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Corporate debt composition and business cycles / by Jelena Zivanovic.FB3-5/2019-5E-PDF

"Based on empirical evidence, I propose a dynamic stochastic general equilibrium model with two financial sectors to analyze the role of corporate debt composition (bank versus bond financing) in the transmission of economic shocks. It is shown that in the presence of monetary and financial shocks, cyclical changes in corporate debt composition significantly attenuate the effects on investment and output. An additional result of the theoretical model is that a bank-dependent economy is more affected by financial shocks, which is in line with empirical results by Gambetti and Musso (2016), who report stronger real effects of loan supply shocks in Europe (with an excessive reliance on bank debt) than in the US"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.867985&sl=0

Publication information
Department/Agency
  • Bank of Canada.
TitleCorporate debt composition and business cycles / by Jelena Zivanovic.
Series title
  • Bank of Canada staff working paper, 1701-9397 ; 2019-5
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "January 2019."
  • Includes bibliographical references (pages 27-29).
  • Includes abstract in French.
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2019.
  • ©2019
Author / Contributor
  • Zivanovic, Jelena, author.
Description1 online resource (ii, 34 pages) : colour illustrations.
Catalogue number
  • FB3-5/2019-5E-PDF
Subject terms
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