1 option
Corporate Debt Structure and the Financial Crisis / Fiorella De Fiore, Harald Uhlig.
- Format:
- Book
- Author/Creator:
- De Fiore, Fiorella.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w20730.
- NBER working paper series no. w20730
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2014.
- Summary:
- We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the cost of market debt rose above the cost of bank loans. We show that the flexibility offered by banks on the terms of their loans and firm's ability to substitute among alternative instruments of debt finance are important to shield the economy from adverse real effects of a financial crisis.
- Notes:
- Print version record
- December 2014.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.