How does the shadow banking system respond to changes in capital regulation of
commercial banks? We propose a quantitative general equilibrium model with regulated …

Debt overhang is associated with higher financial fragility and slower recovery from
recession. However, while household credit booms have been extensively documented to …

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 …

Financial frictions generate misallocation of resources across firms by restricting productive
firms' access to capital. This article reviews the literature that estimates the aggregate losses …

Abstract The post-Global Financial Crisis period shows a surge in corporate leverage in
emerging markets and a number of countries with deteriorated corporate financial fragility …

We model a firm's optimal capital structure decision in a framework in which it may later
choose to enter either Chapter 11 reorganization or Chapter 7 liquidation. Creditors …

We study the nature of debt among US non-financial firms and its determinants. One
approach of debt enforcement lends against the liquidation value of discrete assets (such as …

This paper analyzes changes in firm value, performance, and behavior caused by CEO
deaths. Many deaths trigger large stock price changes—shareholders believe that some …

This paper reviews the state of knowledge on the impact of financial frictions and financial
underdevelopment on firms. The focus is on their aggregate and distributional …

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 …