Burning money? Government lending in a credit crunch
Mostra el registre complet Registre parcial de l'ítem
- 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 2024-11-14T10:09:32Z
- dc.date.available 2024-11-14T10:09:32Z
- dc.date.issued 2017-08-01
- dc.date.modified 2024-11-14T10:05:39Z
- dc.description.abstract We analyze a small, new credit facility of a Spanish state-owned bank during the crisis, using its continuous credit scoring system, its firm-level scores, and the credit register. Compared to privately-owned banks, the state-owned bank faces worse applicants, (softens) tightens its credit supply to (un)observed riskier firms, and has much higher defaults, especially driven by unobserved ex-ante borrower risk. In a regression discontinuity design, the supply of public credit causes: large positive real effects to financially-constrained firms (whose relationship banks reduced substantially credit supply); crowding-in of new private-bank credit; and positive spillovers to other firms. Private returns of the credit facility are negative, while social returns are positive. Overall, our results provide evidence on the existence of significant adverse selection problems in credit markets.
- dc.format.mimetype application/pdf*
- 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.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
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword adverse selection; state-owned banks; credit crunch; real effects of public credit; crowding-in.
- dc.subject.keyword Finance and Accounting
- dc.subject.keyword Macroeconomics and International Economics
- dc.subject.keyword Labour, Public, Development and Health Economics
- dc.title Burning money? Government lending in a credit crunch
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper