The long-run real effects of banking crises: firm-level investment dynamics and the role of wage rigidity
- This paper studies the long-run effects of credit market disruptions on real firm outcomes and how these effects depend on nominal wage rigidities at the firm level. I trace out the long-run investment and growth trajectories of firms which are more adversely affected by a transitory shock to aggregate credit supply. Affected firms exhibit a temporary investment gap for two years following the shock, resulting in a persistent accumulated growth gap. I show that affected firms with a higher degree of wage rigidity exhibit a steeper drop in investment and grow more slowly than affected firms with more flexible wages.
Author: | Carlo Wix |
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URN: | urn:nbn:de:hebis:30:3-451947 |
URL: | https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3075810 |
Parent Title (English): | SAFE working paper series ; No. 189 |
Series (Serial Number): | SAFE working paper (189) |
Publisher: | SAFE |
Place of publication: | Frankfurt am Main |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2017 |
Year of first Publication: | 2017 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2017/12/12 |
Tag: | Bank Lending; Financial Crises; Firm Investment; Labor Hoarding; Real Effects; Wage Rigidity |
Issue: | This Version: November 2017 |
Page Number: | 68 |
HeBIS-PPN: | 424516462 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |