Nishioka, Shuichiro; Okubo, Toshihiro; Tanaka, Mari - 2022
establishments substantially declined. We use a heterogeneous firm model and examine how a banking crisis intensifies the exit of … small firms. Our model predicts that a banking crisis has a heterogeneous impact on firms through their loan financing share …'s manufacturing census data and show that smaller, less productive establishments became more likely to exit during the banking crisis …