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This paper conducts the first empirical study of the bank balance sheet channel using data on discouraged and informally rejected firms in addition to information on the formal loan granting process. I take advantage of a unique survey data on the credit experience of firms in 8 economies that...
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an effect on the output volatility of firms. We use large representative firm-level databases from Estonia, Hungary …
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-in-differences approach is used and the control group for the treatment country, Estonia, is built from 12 euro area countries. The Nielsen …
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, Poland, and a small open economy with increased flexibility, Estonia, we document and find support for our claim … and persistent unemployment compared to Estonia during the period of EU enlargement …
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requirements of jobs in Estonia during the years 1997-2003. We find large wage penalties associated with the phenomenon of …
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