Discouraged borrowers aftermath of financial crisis: a UK study

Purpose The purpose of this paper is to investigate the trend of discouragement in the small and medium sized enterprise’s (SME) lending market during the aftermath of the financial crisis of 2008. It detects the extent to which the responses of discouraged firms to improvements in the lending market are lagged. Design/methodology/approach The results are based on surveys of UK SME Finance Monitor (2011-2016). Probit regression models were used to assess the effect of time passed from the financial crisis on the probability of discouragement. Findings The analysis, inter alia, shows that the rate of discouragement has reduced significantly since 2013. The results highlight the long-term effect of tightened credit supply on SMEs that are ready to invest, but hold back because of fear of rejection. Practical implications The research suggests addressing imperfect information among discouraged SMEs that are recuperating from the financial crisis. With the rise of information asymmetry, entrepreneurs show a higher level of fear of rejection by financial institutions. The longer the effects of the financial crisis exists among entrepreneurs, the longer they self-ration from credit market, which subsequently leads to reduced levels of investment, growth, and innovation among SMEs. Originality/value This research fills a gap in the literature of the effect of financial crisis on the latent demand for lending. It discusses the long-term effect of tightened credit supply among entrepreneurs even though the supply side has recuperated and recommenced pre-crisis activities.

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Long-term scarring effect of neither working nor studying

International Journal of Manpower ◽

10.1108/ijm-12-2015-0226 ◽

2018 ◽

Vol 39 (2) ◽

pp. 190-204

Author(s):

Fredrik W. Andersson ◽

Susanne Gullberg Brännstrom ◽

Roger Mörtvik

Keyword(s):

Young People ◽

Estimation Method ◽

Term Effect ◽

Market Outcomes ◽

Content Type ◽

Long Term Effect ◽

Employment Education ◽

First Time ◽

Unobservable Heterogeneity

Purpose It is increasingly important to study labour market outcomes for people who are not in employment, education, or training (NEET). Where most studies focus solely on young people, the purpose of this paper is to include both younger and older NEETs to find out if there is any long-term scarring effect, and if the effect is different between these two groups. Design/methodology/approach This study uses a twin-based estimation method for the first time to measure the long-term effect of economic inactivity on income. The analysis is based on biological twins, in order to control for individuals’ unobservable heterogeneity. It is assumed that twins are similar to each other and the only unobservable heterogeneity is at the family level. Register-based data from Statistics Sweden is used. Findings The result indicates a significant negative income effect for those who have been in NEET, and is larger for those who have been in NEET for several consecutive periods of time. Individuals who were in NEET during 2001-2003 had on average 62 per cent lower income compared with their twin in 2011. The corresponding number for individuals who were in NEET for just one period was 33 per cent. Hence, time in NEET reduces income. The results show that the long-term scarring effect is not affected by age. Originality/value This study utilises for the first time a twin-based estimation method to measure the long-term effect of inactivity. Most studies focus solely on young people, but the authors also include an older group of people.

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Vertebral artery section for treating arterial compression of the medulla oblongata

Journal of Neurosurgery ◽

10.3171/jns.1993.79.1.0116 ◽

1993 ◽

Vol 79 (1) ◽

pp. 116-118 ◽

Cited By ~ 29

Author(s):

Kazuhiro Hongo ◽

Shigeaki Kobayashi ◽

Masanobu Hokama ◽

Kenichiro Sugita

Keyword(s):

Vertebral Artery ◽

Medulla Oblongata ◽

Pyramidal Tract ◽

Posterior Inferior Cerebellar Artery ◽

Term Effect ◽

Left Vertebral Artery ◽

Content Type ◽

Long Term Effect ◽

Cerebellar Artery

✓ A case of a 30-year-old man who showed progressive pyramidal tract signs caused by compression of the left vertebral artery is presented. Initial decompression of the vertebral artery by placing a piece of sponge between the artery and medulla had no long-term effect. The left vertebral artery distal to the origin of the posterior inferior cerebellar artery was then sectioned, decompressing the medulla oblongata. The patient's symptoms improved postoperatively. This is the first reported case of brain-stem compression by an elongated vertebral artery treated by sectioning of the artery.

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Prospects for the US economy in 2021

Emerald Expert Briefings ◽

10.1108/oxan-db257773 ◽

2020 ◽

Keyword(s):

Term Effect ◽

Decision Makers ◽

Content Type ◽

Us Economy ◽

Long Term Effect ◽

Economic Support ◽

The Us ◽

Cast Doubt ◽

Initial Recovery

Significance Ensuing restrictions cast doubt on the prospects for sustaining the impressive third-quarter GDP rebound in the next two quarters. The recovery of employment and consumption could be reversed. Congress's failure thus far to extend economic support beyond 2020 is a looming threat. Impacts Extended remote working will have long-term effect, fuelling real estate activity as many workers seek larger homes from which to work. Travel related firms will struggle as the Center for Disease Control advises no travel to at least end-2020; most US travel is domestic. Intra- and intercontinental supply chains will remain under stress due to full lockdowns in parts of North America and Europe. A fragile, uneven initial recovery may promote discussion of new broad-based taxes among federal and state decision-makers.

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