We study a dynamic model of collateralized credit markets with asymmetric information, which allows for a rich set of … signaling strategies based on the path of debt and repayment. Whether credit history reveals private information about credit …

hikes, while small constrained firms tend to issue more equity. This causes credit to be reallocated from constrained …

This paper studies the relation between the credit-to-GDP ratio and macroeconomic trends. We estimate a long run … equation on a sample of EU countries; our findings suggest that the macroeconomic factors with which the credit ratio … past and future trends. First, we study the evolution of the credit ratio in the past. We find that most of the increase …

persistent growth in asset demand. We show theoretically that dynamic interactions between elastic credit supply (due to … leveraged borrowing) and persistent credit demand (due to consumption habit) can generate a multiplier-accelerator mechanism … are consistent with the basic features of investment booms and the consequent asset-market crashes led by excessive credit …