Chodorow-Reich, Gabriel (2014) The collapse in bank lending in 2008-09 led directly to falling employment at nonfinancial firms. LSE American Politics and Policy (31 Mar 2014). Website.
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Abstract
Does the health of banks on Wall Street affect economic outcomes on Main Street? After the 2008-09 financial crisis, bank lending to nonfinancial firms declined significantly, with effects on employment and incomes. Drawing on data from over 2,000 firms, Gabriel Chodorow-Reich finds that credit restrictions accounted for between one-third and one-half of the employment decline at small and medium firms in the year following the Lehman bankruptcy. He also finds that the ‘stickiness’ of bank-borrower relationships meant that many firms that that had pre-crisis links with less healthy lenders suffered more than those that had relationships with healthier ones.
| Item Type: | Online resource (Website) |
|---|---|
| Official URL: | http://blogs.lse.ac.uk/usappblog/ |
| Additional Information: | © 2014 The Author |
| Divisions: | LSE |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance |
| Date Deposited: | 08 Aug 2014 13:45 |
| Last Modified: | 13 Sep 2024 19:04 |
| URI: | http://eprints.lse.ac.uk/id/eprint/58800 |
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