Code
01D12222
Duration
01 October 2022 → 31 October 2022
Funding
Regional and community funding: Special Research Fund
Promotor
Research disciplines
-
Social sciences
- Macro-based behavioural economics
- Prices, business fluctuations and cycles
- Multiple or simultaneous equation models, multiple variables
- Micro-based behavioural economics
Keywords
behavioural economics
empirical banking
firm leverage
Project description
Firm leverage dynamics remain a blind spot of macroeconomics despite their impact on productivity and financial stability. This proposal investigates the role of banks’ sentiment in the structural rise in firm leverage in a corporate finance model with behavioural banks. It empirically tests the role of banks’ biases by offering a new way to measure banks’ optimism with artificial intelligence.