Juan M. Sánchez

TL;DR: In this article, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation, where the terms of finance are dictated by an intermediary's ability to monitor and control a firm's cash flow, in conjunction with the structure of the technology that the firm adopts.

TL;DR: U.S. corporations are holding record-high amounts of cash due to uncertainty about future taxes and the reality of today’s tax rules as mentioned in this paper, which has led to the rise of research and development; this sort of work requires access to high levels of cash.

TL;DR: In this paper, the authors study the behavior of small and large firms during episodes of credit disruption and extend the analysis to the 2008 financial crisis and NBER-dated recessions, finding that large firms' short-term debt and sales contracted relatively more than those of small firms during the 2008 crisis and during most recessions since 1969.

TL;DR: The authors developed a model of endogenous debt restructuring that captures key facts of sovereign debt and restructuring episodes, and employed dynamic discrete choice methods that allow for smoother decision rules, rendering the problem tractable.

TL;DR: In this paper, a costly state verification model of financial intermediation is presented to address the question of how important financial development for economic development, and the model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the firm-size distribution for the years 1974 and 2004.