6 Secondly, and more importantly, the increase of the capital-to-labor ratio was reduced sharply because firms hesitated to invest in new projects or even to replace old equipment: the firms’ top priority then was to “deleverage” – namely, to reduce the excessive stock of capital and debt that had been built up during the bubble period.
The goal is for the study’s findings to inform the design of financial services that meet the needs of low- to moderateincome families and individuals.