Aggregate external financing and savings waves

• 成果类型: Article
• 署名作者: Eisfeldt, Andrea L.; Muir, Tyler
• 署名单位: University of California System; University of California Los Angeles
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.10.002
• 发表日期: 2016
• 页码: 116-133
• 关键词: financial frictions; business cycles; Financial shocks; Cost of external finance; cash; Corporate saving

摘要

US data display aggregate external financing and savings waves. Firms can allocate costly external finance to productive capital, or to liquid assets with low physical returns. If firms raise costly external finance and accumulate liquidity, either the cost of external finance is relatively low or the total return to liquidity accumulation, including its shadow value as future internal funds, is particularly high. We formalize this intuition by estimating a dynamic model of firms' financing and savings decisions, and use our model along with firm level data to construct an empirical estimate of the average cost of external finance from 1980 to 2014. (C) 2016 Elsevier B.V. All rights reserved.