Lee, Donggyu; Dörr, Sebastian; Drechsel, Thomas - 2022 - Revised August 2022
save relatively more in stocks and bonds, and less in bank deposits. We propose that a higher income share of top earners … therefore channels funds to large firms, but tightens financing conditions for small, bank-dependent firms. In turn, small firms … to large firms. Very small firms and those in bank-dependent industries are most affected. Experiments in a quantitative …