Do Credit Market Shocks Affect the Real Economy? Quasi-Experimental Evidence from the Great Recession and ‘Normal’ Economic Times
We estimate the effect of the reduction in credit supply that followed the 2008 financial crisis on the real economy. We predict county lending shocks using variation in pre-crisis bank market shares and estimated bank supply-shifts. Counties with negative predicted shocks experienced declines in small business loan originations, indicating that it is costly for these businesses to find new lenders. Using confidential microdata from the Longitudinal Business Database, we find that the 2007-2009 lending shocks accounted for statistically significant, but economically small, declines in both small firm and overall employment. Predicted lending shocks affected lending but not employment from 1997-2007
Year of publication: |
2015
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Authors: | Greenstone, Michael |
Other Persons: | Mas, Alexandre (contributor) ; Nguyen, Hoai-Luu (contributor) |
Publisher: |
[2015]: [S.l.] : SSRN |
Subject: | Schock | Shock | Wirtschaftskrise | Economic crisis | Schätzung | Estimation | Kreditrationierung | Credit rationing | KMU | SME | Beschäftigungseffekt | Employment effect | Firmenkundengeschäft | Corporate banking | Provinz | Province | Regionalentwicklung | Regional development | Kreditmarkt | Credit market |
Saved in:
freely available
Extent: | 1 Online-Ressource (47 p) |
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Series: | NBER Working Paper ; No. w20704 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 2014 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013031743