Show simple item record

dc.contributor.authorde Ridder, M.
dc.date.accessioned2018-04-06T13:28:46Z
dc.date.available2018-04-06T13:28:46Z
dc.date.issued2016-10-05
dc.identifier.otherCWPE1659
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/274658
dc.description.abstractThis paper analyzes the channels through which financial crises exert long-term negative effects on output. Recent models suggest that a shortfall in productivity-enhancing investments temporarily slows technological progress, creating a gap between pre-crisis trend and actual GDP. This hypothesis is tested using a linked lender-borrower dataset on 519 U.S. corporations responsible for 54% of industrial research and development. Exploiting quasi-experimental variation in firm-level exposure to the 2008-9 financial crisis, I show that tight credit reduced investments in productivity-enhancement, and has significantly slowed down output growth between 2010 and 2015. A partial-equilibrium aggregation exercise suggests output would be 12% higher today if productivity-enhancing investments had grown at pre-crisis rates.
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectFinancial Crises
dc.subjectEndogenous Growth
dc.subjectInnovation
dc.subjectBusiness Cycles
dc.titleInvestment in Productivity and the Long-Run Effect of Financial Crises on Output
dc.typeWorking Paper
dc.publisher.institutionUniversity of Cambridge
dc.publisher.departmentFaculty of Economics
dc.identifier.doi10.17863/CAM.21791


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record