OECD Economic Studies, Volume 2005 Issue 1: No. 40 Volume 2005 Issue 1

Corporate sector vulnerability and aggregate activity

DOI:https://doi.org/10.1787/eco_studies-v2005-art4-en

The health of a firm’s balance sheet potentially plays a role in its decisions to invest and through that channel, aggregate activity can be affected. Several authors have established a theoretical link based on the notion that the value of equity ...



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