Macroeconomic Effects of Financial Shocks Online Appendix

Equity Payout is ‘Net dividends of nonfarm, nonfinancial business’ (Table F.102, line 3), plus ‘Net dividends of farm business’ (Table F.7, line 24), minus ‘Net increase in corporate equities of nonfinancial business’ (F.101, line 35), minus ‘Proprietors’ net investment of nonfinancial business’ (F.101, line 39). Debt Repurchase is the negative of ‘Net increase in credit markets instruments of nonfinancial business’ (Table F.101, line 28). Equity payout and debt repurchase are both divided by business value added from the National Income and Product Accounts (Table 1.3.5). Total GDP used to compute the correlations reported in Table 1 is also from NIPA (Table 1.1.6).