Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity

By Aubhik Khan, Julia K. Thomas. Journal of Political Economy, 2011

388 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/9dc1ce9cf767d4895ba5780de53a707e73532145

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Citations in the corpus

Aggregate Implications of a Credit Crunch (2012, neutral): “The capital income of an entpreneur is Π(zit, kit, wt) = max lit (zitkit) αl1−αit − wtlit (7) Maximizing out over labor, we obtain the following simple and linear expression for profits: Π(zit, kit, wt) = zitπtkit, πt = α ( 1 − α wt )(1−α)/α .”
Monetary Policy, Corporate Finance and Investment (2018, neutral): “But highly levered companies may also be safer, as established firms may take on larger projects financed more with debt than equity (as noted by Lian and Ma (2018)).”
Misallocation and Financial Market Frictions: Some Direct Evidence from the Dispersion in Borrowing Costs (2012, background): “In the wake of the recent financial crisis, research into business cycle fluctuations such as that of Gilchrist et al. (2011), Khan and Thomas (2011), and Arellano et al. (2012) has analyzed the importance of dispersion in productivity for resource misallocation in environments where firms face…”
Really Uncertain Business Cycles (2012, neutral): “Unfortunately no instrument obviously exists at the macro level because as Kocherlakota (2009) noted “the diffi culty in macroeconomics is that virtually every variable is endogenous”. But at the industry level we do have two sets of instruments for first moment shocks that we can use to evaluate wh”
Uncertainty Shocks, Asset Supply and Pricing over the Business Cycle (2018, neutral): “Jermann and Quadrini (2012), Covas and Den Haan (2011, 2012), Khan and Thomas (2013) and Begenau and Salomao (2013) develop evidence on the cyclical behavior of debt and equity flows.”
Firm Entry and Employment Dynamics in the Great Recession (2014, neutral): “Other recent contributions to this literature include Gilchrist, Sim and Zakraj́sek (2010), Arellano, Bai and Kehoe (2012), and Khan and Thomas (2013).”