firms accelerate, loan growth. We find that small firms increase trade credit, a substitute credit, indicating a strong loan …-desirable alternative. Using trade credit is propitious since unlike commercial paper (investigated by previous researchers), it is widely … used by the small firms suffering the loan decline. Surprisingly, we also find large firms increase trade credit, a puzzle …

A variety of empirical and theoretical evidence published in recent years suggests that frictions in credit markets are … of the credit view interpretation of this evidence. Special attention is paid to the role of borrowers' net worth. A … and borrower is embedded in a stochastic dynamic general equilibrium model with money. The model incorporates a cash …

This paper presents a full model of the Credit Channel of the monetary transmission mechanism. In particular, the … general equilibrium model with money. In contrast to the traditional assumption, the paper assumes that agency costs arise in … without heterogeneous borrowers. Second, the model dampens the impulse response of output after a positive money supply shock …

provides natural instrumental variables and a proxy for credit demand. Unlike previous papers, this paper studies the effects …