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Cyclicality of Credit Supply : Firm Level Evidence

Becker, Bo - 2011

Theory predicts that there is a close link between bank credit supply and the evolution of the business cycle. Yet … fluctuations in bank-loan supply have been hard to quantify in the time-series. While loan issuance falls in recessions, it is not … clear if this is due to demand or supply. We address this question by studying firms' substitution between bank debt and non-bank …

Persistent link: https://www.econbiz.de/10012461266

An Anatomy Of Credit Booms : Evidence From Macro Aggregates And Micro Data

Mendoza, Enrique G. - 2008

external financing, and bank-level indicators of banking fragility. Credit booms in industrial and emerging economies show …

Persistent link: https://www.econbiz.de/10012464598

The Loan Covenant Channel : How Bank Health Transmits to the Real Economy

Chodorow-Reich, Gabriel - 2017

We document the importance of covenant violations in transmitting bank health to nonfinancial firms using a new … supervisory data set of bank loans. More than one-third of loans in our data breach a covenant during the 2008-09 period … to the total contraction in credit during that period. We conclude that the transmission of bank health to nonfinancial …

Persistent link: https://www.econbiz.de/10012453834

Financial Dampening

Wieland, Johannes F. - 2016

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …

Persistent link: https://www.econbiz.de/10012456534

Financially Constrained Fluctuations in an Evolving Network Economy

Gatti, Domenico Delli - 2008

We explore the properties of a credit network characterized by inside credit - i.e. credit relationships connecting downstream (D) and upstream (U) firms - and outside credit - i.e. credit relationships connecting firms and banks. The structure of the network changes over time due to the...

Persistent link: https://www.econbiz.de/10012464533

Credit Market Imperfections in Middle Income Countries

Tornell, Aaron - 2003

In this paper we document three credit market imperfections prevalent in middle income countries that can help explain the boom-bust cycles as well as other macroeconomic patterns observed at higher frequencies across these countries. These imperfections are: the existence of financing...

Persistent link: https://www.econbiz.de/10012468961

Strategic Money and Credit Ledgers

Brunnermeier, Markus Konrad; Payne, Jonathan - National Bureau of Economic Research - 2023

This paper studies strategic decision making by a private currency ledger operator, which faces competition from public money and/or other ledgers. A monopoly ledger operator can incentivize contract enforcement across the financial sector by threatening exclusion, but it can also impose markups...

Persistent link: https://www.econbiz.de/10014337794

Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity

Khan, Aubhik - 2011

In the presence of persistent heterogeneity in capital, debt and total factor productivity, the effects of a financial shock are amplified and propagated through large and long-lived disruptions to the distribution of capital that, in turn, imply large and persistent reductions in aggregate...

Persistent link: https://www.econbiz.de/10012461346

Inequality, Human Capital Formation and the Process of Development

Galor, Oded - 2011

Conventional wisdom about the relationship between income distribution and economic development has been subjected to dramatic transformations in the past century. While classical economists advanced the hypothesis that inequality is beneficial for growth, the neoclassical paradigm dismissed the...

Persistent link: https://www.econbiz.de/10012461599

Aggregate Implications of Credit Market Imperfections

Matsuyama, Kiminori - 2007

Credit market imperfections provide the key to understanding many important issues in business cycles, growth and development, and international economics. Recent progress in these areas, however, has left in its wake a bewildering array of individual models with seemingly conflicting results....

Persistent link: https://www.econbiz.de/10012465444