Quantifying Reduced-Form Evidence on Collateral Constraints
Sylvain Catherine,
Thomas Chaney,
Zongbo Huang,
David Sraer and
David Thesmar
Additional contact information
Sylvain Catherine: University of Pennsylvania
Zongbo Huang: CUHK - The Chinese University of Hong Kong [Hong Kong]
David Thesmar: HEC Lausanne - Faculté des Hautes Etudes Commerciales (HEC Lausanne)
SciencePo Working papers Main from HAL
Abstract:
While a mature literature shows that credit constraints causally affect firm level investment, this literature provides little guidance to quantify the economic effects implied by these findings. Our paper attempts to fill this gap in two ways. First, we use a structural model of firm dynamics with collateral constraints, and estimate the model to match the firm-level sensitivity of investment to collateral values. We estimate that firms can only pledge about 19% of their collateral value. Second, we embed this model in a general equilibrium framework and estimate that, relative to first-best, collateral constraints are responsible for 11% output losses.
Date: 2018-05-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03393129v1
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://sciencespo.hal.science/hal-03393129v1/document (application/pdf)
Related works:
Journal Article: Quantifying Reduced‐Form Evidence on Collateral Constraints (2022) 
Working Paper: Quantifying Reduced-Form Evidence on Collateral Constraints (2022) 
Working Paper: Quantifying Reduced-Form Evidence on Collateral Constraints (2022) 
Working Paper: Quantifying Reduced-Form Evidence on Collateral Constraints (2018) 
Working Paper: Quantifying Reduced-Form Evidence on Collateral Constraints (2018) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03393129
Access Statistics for this paper
More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().