Seminar "Investment in Productivity and the Long-Run Effect of Financial Crises on Output"

Time: 13.00-14.00 hours
Location: CPB-office, Bezuidenhoutseweg 30, The Hague, room 3, Braamzaal

Presentation: Maarten de Ridder (University of Cambridge)

Discussant: tba

Language: English

Registration:  Please register here

A valid ID card is required for external visitors. Please note that the waiting time at the reception desk can last 5-10 minutes. Guests with a Rijkspas may circumvent the reception desk and directly  go to the seminar room by filling in this form in advance: InterDepartementale Toegang

Abstract subject:
This paper analyzes the channels through which  nancial crises exert long-term negative effects on output. Recent models suggest that a shortfall in productivity-enhancing investments temporarily slows technological progress, creating a gap between pre-crisis trend and actual GDP. This hypothesis is tested using a linked lender-borrower dataset on 519 U.S. corporations responsible for 54% of industrial research and development. Exploiting quasi-experimental variation in firm-level exposure to the 2008-9  nancial crisis, I show that tight credit reduced investments in productivity-enhancement, and has significantly slowed down output growth between 2010 and 2015. A partial-equilibrium aggregation exercise suggests output would be 12% higher today if productivity-enhancing investments had grown at pre-crisis rates.

CPB organises seminars for researchers. During these seminars, academic papers are presented and discussed. Seminars are held on Tuesday from 1.00 pm. to 2.00 pm.

CPB organises policy seminars for policy makers, researchers and other stakeholders. Polinars focus on policy implications. Polinars are held on Thursday from 1.00 pm. to 2.00 pm.

Unsubscribe to the alert service
When you're registered for a seminar, you will be automatically invited for coming seminars. Here you can unsubscribe to this alert service (click button "verzenden"!).