Relationship Finance, Market Finance and Endogenous Business Cycles

Preprint, Research OPEN
LG Deidda; B. Fattouh;
  • Publisher: CRENoS-CUEC
  • Subject: moral hazard;endogenous business cycles;relationship finance;market finance;monitoring | SECS-P/01 Economia politica
    • jel: jel:E32 | jel:E44 | jel:D82

This paper develops an overlapping generation model with asymmetric information in the credit market such that the interplay between relationship finance supplied by investors who monitor investment decisions ex-ante and market finance supplied by investors who relay on... View more
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