collateral to ease borrowing constraints and boost corporate liquidity. Consequently, this enhanced access to credit promotes …-exogenous variation in the award of procurement contracts. Winning an additional €1 from a procurement contract increases firm credit by … output by €1.8 with the credit channel accounting for 10% of it …

-lending revenues, and those that pledge collateral, especially outside assets and real estate, experience less credit rationing …We investigate how financial contracting interacts with lending channel effects by tracing the anatomy of a credit …