Sorting out the effect of credit supply
研究发现大衰退期间放贷减少更多的银行事前贷款给了风险更高的企业，并构建模型说明银行持有成本分布的变化解释了该时期总贷款量下降的三分之二。
We document that banks that cut lending more during the Great Recession were lending to riskier firms ex-ante. To understand the aggregate implications of this sorting pattern, we build an assignment model in which banks have heterogeneous costs to take on risky loans and firms have different credit risks. In the model, aggregate loan volume depends on the entire distribution of bank holding costs and firm credit risks. We then use our model to recover the change in the distribution of bank holding costs during the Great Recession and show that it explains two-thirds of the decline of aggregate loan volume during this period. © 2023 Elsevier B.V.