Credit availability and investment: Lessons from the 'great recession'

Autor:	Eugenio Gaiotti
Rok vydání:	2013
Předmět:	Credit channel Macroeconomics Economics and Econometrics Credit history Credit rationing Financial crisis Economics Credit reference Credit crunch Monetary economics Finance Credit card interest Credit risk
Zdroj:	European Economic Review. 59:212-227
ISSN:	0014-2921
DOI:	10.1016/j.euroecorev.2012.12.007
Popis:	The paper argues that the traditional difficulty encountered in finding evidence on the effects of credit availability on economic activity depends on the fact that these effects are powerful but rare and vary with the cycle. The global financial crisis offers an opportunity to test this assumption. The paper exploits a unique dataset, including direct information on credit rationing for 1200 Italian firms over the last twenty years. We find that the elasticity of a firm’s investment to the availability of bank credit has been significant in periods of economic contraction, but not in other periods (the ability to tap alternative sources of finance may arguably explain this result) and that during the global crisis the impact of credit quantity constraints on Italian investment in manufacturing was significant.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::f11a221ca6ff0f6074de1b888533daaf https://doi.org/10.1016/j.euroecorev.2012.12.007 Zobrazit plný text záznamu Full Text from ScienceDirect