Schmalz, Martin C.; Sraer, David Alexandre; Thesmar, David - 2014
This paper shows that collateral constraints restrict firm entry and post-entry growth, even in the long-run. We use … collateral available to homeowners. We control for local demand shocks by comparing homeowners to two control groups that live in … the same region but do not experience collateral shocks: (i) renters and (ii) homeowners with a mortgage outstanding, who …
