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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 …
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This paper examines the relation between a borrowing firm's ownership structure and its choice of debt source using a novel, hand-collected data set on corporate ownership, control and debt structures for 9,831 firms in 20 countries from 2001 to 2010. We find that the divergence between control...
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