investments (financing asset sales) across the business cycle. Equity financed investment transfers wealth from equity to debt …, hence, transfer wealth back from debt to equity. Exploring the dynamics of the heretofore overlooked “asset sale versus …

leverage over the business cycle. Using a sample of monthly bank balance sheets for the period 1994–2011, we find not only that … leverage is predominantly pro-cyclical in the Colombian banking sector, but also that heterogeneity matters, and thus, an … aggregate measure of bank leverage can mask a fragile financial sector. In addition, although some banks display great dynamics …

-term debt and cash flow levels between retail and wholesale firms over the business cycle. We test for differences in inventory … retailers tend to do worse in recessions when compared to the wholesalers. We find that net working capital and long-term debt … working capital and more long-term debt in the recessionary period compared to the expansionary period. Interestingly …

of a diffusion regime. The switching costs and the cash flow generated from the firm depend on a business cycle …

, holding intermediaries' debt as cash. This paper shows that intermediaries' liquidity creation stimulates growth -- firms hold … their debt for unhedgeable investment needs -- but also breeds instability through procyclical intermediary leverage …. Introducing government debt as a competing source of liquidity is a double-edged sword: firms hold more liquidity in every state …