited by 271
Expectations, Learning, and Business Cycle Fluctuations
Stefano Eusepi, Y., & Preston, B. (2011) · American Economic Review · doi:10.1257/aer.101.6.2844 · Cited by 270
How Valuable is Financial Flexibility when Revenue Stops? Evidence from the COVID-19 Crisis
Fahlenbrach, R., Rageth, K., & Stulz, R. M. (2020) · National Bureau of Economic Research · doi:10.3386/w27106 · Cited by 263
Trade Credit and the Propagation of Corporate Failure: An Empirical Analysis
Jacobson, T., & von Schedvin, E. L. (2015) · Econometrica · doi:10.3982/ecta12148 · Cited by 268
How Foreign Participation and Market Concentration Impact Bank Spreads: Evidence from Latin America
Pería, M. S. M., & Mody, A. (2004) · Journal of money credit and banking · doi:10.1353/mcb.2004.0048 · Cited by 267
Monetary Stimulus and Bank Lending
Chakraborty, I., Itay Goldstein, B., & MacKinlay, A. (2016) · Journal of Financial Economics · doi:10.1016/j.jfineco.2019.09.007 · Cited by 255
The Industry Effects of Monetary Policy in the Euro Area
Peersman, G., & Smets, F. R. (2005) · The Economic Journal · doi:10.1111/j.1468-0297.2005.00991.x · Cited by 266
Some consequences of credit rationing in an endogenous growth model
Bencivenga, V. R., & Smith, B. D. (1993) · Journal of Economic Dynamics and Control · doi:10.1016/s0165-1889(06)80006-0 · Cited by 264
Blanchard, O. J. (2009) · Annual Review of Economics · doi:10.1146/annurev.economics.050708.142952 · Cited by 263
Balance Sheets and Exchange Rate Policy
Céspedes, L. F., Chang, R., & Velasco, A. (2000) · National Bureau of Economic Research · doi:10.3386/w7840 · Cited by 263
Consumption and Credit: A Model of Time-Varying Liquidity Constraints
Ludvigson, S. C. (1999) · The Review of Economics and Statistics · doi:10.1162/003465399558364 · Cited by 262
Financial Crises: Theory and Evidence
Allen, F., Babus, A., & Carletti, E. (2009) · Annual Review of Financial Economics · doi:10.1146/annurev.financial.050808.114321 · Cited by 261
The Collateral Channel: How Real Estate Shocks Affect Corporate InvestmentPreprint
Chaney, T., Sraer, D. A., & Thesmar, D. (2011) · SSRN Electronic Journal · doi:10.2139/ssrn.1746768 · Cited by 261
Global Waves of Debt: Causes and Consequences
Köse, M. A., Nagle, P., Ohnsorge, F. L., & Sugawara, N. (2021) · World Bank, Washington, DC eBooks · doi:10.1596/978-1-4648-1544-7 · Cited by 260
Do Creditor Rights Increase Employment Risk? Evidence from Loan Covenants
Falato, A., & Liang, N. (2016) · The Journal of Finance · doi:10.1111/jofi.12435 · Cited by 257
Housing Price Booms and Crowding-Out Effects in Bank Lending
Chakraborty, I., Itay Goldstein, B., & MacKinlay, A. (2018) · Review of Financial Studies · doi:10.1093/rfs/hhy033 · Cited by 256
High-tech firms and credit rationing
Guiso, L. (1998) · Journal of Economic Behavior & Organization · doi:10.1016/s0167-2681(97)00101-7 · Cited by 246
Inflation risk premia and the expectations hypothesis
Buraschi, A., & Jiltsov, A. (2005) · Journal of Financial Economics · doi:10.1016/j.jfineco.2004.07.003 · Cited by 241
Philippon, T. (2009) · The Quarterly Journal of Economics · doi:10.1162/qjec.2009.124.3.1011 · Cited by 252
Asset Price Booms and Monetary PolicyPreprint
Detken, C., & Smets, F. R. (2004) · SSRN Electronic Journal · doi:10.2139/ssrn.533122 · Cited by 250
Trusting the bankers: A new look at the credit channel of monetary policy
Ciccarelli, M., Maddaloni, A. M., & Peydró, J. (2014) · Review of Economic Dynamics · doi:10.1016/j.red.2014.11.002 · Cited by 264
Bougheas, S., Mizen, P., & Yalcin, C. (2005) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2005.01.002 · Cited by 264
