Hoffmann, Mathias; Stewen, Iryna; Stiefel, Michael - 2021 - This version: March 2021
municipalities crowds out private investment. Our results show how crowding-out can happen in a developed economy characterized by … low interest rates and fiscal austerity. Our mechanism relies on two structural features of Germany's banking landscape … market power to charge higher rates on their SME customers. This crowded out firm investment. Perversely, fiscal …