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 601–700 of 1,001
Trusting the Bankers: A New Look at the Credit Channel of Monetary PolicyPreprint
Maddaloni, A. M., Ciccarelli, M., & Peydró, J. (2011) · SSRN Electronic Journal · doi:10.2139/ssrn.1767969 · Cited by 85
Blanchard, O. J. (2008) · National Bureau of Economic Research · doi:10.3386/w14259 · Cited by 90
DYNAMIC RELATIONSHIP BETWEEN INFLATION AND FINANCIAL DEVELOPMENT
Kim, D.-H., & Lin, S. (2010) · Macroeconomic Dynamics · doi:10.1017/s1365100509090312 · Cited by 92
Khan, M. S., SENHADJI, A. S., & Smith, B. D. (2001) · IMF Working Paper · doi:10.5089/9781451846416.001 · Cited by 89
Monetary Policy in the Capitals of Capital
Gerko, E., & Rey, H. (2017) · Journal of the European Economic Association · doi:10.1093/jeea/jvx022 · Cited by 88
FROM INSTITUTIONS TO FINANCIAL DEVELOPMENT AND GROWTH: WHAT ARE THE LINKS?
Fernández, A., & Tamayo, C. E. (2015) · Journal of Economic Surveys · doi:10.1111/joes.12132 · Cited by 88
Banking conditions and regional economic performance evidence of a regional credit channel
Samolyk, K. A. (1994) · Journal of Monetary Economics · doi:10.1016/0304-3932(94)90052-3 · Cited by 88
The cash flow–investment relationship: International evidence of limited access to external finance
Aggarwal, R., & Zong, S. (2005) · Journal of Multinational Financial Management · doi:10.1016/j.mulfin.2005.04.009 · Cited by 89
Household Debt and Business Cycles Worldwide
Mian, A., Sufi, A., & Verner, E. (2015) · National Bureau of Economic Research · doi:10.3386/w21581 · Cited by 88
Private debt overhang and the government spending multiplier: Evidence for the United States
Bernardini, M., & Peersman, G. (2018) · Journal of Applied Econometrics · doi:10.1002/jae.2618 · Cited by 82
Excess liquidity, bank pricing rules, and monetary policy
Agénor, P., & Aynaoui, K. E. (2009) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2009.10.003 · Cited by 87
Banerjee, R., Gupta, K., & Mudalige, P. (2019) · International Review of Financial Analysis · doi:10.1016/j.irfa.2019.03.009 · Cited by 91
Collateral and Asymmetric Information in Lending Markets
Peng, Y., Ioannidou, V. P., & Pavanini, N. (2022) · Zurich Open Repository and Archive (University of Zurich) · doi:10.5167/uzh-236863 · Cited by 87
Monetary Policy and Credit Supply Shocks
Gilchrist, S., & Zakrajšek, E. (2011) · IMF Economic Review · doi:10.1057/imfer.2011.9 · Cited by 87
Finance and international business cycles
Faia, E. (2006) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2006.04.003 · Cited by 87
Monetary and Financial Interactions in the Business Cycle
Fuerst, T. S. (1995) · Journal of money credit and banking · doi:10.2307/2078053 · Cited by 87
Bank Liquidity Creation, Monetary Policy, and Financial CrisesPreprint
Berger, A. N., & Bouwman, C. H. S. (2011) · SSRN Electronic Journal · doi:10.2139/ssrn.1952728 · Cited by 87
Incentives for Information Production in Markets Where Prices Affect Real InvestmentPreprint
Dow, J., Itay Goldstein, B., & Guembel, A. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2356994 · Cited by 87
Toward a Run-Free Financial SystemPreprint
Cochrane, J. H. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2425883 · Cited by 87
Business Cycle AccountingPreprint
Chari, V. V., Kehoe, P. J., & McGrattan, E. R. (2006) · doi:10.21034/sr.328 · Cited by 87
Does the lack of financial stability impair the transmission of monetary policy?
Acharya, V. V., Imbierowicz, B., Steffen, S., & Teichmann, D. (2020) · Journal of Financial Economics · doi:10.1016/j.jfineco.2020.06.011 · Cited by 85
A Reconsideration of Minsky's Financial Instability Hypothesis
Bhattacharya, S., Goodhart, C., Tsomocos, D. P., & Vardoulakis, A. (2015) · Journal of money credit and banking · doi:10.1111/jmcb.12229 · Cited by 86
Determinants of credit risk in the banking system in Sub-Saharan Africa
Trust R. Mpofu, & Nikolaidou, E. (2018) · Review of Development Finance · doi:10.1016/j.rdf.2018.08.001 · Cited by 86
Debt and Incomplete Financial Markets: A Case for Nominal GDP Targeting
Sheedy, K. D. (2014) · Brookings Papers on Economic Activity · doi:10.1353/eca.2014.0005 · Cited by 86
New or used? Investment with credit constraints
Eisfeldt, A. L., & Rampini, A. A. (2007) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2007.06.030 · Cited by 93
“The free market” and the Asian crisis
Jones, G. (2000) · Critical Review · doi:10.1080/08913810008443546 · Cited by 85
Short-Term Interest Rates and Stock Market Anomalies
Maio, P. F., & Pedro Santa-clara, B. (2017) · Journal of Financial and Quantitative Analysis · doi:10.1017/s002210901700028x · Cited by 85
The Timing and Method of Payment in Mergers when Acquirers Are Financially Constrained
Gorbenko, A. S., & Malenko, A. (2017) · Review of Financial Studies · doi:10.1093/rfs/hhx126 · Cited by 79
Pratap, S., Lobato, I. N., & Somuano, A. (2003) · Emerging Markets Review · doi:10.1016/s1566-0141(03)00064-5 · Cited by 85
Is there an asymmetric effect of monetary policy over time? A Bayesian analysis using Austrian data.
Kaufmann, S. (2002) · Empirical Economics · doi:10.1007/s001810100099 · Cited by 85
Capital Requirements in a Quantitative Model of Banking Industry Dynamics
Corbae, D., & D'Erasmo, P. N. (2019) · National Bureau of Economic Research · doi:10.3386/w25424 · Cited by 85
Liquidity, Inflation and Asset Prices in a Time-Varying Framework for the Euro AreaPreprint
Baumeister, C. J. S., Durinck, E. J., & Peersman, G. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1685159 · Cited by 85
Chirinko, R. S., & Schaller, H. (2009) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2009.02.001 · Cited by 86
Investment frictions and leverage dynamics☆
Tsyplakov, S. (2008) · Journal of Financial Economics · doi:10.1016/j.jfineco.2007.09.004 · Cited by 87
Leverage and Default in Binomial Economies: A Complete Characterization
Fostel, A., & Geanakoplos, J. D. (2015) · Econometrica · doi:10.3982/ecta11618 · Cited by 84
Credit Frictions and The Cleansing Effect of Recessions
Osotimehin, S., & Pappadà, F. (2015) · The Economic Journal · doi:10.1111/ecoj.12319 · Cited by 83
Redistributive Monetary Policy 1
Brunnermeier, M. K., & Sannikov, Y. (2012) · RePEc: Research Papers in Economics · Cited by 83
Determinants of non-performing loans in Chinese banks
Umar, M., & Sun, G. (2018) · Journal of Asia Business Studies · doi:10.1108/jabs-01-2016-0005 · Cited by 83
Household Debt and Monetary Policy: Revealing the Cash-Flow Channel
Flodén, M., Kilström, M., Sigurðsson, J., & Vestman, R. (2020) · The Economic Journal · doi:10.1093/ej/ueaa135 · Cited by 90
Financial distress of Chinese firms: Microeconomic, macroeconomic and institutional influences
Bhattacharjee, A., & Han, J. (2014) · China Economic Review · doi:10.1016/j.chieco.2014.07.007 · Cited by 83
Determinants of corporate capital structure: evidence from Hungarian firms
Colombo, E. (2001) · Applied Economics · doi:10.1080/00036840010015057 · Cited by 82
Gu, C., Mattesini, F., & Wright, R. (2016) · Econometrica · doi:10.3982/ecta12798 · Cited by 83
Liquidity, assets and business cycles
Shi, S. (2014) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2014.10.002 · Cited by 83
Duca, J. V. (2014) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2015.06.016 · Cited by 86
World Economic Outlook, April 2010: Rebalancing Growth
Fund, I. M. (2010) · Perspectives de l'économie mondiale · doi:10.5089/9781589069565.081 · Cited by 83
House Prices, Home Equity-Based Borrowing, and the U.S. Household Leverage Crisis
Mian, A., & Sufi, A. (2009) · National Bureau of Economic Research · doi:10.3386/w15283 · Cited by 83
Limits of Arbitrage: The State of the Theory
Gromb, D., & Vayanos, D. (2010) · National Bureau of Economic Research · doi:10.3386/w15821 · Cited by 83
When Does Domestic Savings Matter for Economic Growth?
Aghion, P., Comín, D., Howitt, P. W., & Tecu, I. (2016) · IMF Economic Review · doi:10.1057/imfer.2015.41 · Cited by 82
Boom–Busts in Asset Prices, Economic Instability, and Monetary Policy
Bordo, M. D., & Jeanne, O. (2004) · Cambridge University Press eBooks · doi:10.1017/cbo9780511607004.006 · Cited by 82
Investment and government intervention in credit markets when there is asymmetric information
Innes, R. D. (1991) · Journal of Public Economics · doi:10.1016/0047-2727(91)90012-q · Cited by 82
Bank ownership, financial segments and the measurement of systemic risk: An application of CoVaR
Drakos, A. A., & Κουρέτας, Γ. Π. (2015) · International Review of Economics & Finance · doi:10.1016/j.iref.2015.02.010 · Cited by 82
The cyclical behavior of short-term business lending
Gertler, M. L., & Gilchrist, S. (1993) · European Economic Review · doi:10.1016/0014-2921(93)90052-c · Cited by 82
Self-citationThe U-Shaped Investment Curve: Theory and EvidencePreprint
Paul Povel, B., Cleary, W. S., & Raith, M. (2003) · SSRN Electronic Journal · doi:10.2139/ssrn.470921 · Cited by 82
Innovation-Driven Entrepreneurship
Botelho, T. L., Fehder, D. C., & Hochberg, Y. V. (2021) · National Bureau of Economic Research · doi:10.3386/w28990 · Cited by 88
Changes in financial structure and asset price substitutability: A test of the bank lending channel
Brissimis, S. N., & Magginas, N. S. (2005) · Economic Modelling · doi:10.1016/j.econmod.2005.06.003 · Cited by 83
O’Rourke, K., & Taylor, A. M. (2013) · The Journal of Economic Perspectives · doi:10.1257/jep.27.3.167 · Cited by 78
Household debt and spending during the financial crisis: Evidence from Danish micro data
Andersen, A. L., Duus, C., & Jensen, T. L. (2016) · European Economic Review · doi:10.1016/j.euroecorev.2016.06.006 · Cited by 81
Bank systemic risk and macroeconomic shocks: Canadian and U.S. evidence
