Greenwood, Robin; Hanson, Samuel G.; Stein, Jeremy C. - 2008
periods when the ratio of government debt to total debt is higher; and ii) by firms with stronger balance sheets. Our theory …"We argue that time-series variation in the maturity of aggregate corporate debt issues arises because firms behave as … debt. We document that when the government funds itself with relatively more short-term debt, firms fill the resulting gap …