International Stock Price Movements: Links and Messages
von Furstenberg, G. M., Jeon, B. N., Mankiw, N. G., & Shiller, R. J. (1989) · Brookings Papers on Economic Activity · doi:10.2307/2534497 · Cited by 247
Financial Market Globalization, Symmetry-Breaking, and Endogenous Inequality of Nations
Matsuyama, K. (2004) · Econometrica · doi:10.1111/j.1468-0262.2004.00514.x · Cited by 241
Macroeconomic cycles and the stock market’s reaction to monetary policy
Basistha, A., & Kurov, A. (2008) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2008.05.012 · Cited by 247
Mishkin, F. S. (2006) · Princeton University Press eBooks · doi:10.1515/9781400829446 · Cited by 245
Guariglia, A., & Yang, J. (2015) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2015.10.006 · Cited by 252
The Great Recession: Lessons from Microeconomic Data
Mian, A., & Sufi, A. (2010) · American Economic Review · doi:10.1257/aer.100.2.51 · Cited by 249
When Credit Dries Up: Job Losses in the Great Recession
Bentolila, S., Jansen, M., & Jiménez, G. (2017) · Journal of the European Economic Association · doi:10.1093/jeea/jvx021 · Cited by 243
Bank Bias in Europe: Effects on Systemic Risk and Growth
Langfield, S., & Pagano, M. (2015) · Economic Policy · doi:10.1093/epolic/eiv019 · Cited by 245
Tax evasion, the underground economy and financial development
Blackburn, K., Niloy Bose, A., & Capasso, S. (2012) · Journal of Economic Behavior & Organization · doi:10.1016/j.jebo.2012.05.019 · Cited by 244
Agency Conflicts, Investment, and Asset Pricing
ALBUQUERUE, R., & Wang, N. (2008) · The Journal of Finance · doi:10.1111/j.1540-6261.2008.01309.x · Cited by 244
Kosowski, R. L. (2006) · Quarterly Journal of Finance · doi:10.1142/s2010139211000146 · Cited by 230
Bank net worth, asset prices and economic activity
Chen, N. (2001) · Journal of Monetary Economics · doi:10.1016/s0304-3932(01)00076-9 · Cited by 241
A Model of Monetary Policy and Risk Premia
Drechsler, I., Savov, A., & Schnabl, P. (2017) · The Journal of Finance · doi:10.1111/jofi.12539 · Cited by 252
Boom-Busts in Asset Prices, Economic Instability, and Monetary Policy
Bordo, M. D., & Jeanne, O. (2002) · National Bureau of Economic Research · doi:10.3386/w8966 · Cited by 241
Haircuts: estimating investor losses in sovereign debt restructurings, 1998–2005
Becker, B., & Ivashina, V. (n.d.) · RePEc: Research Papers in Economics · doi:10.1093/rof/rfx041 · Cited by 241
The Bank Lending Channel: Lessons from the CrisisPreprint
Gambacorta, L., & Marqués-Ibáñez, D. (2011) · SSRN Electronic Journal · doi:10.2139/ssrn.1814042 · Cited by 246
The theory and practice of financial stability
Crockett, A. D. (1996) · De Economist · doi:10.1007/bf01371939 · Cited by 242
Nonperforming Loans and Macrofinancial Vulnerabilities in Advanced EconomiesPreprint
Nkusu, M. (2011) · SSRN Electronic Journal · doi:10.2139/ssrn.1888904 · Cited by 239
The Great Escape? A Quantitative Evaluation of the Fed's Liquidity Facilities
Negro, M. D., Eggertsson, G. B., Ferrero, A., & Kiyotaki, N. (2017) · American Economic Review · doi:10.1257/aer.20121660 · Cited by 232
Currency Crises and Monetary Policy in an Economy with Credit ConstraintsPreprint
Aghion, P., Banerjee, A., & Bacchetta, P. (2000) · SSRN Electronic Journal · doi:10.2139/ssrn.239288 · Cited by 238
Resolving Debt Overhang: Political Constraints in the Aftermath of Financial Crises
Mian, A., Sufi, A., & Trebbi, F. (2014) · American Economic Journal: Macroeconomics · doi:10.1257/mac.6.2.1 · Cited by 237
