NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Debt and Creative Destruction: Why Could Subsidizing Corporate Debt be Optimal?

Zhiguo He, Gregor Matvos

NBER Working Paper No. 17920
Issued in March 2012

---- Acknowledgements -----

We thank Raj Chetty, Douglas Diamond, Peter DeMarzo, Raghu Rajan, Amit Seru, Rob Vishny and the participants of the Chicago Booth Finance Lunch and Chicago Booth Applied Theory seminar for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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