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share of bond financing; and the dampening effect of a larger bond financing share also attenuates the ultimate impact of …We study how differences in the aggregate structure of corporate debt financing affect the transmission of monetary … initial share of bond- relative to bank-based finance; this effect weakens, and may even reverse, in economies with a low …
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We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...
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share of risky securities surged from 28% to over 40% of firms' financial assets. Using a business-cycle heterogeneous firms …
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lenders financing a credit expansion is a key determinant for subsequent real activity and crisis probability. We show that …
Persistent link: https://www.econbiz.de/10014634857
We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...
Persistent link: https://www.econbiz.de/10013030859
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