Earnings-Based Borrowing Constraints and Macroeconomic Fluctuations

• 成果类型: Article
• 署名作者: Drechsel, Thomas
• 署名单位: University System of Maryland; University of Maryland Baltimore
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20210099
• 发表日期: 2023
• 页码: 1-34
• 关键词: credit; INVESTMENT; shocks; channel; RIGHTS

摘要

Microeconomic evidence reveals a direct link between firms' current earnings and their access to debt. This paper studies macroeco-nomic implications of earnings-based borrowing constraints. In a macro model, firms with earnings-based constraints borrow more in response to positive investment shocks, whereas firms with collateral constraints borrow less. Empirically, aggregate and firm-level credit responds to identified investment shocks according to the predictions with earnings-based constraints. Moreover, with sticky prices, earn-ings-based constraints imply that supply shocks are quantitatively more important. This is validated in an estimated version of the model, highlighting the importance of carefully modeling credit con-straints to understand policy trade-offs. (JEL E22, E32, G31, G32)