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credit amplified the liquidity squeeze on SMEs induced by the contraction of bank credit. Because of their generally weaker … bargaining power in the inter-enterprise credit market, SMEs sharply increased their net trade credit and thus transferred … financial resources to larger firms. The paper finds that the liquidity squeeze induced by trade credit had large negative …
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Gertler and Gilchrist (1994) provide evidence for the prevailing view that adverse shocks are propagated via credit … constraints of small firms. We revisit the behavior of small versus large firms during the episodes of credit disruption and … the economy takes place via credit constraints of small firms …
Persistent link: https://www.econbiz.de/10012903444
I construct a macroeconomic model with a heterogeneous banking sector and an interbank lending market. Banks differ in their ability to transform deposits from households into loans to firms. Bank size differences emerge endogenously in the model, and in steady state, the induced bank size...
Persistent link: https://www.econbiz.de/10013022442
Gertler and Gilchrist (1994) provide evidence for the prevailing view that adverse shocks are propagated via credit … constraints of small firms. We revisit the behavior of small versus large firms during the episodes of credit disruption and … the economy takes place via credit constraints of small firms …
Persistent link: https://www.econbiz.de/10012994616
There remains considerable debate in both the theoretical and empirical literature about the differences in the cyclical dynamics of firms by firm size. Some have hypothesized that small firms are more sensitive to cycles while others have posited that larger firms are more sensitive....
Persistent link: https://www.econbiz.de/10013063659
There remains considerable debate in the theoretical and empirical literature about the differences in the cyclical dynamics of firms by firm size. This paper contributes to the debate in two ways. First, the key distinction between firm size and firm age is introduced. The evidence presented in...
Persistent link: https://www.econbiz.de/10013063709