Adverse selection and self-fulfilling business cycles
نویسندگان
چکیده
منابع مشابه
Adverse Selection and Self-fulfilling Business Cycles∗
We develop a macroeconomic model with adverse selection. A continuum of households purchase goods from a continuum of anonymous producers. The quality of products can only be learned after trade. Adverse selection arises as low-quality goods deliver higher profits for producers but are less desirable for households. Higher aggregate demand induces more high-quality goods, raises average quality...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2018
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2017.12.003