Credit Market Imperfections, Labor Markets, and Leverage Dynamics in Emerging Economies

Publicado en

  • Journal of International Money and Finance


  • Emerging economies (EMEs) have different credit and labor market structures relative to advanced economies. We document that economies with larger self-employment shares tend to exhibit less countercyclical leverage dynamics. We build a model where formal credit markets, input credit relationships, and the structure of labor markets interact that (1) captures a comprehensive set of EME business cycle regularities and (2) rationalizes our new fact. The interaction between firms’ net worth, interfirm input credit, and self-employment underlying our framework is critical for explaining our fact and is supported by the data.

fecha de publicación

  • 2017

Líneas de investigación

  • Credit Policies
  • Emerging Economy Business Cycles
  • Financial Frictions
  • Labor Search Frictions
  • Self-Employment

Página inicial

  • 44

Última página

  • 63


  • 78


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