between productivity and bank credit in the context of different financial market set-ups, we introduce a model of overlapping … generations of entrepreneurs under complete and incomplete credit markets. Then, we exploit firm-level data for France, Germany … and Italy to explore the relation between bank credit and productivity following the main derivations of the model. We …

Firm investment, Intangible assets, Loan terms, Credit constraint, Survey data, Instrumental variable approachUsing …

's credit decisions affect their future income. We use the bank's cutoff rule, which is based on the applicants' credit scores … mostly driven by the use of borrowed funds to undertake investments, and is stronger when individuals are more credit-constrained. …

credit. Using alternative estimation specifications, the findings indicate that firms' investments decreased significantly in … flow during declining conditions, especially for firms with access to lines of credit. The latter finding suggests that … firms reliant on bank debt could not compensate for the credit shortages by switching to other sources of external funding …