Heterogeneous producers facing common shocks: An overlapping-generations example

An analytically tractable model of a competitive, full-information economy is provided in which, for some parameter values, entry and exit over the course of the business cycle is concentrated among small firms. This model is intended to make the logical point that the relatively high sensitivity of small firms to business-cycle fluctuations does not necessarily indicate the presence of informational or incentive constraints in financial markets.

MoreLess

Year of publication:	2009
Authors:	Green, Edward J.
Published in:	Journal of Economic Theory. - Elsevier, ISSN 0022-0531. - Vol. 144.2009, 6, p. 2266-2276
Publisher:	Elsevier
Subject:	Business cycle Heterogeneous-agent model

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008521008