Slow Debt, Deep Recessions
Author
Abstract
Suggested Citation
DOI: 10.1257/mac.20190306
Download full text from publisher
Other versions of this item:
- Jungherr, Joachim & Schott, Immo, 2022. "Slow Debt, Deep Recessions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 224-259.
References listed on IDEAS
- Carlstrom, Charles T & Fuerst, Timothy S, 1997.
"Agency Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium Analysis,"
American Economic Review, American Economic Association, vol. 87(5), pages 893-910, December.
- Charles T. Carlstrom & Timothy S. Fuerst, 1996. "Agency costs, net worth, and business fluctuations: a computable general equilibrium analysis," Working Papers (Old Series) 9602, Federal Reserve Bank of Cleveland.
- Giesecke, Kay & Longstaff, Francis A. & Schaefer, Stephen & Strebulaev, Ilya A., 2014. "Macroeconomic effects of corporate default crisis: A long-term perspective," Journal of Financial Economics, Elsevier, vol. 111(2), pages 297-310.
- Mark Aguiar & Manuel Amador & Hugo Hopenhayn & Iván Werning, 2019.
"Take the Short Route: Equilibrium Default and Debt Maturity,"
Econometrica, Econometric Society, vol. 87(2), pages 423-462, March.
- Mark Aguiar & Manuel Amador & Hugo Hopenhayn & Iván Werning, 2016. "Take the Short Route: Equilibrium Default and Debt Maturity," NBER Working Papers 22847, National Bureau of Economic Research, Inc.
- Karen Kopecky & Richard Suen, 2010.
"Finite State Markov-chain Approximations to Highly Persistent Processes,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(3), pages 701-714, July.
- Kopecky, Karen A. & Suen, Richard M. H., 2009. "Finite State Markov-Chain Approximations to Highly Persistent Processes," MPRA Paper 15122, University Library of Munich, Germany.
- Karen A. Kopecky & Richard M. H. Suen, 2009. "Finite State Markov-Chain Approximations to Highly Persistent Processes," Working Papers 200904, University of California at Riverside, Department of Economics, revised May 2009.
- Kopecky, Karen A. & Suen, Richard M. H., 2009. "Finite State Markov-Chain Approximations to Highly Persistent Processes," MPRA Paper 17201, University Library of Munich, Germany.
- Altinkilic, Oya & Hansen, Robert S, 2000. "Are There Economies of Scale in Underwriting Fees? Evidence of Rising External Financing Costs," Review of Financial Studies, Society for Financial Studies, vol. 13(1), pages 191-218.
- John B. Taylor, 2014. "The Role of Policy in the Great Recession and the Weak Recovery," American Economic Review, American Economic Association, vol. 104(5), pages 61-66, May.
- Marios Karabarbounis & Patrick Macnamara, 2021.
"Misallocation and Financial Frictions: the Role of Long-Term Financing,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 44-63, April.
- Patrick Macnamara & Marios Karabarbounis, 2017. "Misallocation and Financial Frictions: the Role of Long-Term Financing," 2017 Meeting Papers 873, Society for Economic Dynamics.
- V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2007.
"Business Cycle Accounting,"
Econometrica, Econometric Society, vol. 75(3), pages 781-836, May.
- V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2002. "Business cycle accounting," Working Papers 625, Federal Reserve Bank of Minneapolis.
- V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2006. "Business cycle accounting," Staff Report 328, Federal Reserve Bank of Minneapolis.
- V V Chari & Patrick J Kehoe & Ellen R. McGrattan, 2003. "Business Cycle Accounting," Levine's Bibliography 506439000000000421, UCLA Department of Economics.
- V. V. Chari & Patrick Kehoe & Ellen McGrattan, 2004. "Business Cycle Accounting," Levine's Bibliography 122247000000000560, UCLA Department of Economics.
- V.V. Chari & Patrick J. Kehoe & Ellen McGrattan, 2004. "Business Cycle Accounting," NBER Working Papers 10351, National Bureau of Economic Research, Inc.
- Aubhik Khan & Julia K. Thomas, 2013.
"Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity,"
Journal of Political Economy, University of Chicago Press, vol. 121(6), pages 1055-1107.
- Julia K. Thomas & Aubhik Khan, 2010. "Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity," 2010 Meeting Papers 801, Society for Economic Dynamics.
- Aubhik Khan & Julia K. Thomas, 2011. "Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity," NBER Working Papers 17311, National Bureau of Economic Research, Inc.
- Beaudry, Paul & Guay, Alain, 1996. "What do interest rates reveal about the functioning of real business cycle models?," Journal of Economic Dynamics and Control, Elsevier, vol. 20(9-10), pages 1661-1682.
