The recent financial crisis has put the spotlight on the rapid rise in credit which preceded it. In this paper, we … provide an empirical and theoretical analysis of the credit boom and the macroeconomic context in which it developed. We find … economies in which it took place. We show that this type of credit and financial cycle is hard to reconcile with existing …

and therefore the firm's ability to borrow, in the presence of credit market imperfections. How the business cycle is … the topic of this paper. We find that the fluctuations in the supply of credit that result from this may significantly …

consider credit demand friction due to agency cost, but it deviates from BGG in that financial intermediaries have to share … contract. Low bank capital position can create strong credit supply contraction, and have a significant effect on business …

Credit contracting between a lender with a market power and a small start-up entrepreneur may lead to a rejection of … be eliminated by a government support in the form of credit guarantees or subsidies. The principal-agent model of this …

show that the incidence of inefficient credit termination and subsequent firm liquidation is contingent on the borrower … inefficient credit decisions than monopoly relationship lending or homogeneous multiple banking, provided that the relationship …

Communal responsibility, a medieval institution studied by Greif (2006), supported the use of credit among European …. Enforceability within each village's centralized afternoon market ensures collateralization of credit in decentralized markets. In … the resulting equilibrium, money and credit coexist in decentralized markets if the use of credit is costly. Our analysis …

-supply channel as an extension of the credit channel pioneered by Bernanke and Blinder (1988). …

This paper investigates the role of credit market size as a determinant of business cycle fluctuations. First, using … OECD data I document that credit market depth mitigates the impact of variations in productivity to output volatility. Then … credit market size and output volatility. The model matches resonably well the reduction in productivity-driven output …

study the causes and nature of endogenous credit cycles. The basic model has two types of projects: the Good and the Bad …. With a low net worth, the agents cannot finance the Bad, and much of the credit goes to finance the Good, even when the Bad … finance the Bad. This shift in the composition of the credit from the Good to the Bad at the peak of the boom causes a …

Credit constraints that link a private agent’s debt to market-determined prices embody a credit externality that drives … shocks trigger the credit constraint. We quantify the effects of this inefficiency in a two-sector dynamic stochastic general … equilibrium model of a small open economy calibrated to emerging markets. The credit externality increases the probability of …