scholarly journals Do Credit Market Shocks Affect the Real Economy? Quasi-Experimental Evidence from the Great Recession and 'Normal' Economic Times

2012 ◽  
Author(s):  
Michael Greenstone ◽  
Alexandre Mas
Keyword(s):  
Experimental Evidence ◽  
Great Recession ◽  
Credit Market ◽  
Real Economy ◽  
The Real ◽  
The Great Recession ◽  
Quasi Experimental ◽  
Market Shocks

scholarly journals Do Credit Market Shocks Affect the Real Economy? Quasi-experimental Evidence from the Great Recession and “Normal” Economic Times

2020 ◽  
Vol 12 (1) ◽  
pp. 200-225 ◽  
Author(s):  
Michael Greenstone ◽  
Alexandre Mas ◽  
Hoai-Luu Nguyen
Keyword(s):  
Small Business ◽  
Great Recession ◽  
Bank Lending ◽  
County Level ◽  
Real Economy ◽  
The Great Recession ◽  
Market Shares ◽  
Business Loan ◽  
Quasi Experimental ◽  
Market Shocks

Using comprehensive data on bank lending and establishment-level outcomes from 1997–2010, this paper finds that small business lending is an unimportant determinant of small business and overall economic activity. A shift-share style research design is implemented to predict county-level lending shocks using variation in preexisting bank market shares and bank supply shifts. Counties with negative predicted lending shocks experienced declines in small business loan originations, indicating that it is costly to switch lenders. However, small business loan originations have an economically insignificant and generally statistically insignificant impact on both small firm and overall employment during the Great Recession and normal times. (JEL E32, E44, E52, G21, G32, L25)

Do credit market shocks affect the real economy? vector fault modification model (VFMM) from the great recession and “Normal” economic times

2021 ◽  
pp. 1-10
Author(s):  
Feng Yuan ◽  
Hui Zhan ◽  
Vicente García Díaz ◽  
Ashish Kr. Luhach
Keyword(s):  
Economic Growth ◽  
Credit Markets ◽  
Credit Market ◽  
Paper Analysis ◽  
Fault Classification ◽  
Real Economy ◽  
Economic Activities ◽  
The Great Recession ◽  
Normal Period ◽  
Market Shocks

The Credit markets are served as intermediation between the lenders and borrowers. Huge economic activities are invested and obtain results over a small period of such credit market activities. Since it is good at the production of investments, there is a sudden fluctuation in the economic growth due to weak contracts with the borrower, less ability to monitor the invested amount, no credentials on further investment. The above issues gradually decrease economic growth. This research analyses the linkage between the credit market issues and a country’s economic growth during the recession and normal period. A Vector Fault Modification Model (VFMM) is proposed for the analysis. This model investigates the credit markets’ short-term and long-term investments using the fault classification and prediction criteria. The error coefficients (10.5%) are validated based on economic growth and further correlated with the credit markets’ accuracy rate (92.4%). This paper analysis the positive and high impact of economic growth based on credit market strategies.

scholarly journals Liquidity Squeeze on SMEs during the Great Recession in Europe

2018 ◽  
Author(s):  
Fabrizio Coricelli ◽  
Marco Frigerio
Keyword(s):  
Adverse Effects ◽  
Great Recession ◽  
Bargaining Power ◽  
Trade Credit ◽  
Bank Loans ◽  
The Real ◽  
The Great Recession ◽  
Real Performance ◽  
European Economies

We find that European SMEs significantly increased their net trade credit to sales ratio during the Great Recession. For the aggregate of SMEs, trade credit did not provide any buffer to the contraction in bank loans. In fact, through increased net trade credit, SMEs suffered a squeeze in their liquidity and this phenomenon reflects the weak bargaining power of SMEs in their trade credit relationship with larger firms. Therefore, increased net trade credit by SMEs does not reflect an efficient reallocation of credit, and it calls for policy actions. These policy actions are highly relevant, given that the liquidity squeeze had significant adverse effects on the real performance of SMEs, contributing to the recession and to the subsequent timid recovery of European economies. We explore various policies that could be implemented to relieve SMEs from the liquidity squeeze induced by the increase in their receivables.

Appropriating the Comanche: Hell or High Water and the New Southwest

2020 ◽  
Vol 68 (1) ◽  
pp. 79-92
Author(s):  
Douglas E. Green
Keyword(s):  
American Indian ◽  
Real World ◽  
Great Recession ◽  
Mexican American ◽  
High Water ◽  
First Century ◽  
The Other ◽  
The Real ◽  
The Great Recession ◽  
Old West

AbstractHell or High Water (2016) takes the elegiac mode – the wistful lament for the myth of the Old West – and recasts it as a raucous country song on the dismantling of that myth by twenty-first-century capitalism. In the wake of the Great Recession, director David Mackenzie and screenwriter Taylor Sheridan pair off two iconic sets of Western characters: a couple of down-and-out bank-robbing brothers shadowed by an old, White Texas Ranger and his American-Indian/Mexican-American deputy. The values of the lawmen and the outlaw brothers are not mutually exclusive – each pair shares more with the other than with the new materialistic order around them. The overarching metaphor for men who repeatedly confront the socioeconomic forces pitted against their values is the Comanche, to which several characters lay claim. Hell or High Water gives us both a lament for the myth of the Old West and a tart critique of the film Western and of the real-world exploitation of the region, its people, and the American dream they cling to.

“Return” of the State: “First Aid” during Crisis or Steady Trend?

2010 ◽  
pp. 18-31
Author(s):  
M. Klinova
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Financial Services ◽  
First Aid ◽  
The State ◽  
Real Economy ◽  
State Control ◽  
Anglo Saxon ◽  
The Great Recession ◽  
The World

The author analyses the rise of State control in the economy due to the world financial crisis and the "Great Recession" of 2008–2009. Anti-crisis measures are being studied both at supranational and national levels. There are two main models of stimulus packages – Anglo-Saxon and Continental depending on the spheres where the State concentrates its efforts. The first model targets primarily financial services, the second one focuses mainly on real economy. Apparently, the compromise between these two trends seems to be inevitable.

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