Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113783
Authors: 
Brown, James R.
Martinsson, Gustav
Thomann, Christian
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5458
Abstract: 
We study the effects of a unique lending program initiated by the Swedish government at the height of the financial crisis that allowed firms to suspend payment of all labor-related taxes and fees. Comprehensive administrative data on all Swedish firms show that firms borrowing from the program have higher rates of debt growth, investment spending, and employment growth compared to otherwise similar firms whose labor taxes were sufficiently low they could not benefit from the program. These results connect the availability of external credit with real activity in entrepreneurial firms in a way that has proved difficult in other settings.
Subjects: 
credit constraints
financial crisis
debt policy
entrepreneurial finance
employment growth
real activity
JEL: 
G01
G18
G21
G32
L26
O16
Document Type: 
Working Paper

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