Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Western Hemisphere Department.
|
|---|
| ISBN: | 1451890303
9781451890303
1281603244
9781281603241
9781451841923
1451841922
1462351123
9781462351121
1452759391
9781452759395
9786613783936
6613783935
|
|---|
| Notes: | Includes bibliographical references (pages 29-32).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
|
|---|
| Summary: | Economic theory suggests that vulnerable financial conditions of the corporate sector can trigger or worsen an economy-wide recession. This paper proposes a measure of corporate vulnerability, the Corporate Vulnerability Index (CVI) and analyses whether it can explain the probability and severity of recessions. The CVI is constructed as the default probability for the entire corporate sector, using the model of corporate debt by Anderson, Sundaresan, and Tychon (1996). The CVI is shown to be a significant predictor of the probability of a recession 4 to 6 quarters ahead, even controlling for other leading indicators. An increase in the CVI is also associated with an increase in the probability of a more severe and lengthy recession 3 to 6 quarters ahead.
|
|---|
| Other form: | Print version: Ivaschenko, Iryna V. How much leverage is too much, or does corporate risk determine the severity of a recession?. [Washington, D.C.] : International Monetary Fund, ©2003
|
|---|
| Standard no.: | 10.5089/9781451890303.001
|
|---|
