The High Sensitivity of Economic Activity to Financial Frictions
Bibliographic Data
| ID | 9713558 |
|---|---|
| Authors | R E Hall (0000-0001-6117-6729, Stanford University, corresponding author) |
| Year | 2011 |
| Volume | 121 |
| Issue | 552 |
| Pages | 351-378 |
| Publication date | 2011-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2011.02421.x |
| OpenAlex | W2160677330 |
| Language | EN |
| Citations received | 7 |
| References cited | 11 |
A financial friction is a wedge between the return received by providers of financial capital – ultimately, consumers – and the cost of capital paid by businesses and consumers who use capital. I study two frictions. One raises the rental cost of capital to firms and the other raises the rental cost of housing and durable goods to consumers. My focus is on the effects of financial frictions – I take the magnitudes of the frictions as given. Thus, my results complement an active recent literature that explains the intensification of financial frictions in a crisis. I find that financial frictions are powerful determinants of economic activity
Business · Capital (architecture · Capital good · Cost of capital · Economics · Financial capital · Financial crisis · Human capital · Incentive · Labour economics · Macroeconomics · Market economy · Microeconomics · Monetary economics · Public good · Renting · Banking stability, regulation, efficiency · Economic theories and models · Finance · Monetary Policy and Economic Impact
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| Unique citing works | 7 |
|---|---|
| Citations per year | 0,44 |
| Citation span | 2010 - 2021 (12) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 6 |