Using a recently developed method of causal inference, this paper estimates the additional up-front loan origination costs that a small business can expect to pay when it first borrows from a new lender. I compare firms that borrow from a previously unused financial institution with firms that...

Using a recently-developed method of causal inference, this paper estimates the additional up-front loan origination costs that a small business can expect to pay when it first borrows from a new lender. I compare firms that borrow from a previously unused financial institution with firms that...

We try to identify which small businesses are most quot;debt sensitive,quot; or most likely to be affected by banking market conditions. For our primary debt sensitivity categories, we hypothesize that bank conditions are most likely to have significant effects on firms in size classes and...

Purpose – The purpose of this paper is to identify which small businesses are most “debt sensitive”, or most likely to be affected by banking market conditions. Design/methodology/approach – For the primary debt sensitivity categories, the paper hypothesizes that bank conditions are most...

Purpose – The purpose of this paper is to identify which small businesses are most “debt sensitive”, or most likely to be affected by banking market conditions. Design/methodology/approach – For the primary debt sensitivity categories, the paper hypothesizes that bank conditions are most...