Survive Another Day: Using Changes in the Composition of Investments to Measure the Cost of Credit Constraints

• 成果类型: Article
• 署名作者: Garicano, Luis; Steinwender, Claudia
• 署名单位: University of London; London School Economics & Political Science; Centre for Economic Policy Research - UK
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00566
• 发表日期: 2016-12
• 页码: 913-924
• 关键词: liquidity shocks evidence; cash flow; debt

摘要

We introduce a novel empirical strategy to measure the size of credit shocks. Theoretically, we show that credit shocks reduce the value of long-term relative to short-term investments. Empirically, we can therefore compare the reduction of long-term relative to short-term investments within firms, allowing for firm-times-year fixed effects. Using Spanish firm-level data, we estimate the credit crunch to be equivalent to an additional tax rate of around 11% on the longest-lived capital. To pin down credit constraints as the underlying cause, we apply triple-differences strategies using foreign ownership or precrisis debt maturity.