How Much Do Idiosyncratic Bank Shocks Affect Investment? Evidence from Matched Bank-Firm Loan Data
Bibliographic Data
| ID | 10172065 |
|---|---|
| Authors | Mary Amiti (Federal Reserve Bank of New York), David E Weinstein (0000-0001-6036-7558, National Bureau of Economic Research) |
| Year | 2017 |
| Volume | 126 |
| Issue | 2 |
| Pages | 525-587 |
| Publication date | 2017-12-05 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/696272 |
| OpenAlex | W2890414418 |
| Language | EN |
| Citations received | 22 |
| References cited | 13 |
We show that supply-side financial shocks have a large impact on firms’ investment. We develop a new methodology to separate firm borrowing shocks from bank supply shocks using a vast sample of matched bank-firm lending data. We decompose aggregate loan movements in Japan for the period 1990–2010 into bank, firm, industry, and common shocks. The high degree of financial institution concentration means that individual banks are large relative to the size of the economy, which creates a role for granular shocks as in Gabaix’s (2011) study. We show that idiosyncratic granular bank supply shocks explain 30–40 percent of aggregate loan and investment fluctuations
Aggregate (composite · Business · Economics · Financial institution · Financial system · Investment (military · Loan · Monetary economics · Sample (material · Banking stability, regulation, efficiency · Corporate Finance and Governance · Finance · Global Financial Crisis and Policies
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Services trade and credit frictions
Firm heterogeneity and the bank lending channel in currency composition of credit
Factoring in the Micro
The Real Effects of Credit Supply Shocks
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Thermal stress and financial distress
Granular Instrumental Variables
Predictors of bank distress
Bank ownership and firm performance
Credit Misallocation During the European Financial Crisis
Markups and Financial Shocks
Personal Networks, State Financial Backing, and Foreign Direct Investment
| Unique citing works | 22 |
|---|---|
| Citations per year | 3,14 |
| Citation span | 2019 - 2026 (8) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 22 |