Calmès, C., & Théoret, R. (2013) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2013.11.039 · Cited by 81
2002 LAWRENCE R. KLEIN LECTURE LIQUIDITY AND ASSET PRICES*
Kiyotaki, N., & Moore, J. H. (2005) · International Economic Review · doi:10.1111/j.1468-2354.2005.00320.x · Cited by 81
FIRM DEFAULT AND AGGREGATE FLUCTUATIONS
Jacobson, T., Lindé, J., & Roszbach, K. F. (2013) · Journal of the European Economic Association · doi:10.1111/jeea.12020 · Cited by 81
Capital Inflows, Credit Growth, and Financial Systems
Igan, D. O., & Tan, Z. (2015) · Emerging Markets Finance and Trade · doi:10.1080/1540496x.2017.1339186 · Cited by 81
Optimal Monetary Policy with Collateralized Household Debt and Borrowing Constraints
Monacelli, T. (2006) · National Bureau of Economic Research · doi:10.3386/w12470 · Cited by 81
A Model of Monetary Policy and Risk Premia
Drechsler, I., Savov, A., & Schnabl, P. (2014) · National Bureau of Economic Research · doi:10.3386/w20141 · Cited by 87
High-Frequency Monitoring of Growth-at-Risk
Ferrara, L., Mogliani, M., & Sahuc, J.-G. (2020) · International Journal of Forecasting · doi:10.1016/j.ijforecast.2021.06.010 · Cited by 80
Optimal monetary policy when interest rates are bounded at zero
Kato, R., & Nishiyama, S. (2004) · Journal of Economic Dynamics and Control · doi:10.1016/j.jedc.2003.08.006 · Cited by 77
Saving–investment correlations in developing countries
Kasuga, H. (2004) · Economics Letters · doi:10.1016/j.econlet.2003.11.017 · Cited by 80
What Lies Beneath? A Time-varying FAVAR Model for the UK Transmission Mechanism
Ellis, C., Mumtaz, H., & Zabczyk, P. (2014) · The Economic Journal · doi:10.1111/ecoj.12147 · Cited by 80
Endogenous Cycles in a Stiglitz–Weiss Economy
Suárez, J., & Sussman, O. (1997) · Journal of Economic Theory · doi:10.1006/jeth.1997.2297 · Cited by 80
Implications of the Dodd-Frank Act*
Acharya, V. V., & Richardson, M. P. (2012) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-030912-140516 · Cited by 80
Theoretical Notes on Bubbles and the Current Crisis
Martín, A., & Ventura, J. (2011) · IMF Economic Review · doi:10.1057/imfer.2011.1 · Cited by 80
Berger, A. N., Frame, W. S., & Ioannidou, V. P. (2015) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2015.11.002 · Cited by 80
A Credit Crunch? Finland in the Aftermath of the Banking Crisis
Pazarbaşioğlu, C. (1997) · Staff Papers · doi:10.2307/3867562 · Cited by 80
Market Liquidity and Funding Liquidity＊
Brunnermeier, M. K., & Pedersen, L. H. (2012) · Cambridge University Press eBooks · doi:10.1017/cbo9780511844393.014 · Cited by 80
Cyclicality of Credit Supply: Firm Level EvidencePreprint
Ivashina, V., & Becker, B. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1572699 · Cited by 95
Leverage, Moral Hazard and Liquidity
Acharya, V. V., & Viswanathan, S. (2010) · National Bureau of Economic Research · doi:10.3386/w15837 · Cited by 79
Selection into Entrepreneurship and Self-Employment
Levine, R. E., & Yona Rubinstein, Z. (2018) · National Bureau of Economic Research · doi:10.3386/w25350 · Cited by 78
Do Banks Affect the Level and Composition of Industrial Volatility?
