FENDER, John - In: Annales d'Economie et de Statistique (1995) 37-38, pp. 215-235
In this paper, a two-period macroeconomic model, in which output is demand determined, is constructed. In the first period firms may borrow to finance investment, which reduces their marginal costs in the second period; however, since default by borrowers is possible there is an incentive...