investment and more persistent drops in output if they occur simultaneously with banking crises. Furthermore, the banking crises … that are followed by more persistent output slumps are associated with particularly large initial drops in investment. I … for investing entrepreneurs. This leads to a drop in investment and a very persistent slump in output and employment …

, resulted in lower investment, employment, and bank debt for younger and smaller firms. Importantly, these effects dominate … those of banks' balance-sheet variables. We also show that higher CDS spreads led to lower aggregate investment, employment …