Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108759
Authors: 
Kleemann, Michael
Wiegand, Manuel
Year of Publication: 
2014
Series/Report no.: 
Ifo Working Paper 192
Abstract: 
This paper advocates for incorporating timely measures of firms' current situation and future expectations when disentangling real effects of credit supply from demand-side factors. Identification of supply-side effects in firm-level analyses often relies on balance sheet variables to control for firm heterogeneity. While balance sheets mirror past business, bias from contemporaneous and forward-looking firm-side factors may persist.Using German firm-level survey data from 2003 to 2011, we show that controllingfor firms' current situation and future expectations reduces upward bias in estimatedcredit supply-side effects on firm-level production. This is particularly important when market data is unavailable for firms.
Subjects: 
Credit constraints
production
employment
matching estimator
JEL: 
G21
E23
L25
Document Type: 
Working Paper

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