- Paul, Pascal, 2020.
"A macroeconomic model with occasional financial crises,"
Journal of Economic Dynamics and Control, Elsevier, vol. 112(C).
- Pascal Paul, 2019. "A Macroeconomic Model with Occasional Financial Crises," Working Paper Series 2017-22, Federal Reserve Bank of San Francisco.
- Gilchrist, Simon & Yankov, Vladimir & Zakrajsek, Egon, 2009.
"Credit market shocks and economic fluctuations: Evidence from corporate bond and stock markets,"
Journal of Monetary Economics, Elsevier, vol. 56(4), pages 471-493, May.
- Simon Gilchrist & Vladimir Yankov & Egon Zakrajsek, 2009. "Credit Market Shocks and Economic Fluctuations: Evidence from Corporate Bond and Stock Markets," NBER Working Papers 14863, National Bureau of Economic Research, Inc.
- Vladimir Yankov & Egon Zakrajsek & Simon Gilchrist, 2009. "Credit Market Shocks and Economic Fluctuations: Evidence from Corporate Bond and Stock Markets," 2009 Meeting Papers 514, Society for Economic Dynamics.
- Victoria Ivashina & Boris Vallee, 2020. "Weak Credit Covenants," NBER Working Papers 27316, National Bureau of Economic Research, Inc.
- John G. Fernald & Robert E. Hall & James H. Stock & Mark W. Watson, 2017.
"The Disappointing Recovery of Output after 2009,"
Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 1-81.
- John G. Fernald & Robert E. Hall & James H. Stock & Mark W. Watson, 2017. "The Disappointing Recovery of Output after 2009," Working Paper Series 2017-14, Federal Reserve Bank of San Francisco.
- John G. Fernald & Robert E. Hall & James H. Stock & Mark W. Watson, 2017. "The Disappointing Recovery of Output after 2009," NBER Working Papers 23543, National Bureau of Economic Research, Inc.
- Cristina Arellano & Yan Bai & Patrick J. Kehoe, 2019.
"Financial Frictions and Fluctuations in Volatility,"
Journal of Political Economy, University of Chicago Press, vol. 127(5), pages 2049-2103.
- Cristina Arellano & Yan Bai & Patrick J. Kehoe, 2012. "Financial frictions and fluctuations in volatility," Staff Report 466, Federal Reserve Bank of Minneapolis.
- Cristina Arellano & Yan Bai & Patrick J. Kehoe, 2016. "Financial Frictions and Fluctuations in Volatility," NBER Working Papers 22990, National Bureau of Economic Research, Inc.
- Tobias Adrian & Paolo Colla & Hyun Song Shin, 2013.
"Which Financial Frictions? Parsing the Evidence from the Financial Crisis of 2007 to 2009,"
NBER Macroeconomics Annual, University of Chicago Press, vol. 27(1), pages 159-214.
- Tobias Adrian & Paolo Colla & Hyun Song Shin, 2012. "Which Financial Frictions? Parsing the Evidence from the Financial Crisis of 2007 to 2009," NBER Chapters, in: NBER Macroeconomics Annual 2012, Volume 27, pages 159-214, National Bureau of Economic Research, Inc.
- João Gomes & Urban Jermann & Lukas Schmid, 2016.
"Sticky Leverage,"
American Economic Review, American Economic Association, vol. 106(12), pages 3800-3828, December.
- Urban Jermann & Lukas Schmid & Joao Gomes, 2014. "Sticky Leverage," 2014 Meeting Papers 40, Society for Economic Dynamics.
- Haotian Xiang, 2019. "Time Inconsistency and Financial Covenants," 2019 Meeting Papers 63, Society for Economic Dynamics.
- Joachim Jungherr & Immo Schott, 2021.
"Optimal Debt Maturity and Firm Investment,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 42, pages 110-132, October.
- Joachim Jungherr & Immo Schott, 2016. "Optimal Debt Maturity and Firm Investment," Working Papers 943, Barcelona School of Economics.
- Marios Karabarbounis & Patrick Macnamara, 2021.
"Misallocation and Financial Frictions: the Role of Long-Term Financing,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 44-63, April.
- Marios Karabarbounis & Patrick Macnamara, 2020. "Online Appendix to "Misallocation and Financial Frictions: the Role of Long-Term Financing"," Online Appendices 19-18, Review of Economic Dynamics.
- Acemoglu, Daron & Parker, Jonathan A. & Woodford, Michael (ed.), 2013. "NBER Macroeconomics Annual 2012," National Bureau of Economic Research Books, University of Chicago Press, number 9780226052779, July.
