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Finance in the Theory of Business Cycles

Author

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  • Indrajit, Mallick

Abstract

The question of aggregate welfare over time makes business cycle studies important. Finance studies allocation of resources under uncertainty. Thus both these fields of study dwell on intertemporal resource allocation under uncertainty. This paper attempts to shed light on how finance can be integrated into business cycle theory to provide richer and deeper insights than the standard real business cycle theory. JEL Classification: E32, E44, G

Suggested Citation

  • Indrajit, Mallick, 2008. "Finance in the Theory of Business Cycles," MPRA Paper 15472, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:15472
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    File URL: https://mpra.ub.uni-muenchen.de/15472/1/MPRA_paper_15472.pdf
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    References listed on IDEAS

    as
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    4. Chamley, Christophe & Gale, Douglas, 1994. "Information Revelation and Strategic Delay in a Model of Investment," Econometrica, Econometric Society, vol. 62(5), pages 1065-1085, September.
    5. Woodford, Michael, 1986. "Stationary sunspot equilibria in a finance constrained economy," Journal of Economic Theory, Elsevier, vol. 40(1), pages 128-137, October.
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    7. Greenbaum, Stuart I. & Thakor, Anjan V., 1987. "Bank funding modes : Securitization versus deposits," Journal of Banking & Finance, Elsevier, vol. 11(3), pages 379-401, September.
    8. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Business Cycles; Finance;

    JEL classification:

    • G0 - Financial Economics - - General
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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    This paper has been announced in the following NEP Reports:

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