Corporate Debt Structure and the Financial Crisis

Harald Uhlig () and Fiorella De Fiore

No 429, 2012 Meeting Papers from Society for Economic Dynamics

Abstract: 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 2007-09, namely the observed shift from bank finance to bond finance despite the increasing cost of debt securities relative to bank loans. We show that substitutability among instruments of external finance is important to shield the economy from the adverse effects of a financial crisis on investment and output

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2012/paper_429.pdf (application/pdf)

Related works:
Journal Article: Corporate Debt Structure and the Financial Crisis (2015)
Working Paper: Corporate Debt Structure and the Financial Crisis (2015)
Working Paper: Corporate Debt Structure and the Financial Crisis (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed012:429

Access Statistics for this paper

More papers in 2012 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().