Research Explorer

Project

The Macroeconomics of corporate Debt: Causes and Consequences of the corporate debt overhang.
Code
01D12222
Duration
01 October 2022 → 31 October 2022
Funding
Regional and community funding: Special Research Fund
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.