- Reisel, Natalia, 2014. "On the value of restrictive covenants: Empirical investigation of public bond issues," Journal of Corporate Finance, Elsevier, vol. 27(C), pages 251-268.
- Hayne Leland, 2019.
"Bond Prices, Yield Spreads, and Optimal Capital Structure with Default Risk,"
Finance, Presses universitaires de Grenoble, vol. 40(3), pages 45-75.
- Hayne Leland., 1994. "Bond Prices, Yield Spreads, and Optimal Capital Structure with Default Risk," Research Program in Finance Working Papers RPF-240, University of California at Berkeley.
- Matthew T. Billett & Tao‐Hsien Dolly King & David C. Mauer, 2007. "Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants," Journal of Finance, American Finance Association, vol. 62(2), pages 697-730, April.
- Occhino, Filippo & Pescatori, Andrea, 2015. "Debt overhang in a business cycle model," European Economic Review, Elsevier, vol. 73(C), pages 58-84.
- Nash, Robert C. & Netter, Jeffry M. & Poulsen, Annette B., 2003. "Determinants of contractual relations between shareholders and bondholders: investment opportunities and restrictive covenants," Journal of Corporate Finance, Elsevier, vol. 9(2), pages 201-232, March.
- Michael R. Roberts & Amir Sufi, 2009. "Control Rights and Capital Structure: An Empirical Investigation," Journal of Finance, American Finance Association, vol. 64(4), pages 1657-1695, August.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Matthias Kaldorf & Florian Wicknig, 2021.
"Risky Financial Collateral, Firm Heterogeneity, and the Impact of Eligibility Requirements,"
ECONtribute Discussion Papers Series
123, University of Bonn and University of Cologne, Germany.
- Kaldorf, Matthias & Wicknig, Florian, 2021. "Risky Financial Collateral, Firm Heterogeneity, and the Impact of Eligibility Requirements," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242413, Verein für Socialpolitik / German Economic Association.
- Keiichiro KOBAYASHI & Daichi SHIRAI, 2023. "Debt-Ridden Borrowers and Persistent Stagnation," CIGS Working Paper Series 23-001E, The Canon Institute for Global Studies.
- Aubhik Khan & Soyoung Lee, 2023. "Persistent Debt and Business Cycles in an Economy with Production Heterogeneity," Staff Working Papers 23-17, Bank of Canada.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Joachim Jungherr & Immo Schott, 2021.
"Optimal Debt Maturity and Firm Investment,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 42, pages 110-132, October.
- Joachim Jungherr & Immo Schott, 2016. "Optimal Debt Maturity and Firm Investment," Working Papers 943, Barcelona School of Economics.
- Stijn Claessens & M Ayhan Kose, 2018. "Frontiers of macrofinancial linkages," BIS Papers, Bank for International Settlements, number 95.
- Xiao, J., 2016.
"Corporate Debt Structure, Precautionary Savings, and Investment Dynamics,"
Cambridge Working Papers in Economics
1666, Faculty of Economics, University of Cambridge.
- Jasmine Xiao, 2018. "Corporate Debt Structure, Precautionary Savings, and Investment Dynamics," 2018 Meeting Papers 887, Society for Economic Dynamics.
- Safronov, M., 2016. "Experimentation and Learning-by-Doing," Cambridge Working Papers in Economics 1667, Faculty of Economics, University of Cambridge.
- Joachim Jungherr & Immo Schott, 2018. "The Long-term Debt Accelerator," 2018 Meeting Papers 961, Society for Economic Dynamics.
- Reiter, Michael & Zessner-Spitzenberg, Leopold, 2020. "Long-term bank lending and the transfer of aggregate risk," IHS Working Paper Series 13, Institute for Advanced Studies.
- Zhang, Xinde & Zhou, Simiao, 2018. "Bond covenants and institutional blockholding," Journal of Banking & Finance, Elsevier, vol. 96(C), pages 136-152.
- Wang, Jing, 2017. "Debt covenant design and creditor control rights: Evidence from the tightest covenant," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 331-352.
- Arnold, Marc & Westermann, Ramona, 2015. "The Value of Creditor Governance: Debt Renegotiations In and Outside Distress," Working Papers on Finance 1514, University of St. Gallen, School of Finance, revised Jul 2016.
- Devos, Erik & Rahman, Shofiqur & Tsang, Desmond, 2017. "Debt covenants and the speed of capital structure adjustment," Journal of Corporate Finance, Elsevier, vol. 45(C), pages 1-18.
- Alfaro, Ivan & Bloom, Nicholas & Lin, Xiaoji, 2017.
