Adrian, Tobias (contributor); Shin, Hyun Song (contributor) - 2008
as changes in net worth, eliciting responses from financial intermediaries who adjust the size of their balance sheets … total assets and E is the market value of equity. We make the simplifying
assumption that the market value of debt stays … inversely related to total assets. When the price of my house goes up,
mynetworthincreases, andsomyleveragegoesdown. Indeed …