We study the role of financial frictions and firm heterogeneity in determining the investment
channel of monetary policy. Empirically, we find that firms with low default risk—those with …

I study the role of firms' balance sheet liquidity in the transmission of monetary policy to
investment. In response to monetary contractions, US firms with fewer liquid asset holdings …

We develop a new data set to study asset specificity among nonfinancial firms. Our data
cover the liquidation values of each category of assets on firms' balance sheets and …

The largest economic cost of the COVID-19 pandemic could arise from changes in behavior
long after the immediate health crisis is resolved. A potential source of such a long-lived …

The Great Recession was a deep downturn with long-lasting effects on credit, employment,
and output. While narratives about its causes abound, the persistence of gross domestic …

We provide novel empirical evidence that firms' investment is more responsive to monetary
policy when a higher fraction of their debt matures. In a heterogeneous firm New Keynesian …

We show that labor market frictions are first-order for understanding credit markets. Wage
growth and labor share forecast aggregate credit spreads and debt growth as well as or …

This paper provides a survey of the trade-off theory of corporate capital structure. First we
provide an analysis of an equilibrium version of the theory. The firm raises debt from an …

In this article, we ask how bankruptcy law affects the financial decisions of corporations and
its implications for firm dynamics. According to current US law, firms have two bankruptcy …

This article summarizes research on the macroeconomic aspects of the housing market. In
terms of the macroeconomic stylized facts, this article demonstrates that with respect to …