Bankruptcy and cross-country differences in productivity
dc.contributor.author | Neira, J | |
dc.date.accessioned | 2019-10-08T13:22:43Z | |
dc.date.issued | 2017-07-14 | |
dc.description.abstract | For a sample of OECD countries, I document a systematic positive relationship between (i) aggregate productivity, (ii) the employment share by large firms and (iii) the proportion of large firms in the economy. I propose that differences in bankruptcy procedures can explain this relationship. In a model of financial intermediation and informational frictions, I show that as bankruptcy procedures worsen—measured by the amount a lender can recover from bankrupt borrowers—lenders respond by (i) shifting their portfolio of loans to smaller (less productive) firms and (ii) lending less. This finding is supported by empirical evidence: across countries, efficient bankruptcy procedures are associated with a higher proportion of new bank loans allocated to large firms. In the model, moving the level of recovery rate from the U.S. level to that of the lowest recovery rate country in the OECD sample reduces TFP by around 30 percent. | en_GB |
dc.identifier.citation | Vol. 157, pp. 359 - 381 | en_GB |
dc.identifier.doi | 10.1016/j.jebo.2017.07.011 | |
dc.identifier.uri | http://hdl.handle.net/10871/39098 | |
dc.language.iso | en | en_GB |
dc.publisher | Elsevier | en_GB |
dc.rights | © 2017. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/ | en_GB |
dc.subject | Aggregate productivity | en_GB |
dc.subject | Bankruptcy | en_GB |
dc.subject | Financial frictions | en_GB |
dc.subject | Misallocation | en_GB |
dc.subject | Small firms | en_GB |
dc.subject | Employment shares | en_GB |
dc.title | Bankruptcy and cross-country differences in productivity | en_GB |
dc.type | Article | en_GB |
dc.date.available | 2019-10-08T13:22:43Z | |
dc.identifier.issn | 0167-2681 | |
dc.description | This is the author accepted manuscript. The final version is available from Elsevier via the DOI in this record | en_GB |
dc.identifier.journal | Journal of Economic Behavior and Organization | en_GB |
dc.rights.uri | https://creativecommons.org/licenses/by-nc-nd/4.0/ | en_GB |
dcterms.dateAccepted | 2017-07-10 | |
rioxxterms.version | AM | en_GB |
rioxxterms.licenseref.startdate | 2017-07-10 | |
rioxxterms.type | Journal Article/Review | en_GB |
refterms.dateFCD | 2019-10-08T13:20:35Z | |
refterms.versionFCD | AM | |
refterms.dateFOA | 2019-10-08T13:22:47Z | |
refterms.panel | C | en_GB |
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Except where otherwise noted, this item's licence is described as © 2017. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/