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dc.contributor.author Peydró, José-Luis
dc.contributor.author Jiménez, Gabriel
dc.contributor.author Repullo, Rafael
dc.contributor.author Saurina, Jesús
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2018-02-14T15:29:52Z
dc.date.available 2018-02-14T15:29:52Z
dc.date.issued 2017-08-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1577
dc.identifier.citation
dc.identifier.uri http://hdl.handle.net/10230/33872
dc.description.abstract We analyze new lending to firms by a state-owned bank in crisis times, the potential adverse selection faced by the bank, and the causal real effects associated to its lending. For identification, we exploit: (i) a new credit facility set up in Spain by its state-owned bank during the credit crunch of 2010-2012; (ii) the bank s continuous scoring system, together with firms' individual credit scores and the threshold for granting vs. rejecting loan applications; (iii) the rich credit register matched with firm- and bank-level data. We show that, compared to privately-owned banks, the state-owned bank faces a worse pool of applicants, is tighter (softer) in lending to firms with observable (unobservable) riskier characteristics, and has substantial higher loan defaults. Using a regression discontinuity approach around the threshold, we show that the supply of credit causes large positive real effects on firm survival, employment, investment, total assets, sales, and productivity, as well as crowding-in of new credit by private banks.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1577
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Burning money? Government lending in a credit crunch
dc.title.alternative
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2018-02-14T15:29:25Z
dc.subject.keyword adverse selection
dc.subject.keyword real effects of credit supply
dc.subject.keyword crowding-in
dc.subject.keyword state-owned banks
dc.subject.keyword credit crunch
dc.subject.keyword credit scoring
dc.subject.keyword loan defaults
dc.subject.keyword countercyclical policies.
dc.subject.keyword Finance and Accounting
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword Labour, Public, Development and Health Economics
dc.rights.accessRights info:eu-repo/semantics/openAccess

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