Journal Article
Firm volatility and credit: a macroeconomic analysis
Abstract: This paper examines a tractable real business cycle model with idiosyncratic productivity shocks and binding credit constraints on entrepreneurs. The model shows how firm volatility increases in combination with credit market development. It further generates the observed comovement of credit and firm volatility with output at business cycle frequencies in response to aggregate productivity shocks.
Access Documents
File(s): File format is application/pdf https://files.stlouisfed.org/files/htdocs/publications/review/09/03/Kaas.pdf
Authors
Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Review
Publication Date: 2009
Volume: 91
Issue: Mar
Pages: 95-106