Growth, Slowdowns, and Recoveries

Francesco Bianchi, Howard Kung and Gonzalo Morales

No 20725, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We construct and estimate an endogenous growth model with debt and equity financing frictions to understand the relation between business cycle fluctuations and long-term growth. The presence of spillover effects from R&D imply an endogenous relation between productivity growth and the state of the economy. A large contractionary shock to equity financing in the 2001 recession led to a persistent growth slowdown that was more severe than in the 2008 recession. Equity (debt) financing shocks are more important for explaining R&D (physical) investment. Therefore, these two financing shocks affect the economy over different horizons.

JEL-codes: C11 E3 O4 (search for similar items in EconPapers)
Date: 2014-12
New Economics Papers: this item is included in nep-fdg, nep-gro and nep-mac
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

Published as Francesco Bianchi & Howard Kung & Gonzalo Morales, 2018. "Growth, Slowdowns, and Recoveries," Journal of Monetary Economics, .

Downloads: (external link)
http://www.nber.org/papers/w20725.pdf (application/pdf)

Related works:
Journal Article: Growth, slowdowns, and recoveries (2019)
Working Paper: Growth, Slowdowns, and Recoveries (2015)
Working Paper: Growth, Slowdowns, and Recoveries (2014)
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:nbr:nberwo:20725

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w20725

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().