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The article contributes to the literature on financial fragility, studying how macro-economic shocks affect supply and demand in the corporate debt market. We take into account the effect of the competitive environment, as well as the risk level, measured by companies' default rate. The model is...
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Britain, Italy, and Spain), using industry]level (EU]KLEMS) and firm]level (Amadeus) data. After adding further assumptions … values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility … while taking prices parametrically. This result justifies total factor productivity (TFP) as the right summary measure of …
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