Kollmann, Robert; Zeugner, Stefan - In: Journal of Economic Dynamics and Control 36 (2012) 8, pp. 1267-1283
-financial businesses, and real activity. We document that leverage is negatively correlated with the future growth of real activity, and … positively linked to the conditional volatility of future real activity and of equity returns. The joint information in sectoral … leverage series is more relevant for predicting future real activity than the information contained in any individual leverage …