We explore empirically how the time-varying allocation of credit across firms with heterogeneous credit quality matters … credit allocation, captured by Greenwood and Hanson (2013)'s ISS indicator, helps predict downside risks to GDP growth and … systemic banking crises, two to three years ahead. Our analysis indicates that the riskiness of credit allocation is both a …

’s “insiders” and “outsiders” in a small open economy. It shows the inadequacy of capital investment because its scope is too … narrow and the investment each firm makes is too little. An unconventional policy tool is proposed to correct the market …

-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …

This paper investigates whether balance-sheet conditions of firms and their main banks matter for firm investment … facing liquidity constraints; these firms’ balance-sheet conditions (the debt asset ratios) affected their investment from …-sheet conditions constrained these firms’ investment from about 1993. These findings highlight the potential macroeconomic impact and …

legacy of high debt or leverage. Models of corporate investment behavior based on imperfect capital markets predict that … highly leveraged balance sheets can act as a brake on investment spending. The paper''s empirical analysis suggests that … leverage effects on corporate investment can be substantial and persistent, particularly if leverage exceeds threshold values …

-service-to-income ratios, in affecting developments in house prices and credit. We use data on 99 lending standard restrictions implemented in … house prices and credit. However, the impact is delayed and reaches its peak only after three years. In addition, the impact …