Search Results - subject:"Liquidity constraints"

Financial Constraints and Propagation of Shocks in Production Networks

Demir, Banu; Javorcik, Beata K. Smarzynska; Michalski, … - 2021

This study finds that even small unexpected supply shocks propagate downstream through production networks and are amplified by firms with short-term financial constraints. The unexpected 2011 increase in the tax on imports purchased with foreign-sourced trade credit is examined using data...

Persistent link: https://www.econbiz.de/10013315210

Borrowing Constraints, Own Labour and Homeownership : Does it Pay to Paint Your Walls?

Lindner, Peter; Mathä, Thomas; Pulina, Giuseppe; … - 2021

Using a dedicated set of questions in the 2014 Luxembourg Household Finance and Consumption Survey (LU-HFCS), we show that a substantial share of households contributes their own labour to the acquisition of their main residence. These contributions help households faced with credit constraints,...

Persistent link: https://www.econbiz.de/10013315282

Financial Constraints and Moral Hazard : The Case of Franchising

Fan, Ying; Kuhn, Kai-Uwe; Lafontaine, Francine - 2021

Financial constraints are an important impediment to the growth of small businesses. We study theoretically and empirically how the financial constraints of agents affect their decisions to exert effort, and, hence the organizational decisions and growth of principals, in the context of...

Persistent link: https://www.econbiz.de/10013315688

Credit Constraints, Quality, and Export Prices : Theory and Evidence from China

Fan, Haichao; Lai, Edwin L.-C.; Li, Yao - 2021

This paper examines the relationship between the credit constraints faced by a firm and the unit value prices of its exports. The paper modifies Arkolakis’s (2010) model of trade with heterogeneous firms by introducing endogenous quality and credit constraints. The model predicts that tighter...

Persistent link: https://www.econbiz.de/10013315727

Financing Conditions, the Concept of Innovation Capacity and the Innovative Activity of Firms

Paula, Georg - 2021

In this paper a novel survey dataset allows us to use a direct measure for credit constraints as well as a direct measure for the innovative activity of a firm to identify the effects of credit constraints on the innovation behaviour of firms. Furthermore, the design of the survey questions and...

Persistent link: https://www.econbiz.de/10013316111

Up or Down? Capital Income Taxation in the United States and the United Kingdom

Polito, Vito - 2021

Empirical evidence suggests that the Effective Marginal Tax Rate (EMTR) on income from capital has increased considerably in both the United States and the United Kingdom over the period 1982-2005. This evidence contradicts the corporate tax literature which predicts that the EMTR should instead...

Persistent link: https://www.econbiz.de/10013316126

What Do We Really Know About Fiscal Sustainability in the EU? A Panel Data Diagnostic

Afonso, António; Rault, Christophe - 2021

We assess the sustainability of public finances in the EU15 using stationarity and cointegration analysis. Specifically, we use panel unit root tests of the first and second generation allowing in some cases for structural breaks. We also apply modern panel cointegration techniques developed by...

Persistent link: https://www.econbiz.de/10013316576

Entrepreneurship, Wealth, Liquidity Constraints and Start-Up Costs

Fonseca, Raquel; Michaud, Pierre-Carl; Sopraseuth, Thepthida - 2021

We study the effects of liquidity constraints and start-up costs on the relationship between wealth and the fraction of …. The model predicts that, with liquidity constraints, the probability of entering entrepreneurship is an increasing … predictions can be tested on cross-sectional data with exogenous variation in liquidity constraints (e.g. access to credit) and …

Persistent link: https://www.econbiz.de/10013316960

Trade Credit Defaults and Liquidity Provision by Firms

Boissay, Frédéric; Gropp, Reint - 2021

Using a unique data set on trade credit defaults among French firms, we investigate whether and how trade credit is used to relax financial constraints. We show that firms that face idiosyncratic liquidity shocks are more likely to default on trade credit, especially when the shocks are...

Persistent link: https://www.econbiz.de/10013317095

The Role of Marriage in Immigrants' Human Capital Investment Under Liquidity Constraints

Kahana, Nava; Cohen-Goldner, Sarit; Gotlibovski, Chemi - 2021

liquidity constraints, which explains alternative patterns in the host country's labor market. These patterns are also compared …

Persistent link: https://www.econbiz.de/10013317437