Replication data for: Optimal Contracts, Aggregate Risk, and the Financial Accelerator
- Carlstrom, Charles T.
- Fuerst, Timothy S.
- Paustian, Matthias
AbstractThis paper derives the optimal lending contract in the financial accelerator model of Bernanke, Gertler, and Gilchrist (1999), henceforth, BGG. The optimal contract includes indexation to the aggregate return on capital, household consumption, and the return to internal funds. This triple indexation results in a dampening of fluctuations in leverage and the risk premium. Hence, compared with the contract originally imposed by BGG, the privately optimal contract implies essentially no financial accelerator. (JEL D11, D81, D86, D92, E13, G31, L26)
Is supplement to
DOI: 10.1257/mac.20120024 (Text)
Carlstrom, Charles T., Timothy S. Fuerst, and Matthias Paustian. “Optimal Contracts, Aggregate Risk, and the Financial Accelerator.” American Economic Journal: Macroeconomics 8, no. 1 (January 2016): 119–47. https://doi.org/10.1257/mac.20120024.
- ID: 10.1257/mac.20120024 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07