We exploit the 1998 and 2003 constitutional amendment in Texas—allowing home equity loans and lines of credit for non-housing purposes—as natural experiments to estimate the effect of easier credit access on the labor market. Using state-level as well as county-level data and the...

Can improved access to credit jump-start microenterprise growth? We examine subjects in urban Hyderabad, India, six years after microfinance–an intervention commonly believed to lower the cost of credit and spark business creation–was randomly introduced to a subset of neighborhoods. We find...

This paper studies the investor's investment decision in a standard financial contracting model with contractual constraints. The investor chooses between entrepreneurs with heterogeneous production technologies who generate different probability distributions of cash flow under effort. I...

We use Texas's constitutional amendment in 1997 that expanded the scope of home equity loans as a source of exogenous variation to estimate the effects of relaxing credit constraints on small businesses. We find, using standard panel data methods and restricted-use micro-data from the US Census...

This paper studies exporting and innovative firms investment sensitivity to days receivable outstanding, days payable outstanding, and cash flow which are found to be financial factors determining financing constraints. We also advance and test the idea that export intensity and innovation...

Existing research shows that privately held firms face significant financial constraints that limit their investment and growth. In this study, we show privately held firms' financial constraints also create a negative spillover on publicly listed firms due to the prevalent ownership of...

This paper aims at investigating the relationship between firms' profit efficiency, access to finance and innovation activities. We enrich our understanding on firms' performance by adopting the stochastic frontier approach (SFA), which allows us to estimate profit functions and to obtain...

This paper studies the welfare of time-inconsistent, partially sophisticated agents living under two different regimes, one with complete, unfettered credit markets (CM) and the other with endogenous borrowing constraints (EBC) where the borrowing limits are set to make agents indifferent...

Contrary to a well-established view, public debt expansions may tighten the household borrowing constraint over time. Within an incomplete-markets model featuring an endogenous borrowing limit, we show that plausible debt-financed fiscal policies generate such tightening through an increase in...

This study empirically examined macroeconomic conditions and financially constraints firms' finance decisions in Nigeria from 1991-2018. The objectives were to find out how selected macroeconomic variables such as fluctuations in exchange rate, inflation rate, lending rate and credit to the...