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Capital Flows, Real Estate, and Local Cycles: Evidence from German Cities, Banks, and Firms / Peter Bednarek, Daniel Marcel te Kaat, Chang Ma, Alessandro Rebucci.
- Format:
- Book
- Author/Creator:
- Bednarek, Peter.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w26820.
- NBER working paper series no. w26820
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Capital Flows, Real Estate, and Local Cycles
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- We study how an aggregate bank flow shock impacts German cities' GDP growth depending on the state of their local real estate markets. Identification exploits a policy framework assigning refugees to cities on a quasi-random basis and variation in non-developable area for the construction of a measure of exposure to local real estate market tightness. We estimate that the German cities most exposed to real estate market pressure grew 2.5-5.0 percentage points more than the least exposed ones, cumulatively, during the 2009-2014 period. Bank flow shocks shift credit to firms with more collateral. More collateral also leads firms to hire and invest more in response to these shocks.
- Notes:
- Print version record
- March 2020.
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