This paper is a survey of recent empirical work on financial constraints faced by firms. It is
organized as a series of stylized results which mirror what is generally understood about the …

This paper constructs and calibrates a parsimonious model of occupational choice that
allows for entrepreneurial entry, exit, and investment decisions in the presence of borrowing …

Capital reallocation is procyclical, despite measured productive reallocative opportunities
being acyclical or even countercyclical. This article reviews the advances in the literature …

Collateral constraints imply that financing and risk management are fundamentally linked.
The opportunity cost of engaging in risk management and conserving debt capacity to …

This paper studies the financing role of leasing and secured lending. We argue that the
benefit of leasing is that repossession of a leased asset is easier than foreclosure on the …

We develop a new measure of impact elasticity, defined as a firm's change in environmental
impact due to a change in its cost of capital. We show empirically that a reduction in …

Both financing and risk management involve promises to pay that need to be collateralized,
resulting in a financing versus risk management trade-off. We study this trade-off in a …

Firms consider wages, current and expected productivity, as well as firing and hiring costs
when firing a worker. Financing constraints distort this intertemporal trade-off, leading firms …

Previous studies have identified a negative relation between firms' hiring rates and future
stock returns in the cross-section. We document that this relation is significantly steeper in …

I develop a model of costly capital reallocation to understand how leasing reduces trading
frictions. Leased assets trade more frequently and produce more output than owned assets …