Hale, Galina B; Razin, Assaf; Tong, Hui - C.E.P.R. Discussion Papers - 2007
Tobin’s q model predicts that credit protection reduces the probability of oscillations between binding and nonbinding … states of the credit constraint, which result from liquidity crises and their aftermath. In this way creditor protection … liquidity are used as a forecast of a switch from a credit–unconstrained to a credit-constrained regime. We find support for the …