asset side and equity capital as well as debt on the liabilities side. A number of findings emerge when simulating the model … higher levels of leverage lead to a greater inequality among agents. Furthermore, greater leverage increases the frequency of … bankruptcies and systemic events. Credit frictions, which we define as the stickiness of debt adjustments, are able to explain a …

asset side and equity capital as well as debt on the liabilities side. A number of findings emerge when simulating the model … higher levels of leverage lead to a greater inequality among agents. Furthermore, greater leverage increases the frequency of … bankruptcies and systemic events. Credit frictions, which we define as the stickiness of debt adjustments, are able to explain a …

asset side and equity capital as well as debt on the liabilities side. The introduction of balance sheets and debt into an … emerges and that higher levels of leverage lead to a greater inequality among agents. When further analyzing the relationship … between leverage and balance sheets, we observe that decreasing credit frictions result in an increasingly procyclical …