The TFP Channel of Credit Supply Shocks
Bibliographic Data
| ID | 19315022 |
|---|---|
| Authors | Nadav Ben Zeev (0000-0001-7546-4668, Ben-Gurion University of the Negev, corresponding author) |
| Year | 2023 |
| Volume | 105 |
| Issue | 2 |
| Pages | 425-441 |
| Publication date | 2023-03-03 |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press (PUBLISHER • US) |
| DOI | 10.1162/rest_a_01035 |
| OpenAlex | W2889184864 |
| Language | EN |
| References cited | 40 |
Recent work stresses a potentially important relation between credit supply shocks and aggregate TFP based on factor misallocation. I take three steps to examine this relation. First, using state-of-the-art credit supply shock and aggregate TFP measures, I show that an adverse credit supply shock has a weak and very short-lived effect on aggregate TFP. Second, using firm-level data, I show that firm-level capital stock responses to an adverse credit supply shock produce an insignificant and negligible capital-misallocation–induced TFP response. Third, using employment data by fine firm-size category classification, I also find a negligible labor-misallocation–induced TFP response. These findings suggest that the TFP channel of credit supply shocks has a limited role in their transmission to the real economy
Channel (broadcasting) · Economics · Macroeconomics · Monetary economics · Productivity · Telecommunications · Total factor productivity · Banking stability, regulation, efficiency · Computer Science · Economic Theory and Policy · Global Financial Crisis and Policies
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| Highly cited | No |
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