Becker, Bo; Ivashina, Victoria - National Bureau of Economic Research (NBER) - 2011
Theory predicts that there is a close link between bank credit supply and the evolution of the business cycle. Yet … fluctuations in bank-loan supply have been hard to quantify in the time-series. While loan issuance falls in recessions, it is not … clear if this is due to demand or supply. We address this question by studying firms' substitution between bank debt and non-bank …