Production Smoothing When Bank Loan Supply Shifts: The Role of Variable Capacity Utilization
通过一个包含融资约束的模型，说明企业会调整产能利用率来缓冲融资不确定性对生产的影响，并发现这种调整能解释短期经济波动，但长期资本存量不受影响。
How do firms smooth production when facing financing uncertainty? By using a model incorporating financing constraints, this paper shows that firms may adjust capacity utilization rates to buffer against financing disturbances. In particular, it emphasizes that variable capacity utilization plays the roles of both inter- and intra-temporal substitution of capital in this context. The paper presents results from the comparative statics and numerical calibrations of the model. These results show that the implied short-run dynamics are consistent with business cycle phenomena. The results also indicate that the long-run average of the capital stock is not likely to be affected by financing uncertainty, so that stabilization policy in the banking sector may only have a second-order welfare gain.