We analyze the interactions between financing constraints and product market competition. Financially constrained firms face restricted access to external finance during economic downturns, precisely when their internal funds decrease. This leads to vicious circle dynamics. We argue that in...

We study the effects of product market concentration and financing constraints, separately and jointly, on the business cycle sensitivity of firms' operations. We confirm that the sensitivity is higher for firms in industries with both a low concentration and a relatively even distribution of...

This paper proposes a quantitative evaluation of the time-to-plan technology in order to investigate up to which point this mechanism could constitute a satisfactory alternative to the well-known capital adjustment cost technology. We show that the time-to-plan mechanism reproduces a realistic...

We propose an augmented version of the RBC model that can take into account the existence of lags in observation of demand shocks. This hypothesis seems to be a good framework to account for inventories fluctuations. We find some evidence showing the introduction of lag in observation as well as...

The aim of this paper is the identification of structural shocks which affect the dynamics of sectoral inventories, through an analysis of the forecasting error variance decomposition. This identification is achieved using the American and French time series of aggregate production, sectoral...

We show that adjustment cost models with labor supply can explain both asset returns and business cycle facts when adjustment costs penalize the changes of investment. This conclusion stands in contrast to results obtained in the literature with adjustment costs that penalize the changes of capital.

The recent observed decline of business cycle variability suggests that broad macroeconomic risk may have fallen as well. This may in turn have some impact on equity risk premia. We investigate the latent structures in the volatilities of the business cycle and stock market valuations by...