This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing from households. Loan activity typically decreases when entrepreneurs' investment returns decline, and we study which type of policy could revigorate an economy in a trough. We...

This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing from households. Loan activity typically decreases when entrepreneurs' investment returns decline, and we study which type of policy could revigorate an economy in a trough. We...

At the level of individual goods, heterogeneity in marginal transaction costs, proxied by price-to-weight and price-to-volume ratios, together with measures of pricing power within industries, explains a large part of the variation in thresholds of no-adjustment as well as in conditional...