Coase Lecture ‐ The Inverted‐U Relationship Between Credit Access and Productivity Growth
Bibliographic Data
| ID | 9724462 |
|---|---|
| Authors | Philippe Aghion (0000-0002-9019-1677, Collège de France and LSE, corresponding author), Antonin Bergeaud (0000-0003-2341-3986, Banque de France), Gilbert Cette (0000-0003-3828-913X, Banque de France and AMSE), Rémy Lecat (Banque de France and AMSE), Hélène Maghin (0000-0002-9670-4728, Banque de France) |
| Year | 2019 |
| Volume | 86 |
| Issue | 341 |
| Pages | 1-31 |
| Publication date | 2019-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12297 |
| OpenAlex | W2904730677 |
| Language | EN |
| Citations received | 13 |
| References cited | 21 |
We identify two counteracting effects of credit access on productivity growth: on the one hand, better access to credit makes it easier for entrepreneurs to innovate; on the other hand, better credit access allows less efficient incumbent firms to remain longer on the market, thereby discouraging entry of new and potentially more efficient innovators. We first develop a simple model of firm dynamics and innovation‐based growth with credit constraints, where the above two counteracting effects generate an inverted‐U relationship between credit access and productivity growth. Then we test our theory on a comprehensive French manufacturing firm‐level dataset. We first show evidence of an inverted‐U relationship between credit constraints and productivity growth when we aggregate our data at the sectoral level. We then move to firm‐level analysis, and show that incumbent firms with easier access to credit experience higher productivity growth, but that they also experience lower exit rates, particularly the least productive firms among them. To support these findings, we exploit the 2012 Eurosystem's Additional Credit Claims programme as a quasi‐experiment that generated an exogenous extra supply of credits for a subset of incumbent firms
Bond market · Business · Coase theorem · Economics · Exploit · Industrial organization · Labour economics · Macroeconomics · Market access · Microeconomics · Monetary economics · Productivity · Transaction cost · Economic Growth and Productivity · Firm Innovation and Growth · Innovation Policy and RD
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Strict liability, scarce generic input and duopoly competition
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Credit Constraints and the Cyclicality of R&d Investment
The pre-Great Recession slowdown in productivity
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Growth through Heterogeneous Innovations
| Unique citing works | 13 |
|---|---|
| Citations per year | 2,6 |
| Citation span | 2021 - 2026 (6) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 13 |