Determinants of non-performing loans in Central and Eastern European countries
Škarica, B. (2014) · Financial Theory and Practice · doi:10.3326/fintp.38.1.2 · Cited by 237
Distinguishing Theories of the Monetary Transmission Mechanism
Cecchetti, S. G. (1995) · doi:10.20955/r.77.83-97 · Cited by 236
Why do borrowers pledge collateral? New empirical evidence on the role of asymmetric information
Berger, A. N., Espinosa‐Vega, M. A., Frame, W. S., & Miller, N. (2010) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2010.01.001 · Cited by 221
The Real Effects of Financial Markets
Bond, P., Edmans, A., & Itay Goldstein, B. (2011) · National Bureau of Economic Research · doi:10.3386/w17719 · Cited by 255
Liquidity, Monetary Policy, and the Financial Crisis: A New Monetarist Approach
Williamson, S. D. (2012) · American Economic Review · doi:10.1257/aer.102.6.2570 · Cited by 229
Financial globalization, financial crises and contagion
Mendoza, E. G., & Quadrini, V. (2009) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2009.10.009 · Cited by 229
Financing Frictions and the Substitution between Internal and External Funds
Almeida, H., & Murillo Campello, A. (2010) · Journal of Financial and Quantitative Analysis · doi:10.1017/s0022109010000177 · Cited by 229
An analysis of the literature on systemic financial risk: A survey
Silva, W., Kimura, H., & Sobreiro, V. A. (2016) · Journal of Financial Stability · doi:10.1016/j.jfs.2016.12.004 · Cited by 233
Gelos, G., & Werner, A. M. (2002) · Journal of Development Economics · doi:10.1016/s0304-3878(01)00175-4 · Cited by 227
Investor Protection, Optimal Incentives, and Economic Growth
Castro, R., Clementi, G. L., & MacDonald, G. (2004) · The Quarterly Journal of Economics · doi:10.1162/0033553041502171 · Cited by 226
Credit Traps and Credit Cycles
Matsuyama, K. (2007) · American Economic Review · doi:10.1257/000282807780323587 · Cited by 226
Distortions in Production Networks*
Bigio, S., & La’O, J. (2020) · The Quarterly Journal of Economics · doi:10.1093/qje/qjaa018 · Cited by 225
Beck, T., Lundberg, M., & Majnoni, G. (2006) · Journal of International Money and Finance · doi:10.1016/j.jimonfin.2006.08.004 · Cited by 224
Systemic Risk: A SurveyPreprint
de Bandt, O., & Hartmann, P. (2001) · SSRN Electronic Journal · doi:10.2139/ssrn.258430 · Cited by 231
Investment policy, internal financing and ownership concentration in the UK
Marc Goergen, A., & Renneboog, L. D. R. (2001) · Journal of Corporate Finance · doi:10.1016/s0929-1199(01)00022-0 · Cited by 219
Haramillo, F., Schiantarelli, F., & Weiss, A. (1996) · Journal of Development Economics · doi:10.1016/s0304-3878(96)00420-8 · Cited by 219
Investment, devaluation, and foreign currency exposure: The case of Mexico
Aguiar, M. (2005) · Journal of Development Economics · doi:10.1016/j.jdeveco.2004.06.012 · Cited by 223
Financial Capacity and Output Fluctuations in an Economy with Multi-Period Financial Relationships
Gertler, M. L. (1992) · The Review of Economic Studies · doi:10.2307/2297859 · Cited by 222
Self-citationFinancing Development: The Role of Information Costs
Greenwood, J., Sánchez, J. M., & Wang, C. (2010) · American Economic Review · doi:10.1257/aer.100.4.1875 · Cited by 221
Housing finance and real-estate booms: A cross-country perspective
Cerutti, E., Dagher, J., & Dell’Ariccia, G. (2017) · Journal of Housing Economics · doi:10.1016/j.jhe.2017.02.001 · Cited by 221
Brunnermeier, M. K., & Sannikov, Y. (2016) · National Bureau of Economic Research · doi:10.3386/w22533 · Cited by 219
Financial Cycles: What? How? When?
