Replication data for: Interest Rates, Leverage, and Business Cycles in Emerging Economies: The Role of Financial Frictions

Adam Gulan & Andrés Fernández
Countercyclical country interest rates have been shown to be an important characteristic of business cycles in emerging markets. In this paper we provide a microfounded rationale for this pattern by linking interest rate spreads to the dynamics of corporate leverage. For this purpose we embed a financial accelerator into a business cycle model of a small open economy and estimate it on a novel panel dataset for emerging economies that merges macroeconomic and financial data....
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