Seminar Series

2024 - 2025

Speaker: Reint Gropp (IWH, Otto von Guericke University Magdeburg).

Title: “Productivity effects of financial frictions: Evidence from a quasi-natural experiment ”.

joint with Alexander Reifschneider

Date: Thursday, 10 October at 11h00 (Paris Time).

Abstract:. This paper provides novel evidence on the productivity effects of financial frictions. Based on a simple extension of the Melitz (2003) model we show empirically that only financial frictions that affect firms heterogeneously produce significant productivity losses on aggregate, while financial frictions that affect firms similarly do not affect aggregate productivity. We show that all financial frictions produce an inefficient allocation of resources, but homogeneous frictions allow highly productive and financially unconstrained exporters to expand, which mitigates the productivity losses, while heterogeneous frictions do not. For identification, we use changes in regulations to off-balance sheet items under Basel III and a novel dataset on German export credit guarantees to establish causality. 

Here is a link to the speaker’s and the FEELab website:

https://www.iwh-halle.de/en/about-the-iwh/team/detail/reint-e-gropp

https://sites.google.com/view/feelabtbs/

You are cordially invited to participate in the following seminar of the FEELab, which will take place in Room 321, Lascrosses building.

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr