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 |
|---|---|---|---|
| Data_setup | 09/17/2020 09:40:AM | ||
| Tables_code | 09/17/2020 09:40:AM | ||
| Tables_data | 09/17/2020 09:40:AM |
Project Description
Summary:
View help for 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:
View help for Subject Terms
business cycles;
firm financing;
long-term debt
JEL Classification:
View help for 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
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:
View help for Geographic Coverage
United States
Related Publications
Published Versions
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 it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.