Hnatkovska, Viktoria; Armenter, Roc - Society for Economic Dynamics - SED - 2012
The U.S. non-financial corporate sector became a net lender vis-a-vis the rest of the economy in the early 2000s. We document this fact in the aggregate and firm-level data. We then develop a structural dynamic model with investment to study the firms' financing decisions. Debt is fiscally...