Kornejew, Martin; Lian, Chen; Ma, Yueran; Ottonello, Pablo - National Bureau of Economic Research - 2024
We study how the macroeconomic dynamics following credit cycles vary with business bankruptcy institutions. Using data … on bankruptcy efficiency and business credit around the world, we document that business credit booms are followed by … severe declines in output, investment, and consumption in environments with poorly functioning business bankruptcy. On the …