Firm Networks in the Great Depression

• 成果类型: Article; Early Access
• 署名作者: University of Minnesota System; University of Minnesota Twin Cities; Auburn University System; Auburn University; University of Missouri System; University of Missouri Columbia
• 刊物名称: JOURNAL OF ECONOMIC HISTORY
• ISSN/ISSBN: 0022-0507
• DOI: 10.1017/S0022050725100879
• 发表日期: 2025
• 页码: -
• 关键词: internal capital-markets; Banking panics; monetary intervention; diversification; origins

摘要

We study how firms allocate resources across their constituent establishments in response to local economic shocks in the context of the Great Depression. Using establishment-level data from the Census of Manufactures, we find that establishments in multi-plant firms are affected by local shocks in the regions in which the other establishments comprising the firm are located. In particular, establishment employment is positively affected by positive shocks to the local supply of credit to other establishments that make up the firm. Our results show the important role of firms in the geographic propagation of local economic shocks.