Analyses of zombie firms have emphasised the role of bank financing as the reason for zombie survival. This conclusion … between zombie survival and bank financing; this result is robust to various measurement and specification issues. Instead, a …

innovations to stochastic loan-to-value ratios imposed on borrowers, and supply shocks, negative innovations to stochastic bank … domestic shocks to demand, productivity, and fiscal and monetary policy, as well as foreign shocks. The model is calibrated and …