Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174866
Authors: 
Rehbein, Oliver
Year of Publication: 
2018
Series/Report no.: 
IWH Discussion Papers 4/2018
Abstract: 
I show that natural disasters transmit to firms in non-disaster areas via their banks. This spillover of non-financial shocks through the banking system is stronger for banks with less regulatory capital. Firms connected to a disaster-exposed bank with below median capital reduce their employment by 11% and their fixed assets by 20% compared to firms in the same region without such a bank during the 2013 flooding in Germany. Relationship banking and higher firm capital also mitigate the effects of such negative cross-regional spillovers.
Subjects: 
natural disaster
real effects
shock transmission
bank capital
JEL: 
E24
E44
G21
G29
Document Type: 
Working Paper

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