Ine Van Robays's Books

We study the heterogeneous impact of jointly identified monetary policy and global risk shocks on corporate funding costs. We disentangle these two shocks in a structural Bayesian Vector Autoregression framework and investigate their respective effects on funding costs of heterogeneous firms using micro-data for the US. We tease out mechanisms underlying the effects by contrasting traditional financial frictions arising from asset-based collateral constraints with the recent earnings-based borrowing constraint hypothesis, differentiating firms across leverage and earnings. Our empirical evidence strongly supports the earnings-based borrowing constraint hypothesis. We find that global risk shocks have stronger and more heterogeneous effects on corporate funding costs which depend on firms' position within the earnings distribution.

Book's by Ine Van Robays

Financial Shock Transmission to Heterogeneous Firms: The Earnings-Based Borrowing Constraint Channel

Financial Shock Transmission to Heterogeneous Firms: The Earnings-Based Borrowing Constraint Channel

Financial Shock Transmission to Heterogeneous Firms: The Earnings-Based Borrowing Constraint Channel

Financial Shock Transmission to Heterogeneous Firms: The Earnings-Based Borrowing Constraint Channel

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