suggests that external finance will be differentially available to entrepreneurs --holding constant their project opportunities … -- according to their internal net worth position. That is, there is an important link for many firms between internal finance and … of internal finance, aggregate net worth levels, and whether projects are observable. While credit restrictions to some …

allocation to borrower-specific shocks. Our approach suggests that external finance will be differentially available to … important link for many firms between internal finance and investment spending. We develop a simple general equilibrium model of … different borrowers can obtain credit depends on the distribution of internal finance, aggregate net worth levels, and whether …