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Agency Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium Analysis


An analysis of the quantitative effects of agency costs in a real business cycle model, showing that these costs can explain why output growth displays positive autocorrelation at short horizons.


Suggested citation: Carlstome, Charles, and Timothy Fuerst, 1996. “Agency Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium Analysis,” Federal Reserve Bank of Cleveland, Working Paper no. 96-02.

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