IDEAS home Printed from https://ideas.repec.org/a/bla/econom/v82y2015i327p486-507.html
   My bibliography  Save this article

Equilibrium Shirking, Access to Credit and Endogenous TFP Fluctuations

Author

Listed:
  • Manoj Atolia
  • Tor Einarsson
  • Milton Marquis

Abstract

type="main" xml:id="ecca12122-abs-0001"> This paper develops a model in which idea-rich, cash-poor entrepreneurs undertake risky investment projects that are subject to future liquidity needs and shirking due to moral hazard. The model suggests that the strength of the entrepreneur's incentive to shirk is countercyclical and that endogenous shirking adds volatility to the economy by increasing the persistence and volatility of TFP. This increase in persistence and volatility is driven by the variation in the number of successfully completed projects, compounded by the effect of the incentive to shirk on access to credit; changes in factor employment play only a minor role.

Suggested Citation

  • Manoj Atolia & Tor Einarsson & Milton Marquis, 2015. "Equilibrium Shirking, Access to Credit and Endogenous TFP Fluctuations," Economica, London School of Economics and Political Science, vol. 82(327), pages 486-507, July.
  • Handle: RePEc:bla:econom:v:82:y:2015:i:327:p:486-507
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/ecca.2015.82.issue-327
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gilbert Mbaraa & Ryszard KokoszczyƄski, 2018. "Corporate governance, tax evasion and business cycles," Working Papers 2018-10, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:econom:v:82:y:2015:i:327:p:486-507. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.