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• W2890941461 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. This implies that economies with lower enforceability of contracts are characterized by greater macroeconomic volatility. A key assumption for the amplification result is that defaulting entrepreneurs are not excluded from the market." @default.
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• W2890941461 date "2004-08-01" @default.
• W2890941461 modified "2023-10-09" @default.
• W2890941461 title "Aggregate Consequences of Limited Contract Enforceability" @default.
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• W2890941461 doi "https://doi.org/10.1086/421170" @default.
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