Benhima, Kenza; Poilly, Celine; Bacchetta, Philippe - Society for Economic Dynamics - SED - 2014
In the aftermath of the U.S. financial crisis, both a sharp drop in employment and a surge in corporate cash have been … employment is systematic, both over time and across firms. We develop a dynamic general equilibrium model where heterogenous … and employment. In contrast, standard credit shocks produce a positive relationship. A calibrated version of the model …