Levin, Andrew T.; Natalucci, Fabio M.; Zakrajsek, Egon - Federal Reserve Board (Board of Governors of the … - 2004
We quantify the cross-sectional and time-series behavior of the wedge between the cost of external and internal finance by estimating the structural parameters of a canonical debt-contracting model with informational frictions. For this purpose, we construct a new dataset that includes balance...