Credit spreads are large, volatile and countercyclical, and recent empirical work suggests that risk premia, not … expected credit losses, are responsible for these features. Building on the idea that corporate debt, while safe in ordinary … cyclicality of credit spreads, and variation in the corporate bond risk premium amplifies macroeconomic fluctuations in investment …

of trade credit by minority-owned small businesses. Results based on the 1993 National Survey of Small Business Finance … (NSSBF) indicate that ethnic differences in the use of trade credit are present after conditioning on an extensive list of … control variables. This holds especially for Black-owned businesses, and we find that they use less trade credit, are less …

We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a …