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The Financially Fragile Firm: Is There a Case for It in the 1920s?

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  • D. L. Isenberg

Abstract

This paper is an empirical investigation of Minsky's hypothesis in the U.S. consumer durables sector during the 1920s. The first section of the paper briefly describes Minsky's financial fragility hypothesis, while the second sketches a brief economic historical background of the 1920s in the U.S. The third section introduces the methodology utilized and the fourth presents the results of the analysis. In the conclusion the findings and their implications are summarized.

Suggested Citation

  • D. L. Isenberg, 1989. "The Financially Fragile Firm: Is There a Case for It in the 1920s?," Economics Working Paper Archive wp_15, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_15
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    References listed on IDEAS

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    1. Neil H. Jacoby & Raymond J. Saulnier, 1947. "Business Finance and Banking," NBER Books, National Bureau of Economic Research, Inc, number jaco47-1, March.
    2. Karlyn Mitchell, 1983. "Trends in corporation finance," Economic Review, Federal Reserve Bank of Kansas City, vol. 68(Mar), pages 3-15.
    3. Steven M. Fazzari & R. Glenn Hubbard & Bruce C. Petersen, 1988. "Financing Constraints and Corporate Investment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(1), pages 141-206.
    4. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 71-111.
    5. Hyman P. Minsky, 1992. "The Financial Instability Hypothesis," Economics Working Paper Archive wp_74, Levy Economics Institute.
    6. Arthur F. Burns & Wesley C. Mitchell, 1946. "Measuring Business Cycles," NBER Books, National Bureau of Economic Research, Inc, number burn46-1, March.
    7. Ben S. Bernanke & John Y. Campbell, 1988. "Is There a Corporate Debt Crisis?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(1), pages 83-140.
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    Cited by:

    1. Engelbert Stockhammer & Giorgos Gouzoulis & Rob Calvert Jump, 2019. "Debt-driven business cycles in historical perspective: The cases of the USA (1889-2015) and UK (1882-2010)," Working Papers PKWP1907, Post Keynesian Economics Society (PKES).
    2. Engelbert Stockhammer & Giorgos Gouzoulis, 2023. "Debt-GDP cycles in historical perspective: the case of the USA (1889–2014)," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 32(2), pages 317-335.

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