firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and …. Debt, however, has an adverse effect on the enforceability of these arrangements because too much debt increases the firm … analysis provides an explanation for why some firms only use little debt financing. Predictions made by our theory are in line …

. Crises and recessions often occur independently of domestic leverage, making the credit-to-GDP gap a deficient early …

market financing, debt or equity financing - seems to be particularly harmful or beneficial for growth. …

negatively related to credit spreads. Particularly during the financial crisis of 2007-09 and the subsequent European debt crisis …

leverage constraints both in the banking and in the non-financial firm sector. I calibrate this "full model" to US data. In a … leverage, unlike the GK model. For a reasonably calibrated combination shocks to the net worth of banks and non-financial firms …

about even though flows of other sources of financing, such as equity and debt securities, expand strongly and act as a …