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Finance in the Theory of Business Cycles

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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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    References listed on IDEAS

    as
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    5. Douglas Gale & Martin Hellwig, 1985. "Incentive-Compatible Debt Contracts: The One-Period Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(4), pages 647-663.
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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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