Claessens, S., Köse, M. A., & Terrones, M. E. (2011) · NBER International Seminar on Macroeconomics · doi:10.1086/658308 · Cited by 220
Chapter 12 Aggregate investment
Caballero, R. J. (1999) · Handbook of macroeconomics · doi:10.1016/s1574-0048(99)10020-x · Cited by 219
Financial Development and the Instability of Open Economies
Aghion, P., Bacchetta, P., & Banerjee, A. (2004) · National Bureau of Economic Research · doi:10.3386/w10246 · Cited by 219
Do credit shocks matter? A global perspective
Helbling, T., Huidrom, R., Köse, M. A., & Otrok, C. M. (2011) · European Economic Review · doi:10.1016/j.euroecorev.2010.12.009 · Cited by 218
Hovakimian, G. (2010) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2010.07.001 · Cited by 214
Financial Intermediaries, Financial Stability, and Monetary PolicyPreprint
Adrian, T., & Shin, H. S. (2008) · SSRN Electronic Journal · doi:10.2139/ssrn.1266714 · Cited by 216
Liquidity Management and Corporate Investment During a Financial CrisisPreprint
Murillo Campello, A., Giambona, E., Graham, J. R., & Harvey, C. R. (2009) · SSRN Electronic Journal · doi:10.2139/ssrn.1444009 · Cited by 216
Frictions in Shadow Banking: Evidence from the Lending Behavior of Money Market Mutual Funds
Chernenko, S. V., & Sunderam, A. (2014) · Review of Financial Studies · doi:10.1093/rfs/hhu025 · Cited by 206
Cao, J., Law, S. H., Samad, A. R. A., Mohamad, W. N. W., Wang, J., & Yang, X. (2021) · Environmental Science and Pollution Research · doi:10.1007/s11356-021-13828-3 · Cited by 222
International and Domestic Collateral Constraints in a Model of Emerging Market CrisesPreprint
Caballero, R. J., & Krishnamurthy, A. (2000) · SSRN Electronic Journal · doi:10.2139/ssrn.244144 · Cited by 214
Facts and Challenges from the Great Recession for Forecasting and Macroeconomic Modeling
Ng, S., & Wright, J. H. (2013) · Journal of Economic Literature · doi:10.1257/jel.51.4.1120 · Cited by 210
Financial Factors in the Great Depression
Calomiris, C. W. (1993) · The Journal of Economic Perspectives · doi:10.1257/jep.7.2.61 · Cited by 210
Is Financial Globalization Beneficial?
Mishkin, F. S. (2007) · Journal of money credit and banking · doi:10.1111/j.0022-2879.2007.00026.x · Cited by 208
Overborrowing, Financial Crises and 'Macro-prudential' Taxes
Bianchi, J., & Mendoza, E. G. (2010) · National Bureau of Economic Research · doi:10.3386/w16091 · Cited by 205
Metadata
- Authors
- Bernanke, B., Gertler, M., Bernanke, B., & Gertler, M.
- Venue
- Unknown
- Publisher
- Unknown
- Published
- 1988
- Volume
- 79
- Issue
- 1
- Pages
- 14-31
- OpenAlex
- W1933529014
- Cited by
- 4,386
- References
- 7
- Citations by year
- 2026: 8 · 2025: 68 · 2024: 98 · 2023: 143 · 2022: 125 · 2021: 181 · 2020: 222 · 2019: 144 · 2018: 176 · 2017: 175 · 2016: 192 · 2015: 219 · 2014: 256 · 2013: 223 · 2012: 248
- FWCI
- 32.21
- Type
- journal article
- Language
- en
- Open access
- green
- ageconsearch.umn.edu
- Locations
- AgEcon Search (University of Minnesota, USA) (submittedVersion)
- American Economic Review (submittedVersion)
- AgEcon Search (University of Minnesota, USA)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
- Keywords
- agency costs, net worth, business cycles, debt deflation, investment demand, financial constraints
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
