On financial frictions and firm's market power

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2023-04-21 DOI:10.1111/ecin.13146

Miguel Casares, Luca G. Deidda, Jose E. Galdon-Sanchez

引用次数: 0

Abstract

There are two opposing welfare effects of market power in a model with monopolistic competition, loan defaults and moral hazard. The loss of output produced if firms set a higher mark-up over marginal costs confronts with some gain due to higher expected profits and the reduction of defaults. Such tradeoff results in an optimal level of market power that decreases with the efficiency of liquidation following default on a loan. If moral hazard is pervasive, credit rationing cuts down the default rates and mitigates the welfare cost of financial frictions.

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论金融摩擦与企业市场力量

在垄断竞争模型中，市场力量有两种相反的福利效应:贷款违约和道德风险。如果企业在边际成本上设定较高的加价，那么其产出的损失将面临由于预期利润提高和违约减少而带来的一些收益。这种权衡导致市场力量的最优水平，随着贷款违约后的清算效率而降低。如果道德风险普遍存在，信贷配给会降低违约率，减轻金融摩擦带来的福利成本。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.