propose a simple model where firms producing varieties face labor-market frictions and credit constraints. In the model …, tighter credit leads to lower output, lower number of vacancies, and higher directed-search unemployment. Where workers are … more productive at higher levels of firm output, lower credit supply increases firm capital intensity, raises inequality by …

This paper proposes a theoretical framework to analyze the impacts of credit and technology shocks on business cycle … financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and …

-income households increased their demand for credit to finance higher consumption expenditures in order to "keep up" with higherincome … the underlying type of the applicant, so that banks ultimately channel more credit toward lower-income applicants in low …

's constrained credit status changes with the improvement of its efficiency. The results further reveal that financially constrained …