The Exchange Rate and Company Failure in a Macro-Micro Model of the UK Company Sector
A macro-micro model is presented which is used to predict company failure. It bridges the gap between previous macroeconomic models and the microeconomic approach to company failure in the finance literature: it can trace the probable effects of exogenous macroeconomic shocks upon the finances and the viability of individual members of the company sector. A series of simulation exercises using this model quantifies the impact of variations in the exchange rate upon the failure rate among the top one hundred U.K. companies. This impact is shown to be substantial, asymmetric, and at times nonlinear. Copyright 1991 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 101 (1991)
Issue (Month): 406 (May)
|Contact details of provider:|| Postal: Office of the Secretary-General, Rm E35, The Bute Building, Westburn Lane, St Andrews, KY16 9TS, UK|
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|
When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:101:y:1991:i:406:p:444-57. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.