RDP 9311: Agency Costs, Balance Sheets and the Business Cycle
Equation (7)
p
=
p
r
o
b
(
r
a
>
r
l
(
1
−
e
)
)
=
z
¯
−
(
1
−
e
)
r
l
z
¯
−
z
_
i
f
(
1
−
e
)
r
l
≥
z
_
=
1
o
t
h
e
r
w
i
s
e
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