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Why did the Great Recession lead to such a slow recovery? I build a model where heterogeneous firms invest in physical and intangible capital, and can default on their debt. In case of default, intangible assets are harder to seize by creditors. Hence, intangible capital faces higher financing costs. This differential is exacerbated in a financial crisis, when default is

Title : The Financing of Ideas and the Great Deviation
Author : Daniel Garcia-Macia
Language : en
Rating :
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Type : PDF, ePub, Kindle
Uploaded : Apr 07, 2021

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