| Description |
1 online resource (24 pages) : illustrations |
| Series |
IMF working paper ; WP/10/23 |
|
IMF working paper ; WP/10/23.
|
| Summary |
The paper investigates how changes in industries' funding costs affect total factor productivity (TFP) growth. Based on panel regressions using 31 U.S. and Canadian industries between 1991 and 2007, and using industries' dependence on external funding as an identification mechanism, we show that increases in the cost of funds have a statistically significant and economically meaningful negative impact on TFP growth. This finding cannot be explained by either increasing returns to scale or factor hoarding, as results are not sensitive to controlling for industry size and our calculations account for changes in factor utilization. Based on a stylized theoretical model, the estimates suggest that financial shocks distort the allocation of factors across firms even within an industry, reducing its TFP. The decline in productivity growth accounts for a large fraction of the negative impact of funding costs on output |
| Bibliography |
Includes bibliographical references (page 24) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
|
English |
|
Print version record |
|
digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL |
| Subject |
Business cycles
|
|
Industrial productivity.
|
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Financial crises
|
|
Business cycles
|
|
Financial crises
|
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Industrial productivity
|
| Form |
Electronic book
|
| Author |
Severo, Tiago, author.
|
|
International Monetary Fund. Western Hemisphere Department, issuing body.
|
| ISBN |
9781451918717 |
|
1451918712 |
|
1452774269 |
|
9781452774268 |
|
1462382991 |
|
9781462382996 |
|
9786612845314 |
|
6612845317 |
|
1282845314 |
|
9781282845312 |
|
1451962371 |
|
9781451962376 |
|
