We explore empirically how the time-varying allocation of credit across firms with heterogeneous credit quality matters … credit allocation, captured by Greenwood and Hanson (2013)'s ISS indicator, helps predict downside risks to GDP growth and … systemic banking crises, two to three years ahead. Our analysis indicates that the riskiness of credit allocation is both a …

Corporate credit growth in China has been excessive in recent years. This credit boom is related to the large increase …

-specific time-varying measure of credit supply. The contraction in credit supply explains one fourth of the reduction in employment …

We study how credit market deregulation and increased international financial openness have changed corporate borrowing … leverage and lengthened debt maturity in advanced economies, as expected, suggesting that in these countries corporate credit …