Firms' Precautionary Savings and Employment during a Credit Crisis†

• 成果类型: Article
• 署名作者: Melcangi, Davide
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20210269
• 发表日期: 2024
• 页码: 356-386
• 关键词: Cash; uncertainty; shocks; money; LABOR

摘要

Can the macroeconomic effects of credit supply shocks be large even when a small share of firms is credit constrained? I use UK firm -level accounting data to discipline a heterogeneous -firm model where the interaction between real and financial frictions induces precautionary cash holdings. In the data, firms increased their cash ratios during the Great Recession, and cash -intensive firms displayed higher employment growth. A tightening of firms'credit conditions generates the same dynamics in the model. Unconstrained firms preemptively respond to credit supply shocks; this precautionary channel, when appropriately quantified, crucially matters for the aggregate dynamics and firm -level patterns. (JEL D22, E24, E32, E44, G32)