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The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity / John (Jianqiu) Bai, Daniel Carvalho, Gordon M. Phillips.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Bai, John (Jianqiu).
Contributor:
National Bureau of Economic Research.
Carvalho, Daniel.
Phillips, Gordon M.
Series:
Working Paper Series (National Bureau of Economic Research) no. w24081.
NBER working paper series no. w24081
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2017.
Summary:
We provide evidence that the deregulation of U.S. state banking markets leads to a significant increase in the relative employment and capital growth of local firms with higher productivity and that this effect is concentrated among young firms. Using financial data for a broad range of firms, our analysis suggests that this effect is driven by a shift in the composition of local bank credit supply towards more productive firms. We estimate that this effect translates into economically important gains in aggregate industry productivity and that changes in the allocation of labor play a central role in driving these gains.
Notes:
Print version record
November 2017.

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