Background
Krainer, Robert Edgar was born on July 13, 1935 in Milwaukee. Son of Edgar H. and LaVerne R. (LaFond) Krainer.
(This innovative book presents an original integration of ...)
This innovative book presents an original integration of finance into business cycle theory. Robert Krainer begins with a selective review of the major 20th-century theories of macroeconomic fluctuations: the classical model of economic equilibrium under uncertainty, the IS-LM model of income determination that came to challenge the classical system and the new classical model that in turn challenged the IS-LM system. He also reviews two recent developments, namely real business cycle theory and the new Keynesian models based on monopolistic competition. With this background, the major part of the book offers a new view of how the financial system co-ordinates real activity. Nominal or real shocks change equity investors' required yield on shares by altering their risk aversion. This change in equity yield affects the capital market value of the firm which is itself the signal for managers to change the risk of the firm's operating strategy. This change in the risk of the firm's operating strategy is then matched with an appropriate financial strategy that is designed to coalesce the welfare of stockholders and bondholders. The pricing, employment, output, investment and financing decisions managers implement in this dynamic coalescing process then shape the so-called stylized facts of business cycles. The author goes on to test the theory that financial and operating decisions of firms are systematiclly linked together, using US data. He also describes the actual institutional practices of financial contracting by which risk and return are shared within the firm. The concluding chapter indicates possible directions for future research.
http://www.amazon.com/gp/product/1557863288/?tag=2022091-20
(Corporate Finance, Governance, and Business Cycles descri...)
Corporate Finance, Governance, and Business Cycles describes a model of how a financial system coordinates and shapes certain stylised facts of business cycles. The model is based on a conflict of interest between more risk averse bondholders, and less risk averse stockholders whose risk aversion changes over time. The corporate governance resolution of this conflict assigns the operating decisions of the firm to stockholders and the financing decisions to bondholders. Financing decisions are then linked to operating decisions in a way that coalesces the welfare of bondholders and stockholders over the business cycle. Evidence from the nonfinancial business sector of the G-7 countries does not reject the predictions of the model.
http://www.amazon.com/gp/product/0444510494/?tag=2022091-20
( This volume integrates financial theory, particularly f...)
This volume integrates financial theory, particularly financial contracting theory, into macroeconomics. The role of financial contracts in reducing the conflict between the various factors of production within the firm is described, particularly their influence upon the pricing, employment, production, and financing decisions of firms during various stages of the business cycle. Dr. Krainer takes an unconventional approach to the subject of financial institutions and markets: by applying financial theory to macroeconomic topics, he portrays a different view of how the financial system interacts with the economy.
http://www.amazon.com/gp/product/0275901300/?tag=2022091-20
Krainer, Robert Edgar was born on July 13, 1935 in Milwaukee. Son of Edgar H. and LaVerne R. (LaFond) Krainer.
Bachelor of Science, University of Wisconsin, 1957; Master of Business Administration, University of Michigan, 1959; Doctor of Philosophy, University of Michigan, 1964.
Assistant professor finance, University of Wisconsin, Madison, 1965-1968; associate professor, University of Wisconsin, Madison, 1968-1973; professor, University of Wisconsin, Madison, since 1973. Visiting fellow Templeton College, Oxford (England) University, 1990, visiting lecturer, 1998.
(Corporate Finance, Governance, and Business Cycles descri...)
( This volume integrates financial theory, particularly f...)
(This innovative book presents an original integration of ...)
Married Lynne Anne Ashby, December 19, 1964. Children: John, Elizabeth, Katherine.