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.
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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
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Market Liquidity and Funding Liquidity
Brunnermeier, M. K., & Pedersen, L. H. (2008) · Review of Financial Studies · doi:10.1093/rfs/hhn098 · Cited by 5,014
The Financial Accelerator in a Quantitative Business Cycle Framework
Bernanke, B., Gertler, M. L., & Gilchrist, S. (1998) · National Bureau of Economic Research · doi:10.3386/w6455 · Cited by 4,584
Self-citationInside the black box: the credit channel of monetary policy transmission
Bernanke, B. S., & Gertler, M. (1995) · Journal of Economic Perspectives · doi:10.1257/jep.9.4.27 · Cited by 4,211
Self-citationWhited, T. M., & Wu, G. (2006) · Review of Financial Studies · doi:10.1093/rfs/hhj012 · Cited by 3,643
Chapter 21 The financial accelerator in a quantitative business cycle framework
Bernanke, B., Gertler, M. L., & Gilchrist, S. (1999) · Handbook of macroeconomics · doi:10.1016/s1574-0048(99)10034-x · Cited by 3,566
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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
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