Aggregate Consequences of Limited Contract Enforceability
构建一般均衡模型，研究合同执行问题如何放大技术冲击对总产出的影响，导致合同执行度低的经济体宏观经济波动更大。
We study a general equilibrium model in which entrepreneurs finance investment with optimal financial contracts. Because of enforceability problems, contracts are constrained efficient. We show that limited enforceability amplifies the impact of technological innovations on aggregate output. This implies that economies with lower enforceability of contracts are characterized by greater macroeconomic volatility. A key assumption for the amplification result is that defaulting entrepreneurs are not excluded from the market.