The Economic Effects of a Borrower Bailout: Evidence from an Emerging Market

• 成果类型: Article
• 署名作者: Gine, Xavier; Kanz, Martin
• 署名单位: The World Bank
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx073
• 发表日期: 2018
• 页码: 1752
• 关键词: liquidity shocks evidence; Debt relief; credit; intervention; finance; access; IMPACT

摘要

We study the credit market impact and real effects of one of the largest borrower bailouts in history, enacted by the government of India against the backdrop of the 2007-2008 financial crisis. We find that the bailout led to a significant reallocation of credit and greater defaults, but had no offsetting positive effect on productivity, wages, or consumption. Post-program loan performance deteriorates faster in districts with greater program exposure, an effect that is not driven by greater risk-taking of banks. Loan defaults become more sensitive to the electoral cycle after debt relief, suggesting strategic default in response to the bailout.