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Firms' sensitivities to business cycles differ by size and age. The differences are large: "young and small firms" are more cyclical than large firms, whereas "old and small" firms are closer to acyclical. A heterogeneous-firm model with heterogeneous returns to scale can replicate these...
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We use monthly data on individual loans from the Italian Credit Register over the period from 1997 to 2019 and show … that bank credit expansions in the non-financial private sector are mostly explained by variations in the extensive margin … calculated either in credit ows or headcount of new borrowers. We then build on a ow approach to decompose changes in the net …
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tightening of credit terms when firms experience shocks. …
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. The banking system generates longer credit cycles on the time series compared to the business cycle, and also fosters … growth through lending, but deepens the recession during crises by decreasing credit supply. Macroprudential authority uses …
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