AbstractOur analysis is focused on understanding the financing behavior of the Italian firms in a period characterized by a relevant economic crisis and consequently by the deleveraging. We aim to detect the determinants of Italian firms leverage choices in a deleverage period and whether...

This paper extends Nolan and Thoenissen (2009), hence NT, model with an explicit financial intermediary that transfer funds from households to entrepreneurs subject to a well defined loan production function. The loan productivity shock is treated as the supply side financial disturbance....