network model of the economy in which trade in intermediate goods is financed by supplier credit. In the model, a financial … shock to one firm affects its ability to make payments to its suppliers. The credit linkages between firms propagate …-industry credit flows from firm- and industry-level data. I then estimate aggregate and idiosyncratic shocks to industries in the US …

This paper is a theoretical study into how credit constraints interact with aggregate economic activity over the … not only factors of production, but they also serve as collateral for loans. Borrowers' credit limits are affected by the … prices of the collateralized assets. And at the same time, these prices are affected by the size of the credit limits. The …

self-propagatory and adversely affect the supply of credit. We propose a unifying theory that models the interplay between …Empirical evidence suggests that widespread financial distress, by disrupting enforcement of credit contracts, can be … enforcement, borrower default decisions, and the provision of credit. The central tenets of our framework are the presence of …

Canonical macroeconomic and financial models require credit to be equal to its fundamental component, i.e., the net … present value of the net flows to creditors. Per this conventional view, credit booms are expected to precede increased flows … financial frictions and heterogeneous firms, allowing firms to roll over a fraction of credits indefinitely, i.e., credit …