Larraín, B. (2006) · The Journal of Finance · doi:10.1111/j.1540-6261.2006.00892.x · Cited by 80
Korinek, A. (2007) · SSRN Electronic Journal · doi:10.2139/ssrn.967524 · Cited by 78
Firm Dynamics, Persistent Effects of Entry Conditions, and Business CyclesPreprint
Moreira, S. (2017) · SSRN Electronic Journal · doi:10.2139/ssrn.3037178 · Cited by 78
Financial stress and economic dynamics: The case of France
Aboura, S., & van Roye, B. (2016) · International Economics · doi:10.1016/j.inteco.2016.11.001 · Cited by 77
A Fisherian approach to financial crises: Lessons from the Sudden Stops literature
Bianchi, J., & Mendoza, E. G. (2020) · Review of Economic Dynamics · doi:10.1016/j.red.2020.06.001 · Cited by 77
Monetary policy and corporate default
Bhamra, H. S., Fisher, A. J., & Kuehn, L. (2011) · Journal of Monetary Economics · doi:10.1016/j.jmoneco.2011.05.010 · Cited by 73
The Role of Financial Variables in Predicting Economic Activity
Espinoza, R. A., Fornari, F., & Lombardi, M. J. (2009) · Journal of Forecasting · doi:10.1002/for.1212 · Cited by 77
Modelling bank lending in the euro area: a nonlinear approach
Gambacorta, L., & Rossi, C. (2010) · Applied Financial Economics · doi:10.1080/09603101003781430 · Cited by 103
Parker, S. C., Congregado, E., & Golpe, A. A. (2012) · International Small Business Journal Researching Entrepreneurship · doi:10.1177/0266242612437560 · Cited by 76
Shadow Economies at Times of Banking Crises: Empirics and Theory
Colombo, E., Onnis, L., & Tirelli, P. (2013) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2014.09.017 · Cited by 76
FINANCIAL CRISES AND LIQUIDITY SHOCKS: A Bank-Run Perspective
Calvo, G. A. (2009) · European Economic Review · doi:10.1016/j.euroecorev.2011.12.005 · Cited by 76
Credit crunch in a small open economy
Brzoza‐Brzezina, M., & Makarski, K. (2011) · Journal of International Money and Finance · doi:10.1016/j.jimonfin.2011.07.010 · Cited by 76
Systemic risk in financial systems: A feedback approach
Silva, T. C., da Silva, M. A., & Tabak, B. M. (2017) · Journal of Economic Behavior & Organization · doi:10.1016/j.jebo.2017.09.013 · Cited by 76
When Does Domestic Saving Matter for Economic Growth?
Aghion, P., Comín, D., & Howitt, P. W. (2006) · National Bureau of Economic Research · doi:10.3386/w12275 · Cited by 75
Sovereign Debt, Domestic Banks, and the Provision of Public LiquidityPreprint
Perez, D. J., & Varraso, P. (2026) · SSRN Electronic Journal · doi:10.2139/ssrn.7404266 · Cited by 76
Bank liquidity regulation and the lender of last resort
Ratnovski, L. (2008) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2007.08.001 · Cited by 75
Martín, A., & Ventura, J. (2016) · Journal of the European Economic Association · doi:10.1111/jeea.12161 · Cited by 74
Financial innovation and bank risk taking
Santomero, A. M., & Trester, J. J. (1998) · Journal of Economic Behavior & Organization · doi:10.1016/s0167-2681(97)00103-0 · Cited by 74
Consumption Risk Sharing over the Business Cycle: The Role of Small Firms' Access to Credit Markets
Hoffmann, M., & Stewen, I. (2010) · The Review of Economics and Statistics · doi:10.1162/rest_a_00123 · Cited by 74
Economic Activity of Firms and Asset Prices
Kogan, L., & Papanikolaou, D. (2012) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-110311-101731 · Cited by 72
Why Do Some Firms Go Debt Free?
Byoun, S., & Xu, Z. (2013) · Asia-Pacific Journal of Financial Studies · doi:10.1111/ajfs.12009 · Cited by 74
Degryse, H., Matthews, K., & Zhao, T. (2018) · Journal of Financial Stability · doi:10.1016/j.jfs.2018.08.006 · Cited by 74
Global House Price Fluctuations: Synchronization and DeterminantsPreprint
Hirata, H., Köse, M. A., Otrok, C. M., & Terrones, M. E. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2295211 · Cited by 74
A Model of China's State CapitalismPreprint
Li, X., Liu, X., & Wang, Y. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2607429 · Cited by 74
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
