Data and Code for: Slow Debt, Deep Recessions

Principal Investigator(s): View help for Principal Investigator(s) Joachim Jungherr, Bonn University; Immo Schott, Université de Montréal

Version: View help for Version V1

Name	File Type	Size	Last Modified
Replication files			10/18/2020 04:28:PM

Project Citation:

Jungherr, Joachim, and Schott, Immo. Data and Code for: Slow Debt, Deep Recessions. Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-10-11. https://doi.org/10.3886/E120385V1

Project Description

Summary: Business credit lags GDP growth by about one year. This contributes to high leverage during recessions and slow deleveraging. We show that a model in which firms use risky long-term debt replicates this slow adjustment of firm debt. In the model, slow-moving debt has important effects for real activity. High levels of firm debt issued during expansions are only gradually reduced during recessions. This generates an adverse feedback loop between high default rates and low investment and thereby amplifies the downturn. Sluggish deleveraging slows down the recovery.

Scope of Project

Subject Terms: business cycles; firm financing; long-term debt

JEL Classification:
      E32 Business Fluctuations; Cycles
      E44 Financial Markets and the Macroeconomy
      G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

Geographic Coverage: United States

Time Period(s): 1984 – 2015

Related Publications

Download this project

Published Versions

V1 [2021-10-11]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as received from the data depositor. As of April 2026, depositors are required to submit study materials in accessible formats. ICPSR has not reviewed, checked, or processed this material. For additional information about the study, please contact the investigator(s) directly. If you have questions about the accessibility of materials distributed by ICPSR or require further assistance, please visit ICPSR's Accessibility Center.