Chodorow-Reich, Gabriel - 2020
's prediction that small firms may be unable to access liquidity when large shocks arrive using data on drawdowns in the COVID … recession. Consistent with the theory, the increase in bank credit in 2020Q1 and 2020Q2 came almost entirely from drawdowns by … large firms on pre-committed lines of credit. Differences in demand for liquidity cannot fully explain the differences in …
