Working Paper: Corporate debt maturity and investment over the business cycle

Working Paper - February 2018 - No. 125

Authors Pöschl, Johannes
Subject Financial stability; Business enterprises and households; Models
Type Working paper
Year 2018
Published 19 February 2018
In this paper I study the business cycle dynamics of the maturity structure of the debt of U.S. non-financial firms. To account for the documented facts, I construct a quantitative dynamic equilibrium model in which firms optimally choose their debt maturity structure. The model can match stylized facts about the level and dynamics of the maturity structure of debt, both in the aggregate and along the firm size distribution.