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- W2122445802 abstract "We study a general equilibrium model in which entrepreneurs finance investment with optimal financial contracts. Because of enforceability problems, contracts are constrained efficient. We show that limited enforceability amplifies the impact of technological innovations on aggregate output. More generally, we show that lower enforceability of contracts will be associated with greater aggregate volatility. A key assumption for this result is that defaulting entrepreneurs are not excluded from the market." @default.
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- W2122445802 date "1999-01-01" @default.
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- W2122445802 title "Aggregate Consequences of Limited Contract Enforceability" @default.
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- W2122445802 doi "https://doi.org/10.2139/ssrn.860785" @default.
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