Firm Size, Financial Intermediation and Business Cycle

This book extends the real business cycle paradigm to incomplete market economies and uses panel data techniques to estimate parameters of macroeconomic interest. Its focus is on the implications of introducing private information into a real business cycle framework. The analysis has been carried out with a computable stochastic general equilibrium model, calibrated to assess the welfare costs of credit market imperfection and to study its effects on the business cycle properties of the model.