"The Finance Uncertainty Multiplier,"
Working Paper Series
2017-30, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
- Xiaoji Lin & Nicholas Bloom & Ivan Alfaro, 2017. "The Finance-Uncertainty Multiplier," 2017 Meeting Papers 887, Society for Economic Dynamics.
- Iván Alfaro & Nicholas Bloom & Xiaoji Lin, 2018. "The Finance Uncertainty Multiplier," NBER Working Papers 24571, National Bureau of Economic Research, Inc.
- Andrea Ajello, 2016.
"Financial Intermediation, Investment Dynamics, and Business Cycle Fluctuations,"
American Economic Review, American Economic Association, vol. 106(8), pages 2256-2303, August.
- Ajello, Andrea, 2010. "Financial intermediation, investment dynamics and business cycle fluctuations," MPRA Paper 32447, University Library of Munich, Germany, revised Mar 2011.
- Andrea Ajello, 2012. "Financial intermediation, investment dynamics and business cycle fluctuations," Finance and Economics Discussion Series 2012-67, Board of Governors of the Federal Reserve System (U.S.).
- Zhang, Lini, 2018. "Credit crunches, individual heterogeneity and the labor wedge," Journal of Macroeconomics, Elsevier, vol. 56(C), pages 65-88.
- Alfred Duncan & Charles Nolan, 2017. "Financial Frictions in Macroeconomic Models," Studies in Economics 1719, School of Economics, University of Kent.
- Jongrim Ha & M. Ayhan Kose & Christopher Otrok & Eswar S. Prasad, 2020.
"Global Macro-Financial Cycles and Spillovers,"
NBER Working Papers
26798, National Bureau of Economic Research, Inc.
- Ha, Jongrim & Kose, M. Ayhan & Otrok, Christopher & Prasad, Eswar, 2020. "Global Macro-Financial Cycles and Spillovers," IZA Discussion Papers 13000, Institute of Labor Economics (IZA).
- Ha, Jongrim & Otrok, Christopher & Prasad, Eswar, 2020. "Global Macro-Financial Cycles and Spillovers," CEPR Discussion Papers 14404, C.E.P.R. Discussion Papers.
- Jongrim Ha & M. Ayhan Kose & Christopher Otrok & Eswar S. Prasad, 2020. "Global macro-financial cycles and spillovers," CAMA Working Papers 2020-12, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Jongrim Ha & M. Ayhan Kose & Christopher Otrok & Eswar S. Prasad, 2020. "Global Macro-Financial Cycles and Spillovers," Koç University-TUSIAD Economic Research Forum Working Papers 2004, Koc University-TUSIAD Economic Research Forum.
- Ambrocio, Gene & Colak, Gonul & Hasan, Iftekhar, 2022. "Commitment or constraint? The effect of loan covenants on merger and acquisition activity," Finance Research Letters, Elsevier, vol. 47(PB).
- Mark Gertler & Nobuhiro Kiyotaki, 2015.
"Banking, Liquidity, and Bank Runs in an Infinite Horizon Economy,"
American Economic Review, American Economic Association, vol. 105(7), pages 2011-2043, July.
- Mark Gertler & Nobuhiro Kiyotaki, 2013. "Banking, Liquidity and Bank Runs in an Infinite-Horizon Economy," NBER Working Papers 19129, National Bureau of Economic Research, Inc.
- Mark Gertler & Nobuhiro Kiyotaki, 2014. "Banking, Liquidity and Bank Runs in an Infinite Horizon Economy," IMES Discussion Paper Series 14-E-05, Institute for Monetary and Economic Studies, Bank of Japan.
- Mark Gertler & Nobuhiro Kiyotaki, 2013. "Banking, Liquidity and Bank Runs in an Infinite Horizon Economy," 2013 Meeting Papers 59, Society for Economic Dynamics.
- Kühl, Michael, 2017.
"Bank capital, the state contingency of banks’ assets and its role for the transmission of shocks,"
Journal of Macroeconomics, Elsevier, vol. 54(PB), pages 260-284.
- Kühl, Michael, 2014. "Bank capital, the state contingency of banks' assets and its role for the transmission of shocks," Discussion Papers 25/2014, Deutsche Bundesbank.
- Felipe Alves, 2022. "Job Ladder and Business Cycles," Staff Working Papers 22-14, Bank of Canada.
- Joao Ayres & Gajendran Raveendranathan, 2023.
"Firm Entry and Exit during Recessions,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 47, pages 47-66, January.
- Joao Ayres & Gajendran Raveendranathan, 2021. "Online Appendix to "Firm Entry and Exit during Recessions"," Online Appendices 20-136, Review of Economic Dynamics.
More about this item
JEL classification:
- E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmac:v:14:y:2022:i:1:p:224-59. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.