Credit Supply Shocks and Prices: Evidence from Danish Firms

• 成果类型: Article
• 署名作者: Renkin, Tobias; Zullig, Gabriel
• 署名单位: Swiss National Bank (SNB)
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20220079
• 发表日期: 2024
• 页码: 1-28
• 关键词: financial crisis evidence; instrumental variables; market imperfections; inflation dynamics; liquidity; inference

摘要

We study the response of firms' output prices to a cut in credit supply. We combine data on loans between Danish firms and banks with survey -based producer prices and transaction -based export unit values. Exploiting banks' heterogeneous exposure to the global financial crisis, we show that loans to firms with relationships to exposed banks drop and lending rates increase. In response, firms raise prices by 3-5 percent. This effect is decreasing in the elasticity of firms' demand but positive for most industrial production. Our results show that firms increase prices to raise cash when external sources of liquidity dry up. ( JEL D22, E23, E31, E32, E44, G01, G21)