IDEAS home Printed from https://ideas.repec.org/a/oec/ecokaa/5l9vc3s1phr3.html
   My bibliography  Save this article

Corporate sector vulnerability and aggregate activity

Author

Listed:
  • Torsten Sløk
  • Mike Kennedy

Abstract

The health of a firm’s balance sheet potentially plays a role in its decisions to invest and through that channel, aggregate activity can be affected. Several authors have established a theoretical link based on the notion that the value of equity can be collateralised for business loans used to fund capital accumulation. In some of these models, it is possible to demonstrate that there is a financial accelerator that can amplify the business cycle by more than what could be explained by, for instance, an interest rate channel.

Suggested Citation

  • Torsten Sløk & Mike Kennedy, 2006. "Corporate sector vulnerability and aggregate activity," OECD Economic Studies, OECD Publishing, vol. 2005(1), pages 85-110.
    • Handle: RePEc:oec:ecokaa:5l9vc3s1phr3
    DOI: 10.1787/eco_studies-v2005-art4-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/eco_studies-v2005-art4-en
    Download Restriction: Full text available to READ online. PDF download available to OECD iLibrary subscribers.
    File URL: https://libkey.io/10.1787/eco_studies-v2005-art4-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:oec:ecokaa:5l9vc3s1phr3. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/oecddfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.