Credit Supply During a Sovereign Debt Crisis

Bofondi, Marcello; Carpinelli, Luisa; Sette, Enrico

doi:10.1093/jeea/jvx020

Cited by 146 publications

(113 citation statements)

References 36 publications

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“… See Cingano et al (2016) orBofondi et al (2018) for further details on this approach.24 We use the classification Ateco 2002 provided by the National Institute of Statistics (ISTAT), the Italian National Institute of Statistics, which include firms with two-digit industry codes between 15 and 37 in the manufacturing sector.21©International Monetary Fund. Not for Redistribution…”

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confidence: 99%

Negative Monetary Policy Rates and Portfolio Rebalancing: Evidence from Credit Register Data

Bottero¹,

Minoiu²,

Peydró³

et al. 2019

IMF Working Papers

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confidence: 99%

Negative Monetary Policy Rates and Portfolio Rebalancing: Evidence from Credit Register Data

Bottero¹,

Minoiu²,

Peydró³

et al. 2019

IMF Working Papers

Self Cite

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“…Bentolila et al (2015) document that Spanish firms borrowing from banks heavily exposed to the 2008 Global financial crisis experienced significantly larger drops in employment, while Garicano & Steinwender (2016) find that they also shifted the types of investments undertaken from longer-term investments to short-term ones. Similarly, Cingano et al (2016) show that Italian firms that had relationships with banks heavily exposed to the interbank market experienced a larger drop in investment and employment (see also Balduzzi et al 2017, Bofondi et al 2018. Ferrando et al (2017) use firms' self-reported measures of financial constraints collected by the ECB SAFE survey to show that firms in countries severely affected by the 2012 Sovereign debt crisis faced lower access to credit.…”

Section: Relation To Literaturementioning

confidence: 99%

Did Bank Lending Stifle Innovation in Europe During the Great Recession?

Peia

Romelli

2019

SSRN Journal

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Using the 2008-09 Global financial crisis and the 2012 Euro area sovereign debt crisis as natural experiments, we investigate the effects of contractions in credit supply on R&D spending in a large sample of European firms. Our identification strategy exploits differences in financial constraints across firms, as well as the cross-industry variation in dependence on external finance, to identify a causal effect of bank credit supply on firm investment in innovation. We show that firms that are more likely financially constrained, in industries more dependent on external finance, have a disproportionally lower growth rate of R&D spending, as well as lower R&D intensity and share of R&D investment in total investment during periods of tight credit supply. These results are robust to different proxies of financial constraints, model specifications and fixed-effects identification strategies.

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“…Another strand of the literature on financial constraints (see. e.g., Khwaja et al ., ; Bofondi et al ., ) suggests the adoption of a second set of dependent variables: the average of the annual growth rates of the credit obtained by a firm . We use the growth rates in 2010 and 2011 to compute the average.…”

Section: Data and Variablesmentioning

confidence: 99%

Access to Credit for Small Innovative Businesses

et al. 2017

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Using data for a large sample of small firms collected through the 8th UniCredit Survey conducted in 2011, we investigate the extent to which banks of different size reward innovative firms, in terms of both access to lending and volume of credit granted. We find that more innovative firms are associated with weak credit rationing. Using instrumental variable techniques to manage the endogenous nature of innovation, we show that a large bank more strongly supports product innovation, whereas there is no substantial difference in the extent to which small and large banks provide credit to small firms undertaking process innovations

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Credit Supply During a Sovereign Debt Crisis

Cited by 146 publications

References 36 publications

Negative Monetary Policy Rates and Portfolio Rebalancing: Evidence from Credit Register Data

Negative Monetary Policy Rates and Portfolio Rebalancing: Evidence from Credit Register Data

Did Bank Lending Stifle Innovation in Europe During the Great Recession?

Access to Credit for Small Innovative Businesses

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