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Why do advanced economies fall into prolonged periods of economic stagnation, particularly in the aftermath of credit booms? We present a model of persistent aggregate demand shortage based on strong liquidity preferences of households, in which we incorporate financial imperfections to study...
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between growth and investment; this association is enhanced by leverage, especially for high-growth firms. This supports the … view that short-term debt helps Chinese firms to make optimal use of leverage and therefore make better investment … decisions. Furthermore, the results reveal that leverage plays a disciplining and monitoring role to reduce overinvestment …
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heterogeneity of banking risk determinants. I examine the implications of bank leverage that manifest itself as spreading and …
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