Borrow it
Coverart for item
The Resource Shocks, financial dependence, and efficiency : evidence from U.S. and Canadian industries, Marcello Estevão and Tiago Severo

Shocks, financial dependence, and efficiency : evidence from U.S. and Canadian industries, Marcello Estevão and Tiago Severo

Creator
Author
Contributor
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 effect is, however, non-monotonic across sectors with different degrees of dependence on external finance. Our findings 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. The paper presents a theoretical model that produces the observed non-monotonic effect of financial shocks on TFP growth and suggests that financial shocks distort the allocation of factors across firms even within an industry, thus reducing TFP growth
Language
eng
Work
Publication
Extent
1 online resource (41 pages)
Note
  • At head of title: Western Hemisphere Department
  • Title from PDF title page (IMF Web site, viewed September 13, 2011)
Contents
  • Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Theory; A.A Model Relating TFP and Financial Shocks; B. Creative Destruction and the "Cleansing" Effect; III. Empirical Strategy; A. Dependence on External Finance; B. Measuring Sectoral TFP Growth; C. The Cost of Funds; IV. Estimation Results; A. Baseline Regressions; B. Robustness Checks; V. Changes in the Cost of Equity and TFP Growth; A. Measuring the Cost of Equity; B. Empirical Results; VI. Discussion; VII. Conclusion; A. Tables; B. Figures; C. Proofs of Propositions; D. Calibration; References; Footnotes
Isbn
9781463900540
Instance
Label
Shocks, financial dependence, and efficiency : evidence from U.S. and Canadian industries
Title
Shocks, financial dependence, and efficiency
Title remainder
evidence from U.S. and Canadian industries
Statement of responsibility
Marcello Estevão and Tiago Severo
Creator
Contributor
Author
Issuing body
Subject
Genre
Language
eng
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 effect is, however, non-monotonic across sectors with different degrees of dependence on external finance. Our findings 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. The paper presents a theoretical model that produces the observed non-monotonic effect of financial shocks on TFP growth and suggests that financial shocks distort the allocation of factors across firms even within an industry, thus reducing TFP growth
Member of
Cataloging source
DJB
http://bibfra.me/vocab/lite/collectionName
IMF eLibrary
http://library.link/vocab/creatorName
Estevão, Marcello M
Government publication
international or intergovernmental publication
Index
no index present
Language note
English
LC call number
  • HC110.I52
  • HG3881.5.I58
LC item number
  • E88 2011 ONLINE
  • W67 No. 11/199 ONLINE
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
  • Severo, Tiago
  • International Monetary Fund
Series statement
IMF Working Paper
Series volume
WP/11/199
http://library.link/vocab/subjectName
  • Business cycles
  • Industrial productivity
  • Business cycles
  • Industrial productivity
  • Business cycles
  • Industrial productivity
  • Canada
  • United States
Label
Shocks, financial dependence, and efficiency : evidence from U.S. and Canadian industries, Marcello Estevão and Tiago Severo
Instantiates
Publication
Copyright
Note
  • At head of title: Western Hemisphere Department
  • Title from PDF title page (IMF Web site, viewed September 13, 2011)
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Theory; A.A Model Relating TFP and Financial Shocks; B. Creative Destruction and the "Cleansing" Effect; III. Empirical Strategy; A. Dependence on External Finance; B. Measuring Sectoral TFP Growth; C. The Cost of Funds; IV. Estimation Results; A. Baseline Regressions; B. Robustness Checks; V. Changes in the Cost of Equity and TFP Growth; A. Measuring the Cost of Equity; B. Empirical Results; VI. Discussion; VII. Conclusion; A. Tables; B. Figures; C. Proofs of Propositions; D. Calibration; References; Footnotes
Control code
752302676
Extent
1 online resource (41 pages)
Form of item
online
Isbn
9781463900540
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
  • imfWPIEA2011199
  • (IMF)WPIEA2011199
  • (OCoLC)752302676
Label
Shocks, financial dependence, and efficiency : evidence from U.S. and Canadian industries, Marcello Estevão and Tiago Severo
Publication
Copyright
Note
  • At head of title: Western Hemisphere Department
  • Title from PDF title page (IMF Web site, viewed September 13, 2011)
Bibliography note
Includes bibliographical references
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Theory; A.A Model Relating TFP and Financial Shocks; B. Creative Destruction and the "Cleansing" Effect; III. Empirical Strategy; A. Dependence on External Finance; B. Measuring Sectoral TFP Growth; C. The Cost of Funds; IV. Estimation Results; A. Baseline Regressions; B. Robustness Checks; V. Changes in the Cost of Equity and TFP Growth; A. Measuring the Cost of Equity; B. Empirical Results; VI. Discussion; VII. Conclusion; A. Tables; B. Figures; C. Proofs of Propositions; D. Calibration; References; Footnotes
Control code
752302676
Extent
1 online resource (41 pages)
Form of item
online
Isbn
9781463900540
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
  • imfWPIEA2011199
  • (IMF)WPIEA2011199
  • (OCoLC)752302676

Subject

Genre

Member of

Library Locations

    • Pardee Legal Research CenterBorrow it
      5998 Alcalá Park, San Diego, CA, 92110-2492, US
      32.771471 -117.187496

Library Links

Structured data from the Bibframe namespace is licensed under the Creative Commons Attribution 4.0 International License by University of San Diego Libraries. Additional terms may apply to data associated with third party namespaces.
Processing Feedback ...