Author
Juan M. Sánchez
Other affiliations: University of Rochester, Federal Reserve System, National University of La Plata
Bio: Juan M. Sánchez is an academic researcher from Federal Reserve Bank of St. Louis. The author has contributed to research in topics: Debt & Recession. The author has an hindex of 21, co-authored 110 publications receiving 1512 citations. Previous affiliations of Juan M. Sánchez include University of Rochester & Federal Reserve System.
Topics: Debt, Recession, Unemployment, Intermediation, Bankruptcy
Papers published on a yearly basis
Papers
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TL;DR: This article used dynamic equilibrium input-output models to evaluate the contribution of the construction sector to the Great Recession and the expansion preceeding it, and showed that shifts in housing demand can propagate to other economic sectors and generate a large and sustained aggregate cycle.
Abstract: This article uses dynamic equilibrium input-output models to evaluate the contribution of the construction sector to the Great Recession and the expansion preceeding it. Through production interlinkages and demand complementarities, shifts in housing demand can propagate to other economic sectors and generate a large and sustained aggregate cycle.
1 citations
Posted Content•
TL;DR: In this paper, the authors revisited the behavior of small versus large firms during the episodes of credit disruption and recessions in the sample extended to cover the 2007-09 economic crisis.
Abstract: Gertler and Gilchrist (1994) provide evidence for the prevailing view that adverse shocks are propagated via credit constraints of small firms We revisit the behavior of small versus large firms during the episodes of credit disruption and recessions in the sample extended to cover the 2007-09 economic crisis We find that large firms’ short-term debt and sales contracted relatively more than those of small firms during the 2007-09 episode Furthermore, the short-term debt of large firms also contracted relatively more in the previous tight money episodes if one takes into account the longer period that it takes for large firms’ debt to reach its post-shock trough Our findings challenge the view that propagation of shocks in the economy takes place via credit constraints of small firms
1 citations
TL;DR: In this article , the authors evaluate policy proposals in a quantitative sovereign default model that incorporates two essential features of debt: maturity choice and debt renegotiation in default, and find that a rule that tilts the distribution of creditor losses during restructurings toward holders of long-maturity bonds reduces short-term yield spreads, lowering the probability of a sovereign default by 25 percent.
1 citations
Posted Content•
TL;DR: This paper revisited the merits of some of the most common explanations for the current low inflation rate and showed that the U.S. inflation rate has been below the Fed?s 2 percent inflation target since 2012.
Abstract: The U.S. inflation rate has been below the Fed?s 2 percent inflation target since 2012. In this article, we revisit the merits of some of the most common explanations for the current low inflation rate.
1 citations
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TL;DR: In this paper, the authors formulate a version of the growth model in which production is carried out by heterogeneous establishments and calibrate it to US data, and argue that differences in the allocation of resources across establishments that differ in productivity may be an important factor in accounting for cross-country differences in output per capita.
1,299 citations
Journal Article•
TL;DR: Šonje et al. as mentioned in this paper used a sample of 35 countries for the period between 1860 and 1963 to show the relationship between income and financial depth measured by the ratio between bank's assets and GDP.
Abstract: relationship. All subsequent studies confirmed it (see for example King and Levine, 1993, and the review in: Pagano, 1993). Goldsmith used a sample of 35 countries for the period between 1860 and 1963 to show the relationship between income and financial depth measured by the ratio between bank's assets and GDP. He also showed that in periods of rapid growth, financial depth grows faster than income. More details about measuring financial depth can be found in this paper. FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH Velimir Šonje
891 citations
TL;DR: This article developed a model co-determining aggregate total factor productivity (TFP), sectoral TFP, and scales across industrial sectors and found that financial frictions disproportionately affect TFP in tradable sectors where production requires larger costs.
Abstract: Explaining levels of economic development hinges on explaining TFP dierences across coun- tries. In poor countries, total factor productivity (TFP) is particularly low in sectors producing tradable goods. We document that an important dierence between tradable and non-tradable sectors is their average establishment size: Tradable establishments operate at much larger scales. We develop a model co-determining aggregate TFP, sectoral TFP, and scales across industrial sectors. In our model, …nancial frictions disproportionately aect TFP in tradable sectors where production requires larger …xed costs. Our quantitative exercises show that …- nancial frictions explain a substantial part of the observed cross-country relationship between aggregate TFP, sectoral TFP, and output per worker.
884 citations
TL;DR: In this article, the role of financial frictions in determining total factor productivity (TFP) was evaluated using producer-level data, and a model of establishment dynamics was proposed to reduce TFP through two channels: finance frictions distort entry and technology adoption decisions.
Abstract: We use producer-level data to evaluate the role of financial frictions in determining total factor productivity (TFP). We study a model of establishment dynamics in which financial frictions reduce TFP through two channels. First, finance frictions distort entry and technology adoption decisions. Second, finance frictions generate dispersion in the returns to capital across existing producers and thus productivity losses from misallocation. Parameterizations of our model consistent with the data imply fairly small losses from misallocation, but potentially sizable losses from inefficiently low levels of entry and technology adoption. (JEL E32, E44, F41, G32, L60, O33, O47)
874 citations