Results 31 - 40
of
56
to finance
, 1820
"... Note: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB We investigate the effect of sovereign stress and of unconventional monetary policy on small firm ..."
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Note: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB We investigate the effect of sovereign stress and of unconventional monetary policy on small firms ’ financing patterns during the euro area debt crisis. We find that after the crisis started, firms in stressed countries were more likely to be credit rationed, both in the quantity and in the price dimension, and to increase their use of debt securities. We also find evidence that the announcement of the ECB’s Outright Monetary Transactions Program was followed by an immediate decline in the share of credit rationed firms and of firms discouraged from applying. In addition, firms reduced their use of debt securities, trade credit, and government-subsidized loans. Firms with improved outlook and credit history were particularly likely to benefit from easier credit access.
Working Paper Series Financing constraints,
, 1821
"... employment, and labor compensation: evidence from the subprime mortgage crisis ..."
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employment, and labor compensation: evidence from the subprime mortgage crisis
When Money Crowds out Capital: Stagnation in a Liquidity Trap
, 2015
"... In this paper we analyze a monetary model with asset scarcity. A large and persistent deleveraging shock in the spirit of Eggertsson and Krugman (2012) leads to a persistent liquidity trap, with an increase in cash holdings and a long-term output decline. The long-term impact is a supply side effect ..."
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In this paper we analyze a monetary model with asset scarcity. A large and persistent deleveraging shock in the spirit of Eggertsson and Krugman (2012) leads to a persistent liquidity trap, with an increase in cash holdings and a long-term output decline. The long-term impact is a supply side effect independent of nominal rigidities, coming from the fact that holding cash is costly. Quantitative easing is ineffective at the ZLB, but it can postpone the exit from a liquidity trap. An increase in public debt may accelerate such an exit, but it may lower the capital stock because of higher interest rates. Monetary transfers are effective in stimulating employment in the short-run, but not in affecting the long term output level. We would like to thank Paolo Pesenti, Cédric Tille, seminar participants at the University of Lausanne,
NBER WORKING PAPER SERIES DISSECTING THE EFFECT OF CREDIT SUPPLY ON TRADE: EVIDENCE FROM MATCHED CREDIT-EXPORT DATA
, 2014
"... and World Bank seminars, workshops, and conferences for helpful comments. Paravisini, Rappoport, ..."
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and World Bank seminars, workshops, and conferences for helpful comments. Paravisini, Rappoport,
Comparative Advantage and Specialization in Bank Lending ∗
, 2014
"... We develop an empirical approach for identifying comparative advantages in bank lending. Using matched credit-export data from Peru, we first uncover patterns of bank specialization by export market: every country has a subset of banks with an ab-normally large loan portfolio exposure to its exports ..."
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We develop an empirical approach for identifying comparative advantages in bank lending. Using matched credit-export data from Peru, we first uncover patterns of bank specialization by export market: every country has a subset of banks with an ab-normally large loan portfolio exposure to its exports. Using outliers to measure spe-cialization, we use a revealed preference approach to show that bank specialization reflects a comparative advantage in lending. We show, in specifications that saturate all firm-time and bank-time variation, that firms that expand exports to a destination market tend to expand borrowing disproportionately more from banks specialized in that destination market. Bank comparative advantages increase with bank size in the cross section, and in the time series after mergers. Our results challenge the perceived view that, outside relationship lending, banks are perfectly substitutable sources of funding. ∗We thank Luana Zaccaria for excellent research assistance. All errors are our own. Please send cor-
© notice, is given to the source. Spare Tire? Stock Markets, Banking Crises, and Economic Recoveries
, 2015
"... The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Direct ..."
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The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
necessarily reflect those of the ECB or the Eurosystem.
"... employment, and labor compensation: Evidence from the subprime mortgage crisis This paper identifies the effect of financing constraints on firms ’ labor demand. We exploit exogenous funding shocks to German savings banks during the US mortgage crisis that are unrelated to local conditions. We find ..."
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employment, and labor compensation: Evidence from the subprime mortgage crisis This paper identifies the effect of financing constraints on firms ’ labor demand. We exploit exogenous funding shocks to German savings banks during the US mortgage crisis that are unrelated to local conditions. We find that firms with credit relationships with affected banks experienced a significant decline in employment and in labor compensation relative to firms whose credit relationships were with healthy banks. We also find that the employment effect increases, and the wage effect decreases with firm size. While both effects weaken in the long-run, employment and wages at firms attached to affected banks do not recover to pre-crisis levels.
Sovereign Stress, Non-conventional Monetary Policy, and SME Access to Finance
"... We investigate the effect of sovereign stress and of non-conventional monetary policy on small firms ’ financing patterns during the euro area debt crisis. We find that small firms in stressed countries experienced a reduction in access to bank credit which was disproportionately higher for larger S ..."
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We investigate the effect of sovereign stress and of non-conventional monetary policy on small firms ’ financing patterns during the euro area debt crisis. We find that small firms in stressed countries experienced a reduction in access to bank credit which was disproportionately higher for larger SMEs and for firms with better growth opportunities, implying that the reduction in bank lending was not associated with a flight to quality. Firms made up for the reduced credit access with mainly retained earnings and trade credit, and thereafter with government subsidies and bond financing. We also find that the announcement of the ECB’s Outright Monetary Transactions Program improved the availability of bank financing, more so in the short-run and in particular for more creditworthy firms. JEL classification: D22, E58, G21, H63.
Household Credit and Employment in the Great Recession
, 2014
"... How much did the contraction in the supply of credit to households contribute to the decline in employment during the Great Recession? To answer this question I provide new estimates of: (1) the elasticity of employment with respect to household credit; and (2) the size of the supply shock to househ ..."
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How much did the contraction in the supply of credit to households contribute to the decline in employment during the Great Recession? To answer this question I provide new estimates of: (1) the elasticity of employment with respect to household credit; and (2) the size of the supply shock to household credit. I exploit a county’s exposure to the collapse of a large and previously healthy lender as a natural experiment. This gives an estimated elasticity of employment with respect to household credit of 0.3, caused by declines in both housing and non-housing demand. To estimate the size of the credit supply shock I use non-parametric methods to identify lender-specific supply-side shocks, which I then aggregate into a simple measure of credit supply shocks to counties. Combining this measure with estimates of the elasticity of employment with respect to the measure, I calculate that shocks to household credit were responsible for at least a 3.6% decline in employment from 2007 to 2010.
is given to the source. Aggregate Issuance and Savings Waves
, 2014
"... the AEA Annual Meeting, and the WFA Annual Meeting, for helpful comments. Eisfeldt gratefully acknowledges financial support from the Fink Center for Finance & Investments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Econ ..."
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the AEA Annual Meeting, and the WFA Annual Meeting, for helpful comments. Eisfeldt gratefully acknowledges financial support from the Fink Center for Finance & Investments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at
