I have a micro dataset of firms' financial liabilities for 15 years. I would like to plot the contributions to change in leverage, decomposing the single contribution of bank loans, bonds and equity variations. Leverage is built as:
Therefore contributions to growth are positive if financial debt (Bank Loans or Bonds) increases or if its sum with capital decreases and vice versa.
I would be able to decompose with logarithm a simple ratio a/b but I have no clue on how to do it with 3 components. Any idea? Thanks