• Media type: E-Book
  • Title: The long-run real effects of banking crises : firm-level investment dynamics and the role of wage rigidity
  • Contributor: Wix, Carlo [VerfasserIn]
  • imprint: Frankfurt am Main: SAFE, Sustainable Architecture for Finance in Europe, November 2017
  • Published in: SAFE working paper ; 189
  • Extent: 1 Online-Ressource (circa 68 Seiten); Illustrationen
  • Language: English
  • DOI: 10.2139/ssrn.3075810
  • Identifier:
  • Keywords: Financial Crises ; Bank Lending ; Real Effects ; Firm Investment ; Wage Rigidity ; Labor Hoarding ; Arbeitspapier ; Graue Literatur
  • Origination:
  • Footnote:
  • Description: This paper studies the long-run effects of credit market disruptions on real firm outcomes and how these effects depend on nominal wage rigidities at the firm level. I trace out the long-run investment and growth trajectories of firms which are more adversely affected by a transitory shock to aggregate credit supply. Affected firms exhibit a temporary investment gap for two years following the shock, resulting in a persistent accumulated growth gap. I show that affected firms with a higher degree of wage rigidity exhibit a steeper drop in investment and grow more slowly than affected firms with more flexible wages.
  • Access State: Open Access