Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/278394 
Autor:innen: 
Erscheinungsjahr: 
2023
Schriftenreihe/Nr.: 
ECONtribute Discussion Paper No. 218
Verlag: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Zusammenfassung: 
In a panel of OECD and emerging economies, I find that recessions are associated with larger initial drops in investment and more persistent drops in output if they occur simultaneously with banking crises. Furthermore, the banking crises that are followed by more persistent output slumps are associated with particularly large initial drops in investment. I show that these patterns can arise in a model where a financial shock temporarily increases the costs of external finance for investing entrepreneurs. This leads to a drop in investment and a very persistent slump in output and employment, provided wages are sufficiently rigid. Critical to the model is the distinction between different types of capital with different depreciation rates. Intangible capital and equipment have high depreciation rates, leading these stocks to drop substantially when investment falls after a financial shock. I find that this mechanism can account for almost a third of the persistent drop in output and employment in the US Great Recession (2007-2014).
Schlagwörter: 
Financial Shocks
Great Recession
Persistent Slumps
Intangible Capital
JEL: 
E22
E32
E44
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
757.85 kB





Publikationen in EconStor sind urheberrechtlich geschützt.