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

Abstract

Reinelt, an anonymous referee at the ECB, as well as participants at an ECB internal seminar and workshop for helpful comments. We also thank Sergio Garcia-Monroy for excellent research assistance. Tatjana Schulze acknowledges support from the University of Oxford for accessing Bloomberg data, as the main portion of the data work is attributable to her time at the University of Oxford. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the European Central Bank nor of the IMF, its Executive Board, or IMF Management.