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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

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

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

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

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

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

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

Credit Market Imperfections and Persistent Unemployment

Acemoglu, Daron - 2000

This paper develops the thesis that credit market frictions may be an important contributor to high unemployment in Europe. When a change in the technological regime necessitates the creation of new firms, this can happen relatively rapidly in the U.S. where credit markets function efficiently....

Persistent link: https://www.econbiz.de/10012470798

Contagion and Volatility with Imperfect Credit Markets

Agenor, Pierre-Richard - 1997

This paper interprets contagion effects as a perceived increase (triggered by events occurring elsewhere) in the volatility of aggregate shocks impinging on the domestic economy. The implications of this approach are analyzed in a model with two types of credit market imperfections: domestic...

Persistent link: https://www.econbiz.de/10012472734

Collateral, Rationing and Government Intervention in Credit Markets

Gale, William G. - 1989

This paper analyzes the effects of government intervention in credit markets when lenders use collateral, interest, and the probability of granting a loan as potential screening devices. Equilibria with and without rationing are examined. The principal theme is that credit policies operate...

Persistent link: https://www.econbiz.de/10012475963