The Anatomy of a Credit Supply Shock: Evidence from an Internal Credit Market

2018 ◽  
Vol 53 (2) ◽  
pp. 547-579 ◽  
Author(s):  
José María Liberti ◽  
Jason Sturgess
Keyword(s):  
Credit Rationing ◽  
Financing Constraints ◽  
Lending Relationships ◽  
Lending Channel ◽  
Credit Supply ◽  
Supply Shock ◽  
Level Data ◽  
Channel Effects ◽  
Post Shock ◽  
Micro Level

We investigate how financial contracting interacts with lending-channel effects by tracing the anatomy of a credit supply shock using micro-level data from a multinational bank. Borrowers with stronger lending relationships, higher nonlending revenues, and those that pledge collateral, especially outside assets and real estate, experience less credit rationing. Consistent with a tightening of financing constraints post shock, borrower composition shifts toward larger and less risky firms, and loans exhibit higher collateralization rates. Our analysis highlights the value of relationships and suggests that relationship banking is a channel through which borrowers can mitigate lending-channel effects.

scholarly journals The TFP Channel of Credit Supply Shocks

2021 ◽  
pp. 1-44
Author(s):  
Nadav Ben Zeev
Keyword(s):  
State Of The Art ◽  
Real Economy ◽  
Firm Level ◽  
Size Category ◽  
Credit Supply ◽  
Supply Shocks ◽  
Supply Shock ◽  
Level Data ◽  
Capital Misallocation ◽  
Employment Data

Abstract Recent work stresses a potentially important relation between credit supply shocks and aggregate TFP based on factor misallocation. I take three steps to examine this relation. First, using state-of-the-art credit supply shock and aggregate TFP measures, I show that an adverse credit supply shock has a weak and very short-lived effect on aggregate TFP. Second, using firm-level data, I show that firm-level capital stock responses to an adverse credit supply shock produce an insignificant and negligible capital-misallocation-induced TFP response. Third, using employment data by fine firm size category classification, I also find a negligible labor-misallocation-induced TFP response. These findings suggest that the TFP channel of credit supply shocks has a limited role in their transmission to the real economy.

scholarly journals New Labour? The Effects of Migration from Central and Eastern Europe on Unemployment and Wages in the UK

2013 ◽  
Vol 14 (1) ◽  
pp. 299-338 ◽  
Author(s):  
Sara Lemos ◽  
Jonathan Portes
Keyword(s):  
Central And Eastern Europe ◽  
British History ◽  
The European Union ◽  
Supply Shock ◽  
Level Data ◽  
Free Movement Of Workers ◽  
Micro Level ◽  
The Uk ◽  
The Impact ◽  
Exogenous Supply

Abstract The UK was one of only three countries that granted free movement of workers to accession nationals following the enlargement of the European Union in May 2004. The resulting migration inflow, which was substantially larger and faster than anticipated, arguably corresponds more closely to an exogenous supply shock than most migration shocks studied in the literature. We evaluate the impact of this migration inflow – one of the largest in British history – on the UK labour market. We use new monthly micro-level data and an empirical approach that investigates which of several particular labour markets in the UK – with varying degrees of natives’ mobility and migrants’ self-selection – may have been affected. We found little evidence that the inflow of accession migrants contributed to a fall in wages or a rise in claimant unemployment in the UK between 2004 and 2006.

scholarly journals Active versus passive academic networking: evidence from micro-level data

2011 ◽  
Vol 38 (2) ◽  
pp. 116-134 ◽  
Author(s):  
Rajeev K. Goel ◽  
Christoph Grimpe
Keyword(s):  
Level Data ◽  
Micro Level

Segregation, Integration, and Death: Evidence from the Korean War

2021 ◽  
pp. 1-22
Author(s):  
Connor Huff ◽  
Robert Schub
Keyword(s):  
Korean War ◽  
Short Term ◽  
Quantitative Evidence ◽  
Black And White ◽  
Us Military ◽  
Level Data ◽  
The Korean War ◽  
Micro Level ◽  
Military Units ◽  
Null Finding

Abstract How does the design of military institutions affect who bears the costs of war? We answer this question by studying the transformative shift from segregated to integrated US military units during the Korean War. Combining new micro-level data on combat fatalities with archival data on the deployment and racial composition of military battalions, we show that Black and white soldiers died at similar rates under segregation. Qualitative and quantitative evidence provides one potential explanation for this counterintuitive null finding: acute battlefield concerns necessitated deploying military units wherever soldiers were needed, regardless of their race. We next argue that the mid-war racial integration of units, which tied the fates of soldiers more closely together, should not alter the relative fatality rates. The evidence is consistent with this expectation. Finally, while aggregate fatality rates were equal across races, segregation enabled short-term casualty discrepancies. Under segregation there were high casualty periods for white units followed by high casualty periods for Black units. Integration eliminated this variability. This research note highlights how enshrining segregationist policies within militaries creates permissive conditions for either commanders' choices, or the dictates and variability of conflict, to shape who bears war's costs.

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