In this paper we analyze the impact of government and private ownership of banks on firms’ probability to innovate. We estimate firms’ decision to innovate and their selection of a main lender for a sample of 9000 German manufacturing companies. Since these two decisions may be...

Since the mid-1990s, large movements in stock prices have not only raised central bankers’ and policy-makers’ interest in their implications for real economic activity, but have also led to extensive empirical research in this field. While most of the studies have focussed on the United...