private lenders but federally guaranteed, largely eliminating unobservable credit risk as a factor in explaining differential … to show that the disparity is not primarily explained by differences in pre-existing bank or credit relationships, firm …

Most aggregate theories of financial frictions model credit available at a single cost of financing but rationed …. However, using a comprehensive firm-level credit registry, we document both high levels and high dispersion in credit spreads … external financing, dispersion has more profound impacts on aggregate development than single-price credit rationing and yields …

We provide evidence that credit lines offer liquidity insurance to borrowers. Borrowers are able to extensively use … their credit lines in recessions and ahead of credit line cuts. In fact drawdowns and changes in drawdowns predict internal … credit rating downgrades and credit line cuts, suggesting substantial liquidity access before credit line cuts. Credit line …

Using novel data on 1,240 credit agreements, we investigate sources of contractual complexity in the leveraged loan …

cash reserves or bank lines of credit. Banks create liquidity for firms by pooling their idiosyncratic risks. As a result …, firms with high aggregate risk find it costly to get credit lines from banks and opt for cash reserves in spite of higher … have a higher ratio of cash reserves to lines of credit, controlling for other determinants of liquidity policy. This …

This paper looks at the effect of credit constraints on skill acquisition when agents have heterogeneous abilities and … wealth. We use a two factor general equilibrium model and assume credit markets are absent. We explore the effects of trade …

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 … contrary, in settings with well functioning business bankruptcy, the aftermath of credit booms is characterized by moderate …

This paper studies the role of credit in the business cycle, with a focus on private credit overhang. Based on a study …; and for both types of recession, more credit-intensive expansions tend to be followed by deeper recessions and slower … controls and their lags. Then we study how past credit accumulation impacts the behavior of not only output but also other key …