How does debt affect macroeconomic stability? The answer to this question has important
implications, because both public and private debt levels have reached historic highs across …

We develop a quantitative monetary DSGE model with financial intermediaries that face
endogenously determined balance sheet constraints. We then use the model to evaluate the …

Micro-and macro-level evidence indicates that fluctuations in idiosyncratic uncertainty have
a large effect on investment; the impact of uncertainty on investment occurs primarily through …

Few areas of monetary economics have been studied as extensively as the transmission
mechanism. The literature on this topic has evolved substantially over the years, following …

We document the cyclical properties of US firms' financial flows and show that equity payout
is procyclical and debt payout is countercyclical. We then develop a model with debt and …

Financial crashes were followed by deep recessions in the Sudden Stops of emerging
economies. An equilibrium business cycle model with a collateral constraint explains this …

We study the cyclical implications of credit market imperfections in a quantitative dynamic,
stochastic general equilibrium model wherein firms face persistent shocks to aggregate and …

We investigate the sources of the important shifts in the volatility of US macroeconomic
variables in the postwar period. To this end, we propose the estimation of DSGE models …

Data from US public firms show that in booms large firms finance with debt and payout
equity, whereas small firms issue both equity and debt. Therefore, large firms generally …

Debt and equity issuance are procyclical for most size-sorted firm categories of listed US
firms and the procyclicality of equity issuance decreases monotonically with firm size. At the …