Jacob Sagi
Institution
University of North Carolina at Chapel Hill
PhD Year
2000
Phone
9199628399
sagi@unc.edu
FTG Membership
Member
Website
https://sites.google.com/view/professor-jssagi
Featured Work
Jul 10, 2023
Debt Maturity Choice and Aggregate Growth
We find that a measure of aggregate corporate debt maturity choices strongly predicts real GDP growth. The new measure compares well with other strong GDP predictors from recent literature, is no less robust/stable, and distinct from spread-related variables. We develop a novel theory of firm debt maturity choice explaining these findings: In anticipation of inefficient firm operations during non-contractible negative expected profitability states, long-term lenders...
